Condos are hot again, buy two or three

CMHC has surveyed condo owners in Vancouver and Toronto and found that the number of owners with multiple units is growing.

…the total number of investors in the two regions who say they have purchased at least two condo units in addition to their primary residence has risen nearly 13 per cent over the past two years. Nearly a quarter of condo investors told CMHC that they owned least two units, with close to 10 per cent reporting that they owned three or more condos.

Buyers are looking for both rental income and appreciation, with some interesting math:

Among condo investors in Toronto and Vancouver, half told the federal housing agency that they had bought their investment unit for rental income. Of those, 56 per cent expect the value of their condo to go up, while only 8 per cent thought that it would go down. The share of condo investors in Toronto who expected their unit to increase in value fell to 60 from 64 per cent from a year earlier, while the share in Vancouver who expected their condos to increase in value rose to 50 from 41.5 per cent.

A slightly larger share of investors in Vancouver reported paying higher prices for units than in Toronto, although the survey found that the reverse was true of rents, which were higher in Toronto. Nearly 16 per cent of Vancouver landlords reported charging less than $1,000 in rent for their condos compared with fewer than 5 per cent in Toronto. By contrast, nearly 50 per cent of condo landlords in Toronto said they charged more than $1,500 for their units, compared with 33 per cent in Vancouver.

Read the full article over at the Globe and Mail. So how many condos do you own and how many are you thinking of buying this year?

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Hyper-mega-Bull
Member
Hyper-mega-Bull

Bull! Bull! Bull!1 month 27 days ago

we are going to start see condos and townhouses go up in price.

COCs have been priced out of the city of vancouver for sometime. more recently they have been priced out of the inner suburbs.

rents in the city of vancouver for condos and townhouses have skyrocketed.

for the first time ever, it’s my opinion that centrally located condos and townhouses are a good investment.

http://vancouvercondo.info/2016/02/call-for-inquiry-on-vancouver-home-contract-flipping.html

voter
Guest
voter

COCS are going to be priced right out of B.C once the takeover is complete .This is an occupation that is taking place.Money is the ammunition.

elvince
Guest
elvince
It’s interesting how people who own for rental properties care so much about the direction of prices. When I invest in something, usually a company through stocks, but sometimes also in rental real estate, I never worry about how much some other guy is gonna offer me for that particular piece. For most of my investments, there could be absolutely no market to sell them (in other words, they could be priced at 0$), and I would still be making what I initially assumed I would be making. Or close. If a rental property generates both profits and cash flow, why would I care about the market price? Unless someone wants to offer me an oversize amount of money for it (it happens, but really not often), then yeah, I’d sell it and move on to the next investment, but… Read more »
Hyper-mega-Bull
Member
Hyper-mega-Bull

> For most of my investments, there could be absolutely no market to sell them (in other words, they could be priced at 0$), and I would still be making what I initially assumed I would be making. Or close.

capital gains has always been a big part of investing. the fact that you ignore it makes you unusual, not the other way around.

Bestplaceonearth
Guest
Bestplaceonearth

You are a genius investor and one of a kind, who don’t care about capital gain and the preserve of capital. Brilliant!!!

HAMster
Guest
HAMster

It’s because they are not investors they are speculators.

bullwhip29
Guest
bullwhip29
space889
Member
space889

@nom nom nom – so explain how all those posts from BPOM, Dr. SLove, etc aren’t race baiting posts that contribute nothing to the discussion? But my response to those garbage posts are race baiting??

Nom Nom Nom
Guest
Nom Nom Nom

Simply put… You strike me as a bit of a prick… so I choose to take offence your race baiting, while paying no particular attention to theirs.

space889
Member
space889

hahahahahaha…that’s so funny….I’m a bit of a prick, but BPOM & etc are totally find upstanding posters. That’s some serious selective bias & blinders you have on. Or maybe, you just don’t like the fact that you are a racist like them and all the problems in your life are all Chinese people’s fault, even though deep down in your black heart, you know that’s not really true.

Best place on meth
Member
Best place on meth

There are only 2 racist pricks on this board and you are one of them.

Shut It Down Already
Guest
Shut It Down Already

…. says the clown who got banned from Garth’s blog for being a total racist who recently discovered the word “traitor” and now feels compelled to (mis)use it in every sentence…

Best place on meth
Member
Best place on meth

I don’t post on Garth’s shitty blog, so how would I get banned from it?
Ask your racist buddy about impersonating me on other blogs.

bulllwhip29
Guest
bulllwhip29
bulllwhip29
Guest
bulllwhip29
space889
Member
space889

So basically ~50% of the people in Van & Tor bought condo even though they expect the price to go down??

As for rental income, well rents are going up a lot for the average renters. Bears excluded off course since they are all super tenants who knows how to properly squeeze their landlords balls and make them beg to stay at low rent prices.

Average 5Y GIC is under 2% now. A 3% to 5% gross yield on a condo is going to look awfully attractive to a lot of people.

bulllwhip29
Guest
bulllwhip29

– 23.5 per cent of owners say they have more than one unit, an increase from the 16 per cent reported last year; while 10 per cent have three or more secondary units

– foreign investors and those based elsewhere in the country did not take part in survey

space889
Member
space889

I thought it’s only the foreigners of a particular ethnicity that’s buying up the city and driving up prices. All the locals are ethical moral people who only buy for living, or prudent investments by renting it out to their fellow citizens.

southseacompany
Member
southseacompany

“Bad ending to Vancouver housing surge coming: Bank economist” News 1130

http://www.news1130.com/2016/04/06/bad-ending-to-vancouver-housing-surge-coming-bank-economist/

““Odds are that if this kind of price growth [especially Vancouver] continues, it will end badly – but that still looks to be sometime down the road,” says Robert Kavcic at the Bank of Montreal”

Ulsterman
Member

The problem is the same economist also said that he didn’t see any of the five factors that could hit price growth happening any time soon. The headline is fairly misleading.

Best place on meth
Member
Best place on meth

Now we just need Dave to chime in with his supply side theories, if only we cut costs for developers and build more condos all will be well.

Never mind the demand side with rampant speculation and foreign money pouring in where people are hoarding housing units and soaking up all of Dave’s magical new supply with no intention of living in it.

Don’t disappoint us, Dave!

Shut It Down Already
Guest
Shut It Down Already

Yes, Dave was clearly wrong all these years whilst you nailed it.

space889
Member
space889

Cuz demand and $$$ are infinite and will just simply overwhelm all supply right?

Best place on meth
Member
Best place on meth

Well, duh.

Like all the marketing of Vancouver condos in China didn’t make that abundantly clear, prick?

space889
Member
space889

So basically you now admit that RE prices will never go down due to infinite demand and insufficient supply? So all those dumb home owners were right after all, and aholes like you will be forever priced out.

Saul
Guest
Saul

Are two of you pricks together in the public washroom, orchestrating posts?

marble
Guest
marble

327 comments

FINTRAC has levied a $1.1-million penalty against an U-N-A-M-E-D Canadian bank for failing to report a suspicious transaction and various money transfers.
http://www.cbc.ca/news/business/fintrac-bank-fine-1.3522013

marble
Guest
marble
space889
Member
space889

If it is $1.1 BILLION, it might have been actually some good news and deterrent. $1.1M, it’s just cost of doing business and a very lost cost at that.

Yunak
Member
Yunak

Déjà vu, back to “I buy three, husbah buy three…” mod.

PS. I need a new small tent to live in when in presale line-ups for several days hunting condos.

Panama_Papers
Guest
Panama_Papers

San Fran – “The Panama Effect”

Vancouver – “The Panama Effect”

Miami – “The Panama Effect”

NYC – “The Pananma Effect”

Sydney – “The Panama Effect”

London, etc. etc. etc.

Now the truth slowly comes out as to why “there is no data” on
where the laundered money is coming from.

Hyper-mega-Bull
Member
Hyper-mega-Bull

no data is a red hearing used by sinophiles. vancouver has a love affair with china. the higher you go up the social ladder the stronger it is.

you are going to see a lot of strange things being promoted by the thinking classes. some examples:

top down hierarchical authoritarian philosophy (confucianism).
divination, casting of lots (i ching)
magical thinking, earth and object magic (feng shui)
theories of medicine that don’t adhere to the germ theory (traditional chinese medicine)

space889
Member
space889

Wow, I didn’t know you were so knowledge and research all those diverse topics. I am in awe of your intellect & awesomeness.

btw, I also didn’t know that stuff like chronic fatigue syndrome, migrant headaches, muscle aches, arthritis, cancer, etc are all caused by germs!!! Wow!

Hyper-mega-Bull
Member
Hyper-mega-Bull

just because a medical system believes in the germ theory doesn’t mean that it believes everything is caused by germs.

it’s simple logic.

who did you copy your computer science assignments off of? you really should have done the work yourself.

space889
Member
space889

So conversely, just because you assume a medical system isn’t based on germ theory doesn’t mean everything is not caused by germs either. Maybe you should actually read some of the stuff. Just cuz something isn’t widely known doesn’t mean they don’t exist.

space889
Member
space889

Like the first guy to come up with the concept of diseases caused by transmissible agents decades before the first European.

https://en.wikipedia.org/wiki/Epidemiology

Wu Youke (1582-1652) developed the concept that some diseases were caused by transmissible agents, which he called liqi (pestilential factors). His book Wenyi Lun (Treatise on Acute Epidemic Febrile Diseases) can be regarded as the main etiological work that brought forward the concept, ultimately attributed to Westerners, of germs as a cause of epidemic diseases. His concepts are still considered in current scientific research in relation to Traditional Chinese Medicine studies.

Guest
Guest
Guest

My arthritis was caused by rare germs picked up overseas ( yersinia), so yeah a lot of those conditions have germ triggers.

marble
Guest
marble

Because the collaborators are paid to keep mum and law enforcers have difficulties to prove criminal activities. At the icjc website, one global conglomerate with dozens of offshore shell companies include all extended family members and most important its CHIEF FINANCIAL OFFICER.

Panama_Papers
Guest
Panama_Papers

“Iceland’s leader resigns, first casualty of Panama Papers”

marble
Guest
marble
marble
Guest
marble

That speaks volume.
Iceland ranks 13/168 in world Corruption Perception Index 2015.

Bubble Tea
Guest
Bubble Tea

Bookie bets on who might be the next world leader to leave office as a result of leaks related to offshore accounts.
20/1 David Cameron (United Kingdom)
33/1 Xi Jinping (China)
33/1 Vladimir Putin (Russia)
66/1 Barack Obama (United States)
66/1 Queen Elizabeth II (United Kingdom)
80/1 Justin Trudeau (Canada)
100/1 Kim Jong-un (North Korea)

patriotz
Member

Iceland is the only country that deposed a government over the 2008 financial crisis, so it’s not surprising to see the current PM go.

Of those listed above, some are dictators who aren’t going anywhere, Cameron has long been known to be a servant of the uber rich, QEII doesn’t need to resort to such lowbrow methods, and Obama and JT really aren’t rich enough to be in the game.

space889
Member
space889

Does the British Monarch even pay taxes?? I thought they were still tax exempt.

space889 = dickbag
Guest
space889 = dickbag

That’s because you’re a fucking idiot.

OPENHOUSEMASSACRE
Guest
OPENHOUSEMASSACRE

THERE IS NO WAY PUTIN IS LEAING

southseacompany
Member
southseacompany

“Why China’s Housing Market Refuses To Crash”, Forbes.

http://www.forbes.com/sites/wadeshepard/2016/04/05/why-chinas-housing-market-refuses-to-crash/#46173775720b

“One of the main reasons that China’s real estate market has ultimately maintained stability in the face of regular bouts of seemingly over-inflated prices is that the central and local levels of governments are firmly at the helm. They have control over the supply of new land for construction, financing for development, mortgage policies, tax rates, as well as housing purchasing restrictions that they use like a thermostat to heat up or cool off the market at their discretion.”

Sounds similar.

Of course, the same.
Guest
Of course, the same.
Best place on meth
Member
Best place on meth

Krusty must be infested with fleas.

Yunak
Member
Yunak

Perhaps a natural ecosystem?

space889
Member
space889

you two should get a room….geez…though I wonder if Yunak is going to be jealous now.

HAMster
Guest
HAMster

The free enterprisers in bed with the communists. Krusty the whore.

southseacompany
Member
southseacompany

“Federal Reserve alerts US to chance of imminent interest rate rise”, The Telegraph

http://www.telegraph.co.uk/business/2016/04/06/federal-reserve-alerts-us-to-chance-of-imminent-interest-rate-ri/

“The Federal Reserve is preparing to raise US interest rates yet again, despite the financial turmoil that gripped global markets after the central bank increased its rates last December.”

Liar
Guest
Liar

Garth bought a detached house 3 months ago.

Hahaha

space889
Member
space889

Not in Toronto or Vancouver, where fundamentals actually make sense.

Shut It Down Already
Guest
Shut It Down Already

Garth has always said that diversification is the key, as is liquidity, and his rule of 90. If you interpreted that as “don’t ever buy RE” then that’s surely your fault.

Liar
Guest
Liar

Read his post. Near the end.

ScaryInSquamish
Guest
ScaryInSquamish
Squamish and Britannia Beach are scaring the heck out of me. This listing captures the problem quite well: https://www.realtor.ca/Residential/Single-Family/16783213/642-LOWER-CRESCENT-Britannia-Beach-British-Columbia-V0N1J0 First: “Minutes from downtown Vancouver and Squamish, this area is a commuter’s dream.” WHAT? I guess if by minutes, you mean “60 minutes” then that is a valid statement…. Personally, spending two hours (and 120 km!) every day in a car is not exactly a “dream”. Second: “Now is the time to buy in Britannia Beach as there are a lot of big plans for the area in the near future.” There certainly are a lot of plans – as in hundreds of new units that could come online in that neighbourhood from a huge new development. If we hit a bump in the housing cycle, the developer will drop prices before they are listed and keep them soft – as… Read more »
space889
Member
space889

2008 – now was a bust cycle, now it is entering a boom cycle thanks to high prices in Vancouver. What’s so hard to understand about it. If you don’t like it, you don’t have to buy it.

HAMster
Guest
HAMster

When this happens to the outliers, you know the party is over.

Ulsterman
Member

maybe, but remember many have been calling for the end of the party for 10 years.

wwwww
Guest
wwwww

Canada needs to “grow up” on China: Experts

http://www.ottawacitizen.com/news/national/canada+needs+22grow+china+experts/11834789/story.html

• Canada, according to the Asia Pacific Foundation, needs to improve Chinese language training in Canada. Ottawa and the provinces can also collaborate to help Asian countries train and educate their workforces.

• Canada should join the $US 100 billion China-led Asian Infrastructure Development Bank, and should urge China to join the Trans-Pacific Partnership accord.

• Increase person-to-person exchanges, involving not just students but also bureaucrats, and take advantage of a large Chinese-speaking diaspora.

Tim
Guest
Tim

I’m old enough to remember when they said this sort of stuff about Japan. Nobody does now.

pricedoutfornow
Guest
pricedoutfornow

I remember that too. There was talk of Japanese taking over the world. There were Japanese immersion programs for elementary kids. Funny, in my father’s era, it was Russia to take over the world, he even took Russian language courses. I have my doubts about this “China taking over the world” thing. Last I heard, China has lots of debt too.

space889
Member
space889

No one can overtake US in the world, for no simpler reason than Geography and some cultural attitude. Look at the map of US, it is simply one of the best naturally endowed location for a country on Earth.

If this is Civilization, it would be considered a golden perfect game where you have to work hard to lose, even on Deity level.

Too bad Native Americans never did discover iron / tin smelting. If they did, the world would be an extremely different place today.

paulb
Member

New
277
Sold
403
TI:8369

http://www.paulboenisch.com

paulb
Member

More like condos are FINALLY hot. It’s just the last year or so that condos have moved up. Been dead for years as supply flooded the market. I’ve listed and sold 4 condos in the last 6 weeks. All sold within a week and 3 of the 4 were over asking and sold unconditionally. The market is hot. I have 3 kids and personally don’t like prices flying like this… but that’s whats happening.

dyugle
Guest
dyugle

It sucks because your kids will not be able to live here unless you mortgage yourself into retirement to give them a down payment so they can get into the market. But that means a family with no debt becomes a family with multi-generational debt. Good times

paulb
Member

Who knows. The market could tank but for now I’m glad I’ve owned a home over the last 5 years. Will be tough for my kids but I hope to be able to help them with a down payment one day, as long as they are not lazy little brats 🙂

Vanco
Guest
Vanco

First the SFH, now the condo. I bet rent increase is coming next.

Whistler or Bust?
Guest
Whistler or Bust?

Rents are based on income. Speculation and leverage do not enter the equation. Rents will not move up.

null
Guest
null
Oracle
Guest
Oracle

I’m sorry but you are wrong. Surrey landlords have started advertising for international students only. So rents won’t be tied to incomes much longer.

funky monkey
Guest
funky monkey

I thought foreigners only bought.

HAMster
Guest
HAMster

International students in Surrey? LOL !

space889
Member
space889

SFU Surrey Campus with its own specialty programs. And with the toll bridges, looking more like it will be back to old North/South divide along Fraser River and separate economy & regions.

Shut It Down Already
Guest
Shut It Down Already

Back so soon, WoB?

Combat roach
Guest
Combat roach

and after comes anxiety, social, class and national tensions, fear and unrest… Anyhow nice place to be.

voter
Guest
voter

The success of Canada was not because of high real estate prices ,it was because it’s people invested in themselves and enjoying life.How can making people spend a fortune on their living situation be a good thing. This is a bad trend and we’re going backwards.

Liar
Guest
Liar

It’s official now.

Anyone with more than 2 kids (and own a detached) and living north of the Fraser has just priced their kids out of Vancouver.

If hey have a $3 million dollar home, kid needs to take out $1.5 million mortgage.

Kid will probably leave Vancouver at the end. South of the Fraser won’t help as the commute will become impossible.

They will leave the area.

Immigrants will come in waves here. Dominant Indian and Chinese city in future. Thank god I speak one of the upcoming dominant languages.

Must suck for traditional Caucasian families.

voter
Guest
voter

China and India must really suck with all of the people leaving there and coming to Canada.

Liar
Guest
Liar

Report all landlords to the CRA. Most never declare the income.

bullwhip29
Guest
bullwhip29

again, as this it all about RE all the time, the govt will not clamp down on this or other revenue generating opportunities (which enable RE owners to makes ends meet and keep the mkt propped up)

patriotz
Member

Most landlords have negative or little income. Income = revenue – expenses.

Little return for CRA to do blanket audits of landlords. Much better return to go after flippers.

bullwhip29
Guest
bullwhip29

funny that inflated rental income declared on loan apps but not on tax returns. my sister in law (the underwriter) sees this BS all the time.

Messiah
Guest
Messiah

Panama papers say that 1/3rd of launderers are mainland Chinese government officials. The gov is corrupt. No wonder prices are going vertical in YVR.

ChinaOne says the article is on Bloomberg.

Reinstate that guy admin.

Combat roach
Guest
Combat roach

And Chrasty and her gang chose the worst scum in the universe to partner with…

bullwhip29
Guest
bullwhip29

no, she was selected. the people that matter own her. she and her crew have many ghosts in the closet too. as many politicians do, she opted for the easy way out and took the blue pill. way too late to turn back now.

Bubble Tea
Guest
Bubble Tea

Saw the report on BBC tonight. Our government has turn a blind eye to this corrupt blood money that is laundered through our real estates. Its turning Vancouver and Toronto in to a Chinese resort city for the chinese communist who has pillage their country. Three on the list are from families of top ruling officials.

patriotz
Member
Vancouver real estate agents face weak penalties for misconduct Real estate agents in Metro Vancouver who are disciplined for wrongdoing face fines and suspensions that are dwarfed by the hefty commissions they earn in B.C.’s superheated housing market, a Globe and Mail investigation has found. Records from more than 100 recent disciplinary proceedings, some confidential, obtained by The Globe show only a fraction of agents ever lose their licences over misconduct, and that fines averaged $4,850 or less. The data also show suspensions handed down by B.C.’s self-regulating industry body lasted an average of six weeks for those disciplined for misconduct, while Greater Vancouver’s private real estate board often gave much longer suspensions. The self-regulating body being the Real Estate Council of BC, which is established by provincial legislation. The private board being the REBGV, aka Realtors. I knew things… Read more »
patriotz
Member
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