Gen Y not buying a lot of Vancouver houses

From the obvious files: expensive homes are expensive.

The Globe and Mail has an article about changing attitudes towards real estate by Generation Y in Vancouver.

Essentially: they are more inclined to live urban and remain mobile.

They also say that Boomers are downsizing into condos.

Ben Smith, VP of sales and marketing at Rennie & Associates, says he’s already seen a major shift in the last six months. This year he’s seen a sudden surge in demand for three-bedroom condos, purchased by downsizing boomers. Those boomers are trading their homes for spacious condos. Those same boomers are helping their kids with a down payment on their own condo, which is the only way a lot of Millennials will ever afford to live in Vancouver.

“It’s exciting, because for years we’ve been talking about this, and we’re finally seeing it happen,” he says. “There is $88-billion worth of clear-title real estate tied up with boomers. In B.C. and Vancouver especially, we are all equity and no income. If you don’t have that down payment, you don’t have a home.”

Read the full article here.

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UBC in crisis mode
Guest
UBC in crisis mode

Even a condo in Vancouver is too expensive to those young people, if they are lucky to have jobs in the city. Vancouver is NOT New York or San Francisco. A good place to retire if you have a few million dollars in the bank.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

The usual suspects think that HAM has no effect. The usual suspects are ALWAYS wrong.

Vote the way YOU want, not how the know-it-alls tell you.

They aren’t smarter or better than the rest of us!

ferry fiasco
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ferry fiasco

http://commonground.ca/2014/01/fix-ferries/

BC Ferry’s like BC homes, being crushed by the weight of servicing debt… ‘unsustainable’. Get a load of those salaries and pensions, un-effen-believable!

Bankruptcy coming

space889
Member
space889

Wait, there are new 3br condos being built??? I see 3br townhouses but condos?? Very rare. Also, 1000 sq ft is not spacious.

Bob Reenie really wants to get his cut of that $88B clear title $$$….and really $88B??? Is that subliminal advertising??

space889
Member
space889

@ferry fiasco – Crown corporation wages are all bloated….at least BC Ferry a lot of us have an option to avoid.

BC Hydro, there is no alternative and their salary & benefits are probably even worse. 30 days vacation to start!!! That’s more generous than quite a few European countries! Also, that PowerSmart energy saving program? I’ve heard a lot of the industrial customer power saving numbers are forged/faked so the salesperson can get their commission bonus. Add in no money saved for major infrastructure maintenance and new power plants, we can look forward to more dramatic rate increases in the future.

Jaydub
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Jaydub

@space889 – Small correction to above poster. Bc hydro offers 20 days vacation (4 calendar weeks) which has become increasingly standard in Vancouver. Nothing to over the top there, just what is required to compete with other companies for talent.

I would advise sweeping generalizations that crown corporation salary’s are all bloated – many crowns compete with private companies and need to offer comparative salaries. (yes, even hydro, because private companies would hire their talent – the monopoly in their market is irrelevant to the talent market)

PizzaEater
Guest
PizzaEater
@space889: sure a lot of people can avoid using the ferry system, just like a lot of people can avoid using the highway system. The BC government is on an island and we have many coastal communities that are only accessible by ferry. Choking off the movement of people, goods and services is no way to grow an economy. The BC Ferries salaries are ridiculous, especially when you compare them to their counterpart in Washington state that apparently moves even more people per year: BC Ferries CEO Michael Corrigan’s total compensation will be $500,730 in 2014, down from $915,000 in 2012. That includes a base salary of $364,000, a bonus, two pensions and a vehicle allowance. Former CEO David Hahn, a prior architect to the mess, draws $300 grand a year from BCF, for life. David Moseley, head of the… Read more »
Babcock
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Babcock

@Manny Franks
how about this one. cool 3 mil.
https://tinyurl.com/my66vvb
1) No ocean
2) No Mountains
3) No Lululemon chicks
4) No Sushi and Latte crowd
5) No Lambos
6) No HAM
7) No Hollywood
8) Not even 1-800 Junk Corporate Headquarter

cross the Rockies sometimes if you want to judge the biblical bubble in the rest of Canada.

Babcock
Guest
Babcock

9) snows 8 months of the year
10) average temp -25C in winter
11) No NHL team
13) Can’t swim and snowshoe on the same day. (only snowshoe)
14) No movies are shoot (don’t count Corner Gas), No Lions Gate
15) No Electronic Arts or any kind of Internet start ups

Babcock
Guest
Babcock

16) No Broadway (1-2 musicals in Soviet era look like hall)
17) 3 good restaurants (including Earls and Moxies for crying out loud)

So why 3 mill for the house?

M. ANTOINETTE
Guest
M. ANTOINETTE

LET GEN Y EAT HAM.

Son of Ponzi
Guest
Son of Ponzi
kabloona
Member
kabloona
24% of Canadians see their homes as main source of retirement income BERTRAND MAROTTE – The Globe and Mail Published Wednesday, Feb. 19 2014, 6:00 AM EST http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/a-quarter-of-canadians-see-their-homes-as-a-primary-source-of-retirement-income/article16939799/ “We were really quite surprised to see such a high percentage of Canadians thinking of using their homes as a primary income source of retirement and another 17 per cent saying they weren’t quite sure,” Kevin Dougherty, president of Sun Life Financial Canada, said in an interview. “The fact is that many people don’t have access to pension plans at work,” he said. Many also do not have significant personal savings, making home equity more attractive, he added. But real estate is a volatile asset class and can’t be counted on to sustain high values forever, Mr. Dougherty cautioned. “It is really quite striking how fast home equity can disappear. One needs… Read more »
PizzaEater
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PizzaEater

@jaydub:

“I would advise sweeping generalizations that crown corporation salary’s are all bloated – many crowns compete with private companies and need to offer comparative salaries.”

That’s fair enough, I know it’s easy to complain about government, but here’s what I don’t get. We could offer the head of Washington State Ferries (the competition) DOUBLE his current wage and STILL save money over BC ferries current compensation. And we shouldn’t even need to do that, everybody wants to live here right?

David Moseley for Head of BC Ferries!

space889
Member
space889
@Jaydub – Maybe they changed the rules recently but I was told by a new hire that he got 30 days vacation, excluding sick days, for a non-union position. I have also heard that long time employees can get up to 2 months worth of vacation days. Yes, crown corporation have to compete for talents with private companies but the total compensation, not just salary is out of whack. Crown corporation employees get retirement benefits that most in private sector can only fantasize about. For someone making $60K/year, the private sector employee probably needs over $750K in RSP to have same income as a crown corporation employee. Their pension is worth a lot of money and should be counted in total compensation. As well, they get much better job security than private sector employees. The salary for non-highly skilled employees… Read more »
tedeastside
Member
tedeastside

vancouver doesn’t have a lot jobs for any generation so thats why vancouverites cling to real estate for dear life…. more than any other people on earth…..

crabman
Guest
crabman

@space889 – It isn’t that Crown employees are overpaid, IMO it’s private sector employees are grossly underpaid. That’s why we have record-high levels of household debt and a very low savings rate. It’s also why 2/3 of Canadian mothers with children under 2 are working. It wasn’t like this in the 1970s. And back then, private sector employees didn’t have to “fantasize” about pensions, because 90% of them had one.

http://ow.ly/tNLmO

Bear Vancouverite
Guest
Bear Vancouverite
@space889 – I think the retirement benefits are a major draw. My good friend works for a crown corporation, he’s a skilled IT supervisor and is actually underpaid compared to the market by maybe 20-30%. He often dreams of going private sector, but then the thought of leaving the pension behind always deters him. As far as less work load, I think it depends on the person and the department. This particular fellow is quite busy, highly skilled, and losing him would be a major loss to that Crown Corp, because the others in that dept are less motivated and skilled. ———— I have a tricky question for some bears on here which I think a lot of us have been thinking about. If you have been holding out since 2003-2005, there’s a good chance no correction will bring prices… Read more »
Many Franks
Member
Active Member
@Bear Vancouverite: My motivations are wealth building, quality of life, and curiosity, not necessarily in that order. In order for me to purchase, I would need the following conditions met: 1) Transaction + carrying costs for a mortgage would need to significantly drop below the cost of rent for an equivalent property to what I’m renting. Currently they are effectively even or higher. 2) The quality of life differential needs to tip towards buying. This will become more material e.g. when my daughter hits school age. 3) My investments (excuse me for bragging) will have to quit doing so damn well. (This will eventually happen, but for now…) 4) I would have to see an upside in competitive advantage with respect to Vancouver’s average citizen. As a desirable renter with means to purchase, clean credit and no debt, I am… Read more »
patriotz
Member
@18: ” If you have been holding out since 2003-2005, there’s a good chance no correction will bring prices to a level that you considered overpriced in 2003.” First of all you’re making a straw man argument since the Vancouver bear blogs have been only around since 2005. The other problem is that you don’t understand that it’s not just about prices returning to year X but whether buying at some year Y in the future (and renting in the meantime) will put you ahead of someone who bought in year X accounting for all costs. To put it in the most understandable terms, consider the “soft landing”, i.e. flat nominal prices while rents and incomes catch up, that some people consider likely. Assuming such a scenario, anyone waiting to buy as long as it’s more expensive than renting will… Read more »
Babcock
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Babcock

@Bear Vancouverite
4) Have you given up?

Yup. I have given up. When condos in Regina are selling for MILLION bucks what do you expect to happened with prices in so called “desirable” places in Canada.

Many Franks
Member
Active Member

A report on an event hosted/organized by Conrad Schmidt, one of Vancouver’s finest screwball lefties (I say this fondly). As such it should not be considered a representative forum but interesting reading nonetheless. It seems to be a reaction against the city’s plan for the Broadway corridor.

Even real estate consultants hate condo towers: Eco-density discussion in Grandview

Next time you’ll remember to flush your browser history before plugging your computer into a projector, Conrad 🙂

M. ANTOINETTE
Guest
M. ANTOINETTE

@Babcock

U FUCKING PEASANT. I CAN SAY THAT CONDOS IN VANCOUVER ARE SELLING FOR 5 MILLION, AND I’D BE RIGHT. BUT IT WOULDN’T MEAN A DAMN THING.

JUST LIKE YOUR DRIVEL MEANS NOTHING.

Babcock
Guest
Babcock

no wonder Jesse left the forum. There are very few civil people around here.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@patriotz

when’s the crash? don’t tell me you’re starting to buy into this “soft landing” theory. every bubble is followed by a crash, right? haha.

but seriously, first jesse capitulates, HAM is de-HAMed, and now patriotz is talking about soft landings.

i’m getting more and more bearish every day.

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