Buy a house, get a free car.
The REBGV stats for June 2010 are now available. If a month ago was a good time to buy some Vancouver real estate, than right now is an even gooderer time! If you were shopping for the benchmark home a month ago, you can now buy that same house and get a FREE CAR with it! Best Place on Meth pointed out some of the more dramatic drops and we’ve put together this handy guide for suggested cars you can get with the price difference.
The overall REBGV benchmark price for all housing in all areas is down just over 1 percent which is a little over $10k. You’re not going to get a brand new car for that much, but you could get this sweeeet 1992 Toyota Supra replete with go-fast fin and still have enough left over for a great little road trip:
The big drop for the month was in the benchmark house price on the west side. You’re not going to want to drive that supra up to your west side bungalow, but with about $90k extra to spend you can arrive in style with this 2005 Aston Martin DB9:
The dramatic percentage drop prize goes to West Vancouver Apartments, where the one month drop saw a loss of $77,664 or 11.5%! Go pick yourself up an apartment and a 2007 Maserati:
Crashcow pointed out that there’s even more drama in the West Van Apartment benchmark if you go back another month to the April Peak.
RSS 2.0 comments feed. You can skip to the end and leave a response. Pinging is currently not allowed.
September 10th, 2010 at 3:05 pm
I think I’ve got an even better rent deal that most of the posts I’ve seen on here.
It’s in New West, but in the Queen’s park area (super nice and close to all amenities and skytrain.) Also is 1 bed but at least 700sqft.
$750 a month,
includes heat, hot water and full cable
July 7th, 2010 at 9:21 am
@CashedOut:
Forgot to address your high rent question.
Compare rents in Vancouver to Toronto or Calgary.
High end condo like Waterfront in Eau Claire (Calgary) is 2850 for 915sf.
You can get into Shangri-La 1100sf for 2850.
Yes, living in downtown is expensive everywhere.
Think 2850 is a lot to pay for rent? That is cheap.
Consider mortgage payment would be easy 4600.
Amateur condo landwads don’t know how to calculate their ROI.
They don’t factor in holding costs, property taxes, or strata.
Everything is dependent on finding that sucker buyer.
Yet they wont be able to handle the worse case scenario.
Which is holding the darn condo for 35yrs while losing over 2000
a month during that time.
Rents are dependent on local incomes.
They are not guaranteed to rise over time.
But you can be assured that taxes, interest rates, and strata fees will.
If you make less than 70K, you should not be in downtown.
My advice to lower income earners, find a nice basement
suite near transit. They don’t have the same appeal as
an apartment, but your dollar will go far.
And there are many newer or newly renovated suites for
rent at reasonable prices all over the city.
July 7th, 2010 at 8:32 am
@CashedOut:
Rent $1350, 2 bed, 2 bath 977 sq feet
6 year old building
market value est $400k
July 7th, 2010 at 8:21 am
@CashedOut:
Sure, my numbers
2550 rent. Mkt value 1.25M
Renting gives you huge intangibles.
Mobility is the biggest one.
I hate fixing things. Once the condo I’m in hits 5yrs or more
its time to move. Ya call me a leech.
Hey I didn’t set this system up.
July 7th, 2010 at 8:15 am
Well bear now that Canadian in running for podium finish in TDF real estate market about to take off like Contador after cobble stone crash. Bear will be lying on side of road in pain like Frank Schleck after market double in next 3 year. Just like TDF you never know what can happen. Ryder Hesjedal was domestic for Vandevelde two days ago bear and now maybe podium in paris.
July 7th, 2010 at 7:47 am
Royal Le Crap article soft sells the obvious.
http://www.vancouversun.com/bu.....story.html
July 7th, 2010 at 2:48 am
@Man does registering screw things up:
“Can be viewed evenings weekdays or weekends during the day. ”
Can also be seen if you shade your eyes and squint really hard.
July 7th, 2010 at 12:31 am
Man this it too funny;
http://vancouver.en.craigslist.....69068.html
Yeah, I’ll live in your tool shed and pay you too!!
Can I bring my kitties?
http://www.youtube.com/watch?v=j-_34Uflm5Q
July 7th, 2010 at 12:11 am
Also to compute price to rent I think you should subtract the strata fee from the rent, to show what you would actually save by buying. For me it is something like $150/mo, and the places sell to lunatics for 180-200k, so the ratio is 225-250x. Not that I would buy the place.
July 7th, 2010 at 12:04 am
Abbotsford, $950 for 950 sqft includes heat.
July 6th, 2010 at 11:16 pm
@CashedOut:
Westend 1 Bedroom $1035 700sqft.
I would guess $350-400K for an equivalent building in the area.
Don’t forget the maintenance fees.
July 6th, 2010 at 10:30 pm
I’m almost starting to think that this JUNIUS thing is some sort of split personality thing, a ‘Carrie’ thing, a typical day on the downtown eastside.
But then again, there could be two Junius’ and for that I apologize. Handle jacking is as bad as driving up the shoulder and cutting in.
July 6th, 2010 at 10:30 pm
@Bilbo Bloggins: Do you really feel like you’re saving so much money renting? Vancouver is still a damn expensive place to rent, granted at about 50% the cost of owning.
I don’t feel like we are banking so much cash… and at 50% the cost of owning I can’t figure out how the home-debtors are even meeting expenses on a monthly basis!
I’m just wondering though, what are ppl actually paying to rent and how what do you figure the market price of your rental is? I’ll go first: Area and approx square footage would be interesting too…
Yaletown, 1200 sf, $2400 /month, est Mkt Price, $800k.
July 6th, 2010 at 10:23 pm
@Mike:
Thoust r right. I only bring up the brand new SUV comment as a comment on how liquid and better off I am currently renting.
Will likely lease (I have a business to write the expense off) or look at a used vehicle from the States.
July 6th, 2010 at 10:20 pm
63 anonymous Says:
July 6th, 2010 at 7:03 pm
Mish has something to say about the housing market in Canada:
http://globaleconomicanalysis.blogspot.com/
+++++++++++++++
I saw Garth holding Mish in a headlock, extreemly pissed for nary an attempt to paraphrase.
July 6th, 2010 at 9:50 pm
vreaa
you tell him, and thanks!
he’s been tailing me around for weeks
junius
July 6th, 2010 at 9:25 pm
Registering for a user account on this site will prevent other people from posting under your user name.
July 6th, 2010 at 9:23 pm
@specuskeptic: Thanks for the CBC-clip link.
Love the flipper story. “He’s invested in two other houses.”
Yes, of course, pyramiding.
Clearly the whole house of cards has to collapse for most people to actually get it.
July 6th, 2010 at 9:00 pm
@specuskeptic: love it with the vuvezela. how come it reminds me of the sounds of mosquitos on a beautiful Northern Ontario morning? http://www.soundboard.com/sb/Mosquito_sounds.aspx
hmmm – Mosquito animal spirit invading the market – could be an interesting time for flipping RE agents.
July 6th, 2010 at 8:39 pm
ho hum Pops.
Your call on the Vancouver housing market has been dead wrong since day one.
Go borrow your brains out and leverage up your winnings.
junius
July 6th, 2010 at 8:37 pm
junius junior
You have a lot to learn. I’m the alpha male here!
I am omnimpotent!
Junius
July 6th, 2010 at 8:35 pm
Junius #70
Go buy a house.
Or two.
Take a hike.
junius
July 6th, 2010 at 8:35 pm
Junius – get lost.
You have nothing to add to the discussion here. Go get yourself a date on your eHarmony account.
junius
July 6th, 2010 at 8:32 pm
junius #56,
You don’t think. You just copy.
Get your own name asshole.
July 6th, 2010 at 8:16 pm
Interesting, only 250 sales entered Mon/Tue. No blip due to the Canada Day holiday. We are currently running a monthly rate around 2500-2700.
July 6th, 2010 at 8:15 pm
Watch the clip with the vuvuzela on – little extra bear treat. Hilarity ensues….
July 6th, 2010 at 8:14 pm
FYI – From tonight’s CBC National – http://www.youtube.com/watch?v=GWqaflxCowM
Host asks is lowers sales are driving prices down too. Question isn’t answered in the piece but a flipper is profiled and everyone’s favourite UBC Econ prof gots somethin’ to say.
Kind of clarifies the recent G&M article, and to a broader audience as well.
July 6th, 2010 at 8:04 pm
Just wondering… did BPOM get his facts from agentwill or did Will get his facts from BPOM? Same exact quotes. Someone deserves attribution.
July 6th, 2010 at 8:00 pm
…weird reverse ads.
July 6th, 2010 at 7:57 pm
Great thread, thanks Pope; thanks BPOM.
The cars look great, like weird ads.
July 6th, 2010 at 7:03 pm
Mish has something to say about the housing market in Canada:
http://globaleconomicanalysis.blogspot.com/
July 6th, 2010 at 7:00 pm
The real estate crash adjectives are ubiquitous on local and national media presentations. One realtard and the Credit Union cheerleader were of course spewing ‘buy it now, it won’t last’. looking at PaulB’s numbers the list/reduced ratio to sales is four to one, up from two to one in the past week. I’d say thats a good indication that the bubble has gone super nova.
Now that the sheeple are all screaming ‘crash’ the panic can only accelerate. We are seeing the biggest adjustments crack open in the high end. Those prices are the most overinflated and will come down the most. The average person won’t notice when 4 million becomes two but I’m sure that the ‘rich Chinese’ who paid these exhorbitant prices will be howling in pain when it becomes known that they’ve been suckered and lose big face.
I have to agree with the Plunge O Meter. Draw a straight line through the hyperbolic arc of the bubble and we can easily estimate the ‘benchmark’ coming down from 880 ( already down from 1 mill) into the mid 500 just to get back to the price average increases of the pre bubble market anomaly. The bubble was in fact an anomaly and will be wiped clean when the markets reasserts itself and adjusts to the historical mean.
We know that the market was an entirely artificial phenomena, called easy money. That condition has finally been recognized as dangerous to the economic health of the nation. The government has allowed the condition to persist under a false assumption of nessescary inflation. However, the bottom line is that at the present time prices have increased so much that even at a zero intrest rate no one can afford the monthly payment to service the debt. Unless anyone has a plan top increase the wages of the average pizza delivery guy or you want to start paying $500 for a haircut we have to aadmit that the market has hit the wall. It’s dead except for the few brain dead bulls and other one trick ponies that still listen to the pimps for advice.
July 6th, 2010 at 6:56 pm
thx paulb
i think 20,000 this month
rate hold expiries end july 27th….wind down until then, then silence
July 6th, 2010 at 6:16 pm
@Supraboy:
“Let it drop 20%, are you going to buy? If not, keep renting because that’s as much as it will drop.”
That’s just the first 6 months. This is going to be a long unwinding of the real estate bubble.
July 6th, 2010 at 5:12 pm
@Bilbo Bloggins:
Never buy a new car. You should always lease a depreciable assets. If you buy, you should buy 3 years used. Let the first owner eat the depreciation.
Buy assets that appreciate and have the following qualities; high quality, low quantity, high utility, fair value.
Investing in assets with those four characteristics ensures you will never go broke! If you can’t ascertain whether an asset meets each of those criteria, you do not know enough about it, and shouldn’t be purchased.
Too many people don’t understand what they are buying and why. The prevailing consensus is that people need to own. The herd mentality is pervasive when it comes to housing…
July 6th, 2010 at 5:12 pm
New Listings 265
Price Changes 158
Sold Listings 131
18,041
July 6th, 2010 at 5:11 pm
@Supraboy:
I thought it only goes up. Now it will only drop 20 percent? What will you say next? Oh it’s only 30 percent. “It’s just a flesh wound.”
July 6th, 2010 at 4:49 pm
Also, I think we see a full 60% decline off of the westside sfh for anything over $3 million.
Bloodbath – that’s putting it mildly.
July 6th, 2010 at 4:44 pm
I predict a decline of 25% by October (end of).
July 6th, 2010 at 4:36 pm
@Supraboy:
“Let it drop 20%, are you going to buy? If not, keep renting because that’s as much as it will drop.”
Because you say so? If wishing, hoping and praying could alter market outcomes there wouldn’t be crashes.
Or do you have something more compelling than your magical thinking to predict or control the market?
July 6th, 2010 at 4:27 pm
@Supraboy:
At least when I buy a new car, I KNOW that it’s going to depreciate by 50% after 5 years.
In your case, Supra, you don’t know what you don’t know.
July 6th, 2010 at 4:27 pm
For the bulls,
even if prices don’t go down (I believe they will) honestly how much more upside can there really be? Sure it might have been the wrong choice (in hindsight) to not buy in 2004, assuming one was in the market or even living here then, but really can you bulls honestly advise someone to buy now on the asssumption this is gonna really keep going higher?
Look at all the headwinds, not even factoring in the astronomical high prices? There would just be too much risk to buy now, with not much if any upside and a LOT of downside risk (financial ruin potential). It just makes sense to rent now all things considered, at a much lower cost and see what the near term future brings..
July 6th, 2010 at 4:15 pm
@Raz:
“Life is good for renters.
Get my car, get my vacation, and put away enough savings to buy a nice house in a couple years time after the train wreck is over.”
I’ve heard that story before. So how long is a couple of years? I’ve been hearing that tune since 2004. How’s the wait on the train wreck. So let’s say a house that costed 800k in the west side in 2004 now costs 2.0mill. Let it drop 20%, are you going to buy? If not, keep renting because that’s as much as it will drop.