Young adults buying condos: what are you thinking?

You want the pride of ownership.

And maybe buying a condo is like training wheels for real home ownership.

You get the practice of paying property tax and maintenance.

But over at the Globe and Mail Rob Carrick is trying to talk down the market again – he says maybe you should rent the condo and save the difference on the cost of buying.

“I would say buyers in their 20s probably won’t live in that condo for five years,” Mr. Fleming said. “They’re going to either outgrow it, or find a mate and want a bigger, better or different place.”

Even if you meet someone and live together in your condo, you’ll probably want to move when you have kids. Mr. Fleming said an increasing number of couples are starting families in condos, but a house is still seen by most as the best place to do this.

Moving from a condo you own to a house will cost you a lot. If you used a real estate agent to sell the place, you might pay a $15,000 commission plus HST to sell a $300,000 condo. “It’s expensive to move,” Mr. Fleming said. “Hopefully you purchased that condo for $250,000.”

Read the full article here.

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Coupons
Coupons
6 years ago

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Yard
Yard
6 years ago

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A possible answer
A possible answer
6 years ago

@ 95 Bo

I believe why realtors are concerned about policies that could effect the influx of foreign students is that many people are accomodating foreign students to help pay their overinflated mortgage payments. No students, no ability to make the payments.

chip
chip
6 years ago

Lifetime renter,

So Asians don’t do well in school, whether it’s in Asia or in the West, because China still has rural migrant workers.

Is this an argument?

I have had kids in schools in BC and in Asia. BC parents have no idea how quickly their children are falling behind. The disruptive economic trends that are upsetting you in Vancouver today are going to become more pronounced, as Asian kids learn math and science for hours every day, while Canadian kids coast toward their degree in self-esteem.

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Guy Smiley
Guy Smiley
6 years ago

“I’m off to dump some sulfuric acid in a local lake…”

I promise to ignore all patent laws, beat a Uighur and if I see anyone practicing slow-movement exercises in the park I will pounce on the heretic and rip out their liver for transplant.

Final price, 2930 Alan Rd, N Van anyone? Anyone? Bueller? It was listed at 1.6 M. Big and new but pretty awful location for that price.

Son of Ponzi
Son of Ponzi
6 years ago

#99
Yes we are building more new units than we are adding in population, but the vast majority of those units are sub 1000 sq/ft and in fact likely sub 800sq/ft units.

This translates to mostly studio and one bedroom units not suitable for anyone beyond transient 20 somethings that may not settle in the city at all.
————
I guess you have never been to HongKong or China.
95% of the people there live in < 600sq/ft units.
That's why they come here.

Burt
Burt
6 years ago

@Joe Mainlander, You are purposefully omitting what new housing has been created for the past decade. The fact is that the majority of housing built has been that of no interest to local families. Yes we are building more new units than we are adding in population, but the vast majority of those units are sub 1000 sq/ft and in fact likely sub 800sq/ft units. This translates to mostly studio and one bedroom units not suitable for anyone beyond transient 20 somethings that may not settle in the city at all. This is fine, the city obviously requires this housing as per recent CMHC vacancy rates, but lets not pretend that the thousands of one bedroom units have somehow resulted in less demand for family housing. Local professionals are willing to participate and often overpay for non strata units, in… Read more »

Joe Mainlander
Joe Mainlander
6 years ago

@#83 Re: 1. “If you knock down an old home and build a newer, bigger home, the total housing stock hasn’t changed. Over the last decade, this number is pretty significant.” If you knock down a home and replace it you aren’t adding to the housing stock so that is not counted as a new additional dwelling unit. So replacements irrelevant. Same as new households, peopled dying are subtracted from new people arriving or being born. I would think that that would not have to be explained. My mistake. Re; 2. True, it has to be taken into account. But, as long as you build enough housing to balance all demand, whether its to live, rent, or sit empty, then there should be no upward pressure on prices, all other things being equal. If 170k were built for 135k households,… Read more »

Romeo Jordan
Romeo Jordan
6 years ago

Sales spike.

Prices fall.

Nothing not to over here.

People (dumbass shitforbrains) jumped to buy Nortel when it first went back below $100.00

Rising sales and falling prices are NOT mutually exclusive.

You idiots.

The shit kicking had begun.

Enjoy it.

Best place on meth
Best place on meth
6 years ago

Please do not use the word Asian when you are actually referring to Chinese.

It’s an insult to Asians.

Bo Xilai
Bo Xilai
6 years ago

Here’s the news story from CBC on REALTURDS® being concerned about the Vancouver School Board’s stance on LGBTQ students…

Why REALTURDS® should be more interested than other industry groups about the enrollment of international students in the west side baffles me. Could it be because they fear for their commissions? As Frank Magazine would say, “Shurely Not!”

http://www.cbc.ca/news/canada/british-columbia/ken-denike-sophia-woo-expelled-from-npa-caucus-over-lgbtq-stance-1.2675495

“At the news conference Denike and Woo told reporters, realtors are concerned about the policy’s potential negative impact on the enrollment of international students as well as public school students on Vancouver’s west side.”

Lifetime Renter
Lifetime Renter
6 years ago

Hey Chip, are these the Asian values you are talking about? (From the China Labour Bulletin, June, 2013):

“There are an estimated 262 million rural migrant workers in China. They have been the engine of China’s spectacular economic growth over the last two decades but, because of the household registration system, they are still marginalized and discriminated against. Their children have limited access to education and healthcare and can be separated from their parents for years on end.”

chip
chip
6 years ago

I’m second to no one in opposing the flow of corrupt bureaucrats into Canada. Living in Asia, I know all about it.

But getting upset about Asian values in education?

Sorry, when teachers strike (again), Canada’s PISA scores continue to plummet and the biggest concern with schools is transgenderism, I’m with the Asian values.

tedeastside
tedeastside
6 years ago

why am i not surprised vancouverites are fighting against gay rights to save their property value…..

vancouverites are shallow real estate obsessed people they`ll fight against gay rights in the name of real estate

vancouverites are a disgrace to humanity

Ulsterman
6 years ago

Can anyone tell what 1120 Blaine Drive, Burnaby just sold for? It was listed for $2.4m and took a few months to sell. It’s in North Burnaby and this area seems to be a hotbed of HAM. It is difficult to find any street in this area that doesn’t currently have a 1950’s house torn down and a monster home in construction.

What I find amazing is that people pay over $2m to live in a suburb. You have $2.4 to spend and you aspire to … exotic Burnaby. Maybe I’m just a jaded, cynical housing bear, but i always imagine all the other incredible places in N America one could move to when spending this kind of cash. Burnaby, really?

NIMBY KING
NIMBY KING
6 years ago

Sales are nuts, looks like we are going to have to wait another year for the crash.

Best place on meth
Best place on meth
6 years ago

“I totally agree with your assertion we need to adopt Chinese values…

I’m off to dump some sulfuric acid in a local lake…”

Great idea!

I’m off to kill a large, graceful, endangered animal so I can use a tiny part of it as food or witch doctor remedy.

I will then throw away the other 99.5% of it away to rot.

paulb
6 years ago

New Listings 232
Price Changes 95
Sold Listings 173
TI:17248

For weekly sales and/or listing updates on a specific neighbourhood/city email me and I will add you to my Friday list. http://www.paulboenisch.com

Burt
Burt
6 years ago

@Joe Mainlander, Asset inflation has a underlying reason for it, typically excess liquidity flowing into one asset category. This in no way negates what I posted earlier. In fact, I specifically mentioned over leveraged locals as part of the issue. Secondary, as already pointed out tough to keep track of how many homes are kept vacant and how many homes have been lost and rebuilt. The bulk of housing created in the last decade has also been sub 1000sq/ft, and I would venture to say the last 5 years its been sub 800 sq/ft. Were replacing many houses with bigger, much more expensive spec homes. The vast majority of brand new product is condos. Your last paragraph essentially paraphrases what I already posted, that is locals are able to borrow more and compete for housing with more debt than ever… Read more »

LS in Arbutus
LS in Arbutus
6 years ago

I had a Daryl Grimson flyer a week or two back regarding the following property:

http://www.darylgrimson.com/Arbutus.ubr/Details/172/2875-alamein-ave-vancouver-west-british-columbia#viewdetail

I can’t remember the exact term damnit,but it said something like, the property sold above evaluated price. (Actually it was some other term but can’t remember.)

The point was it didn’t say sold above ask/listed/assessed price, something that we all understand. If you didn’t read it carefully you just saw sold above…..

In my business we’d call that a weasel word when you don’t want to, for whatever reason, say what you mean.

No offense to Daryl, I’ve met him, seems like a decent guy, but anyhow….

Yunak
Yunak
6 years ago

@Bo Xilai

…and while you are there pick up some vegies, for sapper, from community garden.

Bo Xilai
Bo Xilai
6 years ago

# 77, Bull! Bull! Bull!

I totally agree with your assertion we need to adopt Chinese values…

I’m off to dump some sulfuric acid in a local lake…

crabman
crabman
6 years ago

@80 Joe,

If you really want to estimate whether supply has kept up with demand, you need to do a little more analysis.

1. You need to subtract the homes which have been torn-down. If you knock down an old home and build a newer, bigger home, the total housing stock hasn’t changed. Over the last decade, this number is pretty significant.

2. Any net increase in unoccupied properties needs to be taken into account. If, let’s say, a bunch of rich Germans ;^) are buying homes and leaving them empty, they will have the same effect on the market as a new household formation.

Son of Ponzi
Son of Ponzi
6 years ago

#74
Actually, I just got a flyer from a Realtor with the headline SOLD By ME!
The sold property is in my neighborhood and was sold 6 months ago.
Pretty desperate!