Should you just move to an island?

Skook has a post over at VancouverPeak.com about an island dream gone sour.

A BC couple purchased land on Mayne island and started building their dream home only to run into a confluence of cost overruns and real estate market downturn.

Today, their house is only a wood frame shell that looks out over one of B.C.’s most dramatic views, with the Lower Mainland in the distance, and regular sightings of ferries, whales and seals. The tiered wooded lot is only a five-minute drive to the ferry.
It is the idyllic best that B.C. has to offer, and yet the Klingsats won’t even break even on the near $1-million they spent on the property and construction. They have relisted it for $539,000, after previous listings at $649,000 and $699,000 didn’t get any offers. “Everybody loves the place, but the people don’t want a house that’s not finished,” says Mr. Klingsat, who gave up on the project six months ago. “And I can’t do it. I haven’t got any more money to put into it. “The whole economy everywhere is lousy – nothing is gangbusters. There are places for rent all over here on Vancouver island.”

The original article in over at the Globe and Mail. Skook adds some extra thoughts and information.

RFM has also added some information summarizing other properties in that particular island market.  There are 113 properties for sale on an island with a population of 900.

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crabman
Guest
crabman

@114: According to the RBC report, the only cities with affordability worse than their long-term averages are Vancouver and Winnipeg. Since Winnipeg is still cheap, I’m guessing other Canadian cities where prices have increased are still being driven by cheap credit.

Seems to me that the two least affordable cities (Van and Victoria) are too expensive now to be driven by locals with mortgages.

tedeastside
Member
tedeastside

now we know why Kitsilano is 96% white people….

the main street is 4th, death avenue

srsly
Guest
srsly

Seriously. What kind of culture decides to make the number 4 and ‘death’ sound almost exactly the same and then become afraid of the number 4. Only a culture that eats with twigs would do something like that.

Your the ones that gave 4 and death the same sound to begin with! ROFL!

Reality
Guest
Reality

“Sorry to burst your little bubble, and easy way of looking down at people,”

This is an even easier way to look down at people. Any rationalizations for this?

http://www.dailymail.co.uk/news/article-2140702/South-Korea-customs-officials-thousands-pills-filled-powdered-human-baby-flesh.html

BWilson
Guest
BWilson

Check out what’s going on in China:

Average Months of Inventory in 15 major cities: 13 !!!

In Ningbo where a developer just blew up MOI is 32.

Prices are dropping even in first tier cities.

http://www.bloomberg.com/news/2014-03-27/china-s-developers-face-shakeout-as-easy-money-ends-mortgages.html

patriotz
Member

@98: “I’m beginning to think the rise in prices we’ve seen in Vancouver since mid-2009 might just be HAM driven after all!”

So what about the same rise in prices all across Canada over the same period?

Superstition Lesson
Guest
Superstition Lesson

Maybe you can get it through your thick skulls with repetition.

patriotz
Member

@100: “In the 2008, prices fell and nothing sold as credit dried up completely word wide, except for China.”

Nonsense. Qualified buyers in Canada had no trouble getting mortgage loans any time in 2008, and there were sales all through 2008. When the GFC arrived in fall 2008 Flaherty made sure the credit taps were kept open.

Price started falling in April 2008 simply because there weren’t enough buyers left at current prices.

lololololololol
Guest
lololololololol

I told all of you about 6 months ago that bond yields would continue falling, and will do so for a few more years –

I’m glad I bought 3 years ago, and will continue variable for another 16-24 months and than reassess, hoping to lock-in a 10 year fixed sub 3%.

The folks that have bubble-fever, while I symphasize with, truly under-estimate the power of the Statists; Western Oligarchs are quite prepared to allow wealth inflation via asset inflation (property) as a way to stop chaos from breaking out due to rapid undisclosed consumer inflation (Enronization of Corporate culture)

property is a favorite way to create corresponding wealth creation through

George
Guest
George

@ Snake #82

THANK YOU so much for that UBC study! I can’t believe it! A study out of UBC that shines a light on the impact of Chinese buyers on Vancouver’s real estate market. That is sure to ruffle some politically correct feathers at UBC.

Comment Lessons
Guest
Comment Lessons

You only need to hit “Submit Comment” once.

Superstition Lessons
Guest
Superstition Lessons

No, I meant death Avenue. Chinese is tonal, so the word is the same, but not tonally the same. The difference would be very difficult for a non tonal language speaker to differenciate. If you read the wiki, you can see this is the case in Korean and Japanese, and it is an unpleasant number for them as well. You may convince yourself you wouldn’t feel negative about this number, but that is delusion or you simply are not intelligent enough to understand.

Superstition Lessons
Guest
Superstition Lessons

Gazonk,

No, I meant death Avenue. Chinese is tonal, so the word is phonetically the same, but not tonally the same. The difference would be very difficult for a non tonal language speaker to differenciate. If you read the wiki, you can see this is the case in Korean and Japanese, and it is an unpleasant number for them as well. You may convince yourself you wouldn’t feel negative about this number, but that is delusion or you simply are not intelligent enough to understand.

Superstition Lessons
Guest
Superstition Lessons

Gazonk,

No, I mean death Avenue. Chinese is tonal, so the word is phonetically the same, but not tonally the same. The difference would be very difficult for a non tonal language speaker to differenciate. If you read the wiki, you can see this is the case in Korean and Japanese, and it is an unpleasant number for them as well. You may convince yourself you wouldn’t feel negative about this number, but that is delusion or you simply are not intelligent enough to understand.

Gazonk
Guest
Gazonk

….I’m sure you would consider a house on death avenue equally to one on a normal street…….

But I thought your initial point was that the spoken words for ‘four’ and ‘death’ sound similar in Chinese and Korean. Perhaps your example might be better worded:

….I’m sure you would consider a house on dearth avenue equally to one on a normal street…….

Yep, passes the ‘no superstition’ smell test, no problem!

tedeastside
Member
tedeastside

Kitsilano should be cheap… Death Avenue runs right through it

Superstition Lessons
Guest
Superstition Lessons

#89

I’m sure you would consider a house on death avenue equally to one on a normal street. Any rational person would find it less than attractive. Sorry to burst your little bubble, and easy way of looking down at people, but that’s how it is buddy. If you still don’t understand what I’m saying you are not only irrational but a complete idiot.

crabman
Guest
crabman

The immigration numbers didn’t seem anywhere near enough to explain recent price gains. But when Ian Young showed us just how many IIP applications there were in the system, the picture began to get clearer. For those who haven’t seen this before, there was a huge increase in Chinese IIP applications starting in 2008.

http://www.scmp.com/news/china/article/1422480/exclusive-how-mainland-millionaires-overwhelmed-canada-visa-scheme

UBC in crisis mode
Guest
UBC in crisis mode

Good work, crabman.
A welcome relief on the West Side if March sales is down 50%-80%.

Son of Ponzi
Guest
Son of Ponzi

Crab man.
You’re right.
I noticed the same thing in Richmond in early 2009.
In the 2008, prices fell and nothing sold as credit dried up completely word wide, except for China.
As you remember, China was the only country that kept on growing through the Great financial Crisis.
They flooded the system with money to keep the credit flowing.
Most of that money was soaked up by the rich, who started to park it in Vancouver and Richmond RE.

crabman
Guest
crabman

Also started a thread on the forums in case anyone is interested.

http://vancouverpeak.com/showthread.php?tid=5253

crabman
Guest
crabman

I’m beginning to think the rise in prices we’ve seen in Vancouver since mid-2009 might just be HAM driven after all! (The run-up before then was definitely home grown, IMO)

In the run-up to the GFC, affordability deteriorated in most major cities.

See Page 8:
http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/house-february2014.pdf

Since then, affordability hasn’t really deteriorated except for Toronto (slightly) and Vancouver.

And when you compare the price history of Victoria (no HAM) and Vancouver, there is a clear disconnect beginning in mid-2009.

http://postimg.org/image/n94qr1riv/

mhealey
Member
mhealey

It sounds like a great idea, but when you think about it, there are many, many restrictions when you’re tied down to an island. You need to ride the ferry to and from the mainland, deliveries… forget about it, plus because of overall logistics everything comes at a higher cost.

Nancy Drew
Guest
Nancy Drew

“My friend is doing staging photos for realtors for west side homes and they are selling before the photos are even complete. Says market is still hot. ”

Then why are they being staged?

aznPride
Guest
aznPride

to all the bitter haters on this site: stop worrying about other people and worry about yourself.

https://www.youtube.com/watch?v=tuIXp2Grwck