Somebody at the Sun has started looking at rent / buy ratios.
Many Franks posted this in the comment section yesterday:
Barbara Yaffe discovers renting. Contains a few groaners. Renting a place may be the last, best real estate bargain and a majority of the city’s residents are taking full advantage
Vancouver rents have remained reasonable in part because of a 2.2-per-cent limit on annual increases imposed by the provincial government.
NO! Bad Barbara.
In a recent bulletin, [David and Mark Goodman] report Canadian Mortgage and Housing Corporation numbers that demonstrate it’s 32.5-per-cent cheaper to rent rather than own a one-bedroom unit in Vancouver.
“The gap increases considerably once strata fees, maintenance costs and taxes are taken into account.”
WTF kind of buy/rent comparison EXCLUDES strata/maintenance and tax?
Apartment building owners in Vancouver since 2007 have faced a municipal moratorium on the demolition of rental housing stock, and are reluctant to evict tenants in order to do needed upgrades.
Renoviction. When a phenomenon is popular enough to coin its own term, “reluctant” might be overstating the case.
The Goodmans are predicting that landlords of these older, minimally upgraded buildings soon may find themselves confronting tough new competition.
They report as many as 49 rental buildings, with 5,849 suites, could come on stream in the region within the next three years.
And the popularity of renting in Metro Vancouver may grow, says the Goodman Report, because of an increasing wariness about Canada’s possibly overvalued real estate.
“We live in a very special place with abundant resources and continuing investment from abroad,” says the newsletter. But with all the housing-bubble talk, “as a B.C. real-estate owner you’re wise to be cautious.”