Who wants to throw in the proverbial towel?

Bull! Bull! Bull! had a question in yesterdays comment section, but as usual it was quickly voted down.

Not to worry, we’ll highlight it here:

@vancouvercondo.info
@VMD

there is always a lull in posts during xmas. that lull would provide you a good opportunity to retire from the vancouver bear scene.

most people stop posting during the holidays. all you have to do is not start again. thus you, and this blog would simply fade away.

it seems like a dignified to end your mission. you were wrong. that’s ok. just accept it and fade away into the winter sunset. VHB has already done it. maybe your time is coming too…

Not sure why this was also addressed to VMD, but what do you think? Are you readers getting tired of the Vancouver real estate market yet?

Should we set the site on fire and walk off into the sunset?  As suggested we could just shut down for the holidays and never come back.

The only thing that gives us pause is that this commenter also seems to desire rain over dry cold weather. Sorry, can’t agree with that one!

But what do the rest of you think?  This site is getting long in the tooth and hey, there really has been no dramatic house price crash yet.  Does the current situation prove we’re wrong?  It’s only been 19 months since the peak of house prices here and the theoretical buyer of a 2009 condo has only lost $35k.

Time to call it quits?

69 Responses to “Who wants to throw in the proverbial towel?”

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    The current situation proves that we are right. Anyone buying when the cost is so much higher than renting is making a bet on continuously rising prices, and that bet has now been losing for some years. Even on houses.

    Whether prices crash to historical multiples and then increase with inflation along with rents, or prices stay flat and rents rise with inflation to restore historical multiples, the person buying today loses the same amount of money in the end.

    Well-loved. Like or Dislike: Thumb up 58 Thumb down 8

    Free-bird Tuesday Says:
    2

    http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/2013/12/09/consumer-confidence-nears-year-high-as-canadians-put-faith-in-rising-house-prices&pubdate=2013-12-10

    Uh oh…it looks like bull bull bull will be using the HELOC to buy little Timmy his train set. This is what we call the “wealth effect” where everyone is in la-la land because they think their house is worth a million bucks so they spend spend spend. But the reality is that we’re just twice as much in debt.

    I vote that we set bull bull bull’s Corolla on fire : )

    Well-loved. Like or Dislike: Thumb up 29 Thumb down 4

    Don Lapre Don Lapre Says:
    3

    I would argue that even if you disregard all of the financial discussion on this blog, it has a lot of appeal as simply a window into the sociological aspects of the Vancouver market. The near total obsession of a single asset class to the exclusion of all others. A city where most people are “all-in” on their bet, with most decisions being made with little financial acumen.

    An experiment, that if Bull^3 is right, could re-write decades-old economic wisdom, documenting the first time that the group proclaiming “this time it’s different” (with respect to asset prices detaching from fundamental valuation principles in the long run) was correct.

    Well-loved. Like or Dislike: Thumb up 44 Thumb down 2

    You know the old investment maxim… The market crashes when the last bear has thrown in the towel…

    Well-loved. Like or Dislike: Thumb up 36 Thumb down 2

    Johnny-boy Says:
    5

    Well we have been wrong for a long time as cheap money has poured into this city from locals and off-shore alike. Bubbles take their own time to burst. The stock-market kept going up even after Bears Stern went bankrupt and only collapsed after the Lehman debacle. So far the local housing market has been like teflon and nothing stocks to it. The small correction we have seen so far is nothing compared to the tripling that came before it. However unless we are to become the Hong Kong of the west coast, then we must get a rebalancing some time.

    Hot debate. What do you think? Thumb up 22 Thumb down 4

    This is the best time to be a bear. I liked the media’s portrayal of our situation as a Wiley coyote moment. We’re over the cliff but not aware of the sheer force of gravity acting on us.

    Listings are down because sellers still think things are going to turn around. When the realization dawns, down we go.

    Just like the bulls love to point out, a broken clock is right twice a day. They seem to think it’s an argument against warning people. To me it means that they admit that a crash is imminent, they just don’t like us talking about the timing.

    Well-loved. Like or Dislike: Thumb up 36 Thumb down 1

    Many Franks Says:
    7

    Personally, I wonder why we’re headlining a troll. As for me, I’ll be here until the housing market in Vancouver resolves itself into some kind of sanity; it’s a point of major curiosity. Meanwhile I’m in a stable, affordable housing situation so I’m perfectly happy to watch.

    The Bank of Canada has come out with some extremely clear language on debt and housing. From Bank of Canada says housing, debt still pose stability risks:

    “In Canada, the high level of household debt and imbalances in the housing sector are the most significant domestic vulnerabilities to address,” the central bank said in its semi-annual Financial System Review.

    These risks could make Canadians vulnerable to an adverse macroeconomic shock and a sharp correction in the housing market, it said.

    [...]

    The overall level of risk could fall further with continued progress on banking sector reform and other reforms in the euro area. That said, the level could increase if the current low interest rate environment in advanced economies persists longer than anticipated, it added.

    You’ll note that they’re dropping the risk level from “high” to “elevated” — admitting only that external triggers are worth worrying about, despite the domestic nature of both debt and housing markets. This is the “but she wore a low-cut top” school of analysis.

    We’ll see what Stats Canada has to say for Q3 on Friday.

    Well-loved. Like or Dislike: Thumb up 27 Thumb down 0

    Doomcouver Says:
    8

    Bubbles usually go on longer than anyone could have predicted. Canada is the most house-horny country on the planet probably, so it’s no surprise we have such an epic bubble. We might even break some records when it pops I’d bet. Regardless there will be a paradigm shift one day. A 70% ownership rate when it’s this expensive is lunacy. It’s just the trigger and the timing that are impossible to predict. I would guess when mortgage rates finally return to normal it’ll pop. But it could just as much be unemployment. Found this article this morning:

    http://www.ctvnews.ca/business/kellogg-s-to-close-london-ont-plant-and-lay-off-500-workers-1.1582962

    Another one bites the dust!

    Well-loved. Like or Dislike: Thumb up 34 Thumb down 2

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 5 Thumb down 15

    Spacemonkey Says:
    10

    On the radio they said iterest rates are up again.
    I rent a house worth 950.000 for 1600. only lived there for a year. Do the math bull bull bull

    Well-loved. Like or Dislike: Thumb up 23 Thumb down 2

    mosesupposes Says:
    11

    I admit that I thought the market would be down a lot more than it is by now.

    But I still 100% believe we’re heading for a 20% or more drop.

    My theories on why the drop has not yet occurred:

    1. The power of cheap money.
    2. A social acceptance of taking on massive amounts of debt.
    3. “Hot” markets in other Canadian cities (in particular Toronto) that create a broader sense of “real estate is a good investment”.
    4. An incredibly influential real estate industry that manages to maintain a constant stream of “real estate is good” stories.

    Reasons why I think the drop is still coming:

    1. Every objective criteria (including price to income analysis and price to rent ratio) for assessing value suggests we are vastly overpriced. The only rational responses I can see to this are either “Vancouver is different and is not impacted by data” or “A down turn is coming” and as much as I like Vancouver I can convince myself we’re that different from a dozen or more other cities in the world.

    2. Flaherty has repeatedly tried to bring the market down and has demonstrated annoyance at his inability to do so. The only way that a politician would want land values to fall is if he or she saw the potential for a huge disaster if they didn’t.

    Where I differ from some Bears is I’m not really looking forward to the crash. It is going to have an absolutely terrible impact on Vancouver. Like it or hate it, real estate is the economic driver in Vancouver and when it goes down, it’s going to get really ugly.

    Well-loved. Like or Dislike: Thumb up 41 Thumb down 4

    Many Franks Says:
    12

    @mosesupposes:

    Where I differ from some Bears is I’m not really looking forward to the crash. It is going to have an absolutely terrible impact on Vancouver. Like it or hate it, real estate is the economic driver in Vancouver and when it goes down, it’s going to get really ugly.

    I think Vancouver will greatly benefit from a correction. If you head south along Puget Sound through Seattle and down into Portland, I think you can see much of what Vancouver could gain if the cost of living were to relax somewhat. Real estate NEVER makes a good economic driver.

    Well-loved. Like or Dislike: Thumb up 41 Thumb down 3

    YobiKanobi Says:
    13

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 4 Thumb down 27

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 7 Thumb down 22

    Romeo Jordan Says:
    15

    as most of you know, i threw in the towel a few years ago and sold at a modest loss. all because of some hot chick with big bazongas….

    never again!

    unless they are huge. i’m a sucker for huge bazongas.

    Hot debate. What do you think? Thumb up 16 Thumb down 14

    Atomic Frog Says:
    16

    How can anyone say that a crash for the condo market not coming in Van?

    I work in the Newton area in Surrey. There are TONS of new condos and townhouses building there and based on my observation there are brand new condos that are selling for more than one yr with multiple price reduction. There is new townhouse development on 142 st and 60 ave that build at an extremely fast pace. All of these is a sign that the developer wants to get the building done ASAP to sell it and get back the money that got tied up in the land.

    Even the developers are not optimistic about the market. If they are optimistic that the price of a townhouse in that area is going to go up much higher, why the rush to build as quickly as possible? The developers should work together to limit the supply of new town house such that the price of the ones that are currently will go up even further

    All of these point to the fact that even developers and builders in Surrey are not confidence this thing is going to go up anymore

    I just feel sorry for all those buyer who bought last yr and saw the developer cut prices by 20K every 6 months

    Hot debate. What do you think? Thumb up 21 Thumb down 2

    Son of Ponzi Says:
    17

    # 16
    “the developers should work together”.
    Remember this is a competitive cut throat business.
    Until now there was enough room at the trough, but now with a glut of developments driving prices down it’s everyone for themselves.
    What will suffer is quality of workmanship.

    Hot debate. What do you think? Thumb up 10 Thumb down 1

    @11: “Flaherty has repeatedly tried to bring the market down and has demonstrated annoyance at his inability to do so.”

    I know I’ve commented on this before but I will keep doing it.

    Ever since becoming MoF in 2006, Flaherty has been trying to keep prices as high as possible. He has backed off on the extreme stimulation (e.g. 0/40) only because he was warned that if prices became too extreme a crash would be inevitable.

    Every regular on this board knows that if the federal government stopped guaranteeing mortgages prices would crash 50% or more overnight.

    Well-loved. Like or Dislike: Thumb up 34 Thumb down 2

    @16: “I just feel sorry for all those buyer who bought last yr and saw the developer cut prices by 20K every 6 months”

    You need to understand that the people who are responsible for the falling prices are the ones who bought for excessive prices. Developers simply sell for whatever they can get.

    Well-loved. Like or Dislike: Thumb up 24 Thumb down 2

    atomic frog.

    I agree the price is softening, but when is the crash coming, you ask? You know the answer to that if you know when the Fed will stop/taper QE. But I talked to Ben, he said he didn’t know, let alone anyone else.

    Even prices are sky high, but very few people are late on their mortgages. (200 foreclosed/mo?)

    Maybe we will have high price forever. It is close to “forever” as is, relative to the life span of a family.

    Hot debate. What do you think? Thumb up 4 Thumb down 9

    UBC in crisis mode Says:
    21

    Will this flipper make money:

    Land bought for $1,600,000 in March, 2012 (assessed at $1,674,000). Now brand new place for $2,780,000:

    http://www.realtylink.org/prop_search/Detail.cfm?MLS=V1038182&REBoards=All&From=MLS

    Like or Dislike: Thumb up 8 Thumb down 0

    It seemd like my little jabs a few days ago drew someone’s attention. Looks like it’s worth repeating:
    “the phrase “There is always next year” now applies more to RE bulls than bears.

    Greater Vancouver SFH has failed to reach its peak in May 2012 again for 18 months now. There is always next year..

    Greater Vancouver SFH HPI is currently at June 2011 levels
    Greater Vancouver condo HPI is currently at January 2008 levels

    Didn’t the Realtors say RE will appreciate with inflation? What happened? I guess there is always next year…”

    - I also wonder if my comments on the weakening CAD/USD trend irritated him. It can be a tough pill to swallow for someone holding a depreciating asset in a depreciating currency.

    - On separate note, spoke with a friend of mine recently who is high up in an investment firm. He was about to spend $3M on a luxury condo on Beach Ave, instead he decided to rent it for ~$6k/month. (here is another example)
    - property tax ~1200/m
    - condo fee ~1250/m
    - his landlord will be taking home <3550/m for an investment of $3M (1.4%), might as well put the $3M in a savings account!

    Well-loved. Like or Dislike: Thumb up 30 Thumb down 3

    Tenants of New Westminster apartment building living without heat

    Brady asked the landlord for help, but was only given a small space heater.“She said to me — in her words — you pay $900 because there’s no heat. I don’t really know what to say to that.”

    http://globalnews.ca/news/1019822/tenants-of-new-westminster-apartment-building-living-without-heat/
    —————————————–
    The landlord is cold heartless motherfuck*ng asshole watch the interview

    PS:if she is single she could always snuggle at my place

    Hot debate. What do you think? Thumb up 14 Thumb down 2

    country’s richest are earning more but paying less in tax

    https://www.google.ca/search?q=The+country’s+richest+are+earning+more+but+paying+less+in+tax&oq=The+country’s+richest+are+earning+more+but+paying+less+in+tax&aqs=chrome..69i57&sourceid=chrome&espv=210&es_sm=122&ie=UTF-8#es_sm=122&espv=210&q=The+country%E2%80%99s+richest+are+earning+more+but+paying+less+in+tax&tbs=qdr:d

    Like or Dislike: Thumb up 5 Thumb down 3

    Bull! Bull! Bull! Says:
    25

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 7 Thumb down 22

    Mick Murphy Says:
    26

    Hot debate. What do you think? Thumb up 13 Thumb down 1

    ROMEO YOU MADE MY DAY!

    Thank you for being honest, finally. Sometimes minor financial losses are worth the motor boating.

    Remember when Chipman tried to make you admit that he could have got you a better price if you paid him to negotiate for you? I think that’s when I dropped off the Chipman site. Too frustrating. Up is down and down is up but I said all along that it could go down but it will go up. F*eck it. Agents are so annoying. It’s hard to take the idea that you could walk into an open house and the bimbo or himbo staring at you will be have been right all along. That’s what keeps me from completely throwing in the towel.

    I’m waiting for that day, man. Even Shakespeare says it will come:

    Let Hercules himself do what he may,
    The cat will mew and dog will have his day.

    And Shakespeare is NEVER wrong!

    Like or Dislike: Thumb up 3 Thumb down 4

    Mick Murphy,

    In the Olympic Village that block is apparently the worst. Lots of problems in what they call Parcel 10. There is no problem with the heating system, the problem is with who manages the heating system. A lot of cheapos and short cuts going on. They get someone in who knows how to make it work–they charge for it–and then when it’s working well they let them go and hire some regular plumber who is a novice to this complicated system and Kaplooeeey, it busts, or even worse, it explodes and leak down into a number of suites. Then the arguments over who pays? Who’s at fault?

    The LEED system is complicated and expensive to run. It’s innovative and experimental and everyone else is learning from the mistakes of the OV. Worse, no one wants to pay the costs. It’s like a hot potato, the receiver tries to foist it onto the stratas, the stratas try to foist it back onto the receiver or the City. Once the warranty is over, the stratas will have to pay regardless.

    Hot debate. What do you think? Thumb up 12 Thumb down 1

    I remember back in 1997 when dotcom stocks were in an insane bull market. Companies were trading at 80 times forward year revenue projections. Well.. the NASDAQ quadrupled in price from 1997 to 2000. Ultimately the crash did come and most of the investors lost 100% of their money.. see Nortel.

    Now those 3-4 years 1997-2000 probably seemed like an eternity to bears waiting for their chance to buy in.

    This is also a good learning experience in markets.. just because a market has doubled compared to historical norms like income or rents.. does not mean the run is over, indeed it is likely just building momentum. As by then everyone will know people who have made a ton in the market and they will want a piece too.

    Hot debate. What do you think? Thumb up 17 Thumb down 4

    Spacemonkey Says:
    30

    On the radio they said iterest rates are up again.
    I rent a house worth 950.000 for 1600. only lived there for a year. Do the math bull bull bull.
    Also have boomer family members who bought a house for under 300 in Vancouver ten years ago and tell us in our mid 30′s it wasn’t easy and you have to start small they have no idea.
    Should I buy a leaky 600 sf condo for 300?
    No I am going to ether leave this town,country,province or rent in this town for life.

    Hot debate. What do you think? Thumb up 13 Thumb down 5

    Bull! Bull! Bull! Says:
    31

    @Spacemonkey

    if you can rent an entire house in vancouver for $1600, then you should do so.

    Hot debate. What do you think? Thumb up 16 Thumb down 3

    ….Olympic Village residents steamed over busted heating….

    Not sure what the problem is. The heating system uses zero energy – what could be more environmentally friendly than that? The fact that it produces no heat is only a minor issue.

    Well-loved. Like or Dislike: Thumb up 22 Thumb down 1

    BC: ICBC’S REJECTED VANITY LICENCE PLATES

    http://taxpayer.com/blog/bc–icbc-s-rejected-vanity-licence-plates

    Like or Dislike: Thumb up 4 Thumb down 4

    Atomic Frog Says:
    34

    #20

    1. All I can see is that if you buy in VAN in the last 5 yrs, you are either in red or a just merely break-even return. (well includes property taxes/insurance/inflation misc etc)

    2. Ever since the financial crisis in 2K9, the stock market has a much better return; easily 20-30% (well this is my experience only, i am too lazy to look up the real figure).

    It is not JUST how much money you lose, it is how much money that you could have made but miss out due to buying a property. If you add 1 and 2 together, that is a very big financial downfall for me. (it is a 2-edged sword) Now if you have so much money that you just want to tie down some money in a property as a fixed asset, then that is another story.

    Hot debate. What do you think? Thumb up 13 Thumb down 3

    born a Vancouverite Says:
    35

    @ 21 UBC in crisis

    I see lots of newish houses in that area for cheaper than that one. Considering it is near the corner, I think they are testing the market. I won’t feel any sympathy if they lose big $ on their flipping attempt. By the way, nothing says 2011/2012/2013 more than horizontal mounted clear cedar siding. Lots of houses built with this same feature – a maintenance feature at that. I grew up in Vancouver. What is that siding going to look like in 5 years without yearly treatment? It will be grey with a hint of green algae.

    Hot debate. What do you think? Thumb up 9 Thumb down 2

    mls watch Says:
    36

    @ I am throwing away the towel. Our household is making three time the median Vancoucer household income. We do not like the stress of stratas and do not want to pay 700K for a box in the sky. Every open house I go to for a SFH in my price range is below average quality in neighbourhoods that do not attract me at all. A small house in a neighbourhood I like (i.e. West of Fraser St) will NEVER be affodable, even after a 20% drop. Realtors treat us like s..t because we ‘are not realisitc.’

    Most of all, this city is becoming a big city with a pace of life that is what I was willing to escape by moving here.

    I have enough of seeing miserable parents who cannot make ends meet despite working like slaves.

    I am giving up and taking of.

    Well-loved. Like or Dislike: Thumb up 28 Thumb down 2

    Atomic Frog.

    I have no problem with the Stock market outperforms RE. In fact, it is a better sign of a healthy economy. I am just saying no one knows a RE crash is happening soon enough in any meaningful time-frame for a young family. Not those developers you said in your post, not BB.

    Developers always build fast, nobody ever complains if they receive their money back sooner, especially builders here have a very some share of the market. No one has the power to control the level of inventory, not even Ploygon, not Interacop.

    Like or Dislike: Thumb up 0 Thumb down 1

    Deutsche Bank just came out with a global house price presentation. Canada is the most overvalued in the world at 60% overvalued using a combination of price/rent 88% overvalued and home price to income which suggests 32% overvalued.

    Vancouver is much more overvalued than Canada as a whole as we all know. For their median price to income table Vancouver was the single most expensive city in the world (based on their selection of 18 global cities (including London, New York, Sydney, etc.)

    Homeownership rates have also gone up in Canada more than anywhere else in the world.

    It’s not hard to see that this isn’t sustainable.

    Well-loved. Like or Dislike: Thumb up 42 Thumb down 1

    Atomic Frog Says:
    39

    #37

    It is a matter of perspective. All I want to say is that if you have bought a VAN property in the last 5 yrs, it IS a crash to those ppl. It should feel like a crash if you factor in all the money that you could hv made by not buying a VAN property and buy sth else (like stocks)

    If you are waiting for a 20% crash in order to buy, my question is why bother? If the current VAN real estate market drops 20%, how can anyone be sure that it will NOT drop any further in a real bear market? 30%? 40%? 50%?

    In short I will only buy in a bull market, and sell in a bear market. In a bull market, the buying force is greater and vice versa in a bear market. Anyone who swim against the tide will tire himself out, there is no pt in catching a falling knife.

    I dont care if a crash is in place in 5 yrs or not. Even the price of that house is the same after 5 yrs, I can easily use the money that I could have spent on this house now and make a bigger return in the next 5 yrs (stocks).

    Is it a crash or not, does it really matter?

    Like or Dislike: Thumb up 2 Thumb down 6

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 1 Thumb down 13

    “I rent a house worth 950.000 for 1600. only lived there for a year. Do the math bull bull bull.”

    That’s a great deal, Spacemonkey. Hold onto it as long as you can, because I don’t think it is typical. I rent out a $850 to $900 K house in North Van for $3300. Had a choice of several great applicants willing to pay that and probably could have gone higher.

    Like or Dislike: Thumb up 2 Thumb down 5

    patriotz patriotz Says:
    43

    @42: ” I rent out a $850 to $900 K house in North Van for $3300. ”

    Now that’s more like it. Gross rental yield 4.7%!

    :-)

    Like or Dislike: Thumb up 6 Thumb down 0

    patriotz, if you’re saying this is not a great investment, I totally agree. I’m not bragging about this; just saying that Spacemonkey’s deal is not the norm for a tenant.

    Like or Dislike: Thumb up 3 Thumb down 1

    born a Vancouverite Says:
    45

    I periodically look at Craigslist to see what a laneway house on the westside of Vancouver rents for. Owners are asking $1800 to $2300 per month for a 2 bedroom place for 750 sq ft (which is on the larger size). These are asking prices and they increase to $3000 for a furnished laneway. Does anybody know what the owners actually get in the way of rent as some of these have been on Craigslist a while. I don’t know how Mayor Moonbeam thinks this creating affordable housing for families since they are way too small.

    Like or Dislike: Thumb up 4 Thumb down 1

    OK… I’m going to say what everyone else is thinking….

    Spacemonkey is paying 1600 for half of a house not the entire house.

    Like or Dislike: Thumb up 6 Thumb down 2

    OK… I’m going to say what everyone else is thinking….

    Spacemonkey is paying $1600 for half of a house not the entire house.

    Like or Dislike: Thumb up 4 Thumb down 3

    mls watch Says:
    48

    Craigslist tells you what landlords wish they could rent for, not what the median rent is.

    Hot debate. What do you think? Thumb up 11 Thumb down 1

    bluechipbear Says:
    49

    Hang on to the towel.
    Saving and waiting here…..personally making far more progress that way right now than if I was saddled with a mortgage. Also gives me the opportunity to wait it out for a better market. The true “bubble” is in credit and cheap money, and when that pops…..

    Hot debate. What do you think? Thumb up 12 Thumb down 1

    RaggedyRenter RaggedyRenter Says:
    50

    Amateur landlords probably think their unit is one-of-a-kind special palace, but in reality there are probably a lot of similar units for rent in the area.
    The last time we’re looking to move, I checked out craigslist, and sent out e-mails to 5-6 unit. I was courteous, explained who would stay in the unit, my employment status , income, list of reference etc and I asked for a lower price (The units are listed from 1600 to 1750). I asked for $1400.
    Most are willing to budge, I got anywhere from 1430-1550. I ended up renting an older rental building for $1400. The newer units may have nicer appliances but they’re way too small.

    Like or Dislike: Thumb up 7 Thumb down 1

    Please call it quits, the party won’t start until the last bear is done.

    Like or Dislike: Thumb up 3 Thumb down 5

    OK. So we’re all ready to call it quits except:

    Patriotz
    Jesse (I’m guessing)
    Bo Xilai
    Koozdra
    Many Franks
    Doomcouver
    Atomic Frog
    VMD?

    Anyone else?

    Like or Dislike: Thumb up 2 Thumb down 4

    YobiKanobi Says:
    53

    even BPOM quit.

    Like or Dislike: Thumb up 4 Thumb down 3

    I’m paying in the neighbourhood of 1600 for a house, 3 bed, great front and back yard. It’s in north burnaby, which is a terrific neighbourhood, we do have tenants under us, who are great. @Blah! I really think you are being ripped off..3300 is rediculous IMHO, now did the landlord show you the people who applied and were turned down, or was that a story you were fed… Cause I am not buying it.

    Like or Dislike: Thumb up 2 Thumb down 0

    165 sales today according to Chipman. Nothing stops this market.

    Like or Dislike: Thumb up 5 Thumb down 3

    Name goes here Says:
    56

    I rent a full house (4 bedrooms, 2 baths) in south Burnaby assessed at $$$ ONE MILLION DOLLARS $$$ with a view of the mountains for $2,000/month.

    Like or Dislike: Thumb up 4 Thumb down 1

    New Listings 124
    Price Changes 40
    Sold Listings 164
    TI:14101

    http://www.paulboenisch.com

    Well-loved. Like or Dislike: Thumb up 26 Thumb down 1

    @mac. I’m still here… :).

    Like or Dislike: Thumb up 0 Thumb down 0

    Son of Ponzi Says:
    59

    Cancelled/Expired: 58

    Like or Dislike: Thumb up 3 Thumb down 2

    Interest Only Says:
    60

    Wow

    Assuming you could continue to pay $2000/month in real terms for the next 20 years, and even with a measly 1% real discount rate, you would only spend $435,436 in today’s dollars to rent that “Million dollar house”.

    And the big savings:
    1) Minimize opportunity cost by having free capital to invest elsewhere.
    2) No operational costs, property tax, maintenance expenses
    3) You can exercise your free call option to buy when the prices are more inline with your utility.

    The potential downside:
    1) Home prices go up [BEYOND what you are saving from above]
    2) Rents go up (on an inflation adjusted basis they have generally been on a downward trend. Therefore, not likely.

    In summary, I think you win!

    Hot debate. What do you think? Thumb up 9 Thumb down 2

    Son of Ponzi Says:
    61

    Softy, so far this year there were only 3 days with more sales than listings.
    Throw in the towel.

    Hot debate. What do you think? Thumb up 9 Thumb down 2

    Interest Only Says:
    62

    @Bull X3

    I know a number of people who used to post regularly here that don’t anymore, but they still read avidly here and are even more bearish than before.

    Facts are facts, Vancouver real estate prices aren’t supported by fundamentals. We all know that the party can go on longer than expected. It always does. The party ended two years ago, we are just waiting for the alcohol to wear off and the hang over to settle in.

    Hot debate. What do you think? Thumb up 16 Thumb down 1

    renter_is_betterer Says:
    63

    i rent a full house in Vancouver for $1,800. it’s 5 minutes walk to my work, downhill both ways, and both the front and back yards face south.

    why would i buy?

    Hot debate. What do you think? Thumb up 7 Thumb down 7

    Bull! Bull! Bull! Says:
    64

    @born a Vancouverite

    you should ask Spacemonkey. he’s renting over $900,000 of real estate for $1,600/month.

    Hot debate. What do you think? Thumb up 3 Thumb down 7

    YLTNboomerang Says:
    65

    I’ve been around since I sold in 2007, ain’t going anywhere till this bubble pops then I’m going to find the “it’s not fair, we were told houses only go up” blog and make sure they know who “forced” them to buy….nobody!

    Hot debate. What do you think? Thumb up 10 Thumb down 1

    Until last year I paid $1600 for an older (but tidy and fully functional, other than having only one bathroom) four bedroom house West of Nanaimo and North of Broadway, which was assessed at about 850. We have the entire house and lot to ourselves. Last year the rent went up to $1850. This might not be a typical deal. First, the property is assessed based on lot value alone, given the location and given that the size of the house vs the price makes it a tear down. We are also ideal tenants with perfect credit. I turned down many other houses and chose this one carefully. That said, this is not a highly unusual deal. For peace of mind, I check similar rentals in the neighborhood at least once a year, and I always find that I would pay no more than a few hundred more for a similar place.

    Like or Dislike: Thumb up 1 Thumb down 0

    @Xyz: “@Blah! I really think you are being ripped off..3300 is rediculous IMHO”

    Sorry if I wasn’t clear Xyz. I am the OWNER, not the tenant. I was the one who had a choice of seemingly excellent tenants.

    Like or Dislike: Thumb up 0 Thumb down 0

    bestplaceonearth Says:
    68

    #65
    sold since 2007? gosh, no wonder you are always angry!
    who else are angry around here? most of you, and VMD’s parents.

    Like or Dislike: Thumb up 1 Thumb down 1

    You need a recession and rising unemployment rate before you see substantial drops in home prices. Even if interest rates go up in the next few years (not a certainty) and unemployment rate does not rise, home prices will not crash, maybe move down a little bit more or move sideways. The bottom line is, another recession has to materialize before we see home prices crash 20% or more.

    Like or Dislike: Thumb up 1 Thumb down 1

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