Luxury hotel to become a dorm

Looks like those basement mortgage helpers might have some competition soon if this plan goes through:

Downtown Vancouver Luxury Hotel to become International Student Housing

The 17-storey building will undergo a $37 million renovation and have 220 beds for international students come September, according to Global News; the company is eventually hoping to expand into Vancouver and Richmond and have beds for 5,000 post-secondary and high school students in nine different buildings.

The Viva Suites will be available from $900 to $2,500, depending on the amenities, location, and building, The Province reports. Some of the amenities available are a weight room, housekeeping, secured underground parking, and Internet. The suites will be available for daily, weekly, monthly, or yearly rental, with no long-term commitments required, states a company press release.

Read the full article here.

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Mortgageslave
Member
Mortgageslave
@ORACLE (post 13) – $100,000 profit in 6 months! Even though Oracle is full of shit and trying to pump up the market let’s examine his 100,000 profit in 6 months. Well he didn’t live in it for a year so he’s taxed capital gains. 50% off. $50,000. Next, to make $100,000 (10%) it would have to be close to 1 million. Let’s say $800,000. To sell it would cost him him at least $30,000 in fees. (lowball) $20,000. If he didn’t have 20% down he would have had to pay CMHC insurance. On a $800,000 house it would be $16000. $4000 If he did have 20% down ($200,000) he could have easily made $20000 if he had it invested. If he rented it out, it would not have covered his mortgage so he would have lost another $2000 at… Read more »
Bear Vancouverite
Guest
Bear Vancouverite
@Mortgageslave: I too think equities are a good investment vehicle, but I think your facts are a bit fuzzy. #1: Google does not have dividends. #2 I believ you are cherry picking some stats and the window of “20 years” happens to fall in the right place. Here’s a chart of the S&P500 since 1959: http://finance.yahoo.com/echarts?s=%5Egspc+interactive#%7B%22range%22%3A%22max%22%2C%22scale%22%3A%22linear%22%7D Here’s a calculator to calculate returns on the S&P500 that lets you pick any start and end time. If you start Dec 1994 and end Jan 2015 then yes, Odlum Brown’s 20 year window gives you a return of about 544% from the S&P500, adjusted for CPI it is actually only 344%, or an annualised return of 7.2%. Now I’m going to do a bit of Cherry picking myself, if you change the start time by just a few years, say you pick 2000… Read more »
Bear Vancouverite
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Bear Vancouverite

Sorry, the S&P500 calculator is here:

http://dqydj.net/sp-500-return-calculator/

Randy Randerson
Guest
Randy Randerson

@45. Bullshit.

Do you even know what annualized 20% looks like? It’s 6.19X

So your $300k house back in 2005 is now worth $1.8 million dollars?

Mortgageslave
Member
Mortgageslave

Of course I’m throwing out the best case scenario. At least I have facts to back it up as apposed to Oracle, Spacecase or BBB. You have to fight fire with Fire, if they’re going to post extremes then I will as well. It’s the least I can do for new people that come on this board not sink their 100K into a house and be safe with it. I’m just trying to help the people that come here for information to keep their wealth. Thats what this blog is about.

patriotz
Member
@51: “Everyone is touting economic armageddon in Canada due to debts, oil crashing, international turmoil, and yet “it’s all good” in equities?” As I pointed out previously, even TSX stocks are not highly exposed to the domestic Canadian economy. I don’t think you can beat the index long term which is why I have my RRSP in index funds. The money which I used to buy the house had been invested in dividend stocks, preferred shares, and cash. I really don’t know and don’t care all that much if we are headed for a downturn in stocks (another downturn in the case of Canada). I just follow asset allocation and have cash and fixed income in my RRSP I can use to buy equities at lower prices. Do I think putting a six figure amount into equities at today’s prices… Read more »
@POST 50 WSR er Mortgage slave
Guest
@POST 50 WSR er Mortgage slave

Capital Gains?

I had to sell due to extenuating circumstances. So no $50,000 capita gains tax.

Don’t need CMHC as anyone in the detached market doesn’t. So no $20,000.

Do you really think i would tell you the day i sold you so yahoo on here can go search MLS and get my address?

FYI, I’m looking at a 10 acre farm in the valley so I can sell fruit to the USA. Maybe even sell to you but with our coming inflation, blueberries will cost $10 per pound.

I will let you now how that goes. Looking to spend around $1.25 Million.

Oracle

@POST 50 WSR er Mortgage slave
Guest
@POST 50 WSR er Mortgage slave

and no one comes here to pump the market. You really think 50 people on this blog are going to ‘pump the market’. Tells a lot about you.

crikey
Guest
crikey
MortgageSlave #50 said, “Yikes!! Oracle you didn’t make any money, LMOA …This is also very generous estimates” Another big one I think you didn’t mention is the Property Transfer Taxes that had to be paid upon originally purchasing the property. For an $800,000 property that is $14,000 that was paid less than a year ago. And of course, if this supposed sale is then followed up with another purchase, he will have to sink in the property transfer tax charge up front again. And among other fees, what about: Lawyers fees, property maintenance, utilities, annual property taxes. These add thousands to the bills too. Nevermind one’s own time, which I would hope for Oracle is worth something. I’ll bet Oracle has a selective memory here, and is counting supposed gains before discounting expenses. Either that, or maybe he is suffering… Read more »
space889
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space889

@Mortgageslave – Funny thing about model portfolios, no one ever puts one out that lost money. If Odlum Brown had simply followed its own model which is as successful as it say it is then it would have done better than the best hedge funds in the world. But as we know, Odlum Brown isn’t even the biggest asset manager in Canada, with such a stellar record?

Sorry but this is a bit suspect to me.

space889
Guest
space889

@patriotz – So you are telling me that you are logged into your brokerage account and constantly refreshing/check live quotes during market hours (aka working hours)?

What kind of job, outside of investment fund managers/traders, have that kind of work environment? Where you are constantly checking your portfolios rather than actually work?

crabman
Guest
crabman

Corrections for post#50:

$100,000 profit in 6 months!

Next, to make $100,000 (10%) it would have to be close to 1 million. Let’s say $800,000. To sell it would cost him him at least $30,000 in fees. (lowball) (Fees subtracted before calculating capital gain)

$70,000.

Property transfer tax on $800k purchase – $15k.

$55,000.

Well he didn’t live in it for a year so he’s taxed capital gains. ~20% off. (It’s not taxed at 50%, 50% is taxed at marginal rates).

$44,000.

No CMHC insurance.

$44,000.

Opportunity costs on $200k DP for 6 months are maybe 3%, not 10%.

$38,000.

If he rented it out, it would not have covered his mortgage so he would have lost another $2000 at least.

$36,000 – Total gain in Oracle’s pocket.

OTOH…
$56,000 – Total revenue going to government and the realtors.

Gee, I wonder why Ottawa and Victoria don’t try to pop this bubble?

Oracle
Guest
Oracle

@crikey,

The $12,000 I saved in rent makes up for lawyers fees, property taxes, and Property transfer taxes I paid.

I have some time before closing so I might not even pay the 3 month penalty.

Why is everyone hating? Only reason I made this much money is the gov keeps promoting housing via easy money and immigration. I’m just taking advantage of the crazy policies.

space889
Guest
space889
I think there is only 1 portfolio manager in the US, only 1, that beat S&P500 return for 19 or 20 years running before his streak ended. That’s 1 out of tens of thousands of smartest & hardest working in the US investment industry. Warrent Buffet might be another one that consistently beat S&P though S&P isn’t really a proper benchmark for his portfolio investments. The best hedge funds in the world can’t consistently do 20%/year year in year out without cheating/market abuse. So I find it really hard to believe that Odlum Brown can do it so easily. And if they did have such a stellar track record, why aren’t they raking in asset under managment, especially in the last 5 years of low yield environment? As I said, no one ever puts out a model portfolio that loses… Read more »
Oracle
Guest
Oracle

I give up with you guys.

Keep reading news articles and bitching.

I’ll come back in June and repeat what I’ve been saying. Bye.

crabman
Guest
crabman

Softy said, “As Bull, Bull, Bull pointed out, this year is this blog’s 10 year anniversary. That is quite a long run and it is quit a bit “later” now but still no crash.”

Actually, 10 years ago, I owned a Yaletown condo and VHB was still in business. He didn’t stop until 2007. I think this blog started after that.

http://thetyee.ca/Mediacheck/2007/02/20/VHB/

BTW, I sold my place in late 2006.

I just checked and there is a similar unit to mine on the market for 15% more than I got. The final sale price will probably be 5% less than asking, so that’s a whopping 10% return over 8 1/2 years!

So even though it hasn’t crashed (yet), it’s still been a really bad investment. But don’t let that stop you from coming here every day and telling us how wrong we all are…

crikey
Guest
crikey
@#50 Crabman: The $30k in sales fees is way too low for an 800k property. Adjust to $40k, which is still lowball but realistic (unless one is a used house salesperson, which most people aren’t). Also, if he put a $200k down payment on an $800k property, then he also financed $600k for 6 months at a cost of roughly $10k, not even considering the stiff penalties for breaking the mortgage early to sell so quickly. So Oracle’s supposed gains are down to $16,000. Considering that we’ve been very generous with estimations, and haven’t accounted for nearly everything, it doesn’t take much for supposed gains to become nothing from there. #62 Oracle said: “The $12,000 I saved in rent makes up for lawyers fees, property taxes, and Property transfer taxes I paid” LOL! Um, yeah about that. The property transfer… Read more »
crikey
Guest
crikey

Also –
Oracle, why even sell at all? Especially given that you are treating this like an investment, don’t you think prices are going to keep going up?

And if you had only waited 6 more months you could have even tried to claim principal residence exemption from capital gains (unless they’re already on to you doing that too much).

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

vancouvercondo.info – Registered On March 09, 2006

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

10, 9, 8 years, doesn’t it matter? at some point you have to admit that you are wrong and don’t know shit.

VanRant
Member
VanRant

Companies closing in Canada; Sony, Target, Nine West, Mexx, Jacob…. and now Redbox video!!! I guess all the moneys going to housing and none left for others.

Above post
Guest
Above post

Sore Closings?

Gap between Haves and Have-Nots is growing. High end retailers are booming.

Which side you on?

space889
Guest
space889

@Diadora – I honestly don’t see why anyone would rent from Redbox with all the hassles and high charges….

crabman
Guest
crabman

69: Once again, the place I sold in 2006 has only appreciated 10%.

OTOH, a Phoenix property I bought in 2009 for $87k is now worth $145K. And with the pop in the $USD, my total gain including the *positive* cash flow is 151%.

I buy things that are undervalued. It’s only a matter of time before these investments pay off. But you buy things that are extremely overvalued and cross your fingers. You’ve been lucky so far, but I would suggest getting out while you still can.

ostritch
Member
ostritch

Bad news, bears. A new and beautiful development on a SFH lot over here in Mt. Pleasant, westside, 2 3-bed units, 1 couch house. Just completed. It’s beautiful. And asking a hefty price. I expect it to sell within a week. There is NO INVENTORY.