Condo marketer trades used cars for down payment

People aren’t buying condos like they used to and that means marketers have to get creative.

For instance, how would you get first time buyers without much savings to buy in a new building with no parking available?

Trade their old car in for a 2% down payment!

Car for a Condo lets car owners trade in their vehicles towards a condo unit in the gritty but fast-gentrifying neighbourhood just west of Main.

“Cars are a terrible asset,” said Cam Good, president of real estate marketing firm Key Marketing.

“For someone trying to get started in life and wanting to become a homeowner, taking a depreciating asset and literally turning it into an appreciating asset is a life-changing decision.”

The low buy-in of $5,400 is possible thanks to a two-per-cent down payment program offered by Vancity.

It allows qualified buyers to shell out only two per cent of, say, a $269,800 one-bedroom, 519-square-foot unit — although monthly payments will be required over the next 16 months of construction to get the buyer to at least a five-per-cent deposit before the building is completed in 2016.

We’re still waiting for the offer that lets you trade in your used helicopter as a down payment on a new condo in Whiterock or the one that lets you trade in your imaginary foreign investor parents on a new unit in the gritty but fast-gentrifying neighbourhood downtown near the Granville street bridge.

Sort by:   newest | oldest | most voted
Aleksey
Guest
Aleksey

Used car might be a better option in case of major earthquake. At least you can drive somewhere else.
Whenever I think about buying a condo in Vancouver, I open this link in my Favorites.
http://www.crew.org/sites/default/files/cascadia_subduction_scenario_2013.pdf
After reading this I start thinking about moving to East Coast instead of buying a condo here.

Yunak
Guest
Yunak

Sounds like the next wave of locusts attack is in the full motion…

Tina Ford, an Australian public servant, said she could hardly believe it when her three-bedroom apartment sold this month for A$1 million ($877,000) at an auction in which all 16 registered bidders were ethnic Chinese.

To read the entire article, go to http://bloom.bg/1mTu219
Sent from the Bloomberg

jesse
Member

So I get to trade in my used car today and wait until 2016 (at least) to enjoy a car-free lifestyle? Got it.

gordholio
Member

The problem here is that Pacific Press treats this crap like news. Cam Good weaves another web and media outlets of course pick it up. Given the shadiness behind virtually everything else this shyster’s tried – and the frequency with which he makes said media outlets look like morons in the process – you’d think they’d give it a pass this time.

paulb
Member

New Listings 254
Price Changes 64
Sold Listings 125
TI:13256

http://www.paulboenisch.com

mls watch
Guest
mls watch

When will this madness end? I now have two co-workers who work more than 1.5 FTE to repay their mortgage, not to mention the 65+ who stay because they still have a mortgage hanging over their head. Young graduates inquire about job openings and are told there are none… No wonder why people move to AB.

Frank
Guest
Frank

Bank of Chima blinks again and floods the market with cash.

More $$ for corrupt cadres to buy our Re with

Son of Ponzi
Guest
Son of Ponzi
Son of Ponzi
Guest
Son of Ponzi

#2
Interesting!
One bloger points out that ethnic Chinese are bidding up RE in Australia.
And get’s promptly voted up.
But if one points out that the same is happening in Vancouver and Richmond, one get’s voted down.
Double standards?

George
Guest
George

CBC currently running a story on mixer mortgages:

“The Morey family and the Thrift family have co-purchased a home using the mixer mortgage option from Vancouver City Savings Credit Union…

The families purchased a 3,000-square-foot home for $800,000. The Thrifts live on the top floor, with three bedrooms and a playroom, while the Moreys live in the basement. Both families share the living room, dining room and kitchen.

They also share the cooking, cleaning, renovations, taxes and utilities — even babysitting…

VanCity says there is no limit to how many people can enter into a Mixer mortgage, but co-ownership agreements do get more complex as more people get involved.”

http://www.cbc.ca/news/canada/british-columbia/mixer-mortgages-make-vancouver-home-ownership-possible-1.2514737

Randy Randerson
Guest
Randy Randerson

#10
So what happens if Mrs. Morey decide to file a divorce? Then Mr. Morey will either have to buy ex-Mrs. Morey out, or Mr. Morey will have to sell the lower half of the house to generate proceed, to pay off ex-Mrs. Morey.

Now who would be dumb enough to buy just the lower half of a house?

Then Mr. Morey will have to convince the Thrift family to sell their top half of the house. This is completely F***ed up, it’s like dividing a family home between 20 different families.

This RE bubble is getting dumber every day.

VMD
Member

Another victim of US tapering:
Turkey’s Central Bank Aggressively Raises Rates

” Turkey’s central bank raised the overnight lending rate to 12% from 7.75% today, and the overnight borrowing rate to 8% from 3.5%. ”

““Although the Fed triggered the sell-off, the underlying problems are homegrown, and investors are starting to pay more attention to these domestic problems,” said Nicholas Spiro of Spiro Sovereign Strategy, a consulting firm. “Turkey is a glaring example.””

via Bloomberg
“Turkey isn’t the only emerging nation to raise borrowing costs this month in response to plunging markets. India unexpectedly increased rates yesterday, and Brazil has pushed its benchmark higher for six straight meetings.”

– as rates rise in the emerging markets, beware the potential profound effects of the resulting deleveraging..

Son of Ponzi
Guest
Son of Ponzi

Vancouver City Savings used to be a innovative financial institution.
But now they seem to have gone off the rocker, like the rest of Vancouver with their addiction to RE.

Randy Randerson
Guest
Randy Randerson

Further to CBC’s article on mixer mortgage. A roof over one’s head is a necessity, but owning a house isn’t, and it’s not a “right” as some people will claim; it’s a privilege.

taylor192
Member

I hate this comment in the article:

“Mixer mortgages a necessity in Vancouver”

If people don’t buy, prices come down. The best way to ensure these types of mortgages are a necessity is paying $800K for a house.

Bailing in BC
Member

Vancouver Price Drop is back!

http://vancouverpricedrop.wordpress.com/

midnight toker
Guest
midnight toker

oh Vancouver, you so crazy.

No Noise
Guest
No Noise

Well there you have it – everything 25% off!

http://vancouverpricedrop.wordpress.com/

patriotz
Member
although monthly payments will be required over the next 16 months of construction to get the buyer to at least a five-per-cent deposit before the building is completed in 2016. So the “two-per-cent down payment” isn’t a down payment at all – it’s a deposit on a pre-sale. And something the article doesn’t mention – the buyer is going to have to come up with a lot more money out of pocket to close the sale in 2016 if the market price has declined. That is, the buyer will owe the developer the pre-sale price minus 5%, but he can only take out a mortgage for 95% of the market price at the time of closing. Don’t have the money – hello BK. Good scam, Scam Good. Do I have to mention this kind of “deal” was very common in… Read more »
Egg Hunt
Guest
Egg Hunt

#11

Agreed.

I heard “you only buy real estate with the person you sleep with”.
So, not with your siblings, cousins, not to mention with strangers!

Billy Bob
Guest
Billy Bob

Anyone hear Cam MacNeil (MAC) is going to be a panel member at the Vancouver Real Estate Forum!

http://www.realestateforums.com/vancouverref/en/program2014.php

The session is THE RESIDENTIAL MARKET…WHO REALLY KNOWS THE NEXT CYCLE

I’ve already written the organizers to let them know I’m going to skip the conference this year because it sounds like they’re so hard up for speakers they have to pick this guy!

If anyone can attend this may be an opportunity to ask Cam some questions in a public forum!

mls watch
Guest
mls watch

“you only buy real estate with the person you sleep with”.

Even this can be recipe for trouble 🙂 I often witnessed it. For example, the price of the house goes down, or there is a problem with the house, or the mortgage payments are overwhelming, and the couple starts playing the blame game. It can shatter a couple. Investments do not feed relationship.

Turkey
Guest
Turkey
From the G&M. Living in retirement: Seven things I wish I could tell my 35-year-old self 6. Buy the best house you afford, in a neighbourhood you adore. Stay there. Moving costs a fortune these days, factoring in everything from land transfer taxes to realtor fees to movers. All needless expenses, if you find your home early in life. Everyone I know has repeatedly lost loads of money in the stock market, but not one person I know has lost money buying real estate in large urban centres in Canada. Other than your mortgage, avoid big debts including a line of credit on your house, which erases the equity you’ve painstakingly built in your home. The house I purchased in Oakville in 1994 more than doubled in value when I sold it two and half years ago to move to… Read more »
Son of Ponzi
Guest
Son of Ponzi
Alexcanuck January 29, 2014 at 9:16 am #10 first listing Oct/2006. Building didn’t complete until ’09. Is that data good? Would that be the first attempted assignment flip? Also judging from the realtor pictures, odd to move so many books in for a staging, but note the pictures all leaned up rather than mounted on the walls. $516.44 strata! #9 Empty #8 No pictures, but “immed. occupancy!” So also empty. #7 Occupied but barren. Rental? #6 Empty #5 Empty, also “COV lease to 2036″. Doesn’t say prepaid, so likely on of those that saw an enormous increase a few years back, in the range of from $100-200 up to 800-1000. And in 2036 you will own precisely nothing! #4 Properly occupied. Owner has already paid for a new roof and plumbing. Ouch! #3 Occupied. $300K drop in 6 years, still… Read more »
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

what’s real estate bear of the year award winner for 2013, Ben Rabidoux, been up too? i haven’t seen him on this blog for a while. also, people seem to have stopped posting about him.

and who was real estate bear of the year before him? some goldberg guy? i can’t even remember his name. there seems to be a new one every year.

wpDiscuz