No sale on overpriced condo

Local rockstar realtor Ian Watt speaks truth to power in his most recent youtube episode.

Sounds like he’s getting a little frustrated with sellers who think their condo is special.

Pink carpet in the bathroom adds an easy $20k right?

Nope.  As Mr. Watt says, there may be all sorts of reasons nobody is interested in your Vancouver Condo, but the number one reason is that it’s overpriced:

Meanwhile his evil twin Ten Volt still claims to be the worlds busiest real estate agent in the world:

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Best place on meth
Member
Best place on meth

@HAM Solo:

Agreed, this is the point where gold and Vancouver real estate go their separate ways.

Keeping An Eye On The Pimps
Guest
Keeping An Eye On The Pimps
Sorry Ian, you got it wrong. (not surprised your RE Training includes what- 2 paragraphs on economics?) Lowering the price works in an efficient market, supported by fundamentals. Vancouver RE market is neither efficient nor supported by fundamentals; therefore the usual mechanisms won’t work. You would have a better chance at increasing sales and inflating the bubble further with more hype. Suggestion to help increase sales: Get on the Bill Slut program; tell the people that Vancouver, (the best place on earth, which has ran out of land and sky), will be hosting the Winnie the Pooh Convention. The Thousands of Rich Delegates will be so impressed with the city, they will all want to move here, and because they are high net worth individuals, they will bid up the prices ;therefore the locals better get in now or be… Read more »
ScubaSteve
Member
ScubaSteve

Anyone know how many sales so far this month in Richmond, and the average price for detached in Richmond?

paulb
Member

New Listings 239
Price Changes 125
Sold Listings 97
TI:18811

http://www.paulboenisch.com

Anonymous
Guest
Anonymous

on my facebook wall right now

“Due to YOUR overwhelming response and requests: YES, we will be hosting another Open House, Sunday, Aug, 19th, 2-4pm, THANK YOU:)”

so….there was an “overwhelming response”, yet no offers?

so……you’re only having an open house because facebook people asked you to? not because it’s your job and that’s what you were hired to do to earn your approx $40,000 in commish?

wtf.. they’ve even “liked” their own post

Turkey
Guest
Turkey

@ScubaSteve: @Devore: Ian Watt generally sounds aggressive in his videos. He’s like the sonic offspring of Chewbacca and Julia Child — particularly when he launches into his radio-announcer schtick.

When watching content like this (same goes for Garth), it’s important to remember this: it’s largely just marketing. From Ian’s perspective, the number of people watching his gums flap is almost more important than what he says. We may happen to like what he’s saying this week, but it’s a mistake to read too much into it.

Guy Smiley
Member
Guy Smiley
Thanks to all regarding co-signing mortgage question from earlier (i was too lazy to sign in on other computer this morning). I talked to a mortgage broker regarding it. Quite rightly he states that co-signing without having one’s name put on the title is simply reckless. Being on the title, however, complicates life in 3 ways: taxation; when trying to secure any new loans or mortgages the co-signed mortgage pyaments are assumed to be wholly mine; having never bought, co-signing would lose for me the transfer tax exemption that i currently qualify for. And the stories here were scary. So the answer to said friend will have to be no. As for gold, i think the tightest correlation is to money supply. And money supply certainly does not seem to be tightening. As for Ian TWatt, it’s simply more proof… Read more »
ScubaSteve
Member
ScubaSteve

Ian Watt sounds really pissed off in this video. As if he just had a deal fall through due to a “stupid seller” or something. Seriously, Ian Watt is on the front lines and sees the day to day impact, and it sounds like what is happening is prices are indeed coming down significantly in the Vancouver condo market.

patriotz
Member

@HAM Solo:
“RE valuation (or gold valuation)”

Gold doesn’t have a valuation, it just has a price. Which was the point of what Jesse said.

HAM Solo
Guest
HAM Solo

@ Jesse

I agree. RE valuation (or gold valuation) is more complicated than just being a call on rates. It also has to do with physical supply, cost of production, and demand.

Supply/Demand factors I can think of that relate to Vancouver RE that I can think of … percentage of population that owns a home, avg income available to finance purchase, inventory of available homes, demographics of existing home owners, regional population growth, income growth, credit availability. In the case of local RE, these are pretty negative factors looking forward.

Supply/Demand factors relating to gold … mine production, confidence in paper currency assets, threats to officially held banking deposits, expected inflation, jewelry demand, central bank activity. More of a mixed bag, but more favourable to gold than the above factors are to local RE IMHO.

Macho Nacho
Guest
Macho Nacho

@Anonymous: Are you signing as a guarantor or as co-borrower? If you’re co-borrower, you can be added to title. I’m not sure guarantors are. Being on title is important if you’re worried about having a claim on the assets.

jesse
Member

@HAM Solo: “RE loves low interest rates because it is valued by discounting back a long stream of rental income at a rate that is closely related to long bond yields.”

It depends how you discount. If you were a Japanese property investor in the mid-1990s you would have arrived at the wrong discount.

Real estate has returned better than gold, even without the most recent run-up of the last decade. As Warren Buffett opined, “You can fondle a cube of gold, but it will not respond.”

HAM Solo
Guest
HAM Solo
@ patriotz With respect to gold vs Van RE. Gold went from 35 dollars to 800 over the decade ending June 1980. RE went up, but not that much. RE killed it from 1984-2007 whereas gold took all that time to recover the 1980 peak. Since then gold is a double and RE up about 15 percent locally. So while I agree that gold will day to day swing with risk assets, the trends are independent to a large degree. Gold loves inflation because it is the ultimate zero maturity asset (what you see is what you get). RE loves low interest rates because it is valued by discounting back a long stream of rental income at a rate that is closely related to long bond yields. I think gold is an excellent diversifier for a long term holder whose… Read more »
legacy
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legacy

@Yalie: Obvious troll is obvious. By the way, what’s going on lately with the repetitive nonsense cheerleading comments? Are there a lot of bored bullshitters out there or did a mental hospital just release all it’s patients?

Vulture Fun
Guest
Vulture Fun

More collapse porn now available at Vancouverpricedrop, including a $4,300,000 reduction (34%). I love it when a plan comes together. Regarding co-signing on a mortgage, or loaning money to friends or family, that is a definite no-no. It’s a very expensive lesson I’ve had to learn. Now I only loan money to people who share my views on money, and those people never need it. If your friend has a cash buffer, he doesn’t need a loan. If he doesn’t have a buffer and never has, he’s a bad risk. If the dev/null’s story doesn’t scare you off, nothing will.

VMD
Member

@VMD:
the RBC HELOC rule change tomorrow has been confirmed by its mortgage advisor. Chances are other big banks will follow suit in the near future.

from 80% of equity available for line of credits down to 65%.
bad news for retail/employment.

T
Guest
T

@gokou3

I’ve thoroughly read the agreement on a car loan and a mortgage. There may be contracts out there that are just co-signing of liability, but I haven’t seen it yet.

Mortgage: 6 months ago I almost made the mistake of agreeing to co-sign. There was no field on the mortgage form that differentiated between a mortgagee and a co-signer. We were both mortgagees.

Car loan: 18 years ago my parents co-signed a car loan for me. On the registration papers it had their name on it.

patriotz
Member

@HAM Solo:
“Another good balancer which is fairly un-related to real estate is gold bullion.”

Actually gold has been notably correlated to Vancouver RE since 1980 – both had a big runup and bust in the early 80’s, both saw a bear market in the late 90’s, and both peaked about a year ago and have since fallen.

Both gold and RE are driven by liquidity so it’s no surprise they tend to move together.

Yalie
Guest
Yalie

@Realtor says:

expect a 30% rise Sept through to Dec 2012

Holy fucking lord. This quote deserves its own award. Maybe we should have a “Kool-Aid quote of the month” or something. Jayzuz.

VMD
Member

@HAM Solo:
With CAD back up above par, getting some more USD now might not be bad idea too…

/dev/null
Member
/dev/null

@Anonymous: My $0.02 is that co-signing a mortgage is a really bad idea. My father did it for a niece – she “couldn’t” make the payments and the bank came after him for a bunch of cash that he didn’t have. Meant he couldn’t retire and so he worked the last few years of his life until he died of cancer. Then a few years later she did the same thing to my uncle – he had to declare bankruptcy and he lives with his son now.

That’s an extreme example to be sure, but it’s a big deal signing that piece of paper. After what I’ve seen I wouldn’t do it for anyone.

Realtor says
Guest
Realtor says

Ok realtors will help prices come within reason but these assessments are higher than ever before. The best price you can hope for right now will be somewhere around 10% off assessment.

But considering assessments went up 10-20% last year, is it really a deal? And with higher assessments again this year it will probably drive prices higher by 20% by Christmas. And that’s on top of the 10% pull back so expect a 30% rise Sept through to Dec 2012.

HAM Solo
Guest
HAM Solo
@ Rent385 If you have investment money at a Canadian bank, do yourself a favour and at least shift it into a self-directed plan with discount broker. The problem with index funds is that you have very big exposure to Canadian financials and resources … which are sort of the two biggest underlying drivers of western canadian RE prices. You say you do not short, but there is a simple 1x inverse ETF on Canadian Financials under the ticker symbol HIF. While there is a small amount of tracking error on this one (because it is a daily re-balance it tends to somewhat magnify a directional trend) the tracking error is small and the return upside from the current market price is pretty good. Another good balancer which is fairly un-related to real estate is gold bullion. The best way… Read more »
Realtor says
Guest
Realtor says

wow u guys are a hoot! Grasping at anything that resembles a bargain. Keep watching the benchmarks, probably going up this month 🙂 See the way it’s calculated is based on what’s selling and those prices are higher than last year.

VMD
Member

for those following heloc/osfi rule changes:
RBC may cut the LOC limit of its “Homeline plan” to 65% LTV tomorrow. The Homeline’s overall LTV will remain at 80%.

ie. in a $500k house
you can borrow $400k out into their “Homeline plan”
old rule: all $400k can be LOC, interest-only payments.
new rule: only $325k can be LOC; the remaining $75k will need to be principle+interest payments.