Some Whistler condos not such a great investment.

An anecdote posted in the comment section by Ham Solo:

Interesting anecdote from this weekend.

At a party with someone who owns one unit in a multi-unit Whistler condo.

The condo is ~30 years old, wood frame construction. Not good condition. About two years ago, the strata agreed upon a plan to renovate the property. Many of the people who owned units did not have much money. Therefore, there was a lot of debate over how much budget to authorize for the renovation and the owners voted to hire a fixed-price contractor with a set budget.

However, due to rising building costs, including wood, labour etc, the first contractor withdrew. So did a second. The strata council revised upwards the budget, and a third contractor was engaged. Because of the pending renovation, many of the unit owners served eviction notices on their tenants so that the building would be empty.
Of course the evicted tenants, who were probably service industry people in Whistler, weren’t thrilled and held an “eviction party” on their way out, thoroughly trashing the place.

Now the 3rd builder is considering walking away from the project due to concerns over profitability.

At the moment, the building is unliveable. Each owner’s share of the building budget for the renovation is now higher than the market value of similar available-for-sale condos in Whistler on the secondary market. Total mess, and yet owners are only just coming to terms with the fact that their investment is more or less worth zero at this point. They have about a 1/12th share of the rights to an as of yet unbuilt building, the cost of which would exceed the price of purchasing similar existing condo inventory in Whistler.

Lessons for “investors” – condos carry many hidden costs. You can’t control who lives in your buiding. You can’t make substantial repairs without the agreement of others. If you just owned a piece of land and a building, its value can decline, but it can’t go to zero. However a condo “investment” can go to zero. Good luck condo “vultures” snapping up heavily discounted older low rise investments.

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Melba
Guest
Melba

….If you are a half decent professional in this city (i.e. lawyer / accountant) and you marry same, at 35 you are in pretty good earning years and can easily be making $250k….

Ya, but then you wake up.

Van Coffee
Guest
Van Coffee

Melba –
I have come to expect that this is the response, and I think it’s kind of sad.

If you are a half decent professional in this city (i.e. lawyer / accountant) and you marry same, at 35 you are in pretty good earning years and can easily be making $250k.

When wife is the same, that is pre-tax of $500. Granted, we pay a lot of tax, but it’s not that hard to save, invest, and grow your asset base to $2.5 my the time you are 35. We did it.

And we throw our money away renting.

Good luck!

Cheers, VC

Melba
Guest
Melba

…..I have $2.5 mil in liquid assets and no debt. I am 35.
How about you?..

Does anyone know where I can get a BS detector fixed? Mine just popped out of my computer and got run over by a bicycle courier.

Van Coffee
Guest
Van Coffee

Laurey –
I have $2.5 mil in liquid assets and no debt. I am 35.
How about you?

Laurey
Guest
Laurey

softy,
try with crayons. maybe they will get it.

Laurey
Guest
Laurey

” I rent for $4,200 per month.”

and fool is parted with his money.

Van Coffee
Guest
Van Coffee

Hey Burt –
Funny, those BMW metrics are just like the 3,800 SF / $2.5 million house I rent for $4,200 per month.
Cheers, VC

Softy
Guest
Softy

“fully loaded 2013 BMW X5d”

Except for the fact that the resale value of the car only goes down until it reaches zero. The resale value of houses goes up.

What is the value of a 1972 BMW today? Close to zero. What is the value of a westside Vancouver Special bought at $35,000 in 1972 on a 33×120 lot? Around $1.7M.

HAM Solo
Guest
HAM Solo

Sep 16-18 New Foreclosure Cases:

-Vancouver: 10
-Nanaimo: 5
-Kelowna: 1
-Chilliwack: 2
-Prince George: 2
-Victoria: 1
-Nelson: 2
-Other BC: 4

“Countrywide Cup” Foreclosure Lenders League Table

-Private Lenders: 10
-Credit Unions: 4
-BNS: 3
-Royal Bank: 2
-BMO: 2
-Paradigm Quest Capital: 2
-TD: 1
-HSBC: 1
-CIBC: 1
-Home Trust: 1

A bit of colour. Seems like a lot of builders being foreclosed on by private lenders. Also, peripheral BC is holding its own. Nanaimo emerging as the new Stockton, CA?

Burt
Guest
Burt

Harvey,

It currently costs $1144.00 a month to own a fully loaded 2013 BMW X5d.

I am willing to let you rent this car from me, for however long you want.

All I ask, $650 a month. To boot ill pay for all maintenance issues that might come up.

Deal?

registered
Member
registered

@121 southseacompany: It’s the real estate 12 Step Program. First insist there is no problem, then that the remedy won’t hurt. Next are the confusion, anger and blame stages.

patriotz
Member

” just listen to him on you tube and check what (Ned Goodman) does for a living then judge for yourself ”

What he does for a living is manage other people’s money and take a cut of it for himself regardless of how well he does.

Not picking on the guy personally, that’s what all mutual find managers do. And they always have good reasons for you to put money in their latest fund.

Mick Murphy
Guest
Mick Murphy

Vancouverite at the world series of poker. playing cards the way some play real estate.

http://espn.go.com/video/clip?id=9681557

southseacompany
Member
southseacompany
Good article on CBC site: “Why are home prices so high and when will they fall? Loose credit fuelled the boom, analysts say, but a correction is coming” http://www.cbc.ca/news/business/why-are-home-prices-so-high-and-when-will-they-fall-1.1350007 “”The housing market is an accident waiting to happen. If there is some sort of macro shock, there’s a lot of dead air where house prices are now and where historically they should be,” said Ben Rabidoux,” “”There is no denying we’re overshooting, vis-a-vis rent, vis-a-vis income, vis-a-vis demographics. So the OECD is not adding anything here to the debate,” Benjamin Tal, CIBC deputy chief economist” “Land constraints and an influx of immigration may have played some role in housing prices in Toronto and Vancouver, but Rabidoux said you would have then expected prices to have only been affected in those areas but not others.” “David Madani…”It’s something that’s going to… Read more »
southseacompany
Member
southseacompany

“Big bumps in local home sales won’t last: bank economist” form News 1130 site.

http://www.news1130.com/2013/09/17/big-bumps-in-local-home-sales-wont-last-bank-economist/

“Craig Wright of the Royal Bank says “activity now is borrowing from the future… that, alongside of a still-strained affordability environment suggest, to us as least, that the housing sector will continue to soften rather than accelerate from this point forward.””

Joe Mainlander
Guest
Joe Mainlander

Immigration has been happening since Vancouver came into being in 1886. The last decade was one of the slowest growth decades for Van. There were decades with significantly higher rates of growth in Van and not all had significant price rises. Certainly not like we saw the last decade. Not much correlation between rate of population growth and price rises. This has been about something else.

And according to this study by David Ley of UBC, most immigrants are now ending up in the bottom part of the economic ladder.

http://neighbourhoodchange.ca/documents/2012/08/summary-version-divisions-and-disparities-socio-spatial-income-polarization-in-greater-vancouver-1970-2005-by-david-ley-nicholas-lynch.pdf

YVR
Guest
YVR

Mortgage Borker: “Did you hear bears hard assets. You want to have HARD ASSETS. are you saying this Canadian billionaire is wrong too?”

Not saying he is wrong on the USD, but you certainly are in thinking Canadian housing will benefit if the USD tanks. First houses are not hard assets since the price is supported by mortgages and the mortgage holders ability to get the mortgage and pay the mortgage. It is all about credit. If Ned’s thesis is correct that the USD is dead that means higher bond rates in order to attract people to the USD which means higher mortgage rates (here in Canada too) which means lower housing prices. In Ned’s scenario we would see 20% mortgage rates like the early 80s which would mean about a 80% plus hair cut to Canadian housing prices. LOL

It's simple
Guest
It's simple

ross kay has just completed the true crea numbers on his site rosskay.com if any one wants the truth about our R.E decrease or increase but from what I can see we are headed for a big
f
a
l
l

hardy
Guest
hardy

Inmigration? Everyone I know is hopping on their unicorn and out-migrating back to where they came from -mostly America, China & Alberta.

Clockbike
Member
Clockbike

@ Honest Warning.

“The number of occupied private dwellings in Canada continues to grow at a faster rate than the country’s population, as it has since 1971. Occupied private dwellings are separate living quarters with a private entrance in which people permanently live.

While the population rose 5.9% between 2006 and 2011, the number of occupied private dwellings increased 7.1%. The 2011 Census counted 13,320,614 occupied private dwellings, compared with 12,435,520 five years earlier.”

Source 2011 Census: http://www.statcan.gc.ca/daily-quotidien/120208/dq120208a-eng.htm

mac
Member
mac

@Randy

Immigration is hardly outside the workings of the real estate market. Otherwise local real estate agents wouldn’t have set up offices in foreign cities. Audaces fortuna iuvat.

Randy Randerson
Guest
Randy Randerson

Immigration = deus ex machina. Nothing can continue forever, if the Canadian economy in general is going to shit, hoping that immigration will support RE forever is just unicorn fart and pixie dust.

Honest Warning
Guest
Honest Warning

I know I’ll get down voted here but you guys are wrong about RE crashing. And you’re reinforcing you misguided beliefs by reading other like-minded posters here. The main cause of the RE boom I figure is Immigration and that is NOT ending anytime soon.

It's simple
Guest
It's simple

#109
you don’t need my credentials, just listen to him on you tube and check what he does for a living then judge for yourself

It's simple
Guest
It's simple

you guy’s want funny? check out whisperers post tonight