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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Guy Smiley
Member
Guy Smiley

Could someone in the know tell me what 2930 Alan Rd North Van sold for? Thanx.

Romeo Jordan
Guest
Romeo Jordan

Barb Rennie,

Don’t confuse higher sales with a strong market.

As prices soften the lemmings jump at the bait.

Nortel did not go straight down to zero. Did you know that?

You’re such an idiot.

ILoveCharts
Guest
ILoveCharts

http://www.imf.org/external/pubs/ft/survey/so/2014/NEW061114A.htm

“New Global Housing Watch Throws Spotlight on Booms and Busts”

Canada is clearly in the boom and ready to bust category.

I’ll be frank. There was a time when there was a part of me that was happy about this situation. I was getting a sweet deal on rent and when the correction happens, it would give me a buying opportunity. I’m now becoming increasingly concerned that when the crash hits, it will destroy the economy for such a long period (these are 25+ year mortgages that we’re talking about) that any benefit from the buying opportunity will be outweighed by the direct negative impacts of an economic downturn (no jobs for me, decline in government services, etc.)

Oh Grow Op!
Guest
Oh Grow Op!

@ilovecharts: Yeah, it sucks, but you seem to be missing the obvious – if you’re not locked down to one location and buried in debt you can follow the opportunity, and there’s ALWAYS opportunity.

Sure the economy in Vancouver may go in the shitter for years to come, but there’s likely a good income and better lifestyle waiting for you somewhere else if you’re able to make the move.

It’s the people that have set anchor deep and are completely economically immobile that you should feel sorry for.

Oracle
Guest
Oracle

The OECD is deeply worried about Canadian housing.

The Cons have only 2 choices left:

1) Keep the immigration floodgates open by way of TFW, Foreign Students, Permanent residents. But this will eventually have to end because of the backlash of the local population.

2) Keep making crazy policy changes thereby prolonging the bubble …which leads to a bigger crash.

I’ve done the numbers. Bc’s population is set to grow by 100,000 over the next 50 years if you exclude immigration.

I am not a racist nor do I wish any harm on immigrants. After all, they are people too like you and I. Its the crazy policies of certain people in gov that are an enemy of this nation.

I hope csec or anonymous reads this.

patriotz
Member

Beijing-backed Toronto school program comes under fire

The Toronto District School Board’s newly minted Confucius Institute is in jeopardy after a committee of trustees recommended suspending its partnership with the Chinese government.

The board’s planning and priorities committee passed a motion on Wednesday evening calling on all TDSB trustees and staff to investigate concerns about censorship by the Chinese government, which is quietly spreading its reach into Canadian classrooms through language and culture programs with virtually no oversight. The board will vote on the committee’s recommendation on June 18…

School boards in British Columbia and Alberta offer programs through Confucius institutes.

Son of Ponzi
Guest
Son of Ponzi

Many Stratas are not getting the Depreciation Reports.
http://www.richmondreview.com/business/262625261.html

Romeo Jordan
Guest
Romeo Jordan

18,000 is going to feel great.

I enjoy watching a nice shitkicking.

This market is in peril.

George
Guest
George
Did anyone else watch CTV news hour at 6pm last night? Steele on Your Side had its second installment on Vancouver’s real estate bubble. They were interviewing Paul Young from the SCMP. It was a truly shocking piece of honest, frank, spin-free reporting. The change in tone from the media last night on CTV was very noticeable. I will forever be a fan of Steele on Your Side. Key points the report covered: -Vancouver receives the majority of immigrants under IIP -You can’t flood the city with tens of thousands of uber rich immigrants without that affecting real estate prices -the majority of IIP immigrants who come to Canada via Quebec end up in Vancouver -Vancouver is a global anomaly in terms of property prices and very vulnerable to crash -Vancouver’s real estate fortunes are now tied at the hip… Read more »
OV
Guest
OV

@George

did you see the reaction of the anchors to the story? they looked genuinely pissed off about foreign ownership and HAM.

the media panders to public opinion. they also troll the internet for the next hot story. by promoting ideas and topics on the internet people can influence the media. and of course, politicians follow the media very closely.

so keep posting those stories, keep up voting them and keep leaving comments.

it all actually makes a difference.

the CTV wouldn’t talk about Young and his findings if they didn’t think that this was a hot topic.

reddit.com/r/vancouver is especially monitored by media for stories.

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

this is the ctv story

http://bc.ctvnews.ca/chinese-investors-sue-federal-government-after-visa-program-scrapped-1.1862579

i wouldn’t pay any intention to it. it’s a borderline racist, ‘yellow peril’ story. nobody in authority is going to pay attention to it let alone implement a modern day head tax.

be a good vancouverite, learn mandarin, and welcome the world to our beautiful cosmopolitan, world class city.

patriotz
Member

@9: “You can’t flood the city with tens of thousands of uber rich immigrants without that affecting real estate prices”

You forgot to add.. “of tens of thousands of uber expensive properties”.

The price of any property is determined by who buys it.

“What gives?”

What gives is the same old – trying to get people to believe that inflated RE prices in metro Vancouver (and any possible bust) are the fault of foreigners and foreign events, rather than Canadian and BC government policies and the locals those policies enable to buy at inflated prices.

gordholio
Member

Top 3 headlines at the BNN site right now:

1) Housing still a risk to Canadian economy: Bank of Canada

2) Canadian home prices hit record in May

3) Canada’s condo-mania to blame for lack of affordable rentals: OECD

gordholio
Member

I’m watching Poloz live, taking questions on the central bank’s financial system review.

One response caught my attention. Poloz says that even though the level of consumer indebtedness in Canada is just as high as it was in the US just before the financial crisis, the “quality” of that indebtedness is higher.

Can anyone with more knowledge than I tell me what that means?

Moneybags
Guest
Moneybags
tim
Guest
tim

@gordholio: I’m guessing he means ‘its different here’.

Bailing in BC
Member

@gordholio #14

It means Poloz is full of shit- that’s what that means.

crabman
Guest
crabman

Patriotz – It doesn’t matter if they are only buying high-end properties, they absolutely will affect the overall market.

1. Prices rise when MOI is low. Buying up a significant amount of high-end properties will lower MOI, and prices of remaining homes will increase.

2. Many of those new $3M homes started as old $1M homes. As those are snapped up, the prices of remaining $1M homes go up.

3. As more and more people get priced out of high-end homes, they start buying 2nd-tier properties and prices of those go up.

mikey
Guest
mikey

It is ‘f#4%ing’ different here… it is nuts! As long as 5% down and low interest rates are here don;t expect a price drop … maybe if the unemployment rises … which it might because nobody is consuming and all the $ are in houses

Some Guy
Guest
Some Guy

I was surprised to see the Teranet index show a decline for Vancouver in May, The index goes back to 1991 for Vancouver, in that 24 year span there are 3 previous years showing a decline in May: ’95, ’98 and ’09. ’95 and ’98 were part of the long stagnation of the 90’s, while May ’09 marked the trough of the sharp but brief 08-09 downturn – I guess we’ll see if the drop in ’14 is just a blip or not.

Meanwhile Victoria is still in rough shape, prices down almost 10% from the peak, and currently equal to prices from July 2007 (if you don’t worry about 7 years of inflation in the meantime).

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

>Patriotz – It doesn’t matter if they are only buying high-end properties, they absolutely will affect the overall market.

they aren’t only buying high end properties. there was an article where a person bought a place on coquitlam expecting a visa.

and anyone who knows anything about mainlanders knows that many people who come don’t even have the $800,000. they just borrow it and pay the interest on the loan.

look how naive canadians like patrotz are. do you really think you have any hope of stopping sinofacation? just embrace it. learn manadrin. join the future or be left behind.

(Coquitlam)School District 43 is making history on a worldwide level.

The Chinese Language Council International approved the reclassification of the district’s Confucius Classroom to a Confucius Institute.

– See more at: http://www.thenownews.com/news/confucius-program-gets-an-upgrade-1.436641#sthash.XzXbCqoJ.dpuf

donnie
Guest
donnie

Vacancy rates are tightening.

Vancouver vacancy rate
Apr ’13 — 2.9%
Apr ’14 — 1.8%

Kelowna vacancy rate
Apr ’13 — 4.8%
Apr ’14 — 1.5%

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-06-11-0816.cfm?WT.cg_n=TWT_MAC

Many Franks
Member
Poloz’s presser is starting to show up in the news. Stephen Poloz sees high home prices as economic risk: Poloz said the probability of a sharp correction is small and, if it comes, it will be caused by external factors, such as a sudden failure of the economic recovery that seems to be underway in the world economy. “Nothing bad is going to happen, but if it does, it’s not my fault.” He refused to comment on a suggestion by the OECD that the government end its practice of insuring high-risk mortgages through Canada Mortgage and Housing Corp. Poloz said that question would be better answered by the federal government or CMHC. “Not my fault.” Poloz said the central bank is “comfortable” with the current trends in the housing market and believes Canada’s house prices will have a soft landing.… Read more »
franko
Member
franko

@ #10

” the media panders to public opinion. they also troll the internet for the next hot story. by promoting ideas and topics on the internet people can influence the media. and of course politicians follow the media very closely. ”

Very true.
But just in case our Immigration Ministry is pondering the introduction of the new and improved version of the IIP, why not jump the gun and let Chris Alexander know how you feel about passports for cash.

It is just as easy as posting here.
ChrisAlexander@parl.gc.ca

patriotz
Member

@18:

Your argument implicitly assumes that the number of dwellings is static, which of course it isn’t.

If the number of dwellings is keeping pace with household formation (and the numbers are saying it’s exceeding it), the “deep pockets” buyers are not going to push up prices anywhere except in their own sector of the market. The low end may move farther out in location (gentrification), but that happens in any growing city.

And to belabour the obvious, nobody has to buy in the first place, so you can’t blame anyone but the buyer of a particular property for a price out of proportion to rent, even if number of dwellings isn’t keeping pace.

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