Skook wrote in to let us know of updates to the Sunshine Coast / Bowen island stats.
Hi Everyone,
I’ve added more posts to my stats blog. I have the Bowen Island September 2016 stats up. As well, I uploaded 3 Sunshine Coast December 2015 stats posts as well as a SC 2015 Sales Summary post. I’ll start uploading the SC 2016 stats as soon as I can.
https://sunshinecoastbcrealestatestatistics.blogspot.ca/
Cheers,
Skook
[…] Best Place on Meth points out a rather obvious loophole and asks how it would be dealt with. Will there be baseline expectations for what is or isn’t market rent? […]
Here’s an interesting one:
10800 Southdale Road sold for about $1.375M in the spring.
Listed for $1.3888M for over 70 days since August.
Just bumped up to 1.5988M
There is a house on the same block, same age/style (50s split level), maybe not in as good shape listed for $1.388M
hmm,
Perhaps they are playing some sort of lottery, changing numbers and waiting for lucky combination to attract some superstitious “investor”?
Well, overbidding’s not dead yet. Went to see a 830 sqft 2 bed townhome on commercial street last week, just out of curiousity. It was bottom floor next to the main gate and buzzer, so not ideal, but had a nice “big” back balcony, with zero privacy. Anyway, foot traffic was busier than I expected on a rainy Saturday and there were a few couples in corners whispering to their own agent. All looked and sounded like local young couples, no hot Asian moneys to be seen during my time there. A week later, I notice it sold. Asking 579k and sold 635k. Not sure if these people just ignored the memo, or the correction’s over?
They had to get in before the mortgage rule changes.
If the buyers maxed out at $635k, they’d likely be approved in the low $500k’s now.
You could be right. The couple that I would have guessed “won” the place as they mentioned they met the showing agent at the last open house and they had their own agent plus seemed very keen, were a fairly young (late 20s early 30s) white guy, asian girl couple.
Biggest mistake of their lives.
He could be blackmailed, buy now or get laid never? Who knows?
Late 20’s couple borrowing $600K.
This is asinine.
Picture yourself a realtor approached by a pre-approved couple in this market. Do you tell them to wait, or do you tell them to be aggressive because inventory is incredibly low and prices aren’t budging? My self-interested side would be tempted to tell them that, as the market is quiet, this may be their big chance to win a bidding war.
By definition, the greatest fools buy last.
Homeowners criticize empty homes tax.
http://www.news1130.com/2016/10/18/homeowners-criticize-empty-homes-tax/
Trai Mak, a homeowner with multiple properties, says an empty homes tax would not help the rental supply.
“Some of the homes are really, really expensive. How can it be available for affordable rental? Now if they put it out in the market, do they have tenants who will rent that kind of home for $5,000 a month?”
Um, this person does not seem to realize that she is causing the problem in the first place? And he also says her properties are too expensive to rent out. LOL $5,000 a month rent is not unheard of in Vancouver.
This crybaby does raise an interesting question though when they throw out an arbitrary number like $5000 a month.
What’s to stop these owners from listing it for rent at some outrageous price that nobody will pay and then claiming they did try to rent it out?
Your move, Moonbeam.
Amen to that!
if you were a Red Guard in your youth, Vancouvers shi8storm overpriced and empty RE makes perfect sense.
“Chinese real estate billionaire says customers troubled by Vancouver tax”, Financial Post
“Frank Wu, the chairman of Central China Real Estate Ltd., says Chinese investors have told him that the 15 per cent tax implemented in August is discouraging them from buying property in the city.”
cry me a river!!
Frank, let’s be frank, that’s was the f’ing point.
Really curious to see whether Christy and Justin will find a way to give the chinese money launderers what they want.
Justin should not give this asshole the time of day.
Fantastic. Go back to your own country and buy, Vancouver is for vancouverites.
This shows how entitled these people are.
F*cking endemic retards assuming that money gives someone credibility.
“Frank Wu, the chairman of Central China Real Estate Ltd., says Chinese investors have told him that the 15 per cent tax implemented in August is discouraging them from buying property in the city.”
Also known as the Law of Totally Intended Consequences.
“Modest Housing Correction in Vancouver”, Bloomberg video
“Michael De Jong, B.C. Finance Minister joins Bloomberg TV Canada’s Pamela Ritchie to discuss his outlook for a housing correction in Vancouver under the new mortgage rules.”
Translation: If there’s a bust, the Feds did it. Oh, and you’d better not vote NDP.
“Remember the 90’s! Remember the 90’s”
Squawk!!
Voting NDP would turn this into the mother of all corrections. Big enough to be referenced in finance history books and textbooks for centuries.
On the other hand:
“Housing in Canada overheating but don’t expect a collapse, according to new report”, Financial Post
“Forget all the housing crash talk says a new report that suggests prices acceleration in Canada’s housing market will slow down without any hard landing.”
“Some Canadian real estate markets could be in for a massive correction”, Global News
“Some of Canada’s biggest cities are likely facing a major correction in the housing market.”
“The Canada Mortgage and Housing Corporation (CMHC) will be issuing its first “Red Alert” later this month. The organization is looking at home values and debt loads and says the numbers just do not add up.”
City of Vancouver sues to shut down Airbnb rental
http://www.cbc.ca/news/canada/british-columbia/airbnb-rental-lawsuit-1.3808555
No need to shit down. Just make them get business licences going forward so they pay tax.
Oh right. Guess that will shut them down
I don’t see why it’s necessary to file a lawsuit.
If these Airbnb hosts are breaking the law, which they clearly are, the city should have the power to impose hefty fines on every single one of them.
It’s Airbnb themselves that the city should be suing for encouraging people to break the law.
There are 47,000 detached homes in Vancouver.
Population is currently around 700,000.
1 million people are expected here in the next 20 years.
Honest question? Do you think that there will be 47,000 millionaires in that 1 million? Then all the detached are going to be accounted for and they are going to be owned by immigrant millionaires eventually.
That $2 million house is never going to $1million.
On the flip side, 30% percent of housing units are rentals. Tax the sale of these heavily and you will create a disincentive to treat housing as an investment. Maybe increase tax to 100% of capital gains?? AND ENFORCE IT! –> which C R A doesnt.
This is so Spring 2016, get with the times, markets crashing. Selling your house, not buying more is what the cool kids are doing now.
Ok, I’ll just wish upon a star and ignore the numbers. :S
Exactly! Ignore the fact that SFH sales have slowed to a crawl. The wishing on a star could be the difference that gets your house sold instead of languishing on the market with all the others.
Sell and live where? The street? A basement suite ? A condo?
Since when can a millionaire afford a house in Vancouver?
I just don’t understand why any immigrant (unless very wealthy and we are told that most are not) would move here NOW given the lack of affordable housing. Are the non-rich ones just asking to make their lives worse? When not select another province or country?
That’s the problem. You born and bred only in this country don’t get the conditions overseas. There is no guarantee of food for the poor and you have to pay protection money if you’re rich.
They will come. But you won’t get it.
Family. Either outright family class immigration, or an independent immigrant with family connections.
Also note many immigrants are already living in Vancouver. For example the Filipina nanny who gets PR after 10 years in Canada.
But the independent immigrant without pre-existing connections is not going to Vancouver. That’s been the trend for some years now.
New
242
Price Change
93
Sold
114
TI:10,033
We didn’t really see any spike in sales since the new rules were announced…rather bearish if you ask me…
Sales sometimes lag by up to two weeks….. If by Remembrance Day we see nary a blip, then I’ll be asking for butter for my popcorn.
But we also haven’t seen any slowdown in sales either. Rather disappointing.
Easy. John Q. Public still thinks he’s a millionaire. He’ll get the memo to the contrary in about 6 months.
Bingo!
“We didn’t really see any spike in sales since the new rules were announced”
114 is a spike. Wait till next week.
Bellwether property in Fraser Neighbourhood.
http://www.rew.ca/properties/R2111745/632-e-20th-avenue-vancouver
Sold July 2016: $1.2M
Listed September 2016: $1.288M
Reduced October 2016: $1.248M
Currently tenanted at $2600/m. Based on $250k down, your monthly payments + taxes+ins would be about $5000/m. You need to come up with another $2400 every month. No surprise the current owners want to dump it after 3 months.
Bonus: it’s on peat bog soil and the floor slopes about 8 inches from the back to the front.
How can people be THAT stupid to buy a wreck like that?
Expenses are roughly equal to rent?
Where do you get that?
I’m assuming he’s working off the idea that with today’s low rates about half the payment goes to renting the money from the bank and the other half to principle. So he’s suggesting that renting the house as a tenant costs about the same as the renting the money from the bank as the buyer. The other half would be you buying the actual building and lot. Not saying i agree but i think that’s the point.
Got it. I guess that’s fine as long as he is happy with a 0% return on the capital contribution.
And content with capital gains of 30% y/y….oh wait.
When honestly looked at it as a place to live and not to flip, speculate or whatever other shit to do with it, one realizes why would make sense for prices to go down 60 – 80% in this town to make it livable (not necessarily affordable) for the local population. Everything else just doesn’t add up, globalization, China, land, imigration and the rest of BS…
I remember my dad telling me years ago that a bank would lend 3.5-4 times single incomes, or 2.5 times a joint income. No wonder houses in his day were cheap! Can you even imagine the price of Vancouver houses if such old fashioned lending criteria were reinstated?
There’s a 4 in the new price! Heaven forbid!
Should be interesting to see if they go under 1.2 in November. You’ve got to guess that holding steady is off the table for these guys, for some reason.
What a strange world that someone buys a house to hold for only 3 months.
Flipping go wrong. There’s going be a lot more popping up in the next few months.
Tons.
If it sells, it’ll be for at least 100K below asking.
Commission will inflate the loss for this owner, they’ll never buy again.
Updates include a new roof in 2005! Wow for only $1.24 million? Seems too good to be true. Oracle time to get the cousins together. This is a steal.
That $2400 could be roughly the principal repayments (at current interest rates).
Go buy it then.
Money pit
I love it … anyone else have more quick non-flips to share?
Cryin for their stolen golden egg back, mortgage broker website have béen polled…
Are the government’s latest mortgage changes too much, too fast for Canada’s housing market?
Yes 60.46% – ( 448 votes )
No 31.58% – ( 234 votes )
I don’t know yet 7.96% – ( 59 votes )
http://canadianmortgagetrends.com/canadian_mortgage_trends/2016/10/mortgage-career-fsco-4.html
have to scroll to the bottom of the page …. the Snivel Servant job ad with the outrageous salary.
Clowns are meant to entertain the public but not to run a public policy.
Vision Vancouver Policies All Empty Gestures And No Substance
http://www.huffingtonpost.ca/davidfine2/vision-vancouver-falls-short_b_12449500.html
You can’t make an empty gesture to a Robertson.