Time to cut our losses on Olympic Village?

The City of Vancouver still owes lots of money for the Olympic Village condo development.

They aren’t saying how much but it looks like it’s currently at least a couple hundred million.

Is it time to cut our losses?

Developer Michael Geller thinks so. In this Province article he says it’s time to cut the prices and get out while we can.

As Vancouver’s real estate market cools, losses on the troubled Olympic Village development could soar above $225-million unless condo king Bob Rennie quickly drops prices on unsold units that have languished on the market for too long.

That’s the view of developer and architect Michael Geller, a former NPA council candidate, who suggests flawed pricing and weak marketing is turning the fiasco on False Creek from bad to worse.

Read the full article here.

What do you think? Does the city stand to lose more by holding out for ‘maximum price’ or by selling quickly at a discount?

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[…] “With regards to ‘Yu Living’ green condo at UBC south campus, my in-laws in China bought a place site unseen. They are furious now that the view overlooks a future BC Liqour store and Save on Foods. The agent in China was caught off guard as well – the brochure showed a trees and ocean!!! They should not bought a place with so little advance research; they come from a generation that respected universities and assumed that they were buying into a quality life style for future grand kids.” – ‘Not too happy’ at VCI 27 Aug 2012 6:02am […]

kansai92
Guest
kansai92

@HAM Solo:
What the restaurant story reveals is that there is no “real” economic activity taking place in the City.
All we are doing is selling homes to each other at higher and higher prices.
With the Canadian dollar at par, US tourism is dead.
Sure visitors from Asia is up, but maybe they would rather eat $1 pizza and $2.95 california rolls than at a high end establishment.
After all, how much money does a couple or family have left to spend on fine dining after spending 91% of their income to put a roof over their head.
That, folks, is the true cost of over-priced real estate.

SunBlaster
Guest
SunBlaster

I found downtown cclub has generally better looking 19 year olds then joyes, earls is on the last place. In theory quality of women in restaurants usually goes up when economy is crashing.

patriotz
Member

@Anonymous:

@Crikey: “Then, consider that half of the population is even stupider than that average!”

That’s the median, dummy :p

In a normally distributed data set (e.g. human intelligence) the average is the same as the median.

patriotz
Member

@rp1:
Rennie:

“When people are buying in [the city of] Vancouver as passive investors, you have to put 35, 40 per cent down to have the rent cover the mortgage and one of your maintenance fees or your taxes, so it is longer term.”

“… Everybody’s buying for long-term capital appreciation.”

That is the definition of a bubble.

Girlbear
Guest
Girlbear

@HAM Solo: PS. You funny 🙂

Crikey
Guest
Crikey

@Anonymous:
“That’s the median, dummy :p”

Yes, you and I know that, but most don’t. I was phrasing it in a way that reaches the most people. 😉

Girlbear
Guest
Girlbear

@HAM Solo: Just make sure you don’t make it a coyote morning when you see them without the batches of make-up. lol. I have never seen such tough looking (and tough acting, my God when I was 18 no way could I have sat on some fat 50 something guy’s lap)gals anywhere but Vancouver. They make the ladyboys in Thailand look tame. lol.
Look Vancouver is not a centre of culture. It is what it is. The chains control the city. How many cities do you know where the same freakin restaurant is within 2 blocks of itself….hint…starts with a J.

rp1
Guest
rp1
rp1
Guest
rp1

Another deathless quote:

http://www.youtube.com/watch?v=EgMclXX5msc&t=13m31s

“So you mean, the way real estate works is I have to sacrifice. I have to turn down the opportunity to live in a really nice place. I live in this dump for a while, and because I did that I make money. And somebody else is going to come to me a year or two from now and overpay by even more, and say ‘I don’t wanna live in that nice place next door, I’d rather pay more to live here because this is going to appreciate!’

rp1
Guest
rp1

Rennie, making sense: http://www.huffingtonpost.ca/2012/08/16/bob-rennie-vancouver-housing-bubble_n_1777122.html

“When people are buying in [the city of] Vancouver as passive investors, you have to put 35, 40 per cent down to have the rent cover the mortgage and one of your maintenance fees or your taxes, so it is longer term.”

“… Everybody’s buying for long-term capital appreciation.”

To quote Peter Schiff: “Why would it go UP?!”

http://www.youtube.com/watch?v=EgMclXX5msc&t=10m55s

midnite toker
Member
midnite toker

At least they serve food at the no.5 orange. It will never go out of business!

Anonymous
Guest
Anonymous

@Devore: “My job, I’ve always felt, is to dumb down a room…”

I guess nobody can accuse him of being bad at his job.

Anonymous
Guest
Anonymous

@Crikey: “Then, consider that half of the population is even stupider than that average!”

That’s the median, dummy :p

Vulture Fun
Guest
Vulture Fun

@HAM Solo: Ha ha. I believe the term is “breastaurants”. The sluttiest is Joey’s. Enjoy your field research.

Brittanny
Guest
Brittanny

Flaherty: “It’s the private sectors responsibility to make sure the economy grows” Hahahahahahahahahahahahahahahahahaha. Now that gov’t has FUBAR’d the economy through their policies.

Makaya
Member
Makaya

Another proof the bubble has burst:

Interesting news from the GMREB today – starting June 5, 2012, MLS listings in Quebec will be assigned RANDOM numbers (as opposed to the current method of them being consecutive). This means that buyers will no longer be able to “guess” how long a property has been listed simply by its MLS number. Good news for sellers!

https://www.facebook.com/permalink.php?story_fbid=341568395908859&id=111812558884445

Anonymous
Guest
Anonymous

Journalist Brent Mineer on twitter 6 hours ago. “Spoke with realtor over weekend who says #Vancouver real estate has been in bubble, and it has burst. Just took 2nd job as Telus installer.”

File under “Signs of the apocolypse”

good-format
Guest
good-format

Expected sales will be slightly better than 2008. But the sales is expected to be about 39% below the 11 years’ average.

good-format
Guest
good-format
Copied from PaulB’s number http://www.laurenandpaul.ca Date Listing Sales S/L Price(+-) Inv Inv(+-) Aug-01 258 61 23.6 99 18,708 Aug-02 182 49 26.9 114 18,740 32 Aug-03 202 93 46.0 92 18,799 59 Aug-06 0 0 0 0 - Aug-07 232 113 48.7 128 18,784 -15 Aug-08 210 49 23.3 105 18,851 67 Aug-09 195 120 61.5 119 18,816 -35 Aug-10 169 96 56.8 118 18,806 -10 Aug-13 206 103 50.0 124 18,788 -18 Aug-14 239 97 40.6 125 18,811 23 Aug-15 175 53 30.3 110 18,826 15 Aug-16 183 76 41.5 91 18,792 -34 Aug-17 169 59 34.9 86 18,848 56 Aug-20 245 85 34.7 126 18,875 27 Aug-21 206 63 30.6 114 18,925 50 Aug-22 138 76 55.1 85 18,919 -6 Aug-23 156 72 46.2 93 18,918 -1 Aug-24 158 61 38.6 91 18,938 20 Aug-27 191 82 42.9… Read more »
Crikey
Guest
Crikey

@SunBlaster:
“few years ago ive realized that most of us are generally stupid.”

If you ever worked retail back in highschool or university, you will know for a fact that the average person is stupid.

Then, consider that half of the population is even stupider than that average!

No Noise
Guest
No Noise

@G:

If buying in the US, concrete would be the way to go. If in Vancouver- neither concrete nor woodframe, nor brick, mud, or straw is an advisable purchase..

Devore
Member
Devore
@joe_blown_away_by_high_housing_costs: Bob Rennie likes to point out his inside connections with big powerbrokers in real estate. I seem to remember another interview in which he talks about being in the board room. I think Rennie is a narcissist. Bob Rennie and narcissist? No way! http://www.huffingtonpost.ca/2012/08/16/bob-rennie-vancouver-housing-bubble_n_1777122.html My job, I’ve always felt, is to dumb down a room and really bring out some common sense issues. Yes, you have to throw common sense out the window to understand Rennie. Case in point: When you look at single-family housing, I think the average is $880,000 but if I take out the top 20 per cent, that drops to about $660,000. Yes, for a trifle of a mere $660,000, a family can buy a house. Of course you’re talking Langley or Pitt Meadows for that price, since even a condemned tear down in East… Read more »
Anonymous
Guest
Anonymous

@Girlbear:

Two girls can never get along. Especially if one is hotter than the other.

Anonymous
Guest
Anonymous

@G:

If you have to ask such a question you have not done enough research to even consider buying a place. There is no comparison between wood frame and concrete. Have you ever lived in a basement suite? That is the experience you get in wood frame.