Found out one of my buddies is buying a house in East Van.

He's got an accepted offer at $720K. Not a bad looking house.

12 years old w/ a basement suite.

Kinda funny though. It took him more time to research and purchase his car last year than making the house purchase.

He figures he'll rent out the basement for $900 and after 25 years of massive mortgage payments, he'll own the house.

I'm not sure how this is different than renting a main floor suite for $1500 and investing the down payment plus the monthly payment savings.

Over 25 years, that can add up to a lot. And you don't have to deal with landlording and upkeep.

For THREE QUARTERS OF A MILLION DOLLARS it better be 'Not a bad looking house'. Phew.

I rent a house on the east side for $1300 and the rundown place across the street was purchased just over a year ago for close to a million. I hope these people aren't looking at what their money would buy in other cities, because that would be depressing.

For me I'm happy to tuck away the extra grand a month. If the local market ever become reasonable I'll be in good shape to buy.

Don't know that I'd ever want to buy in Vancouver though, for me this city has lost a lot of its charm over the last 5 years.

The signs of recovery everyone is talking about may actually be good for the real estate market. Increased economic activity tends to lead to increasing interest rates. When the idiots who bought RE during the last year find their mortgage payments triple, it will be interesting to see.

According to the article that was linked Canada, uk first out of recession. Sorry to burts their bubble but the UK is on the verge of having their credit being downgraded due to an unmanageable public debt. The article states the US and Japan will have problems for a decade. But does not clarify what will make things different here. Either the analyst at Goldmas Sachs is an idiot or the reporter who wrote this misquoted him.

Niko: "may actually be good for the real estate market."

Good for sellers (price up) or good for buyers (price down)?

Looking at interest rates it looks like inflation is pretty much completely absent, except when it comes to food. I know my grocery bill has increased dramatically in the last couple of years, but that's not enough to drive interest rates higher, particularly when we're seeing deflation in all sorts of large assetts (ie houses).

#8

Yes, grocery have gone up. But I fight back, I changed my eating habits, know how to cook, never eat out, always pack my water and some "just in case snack".

I clean out my fridge every week, cook for a few days (I call it "fast food") I make my own "bars"(aka cookies), I cook from scratch, I buy certain items from certain stores.

There are very few items (including condiments) that one needs to buy processed.

When prices go up and my income does not, I bring out the armour and strategic thinking.

Does it relate to this blog? I think so.

(ps..gas is up, and my bike is out)

Peter:

#8 P, woops a sober slip if the tongue on inflation

http://www.bloomberg.com/apps/news?pid=washington…

I call it like it is. Some of the news was negative this week and was worth linking to. But, there have also been a lot of positive reports lately suggesting an economic bottom is forming and that a recovery isn't far off.

I had a mild bear flu late last summer / fall. But, this magnificant spring weather has certainly cleared up that affliction. 🙂

The Construction and spin off industries (realtors, lawyers, notaries, tradesman, mortgage brokers) have been insulated a bit more than the rest of the world so far.

Now that TV Towers and the Donovan are completing there go another 500 jobs and in comes 1,000 more rental units.

Now the "investor" must be faced with the prospect of losing thousands every month or sucking it up and losing $100k per unit.

Geez, no one on this board ever saw this coming.

And Dave you are more wrong than ever.

The big picture ain't pretty say expert ( a real expert not a 'rennie ad)

http://www.europac.net/externalframeset.asp?id=16…

I cannot see any future scenario where the multiple will not fall at least as far as 150.

explains why you are a middle aged man living in a basement suite.

As I've stated many times before I rent a nice place on Van West for $6,500/month … I just received a 5% increase notice from my landlord – Hah!

I talked to one of the top high end property mngmt people in the city – a friend who found me this place – and he says not only should I not pay it but I should point out that prices for rentals are down 15% in the city (his word's, not mine). He said I should demand a reduction … I had only asked because I wanted to find out what a landlord was legally allowed to raise our rent (3.9% by the way).

I only bring this up b/c some bull's on this blog say that rents will only go up or are stable.

6500? Holy shit, almost hits Patriotz' 150 multiple. Must be nice place, might not be that easy to replace and/or hassle with the family.

#17

Rent is down.

West End apartments are $800 again (were up to $1200).

Check Prompton, new 630 sq ft places are going for $1400.

This puts anything older down.

Westside houses, for $6,500 you must be in a brand new 3,000+ sq ft home west of Dunbar or a 4,500 sq ft updated house in Shaughenessy.

Is it furnished for $6,500?

West End apartments are $800 again (were up to $1200).

No, not true.

You don't actually think I would be able to spend that kind of money on accommodation and use someone else's furniture?!?

6500 at 3.85% for five year 25yr amort = about 1.2mm mortgage – easily 1000/month in upkeep and 600 taxes add insurance maintenance on grounds and pool (yes pool)

Really I pay about 4500 month or 868k mortgage

STILL about 50% of cost and WHEN I get the rent reduction even less.

I understand it's a lot but I've owned several places in the past and you get used to what you like and a family with certain expectations.

Or how about a luxury mansion in Anmore? Not ever finished and they are trying to rent it out? Now why would that be, hm?

http://vancouver.en.craigslist.ca/apa/1169064317….

Too bad its west of granville …

Ulsterman:

#24 U, sorry I missed that one ( not) , BR is such a freakin douchebag. But you're dead right about CKNW and the Corus network, effing slime on a stick.

I'm liking the PR campaign that the MSM stations are all running right now about how they should be allowed to raise proces to ensure 'local, 'quality' programming and fight off those nasty cable companys. It's a big line of BS to try to build up polling numbers to try to get the CRTC to roll over for their lobby and screw the consumer.

maybe instead they could ask Pamela Martin to spend a little less on warpaint and hairspray.