Vangrl posted a link to an article over at the Globe and Mail this weekend about the growing number of new and empty homes in Vancouver.
Ms. Cullen and others said their once-ordinary street has an eerie feel. Large new homes loom darkly over their smaller, lived-in ones. Gardens and big trees have been mowed down. There are fewer parked cars, she said, and it is too quiet.
“There is a slight feeling that it’s almost unsafe, too – like if I suddenly run into trouble in the street, whose house would I knock on?” Ms. Cullen said.
Read the full article here.
Many Franks pointed out this article over at BiV about house flipping in Dunbar. and points out how the math might not always be as appealing as it first sounds:
“A well-backed investor leveraging 20% down financing [around $400,000] would yield over 100% [on their cash investment],” said Derek Tinney, Landcor Data operations manager.Vancouver realtor Ken Leong, who admits to a brief – and heady – history of flipping condominiums for himself and clients, said it takes more nerve and cash to speculate on Vancouver’s detached-house market than during the exuberant days of condo flips a decade ago.
Leong said that if house price increases go soft – as in the current condo market – investors could find themselves financially under water fast.
Buried below the big numbers and cherry-picked examples are some important details:
[I]f an investor bought a house for $1 million and flipped it a few months later for $1.1 million, he or she would have to pay $18,000 in B.C.’s property purchase tax. Realtor commissions to sell the house would total around $33,500. The capital gains tax, likely at the highest tax bracket, would be roughly $30,000.“So now your $100,000 gain is down to less than $20,000, and you still have to add in the carrying costs of financing of around $4,000 per month while the house is for sale,” he said.
“It would be hard to make a big profit on such a flip,” Leong said. “Actually the government would make more than the investor.”
The last sentence is key.
Read the original article here.
West Vancouver is considering limiting the size of ‘Monster Homes‘ and that’s got both sides of the issue up in arms. The primary concern from some residents is that a proposed size limit would bring down property values:
“At first glance, this is flawed, to say the least,” said Russell Lane, who said he and his wife were “one of the owners of one of the larger properties and our house is on it. It’s not a ‘monster property,’ or whatever the description is, but a house that was built appropriate to current regulations.”
He said it would be unfortunate if the municipal government created, in effect, two classes of properties, where older houses that were built to code would be more attractive to buyers than homes built after a policy change.
Meanwhile North Delta brought in similar limits several years ago:
Delta Mayor Lois Jackson said her community limited the size of new North Delta homes to 3,552 square feet several years ago and feels the policy has worked well, with few complaints from builders or owners of would-be monster homes.
“We were having problems with some very large homes being built, some as large as 9,000 square feet or bigger,” she said. “Allowing an unlimited amount of square feet in new homes was not taking the community in the direction it wanted to go.”
Read the full article in the Vancouver Sun.
“If they got in early, they got burnt” says the selling agent about the Olympic Village condo development.
The Globe and Mail features this deal where a unit was purchased new for $1,565-million + HST in 2010 and recently sold for somewhat less.
He says prices dropped in 2013, when the city took over sales. At that time, he sold a 1,200-square-foot unit, with a water view, in the same building for $860,000. “That’s more like a Burnaby price,” Mr. Yan says.
Last December, he advised a client to purchase this unit, and she jumped on it. She’d been looking for three months in Richmond and Yaletown as well.
“I said to her, ‘If you had talked to me a year earlier, I would have got you an even better deal [in the building],’” Mr. Yan says.
Read the full article here.
Reader Barb Rennie posted this in yesterdays thread, can any Realtors vouch for it’s accuracy?
Total number of Sales in West Vancouver for Detached Homes:
Month of January 2014 – 55
Month of January 2015 – 36
Total number of Sales in Vancouver Westside for Detached Homes:
Month of January 2014 – 147
Month of January 2015 – 77
Are all sales from January 2015 are tabulated yet or is this apparent drop in west side sales simply due to incomplete data?