Comments on: Friday Free for All!

By: “Anyone have relatives in Alberta that want a downtown condo?” « Vancouver Real Estate Anecdote Archive

Tue, 29 Apr 2008 17:38:14 +0000

[...] the links at RE Talks, condohype, vancouvercondoinfo & the Sun itself for this [...]

Current score: 0 (to vote for this comment, please visit the site)

By: disbelief

disbelief — Mon, 28 Apr 2008 16:00:10 +0000

arrrrr

Current score: 0 (to vote for this comment, please visit the site)

By: beatstreet

beatstreet — Mon, 28 Apr 2008 10:00:05 +0000

It seems average sale price continues to fall along with list. Rob Chipman just posted the latest numbers. Granted, average sales depends on the sales mix, and the benchmark data will hopefully be out later this week for April to get a better read on things. I used his Feb 23 numbers to see the change over two months: EndDate Feb-23 Apr-26 ListPri 577,303 534,726 -7.4% AvSales 567,296 525,618 -7.3%

Current score: 0 (to vote for this comment, please visit the site)

By: On media, myths and realities « condohype

On media, myths and realities « condohype — Mon, 28 Apr 2008 04:43:11 +0000

[...] in the market. Already, the local blogosphere is buzzing with reaction. Over at the lively Vancouver Condo blog, some commenters were so furious they demanded the article be attributed as a paid [...]

Current score: 0 (to vote for this comment, please visit the site)

By: homerstreet

homerstreet — Mon, 28 Apr 2008 03:35:39 +0000

"That’s a multiple of 80 times rent" -- not really!? 4 * $900 * 12 = $43,200 rent per year $290,000 / $43,200 = 6.71 Gross Rent Multiplier That is a good deal, one I have never seen before. Downtown Vancouvers GRM is round about 19.

Current score: 0 (to vote for this comment, please visit the site)

By: patriotz

patriotz — Mon, 28 Apr 2008 03:07:15 +0000

..if the building has four units renting for $900 a month each, expenses that eat up 50% of your gross income, and a cap rate of 7.5%, you can quickly calculate that you should pay about $290,000 for the building, tops That's a multiple of 80 times rent, and the bulls think you're nuts to suggest it might go down to 100. Also a four-plex has better fundamentals than a condo (no management ripoff, more land value) so the condo would need to have a lower multiple for the same total return.

Current score: 0 (to vote for this comment, please visit the site)

By: blueskies

blueskies — Sun, 27 Apr 2008 20:23:13 +0000

can't happen here! http://tinyurl.com/3qumq5 unh unh! nah! no way! never!

Current score: 0 (to vote for this comment, please visit the site)

By: digi

digi — Sun, 27 Apr 2008 19:54:03 +0000

This months issue of 'moneysense' magazine is all about real estate as well. There are some interesting articles in there - the one about how to get rich on real estate goes over cap rates and touches on the issue of rental income and maintenance costs. For anyone in Vancouver the numbers on what it takes to make an investment worthwhile is mindblowing:

..if the building has four units renting for $900 a month each, expenses that eat up 50% of your gross income, and a cap rate of 7.5%, you can quickly calculate that you should pay about $290,000 for the building, tops. If you pay more, it's probably not a good long-term investment. We know what you're thinking: "Where on earth am I going to find a four-plex that's going for less than $300,000?" Certainly not in Vancouver, where the average detached house is now selling for north of half a million. Probably not in Toronto, Calgary or Edmonton either. But that doesn't mean the calculations are wrong, What it means is that now may not be a great time to buy. Your annual return is essentially the spread between market rent and the cost of buying and owning a property. In many cities, property prices have been climbing by as much as 10% a year. Rents have been edging up far less. Thus, the rising prices have squeezed the profit potential right out of buildings.

Current score: 0 (to vote for this comment, please visit the site)

By: Patiently Waiting

Patiently Waiting — Sun, 27 Apr 2008 19:37:19 +0000

Yeah, I really meant potential buyers. You're right, there are no deals right now or for the next couple years. Anyone here have any good information on the Mosiac townhouse developers? They are building a new project in Coquitlam apparently on spec. I drove by it and the completed pretty on the surface, but the half-built ones seemed like the typical crappy materials.

Current score: 0 (to vote for this comment, please visit the site)

By: patriotz

patriotz — Sun, 27 Apr 2008 18:20:20 +0000

They must think buyers are idiots. Well OK, some are. No, all are. The smart money isn't buying.

Current score: 0 (to vote for this comment, please visit the site)