Friday Free-for-all!

Whoa! Where did the time go?

It’s the end of another week and that means it’s time for another Friday Free-for-all!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

IMF cuts Canada on oil slump
BOC warns of housing correction
$43 million discount
Teranet goes up
Calgary goes down
Faith based financial advice
Cheap condo goes under asking
2015 Bowen / Gulf island stats
$1 mill sunshine coast sales

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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space889
Guest
space889
@Corrupt in Canada – And don’t they also take a lot of net gov’t benefits? And sponsor their parents, grandparents, kids, relative, relative of relatives here? All taking up limited medical resource and public school resources? But hey they work in low paying jobs that no self-respecting Canadian would want, pays some nominal income tax, and speak English without a lot of accents, so they are great!! But on other hand, those evil evil Chinaman who buys $5M houses, pay $20K in property taxes, and spends like drunken sailors in local shops and restaurants are just super evil. They bring hell to Vancouver. They need to be banished forever! /sacarsm Actually, if what you say is true then Filipinos would actually be direct competitors to people like team BPOM since they are buying what team BPOM would like to buy.… Read more »
space889
Guest
space889

@Dave, @Patriotz – Surrey micro-suites starting from $129K. Assuming a $150K all in cost and you can rent it out for just $700+/month, maybe $1K/month to some hippie Millennial who just loves to rave about environmental friendly, yoga, eating organic, and being in touch with oneself, it is actually a pretty good investment.

Yeah 5% gross cap rate isn’t that high, but so is mortgage rate. The spread is probably pretty good. XRE’s distribution yield is pretty low nowadays too.

I think this is the one that was making the news?
http://www.tiensher.com/balance

Yunak
Guest
Yunak
Enigma
Guest
Enigma

@space889: “Yeah 5% gross cap rate isn’t that high, but so is mortgage rate. The spread is probably pretty good. XRE’s distribution yield is pretty low nowadays too.”

So I can invest in XRE and net ~4.5% of tax efficient gains and/or ROC, and get a hands-off nationally diversified professionally managed real estate investment.

Or I can become a landlord of a Surrey microsuite and gross ~5-6%, with the net taxed as straight income.

Choices, choices…

Dave
Member

It’s not fun being a landlord. There are a lot of crazies out there.

A lot of crazy realtors too. Just spoke to couple winners and caught one out in a couple major lies, like HUGE. Some real scumbags… Be careful out there.

vangrl
Member
vangrl

Rents are lower than market rate, he says. They range from $1,160 for a 680-sq.-ft. one bedroom and den to $1,482 for an 806-sq.-ft. two bedroom. After expenses of $48,777, the owners earn $87,000 net income from annual rents.”

O.k, so the new owner paid 4.28 million to yield $87,000 a year in taxable income. Seems smart.

http://www.theglobeandmail.com/life/home-and-garden/real-estate/vancouver-investment-properties-fetching-big-bucks/article24012851/

Dave
Member

vangrl, some of those expensive buildings have been neglected and need a lot of work. A couple months ago, I looked at a property listed for 7 figures and a lot of things were falling apart. Nothing that $10 or $20k couldn’t fix, but who’s living in a 7 figure home but doesn’t bother to put in a little bit of money to maintain it? Hell, in this case, even use part of the property… they had steps that went down to the beach over rock cliffs and you couldn’t even use them. It’s like putting a Ferrari in your garage on blocks because you don’t want to buy tires.

vangrl
Member
vangrl

They’d have to raise the rent of the 1 bedrooms up to $2500, and the 2 bedroom to $3300 just to make the same as XRE and the taxes wouldn’t be as favourable.

Not to mention he’s keeping the old owner on to manage it, so that’s going to eat into their profit.

Patriot, this is a perfect example of a a speculative buy I think.

patriotz
Member

@8:

What’s telling is the explanation of why the owner decided to list with a residential agent rather than a commercial one – which is essentially that a residential agent was more likely to connect with a buyer willing to pay a ridiculous price.

So faith-based investing in moving into the commercial market.

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

Don’t have $1 million: Vancouverite’s Twitter campaign draws attention to unaffordable city

http://metronews.ca/news/vancouver/1342390/dont-have-1-million-vancouverites-twitter-campaign-draws-attention-to-unaffordable-city/

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
patriotz
Member

@10:

A vacancy tax on empty condos was pitched during the 2014 municipal election, but local politicians have yet to take decisive action on the hot button issue complicated by foreign ownership.

And what do we get – yet another news story that ignores the basic fact that doing anything about these issues is beyond the power of local government.

Idiot City.

Loon
Guest
Loon

This one is a doozy:

Can this single-income family get into Vancouver’s blistering housing market? It depends on their values

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/family-finance/allentuck-saturday-april-18&pubdate=2015-04-17

patriotz
Member

@13:

The cost to carry an $825,000 mortgage at three per cent for 30 years would be $3,700 a month or more.

More top-notch reporting from the FP. Where do I get a at 3% for 30 years?

paulb
Member

New Listings 204
Price Changes 62
Sold Listings 205
TI:13371

For weekly sales and/or listings updates on a specific neighbourhood/city of your interest, email me and I will customize a weekly update for you. http://www.paulboenisch.com

Ford Prefect
Guest
Ford Prefect

Be warned: this comment is anecdotal.

A few days ago a friend received an unsolicited offer to purchase a building lot in the Comox Valley – ie in the “boondocks” if you live in Vancouver. He got the lot in exchange for some work he did for then owner about 16 years ago. It does have an ocean view but is very steep and will require a variance to build on it because the only suitable building site is right next to a public road.

He thought “I have a sucker here, I will ask an outrageous price” – $400,000.00 cash and accepted immediately.

It appears to me that it is impossible to even guess when this madness will end.

Best place on meth
Member
Best place on meth

This blog needs some new rules to weed out the riff-raff.

I think if someone has 10 straight posts forclosed they should get an automatic ban for 1 week.

If that person is also pro-China the penalty doubles to 2 weeks.

If the offender has a habit of being constantly angry, it doubles again.

Vote up if this sounds reasonable, down if not.

Dave
Member

Ford, one of my employees experienced a similar thing twice this week. People are driving around asking commercial property owners if they want to sell. These are the buyers, not realtors.

Dave
Member

I was talking with a friend a few days ago. I think he said he got outbid on his last ten attempts to buy a property.

Yunak
Guest
Yunak

This is what usually happens when underdeveloped society that mostly consists of peasantry get some money and tries to mimic a society which is way ahead by all means. Kinda Vancouver destiny going forward too,

http://www.msn.com/en-us/news/world/once-prized-tibetan-mastiffs-are-discarded-as-fad-ends-in-china/ar-AAb9AK5?ocid=U227DHP

Best place on meth
Member
Best place on meth

#20

“If not for a band of Beijing animal rights activists who literally threw themselves in front of the truck, Nibble and the rest would have ended up at a slaughterhouse in northeast China”.

It’s a disgraceful country on every level, but it’s actually refreshing to see that there are 8 or 10 people out of 1.4 billion who actually give a shit about animal welfare vs. the rest who would enjoy purchasing these dogs as hot pot ingredients, imitation leather and the lining for winter gloves.

I wonder if these activists were actually raised elsewhere like Taiwan, Hong Kong, or Canada.

I also wonder if they’ll be soon thrown in jail.

Polozi Scheme
Guest
Polozi Scheme
I’ve really gotten to enjoy renting over the past couple of years. After owning and living in 3 Vancouver properties since the mid 90’s and finally selling them all, I now have no constant trips to Home Depot to spend $$$ on home maintenance, gardening, etc, etc in order to keep the property in good sales condition. And the saved time, money, and energy can be spent with our kids. Meanwhile our landlord has had to purchase 3 major appliances, replace the roof, major plumbing problems and the furnace is next. And renting is way cheaper than owning right now – paying the mortgage/interest, taxes, maintenance, etc. Don’t be afraid to rent for a few years, if necessary and invest your savings, until interest rates normalize and asset bubbles deflate. Our investments bring in a steady flow of cash adding… Read more »
Son of Ponzi
Guest
Son of Ponzi

Richmond residents drive new cars off end of Clover Point in Victoria
—————————
The cars involved are not Lambos, therefore the drivers cannot be from Richmond.

Son of Ponzi
Guest
Son of Ponzi

I’m spending some quality time in Germany and Holland.
BPOM, you’d love it here.
No locusts.

Kim
Guest
Kim
I suppose I should feel honoured, I made a comment on Garth’s blog sharing my genuine sadness and frustration about everyday Vancouverites being shut out of our own city – and he actually commented by slamming me for whining. sigh. Makes me feel exactly how the local politicians make me feel around here – completely dismissed and ignored. So I wrote the response below. Probably will get blasted again. By the way: VANGIRL TOTALLY ROCKS! I also grew up in sleepy, quiet Dunbar and I completely agree with and second everything she writes about how that community has been destroyed by speculation and ‘investment buying’. In the block my Mom lives on West 39th, three neighbours on BOTH sides of her house plus two across the street are never there. For months at a time, the houses sit empty and… Read more »
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