Cube Living Showroom – invest in property 1 cubic foot at a time
Readers of this blog may recall a story in July about Cube Living, an opportunity to invest in real estate 1 cubic foot at a time. This caught our attention when it stood out as a clever tongue-in-cheek submission to the city’s ReThink Housing competition.
One of the people behind the project has now launched Phase 2 by opening the CUBE Showroom where you can apparently purchase a cube of your own. Operating out of the 221a Gallery at 221 E Georgia, the showroom will be open from 1-6pm from February 19th to the 23rd. Act fast though, according to the Gallery’s website presales are hot.
There’s been unexpected volume of pre-sales over the weekend and the development is now 66% sold out—but don’t worry, we’re holding back some units to ensure there’s a reasonable supply still available when the sales centre opens on Tuesday.
You can find more information about the project at 221a’s website. There will be a talk by designer and artist Alex Grünenfelder on Wednesday, February 20th at 8pm and a closing reception on Saturday, February 23rd at 8pm.
On February 19 Grünenfelder will begin a limited release of micro-properties measuring 1 cubic foot. This innovative product addresses the stagnation and endemic unaffordability of Vancouver’s real estate market. In developing a spatial commodity that can be purchased in very small units, Cube Living is able to offer affordable properties at prices under $50! Micro-properties are an accessible solution to the inflated real estate market crisis that threatens to push Vancouver’s economy into decline.
February 21st, 2013 at 1:13 am 1
There was also an article about the project in the Tyee yesterday. I just saw a cube that a friend bought last night, along with the lengthy contract he had to sign detailing all of the terms and conditions. He had #28 of Phase 2 and paid $28 for it. The one after that sold for $29, and so on. He’s already feeling richer knowing that the increased media attention is going to keep driving sales over the next few days.
The market has nowhere to go but up, they aren’t making more space. Get in now or be priced out forever!
Hot debate. What do you think?
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February 21st, 2013 at 1:28 am 2
Please don’t give them any more ideas. We should have all learned that sarcasm is only one step away from being reality. I don’t read The Onion anymore. It’s just too painful to contemplate.
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February 21st, 2013 at 4:01 am 3
He’s baaack…
Former Vancouver mayor Sam Sullivan back in politics with B.C Liberal nomination
http://www.nytimes.com/2010/01/31/sports/olympics/31sullivan.html?pagewanted=all&_r=0
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February 21st, 2013 at 4:03 am 4
Should you postpone buying a house?
Larry moves further into fantasy writing. As usual, the comments are the best part.
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February 21st, 2013 at 7:47 am 5
Hidden due to low comment rating. Click here to see.
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February 21st, 2013 at 8:20 am 6
Anon5: uh that’s not bear logic is it? It’s bull logic.
You’re not the sharpest bulb in the sea are you?
Hot debate. What do you think?
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February 21st, 2013 at 8:49 am 7
I wonder if Rennie has been by the show room yet. It’s difficult to think of someone more interested in art and real estate than he.
Hot debate. What do you think?
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February 21st, 2013 at 8:50 am 8
Just want to remind everyone that The Governor of the Bank of Canada said that real estate prices will fall for the next couple of years.
I know all you realtors will say and do anything to make a sale, even bring out fake buyers to fraud the TV audience into buying a house. But why would anyone in their right mind buy in the next two years? Do yourselves and everyone else a favour – go backpaking around Europe and Asia for a couple of years and then come back and sell me a house when prices are down at least 35%.
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February 21st, 2013 at 8:51 am 9
@G&M Larry Macdonald “Not Postponing”
E I E I, oh!!!!
From the comments:
…then have a guaranteed loss equal to the entire mortgage because there is no way to limit risk to just the downpayment when your property goes no-bid and your no-talent overpaid ass is thrown out of the “shovel ready” make-work job that was only possible because of central bank money printing.
Hot debate. What do you think?
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February 21st, 2013 at 9:11 am 10
It begins…
http://www.nsnews.com/news/Blaze+leaves+home+ruin/7989638/story.html
West Van view home gutted by fire. Nobody was home. Was it occupied at all?
Hot debate. What do you think?
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February 21st, 2013 at 9:38 am 11
The loonie’s sinking like a stone. Here’s why
If investors stop seeing CAD fixed income as safe, what happens?
Hot debate. What do you think?
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February 21st, 2013 at 9:38 am 12
CIBC is claiming that Canadians have suddenly discovered prudence — it was there behind the couch the whole time:
There is no justification for that string of inventions.The only numbers he quotes are:
…which in comparison to this report looks like a cherry-picked outlier in Q4, and…
Still an unsustainable number, and no mention of regulatory changes — nope, it’s purely voluntary. Right, Ben.
But wait for the big conclusion! It’s a doozie:
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February 21st, 2013 at 10:23 am 13
@Patiently Waiting: was the house for sale? There are a few listed properties right at that spot I think. There was also a suite for rent nearby (http://vancouver.en.craigslist.ca/nvn/apa/3610786523.html). Wonder if it’s the same place.
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February 21st, 2013 at 10:34 am 14
…investors stop seeing CAD fixed income as safe, what happens?
Ummm…, they keep buying fixed income and yield stocks on the dip until they suddenly gap down and totally wipe out their accounts?
Personally, I wish there was less talk about this particular trade that I piled into a few weeks ago. 2 cents on $2M is only $40K so far. Ideally, those that are funding my gain will be notified only after 10-15 cents of CAD decline
AND exactly at the moment when the mainstream media informs them that their house was actually worth significantly less than they paid when they bought it
AND that they are likely going to have a cut in pay if they keep their job at all.
Hot debate. What do you think?
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February 21st, 2013 at 10:51 am 15
MLS® V985387
758 31st av E
Jan 12/13 $889,000
Sold Feb 6 $795,000
They say what happens during Chinese New Year defines the trend for the next 12 months…
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February 21st, 2013 at 11:04 am 16
Rona to cut 200 full-time administration jobs as Q4 results underwhelm
“”We are facing short-term headwinds in our industry with key indicators trending downward but the fundamentals of the renovation and construction industry remain robust,” Boies said.”
- short-term… right..
Hot debate. What do you think?
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February 21st, 2013 at 11:13 am 17
@VMD
Rona, Best Buy…. Is the downturn nearing the vicious circle phase?
Hot debate. What do you think?
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February 21st, 2013 at 11:25 am 18
MLS® V985387
758 31st av E
Jan 12/13 $889,000
Sold Feb 6 $795,000
They say what happens during Chinese New Year defines the trend for the next 12 months…
————————-
Over 10% off of list price. I like that trend!
Hot debate. What do you think?
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February 21st, 2013 at 11:28 am 19
“Rona, Best Buy…. Is the downturn nearing the vicious circle phase?”
It wasn’t really difficult to see the massive overbuilding in commercial real estate.
Maybe we’ll see less cars on the road. The commute yesterday was brutal!
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February 21st, 2013 at 11:46 am 20
…Rona, Best Buy… vicious circle…
NO, NO, NO! What he said. More of that: Short-term, don’t worry, it always comes back… etc.
You guys, for shame! Stop spooking the herd before they are coralled at the slaughter chute!
Wait at least until I’ve doubled the $50K I allocated to finance my $2M short CAD position. You’d think people would wait to talk about it until at least a 4 cent drop where it went a few months ago.
Hot debate. What do you think?
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February 21st, 2013 at 12:51 pm 21
Inventory is now at the highest point it has been in the last 8 years for this time of year.
http://vancouverpeak.com/Thread-Inventory-Graphs?pid=503#pid503
Over the last 30 days the average daily increase was:
59
At this rate we would reach 16,000 in 11 days (Mar-04-13)
At this rate we would reach 20,000 in 79 days (May-10-13)
and 25,000 by August 3rd.
Thanks PaulB for the numbers!
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February 21st, 2013 at 1:30 pm 22
There is just so much fail here that it’s hard to know where to begin. This should be the epigraph to a book written about the era of Canadian (and global) political economy.
Hot debate. What do you think?
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February 21st, 2013 at 1:38 pm 23
Consumer discretionary firms went first.
Canadian Tire Reports Increased Revenue
Forget that last part about the net profit trend. It is obviously a misprint by a drunk reporter. Just remember the first part about higher revenues and buy buy buy! Bank stocks should be good too. They’re all good. Any negative stuff is just put there to confuse investors. Buy a second house in Vancouver and then use HELOC equity on that one to buy these great stocks. Even Tim Hortons is so confident they are actually raising their dividend despite missing their earnings target.
Hot debate. What do you think?
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February 21st, 2013 at 1:58 pm 24
b5baxter, you are on my nice poster list.
Hot debate. What do you think?
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February 21st, 2013 at 2:22 pm 25
Just found this nice data depot at UBC Sauder School of Business website
(including up-to-date nominal vs real house prices by city up to 2012)
http://www.sauder.ubc.ca/Faculty/Research_Centres/Centre_for_Urban_Economics_and_Real_Estate/Canadian_Cities_Housing_and_Real_Estate_Data
Hot debate. What do you think?
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February 21st, 2013 at 3:31 pm 26
Great chart – I see inventory peaking at 21K easy
Yes @VMD – that data source was especially great when CANSIM wasn’t free. It is still good since everything is cleaned and put together neatly. Some of the underlying data elements are more frequent than reported by the UBC tables however.
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February 21st, 2013 at 3:54 pm 27
Insiders rapidly ditching stock in consumer non-cyclicals
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February 21st, 2013 at 4:06 pm 28
@real_professional
agreed. I came across that graph database while searching for the old “real vs nominal Van home price graph”. Last time I saw it it was only up to 2007, now they have extended the graph to cover up to 2012.
Speaking of graphs, can anyone recommend a good graphing/spreadsheet software other than google & excel? (with good customization options for graphs) thx!
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February 21st, 2013 at 4:08 pm 29
I don’t get it, how does this lower cost of RE? It’s not like you can actually live in 100 cubic sq ft or 1/5 of a condo? What if someone bought all the cubes for the bathroom in the condo while you bought the rest and wouldn’t let you use the bathrooms without paying a huge fee? How is that going to work? Or will the developer hold the cubes you can’t afford and you have to buy it from them 1 cube at a time using new mortgage while paying a rental fee? How will mortgage work when you can only buy say 40% of the cubes in a unit??
Lastly I hope the occupants of this cube scheme will last longer than these cube living pioneers – also of Canadian ingenuity:
http://www.imdb.com/title/tt0123755/?ref_=sr_2
Hot debate. What do you think?
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February 21st, 2013 at 4:38 pm 30
@VMD Graph/Plot Software:
http://www.gnuplot.info/
http://www.r-project.org/
@spaced889:
Try the graphic on the artist’s site for more clues…
http://221a.ca/wp-content/uploads/2013/01/henry-george-fay-lewis.png
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February 21st, 2013 at 5:02 pm 31
New Listings 217
Price Changes 77
Sold Listings 70
TI:15451
http://www.paulboenisch.com
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February 21st, 2013 at 5:15 pm 32
Just a year ago this Hollywood home had the same price as this Kerrisdale home…
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February 21st, 2013 at 5:26 pm 33
70 listings?
Looks like the big buying rush didn’t last more than a week.
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February 21st, 2013 at 5:30 pm 34
Mr. Carney could face a decision many Canadians have in light of tougher borrowing conditions — namely is it better to rent or buy based on the current market.
Mark Carney’s $400K yearly housing allowance might not go very far in London
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February 21st, 2013 at 5:36 pm 35
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February 21st, 2013 at 5:42 pm 36
Predicting 16K party this month!
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February 21st, 2013 at 5:43 pm 37
“Looks like the big buying rush didn’t last more than a week.”
Yes. And it was a very small buying rush.
Hot debate. What do you think?
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February 21st, 2013 at 5:59 pm 38
@b5baxter…
Inventory is now at the highest point it has been in the last 8 years for this time of year.
Would that also make it the highest point it has been for this time of year in the last 1000 years?
Hot debate. What do you think?
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February 21st, 2013 at 6:21 pm 39
Another reason not to overpay. eg: Figure out the rent value bid and then knock off another 1-2% for every year since completion.
CBC: Buyers left with big bills when home inspectors miss defects
Comments section has the horror stories and why home inspectors aren’t really qualifed to provide a sound opinion on every property.
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February 21st, 2013 at 6:23 pm 40
@VMD …recommend a good graphing/spreadsheet software…
http://gnuplot.info/
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February 21st, 2013 at 6:25 pm 41
New listings per day:
Feb 2013: 269 (+15% MoM)(+2% YoY)
Jan 2013: 233 (-15% YoY)
Feb 2012: 264 (-4% MoM)
Jan 2012: 274
We went from last month’s poor new listings (-15% YoY) to this month’s nice reversal @ +15% MoM & +2% YoY.
Almost looks like people were holding out until Chinese New Year to list their houses…
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February 21st, 2013 at 6:50 pm 42
Short’em High Says: “Comments section has the horror stories and why home inspectors aren’t really qualifed to provide a sound opinion on every property.”
What did this lady think she was getting when she bought the POS house? You can tell by looking at it that it is a POS before stepping inside. I also don’t get how people think a $500 inspection will detect every problem with a old house and they should have some recourse where the inspector should pay for any defects they do not document. On a house like that you could spend 2 days finding and documenting defects. If you wanted a guarantee the house was perfect she would be spending $5000 not $500 and would quickly find out all houses in the 750K range in Vancouver are basically tare downs. A house like this should sell for about 200K.
Hot debate. What do you think?
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February 21st, 2013 at 6:52 pm 43
@VMD: Did they wait for CNY to list?
According to Wikipedia, CNY’s last day (15 days) of festivities this year is Feb 25, next week.
http://en.wikipedia.org/wiki/Chinese_New_Year
It would be interesting to know exactly what memo, cattle prod voltage, or event caused these ones to wake up and list. Two more possibilities: Teranet released a very negative headline and the dollar depreciated considerably.
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February 21st, 2013 at 6:56 pm 44
‘Senior manager resigns after real estate company employees caught posing as customers for TV’
Looks like someone from MAC was sacrificed * forced resigned * to save their public image …
http://www.theprovince.com/business/Senior+manager+resigns+after+real+estate+company+employees+caught+posing+customers/7999235/story.html#ixzz2LaoKaTab
Hot debate. What do you think?
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February 21st, 2013 at 7:06 pm 45
@Anon#42 …all houses in the 750K range in Vancouver are basically tare downs…
Does anyone have an opinion on the accuracy of the assessed building value? Given present inflated contruction costs, are the assessed building values too high?
It would be interesting to model the cost of replacing the building when calculating the risk free rent equivalent price of the total property. A rental doesn’t have the risk of deficiencies, so subtracting the cost of contructing a new minimal building on the property could be used to model a risk free price rather than the off the cuff percent per year discount formula I suggested earlier.
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February 21st, 2013 at 7:47 pm 46
‘Senior manager resigns after real estate company employees caught posing as customers for TV’
The manager probably enjoying EI now and waiting for a higher position when the issue cool down…
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February 21st, 2013 at 7:51 pm 47
@Guy Smiley
It may have been higher in 1998. I don’t have the data for that year (but I think someone else here might have it).
Also maybe 1792….
Hot debate. What do you think?
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February 21st, 2013 at 8:10 pm 48
Hidden due to low comment rating. Click here to see.
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February 21st, 2013 at 8:18 pm 49
Aw, shut up.
So pathetic.
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February 21st, 2013 at 8:23 pm 50
CHIPMAN.
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February 21st, 2013 at 8:23 pm 51
hahahaha @ desperate #48 Anonymous
newsflash jack*ss… no one is moving here, in fact, many are bailing.
This town is too expensive and there are NO high paying jobs here. This RE market is done done done. Stick a fork in us, we are so done.
News flash, you need to find a new career that is NOT related to Vancouver area residential real estate.
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February 21st, 2013 at 8:51 pm 52
@VMD
The chart book was all done with excel. There are limitations of excel charts, but there are also add ins and macros that can be coded to get excel to do exactly what you want in most cases.
http://pacificapartners.ca/blog/2012/12/08/canadian-real-estate-correction-chartbook/
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February 21st, 2013 at 8:51 pm 53
Hidden due to low comment rating. Click here to see.
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February 21st, 2013 at 9:27 pm 54
She can afford to spend 750000 on a POS house and we’re supposed to feel sorry for her? 50 year old shacks will always need repairs.Yes the inspector was a doufus and should be held partially liable.Oh and shes a single parent,just like half the population in Vancouver(including myself),so what?She obviously took her ex “to the cleaners”and is doing well.
Hot debate. What do you think?
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February 21st, 2013 at 9:35 pm 55
watch for the line of demarcation at ten percent
declines
coming up soon
within 75 days
then what?
it only gets worse
we are already down 15%, the stats are bullshit
but at ten percent the shitbowlers can’t claim buy now or be priced out forever anymore
then what
they can stick their head up their ass
that’s what
Hot debate. What do you think?
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February 21st, 2013 at 9:42 pm 56
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February 21st, 2013 at 9:43 pm 57
@g …ex “to the cleaners”and is doing well…
What goes around comes around. She obviously overpaid for the building and probably the land too.
Generally though, this is interesting relative to the rent equivalent price of any SFH property. Judging by the downvotes, realtors are pretty touchy about buyers becoming aware that deducting the value of old buildings and construction costs is a valid way of preparing a bid offer on a SFH property. The sensitivity on this issue is even funnier than desperate pumper #48′s idea that a number that amounts to statistical error on the number people passing through town every week will want to buy his excess overpriced POS teardown SFH’s.
Hot debate. What do you think?
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February 21st, 2013 at 10:12 pm 58
It looks to be a horse race to 16000 listings by the end of February. Those are some great vancouverpeak graphs on inventory growth, it looks like 2012 redux so far, just a little bit worse. The double bite of lower demand (lower pop growth and tighter credit) and higher inventory is approaching what I would consider def-con 3.
This is kind of like watching engineers doing tests to failure on aircraft wingspans. Is this market going to dramatically explode or just pathetically deflate like one of my souffles? My graphs are showing lots of disturbing stress concentrations…
Hot debate. What do you think?
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February 21st, 2013 at 10:41 pm 59
“Inventory is now at the highest point it has been in the last 8 years for this time of year.
Would that also make it the highest point it has been for this time of year in the last 1000 years?”
Ha ha hah haha ah aha aha hahah
Nice one!
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February 21st, 2013 at 10:46 pm 60
Incoming! CBC: Buyers left with big bills when home inspectors miss defects
Um so… she want a “place to live”, buys a place for 750 large, then rents out a suite. Sounds like it was a bit more than a “place to live” after all. We’re all speculators now!
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February 21st, 2013 at 10:48 pm 61
“Senior manager resigns after real estate company employees caught posing as customers for TV’
Senior manager in a real estate company hmmmm…..what does a Sr. Manager do in in a real estate company?
This guy was likely a marginal producer who hadn’t made a sale since June of last year and was on his way back to Canadian Tire.
He was the sacrificial lamb.
No one with a meaningful job resigned. What is this person’s name? What did he do? What were his responsibilities? How long had he been with the company?
If it was a real person or a Sr. Manager MAC should have no issue answering the questions.
Hot debate. What do you think?
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February 21st, 2013 at 10:58 pm 62
“What is this person’s name? What did he do? What were his responsibilities? How long had he been with the company?”
No worries. If MAC can create a fake buyer, it can as easily create a fake Sr manager.
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February 21st, 2013 at 11:39 pm 63
@42
I’ve been thinking along similar lines. Moreover, I would love to see the city eliminate nominal dollar values when doing assessments. Given that property tax is a function of relative value it doesn’t matter what the denomination is. Therefore, simply an index would suffice with the average (i.e. mean) assessed home taking the value 1000 with other homes taking higher or lower values.
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February 21st, 2013 at 11:45 pm 64
@48 Paraphrasing: 1000 persons/week moving to greater Vancouver.
Really?!? 52,000 a year are moving to the GVRD? Wow, are you out to lunch. As I mentioned in a thread a few days ago I have access to bits of some interesting new data that show some interesting things about the people of suburban Vancouver. One interesting data point is that the vacant rentals/vacant houses number is higher than it’s ever been. Landlords are freaking out about the increase in the vacancy rate, though these are institutional landlords and most of them haven’t purchased during the bubble.
Hot debate. What do you think?
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February 21st, 2013 at 11:54 pm 65
@62
Bingo. Nobody at MAC has lost their job. I’ll bet the “reporters” who were made to look foolish upon the original story have bought this new story hook, line, and sinker.
Here’s a thought: why doesn’t Matthew (or whatever his name is) from the CBC get off of his ass (and Facebook) long enough to actually do some investigative journalism. Ask the MAC boss for the name and contact info of the allegedly fired manager and interview him, promising to not release his or her name to the public.
Hot debate. What do you think?
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February 22nd, 2013 at 3:19 am 66
” Moreover, I would love to see the city eliminate nominal dollar values when doing assessments.”
That would remove transparency from assessments. Using estimated market price for an assessment gives the owner the opportunity to compare it to sale prices of other properties and other assessments and appeal if it looks out of line. And of course it allows prospective buyers and sellers to compare an ask or bid price against assessments.
Also, the provincial government does assessments, not municipalities.
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