“why not pay a professional management company to be landlord”

Because paying someone costs money. Yields are already low man, why rub it in his friend’s face?

VDTF – Maybe because a professional management company keeps 10% of the rent?

I hope ‘da Pope didn’t get abducted by Realturd Aliens, or something!?!?!?!?

“once sold it’s gone”

No other condos in lower mainland to buy?

A friend of mine decided to keep their one bedroom when they bought a two bedroom. With all numbers and finances aside he absolutely hates being a landlord. He says it’s the biggest pain in the ass and he can’t wait to sell it. Don’t underestimate the crappy tenants you could possibly get and the work involved. Unload it and take the money and run. No one ever made a mistake by taking a profit…

“Since nominal rents have risen and interest rates have fallen since that time, I figure most folks are ahead today. But would be interesting if anyone had an example to show the contrary.”

If you had the ability to know interest rates were to fall by the level they did you could have made way more money than on Vancouver real estate.

The proper question in my view is whether buying Vancouver-area property today is a good investment. Using current interest rates to forecast the capital costs of what are in effect centuries-long investments, that will almost exclusively be sold before then, is a mistake.

@Troll

aren’t you really interested in how cost of owning has compared to cost of renting from 2004 to now.

Why 2004? That seems rather arbitrary.

@jesse

Ah, yes….the Greater Fool.

“The ardent bulls still don’t get that in order to realize their gains they need to sell”

The flawed argument is that we look at one specific buyer, track him from 2005 (or whatever) and show how he has done compared to a comparable renter after he sells. The buyer, if he sells, will have done reasonably well in terms of return. But… he sells to someone else who will take on the investment at a worse return. The net sum is a bad investment. Bullish arguments make the subtle switch by not looking at total asset return over multiple owners and instead cherry pick the speculator who was lucky/smart enough to cash out.

I know the overwhelming majority of readers here are reasoned and can understand the guise.

CMHC Seeks CEO With Risk Management Experience Jun 3, 2013 11:28 AM PT Canada’s housing agency said it’s seeking a president and chief executive officer with risk management experience to oversee its C$563 billion ($544 billion) mortgage insurance portfolio. The next CEO should have “knowledge of the financial management requirements, particularly risk management, of a large financial services organization,” Canada Mortgage & Housing Corp. said today in an advertisement in the Globe and Mail newspaper. Finance Minister Jim Flaherty said last month the Office of the Superintendent of Financial Institutions will continue to monitor CMHC “very closely,” because it must operate like the country’s largest lenders. The government-backed agency, which had C$563 billion of insurance in force at the end of March, covers most Canadian mortgages and helps commercial lenders securitize home loans. Current CEO (stepping down): Karen Kinsley holds… Read more »

@George Soros

Am I missing something? Oh wait, I am. All you Bulls bought between 1999 and 2004. Those gains have been made they will never be made again. We are not debating the past we are debating the future.

Simple fact: Most people who bought in the last three years have LOST money and many condo buyers who bought in the last five.

All those bulls who bought between 1999 and 2004 have seen their values decrease in the last three years too. The ardent bulls still don’t get that in order to realize their gains they need to sell. But then if they did, they wouldn’t be bulls now would they…

Richmond Real Estate Market Report-May 2013
via realtor A Shuchat:
“1. There are less buyers for more expensive single family homes and relatively more for attached properties;
2. Many of the frustrated listings are ones that have been purchased since 2010 and had high original purchase prices. Those sellers can’t bring themselves to realize a loss. Hence the stagnant listings, expireds and terminateds. They live off hope of a turnaround.”

May Richmond SFH Sales
2013:68
2012:96
2011:146
(Better to wait for the official stats pkg this afternoon or tomorrow though, as this kind of monthly-sales stats on MLS had a history of underestimation)