The Condo King has emerged from hibernation and seen no shadow: that means two more years of bubble.
“We no longer live in Vancouver. We live on the planet.”
With that remark, renowned Vancouver realtor Bob Rennie attempted to explain the evolution of this city’s exasperating housing market.
He made the comment last week to a conference of the Urban Land Institute, an organization representing realtors and developers who intimately understand what the condo guru was referring to.
Full article in the Vancouver Sun.
By now everyone knows about the high cost of the Olympic Village project.
Current estimates are that it will cost taxpayers between $400 – $600 million to pay this off.
There are 68 units still left unsold over the last six years, but over at the ‘Canada House’ building it looks like a number of units have been bought and flipped, at least one for more than $400k profit in a month.
Hat tip to Mac who pointed out this article in the Province.
So whats going on here? Should these units have been priced higher or considering the tough sales across this project were they right to unload them quickly even if there were buyers willing to pay more?
People aren’t buying condos like they used to and that means marketers have to get creative.
For instance, how would you get first time buyers without much savings to buy in a new building with no parking available?
Trade their old car in for a 2% down payment!
Car for a Condo lets car owners trade in their vehicles towards a condo unit in the gritty but fast-gentrifying neighbourhood just west of Main.
“Cars are a terrible asset,” said Cam Good, president of real estate marketing firm Key Marketing.
“For someone trying to get started in life and wanting to become a homeowner, taking a depreciating asset and literally turning it into an appreciating asset is a life-changing decision.”
The low buy-in of $5,400 is possible thanks to a two-per-cent down payment program offered by Vancity.
It allows qualified buyers to shell out only two per cent of, say, a $269,800 one-bedroom, 519-square-foot unit — although monthly payments will be required over the next 16 months of construction to get the buyer to at least a five-per-cent deposit before the building is completed in 2016.
We’re still waiting for the offer that lets you trade in your used helicopter as a down payment on a new condo in Whiterock or the one that lets you trade in your imaginary foreign investor parents on a new unit in the gritty but fast-gentrifying neighbourhood downtown near the Granville street bridge.
Did you know you could buy nine mansions in France for the price of one boarded up Vancouver tear down?
Of course you might have to live in closer proximity to fresh baked croissants if you choose the French route, but at least one of them comes with 400 acres of land which should give you some buffer if you find that scent offensive.
PriceyPads ran this comparison and includes some beautiful pictures in their post.
Of course this is Vancouver so that’s an ‘asking price’, which may or may not bear some some relation to reality.
Just like craigslist rents, sometimes we get carried away with our asking prices.
You might remember the story of the extremely expensive listing in West Van with pictures of an imaginary house in the listing.
The asking price on that one was just south of $38 million. That was the asking price. The selling price was a bit less, well nearly $30 million less actually.
Remember when the area of False Creek that houses the Olympic Village was an semi-industrial wasteland?
Then we all pitched in and built an enormous number of high end condos at taxpayer expense.
Now everything is awesome.
…With the exception of a few problems.
It’s a busy Vancouver neighbourhood, that according to residents is riddled with problems reminiscent of the Downtown Eastside.
Police have been called to one building 215 times since May and that is more than 30 times a month, more than one call every day.
On Friday a cab driver was robbed in broad daylight and threatened with a needle.
The Olympic Village was marketed to families, retirees and young professionals. Some social housing was always on the table but condo owners say they did not bargain for this.
“I’ve seen an unfortunate drop in the cleanliness in the area because of random pets that people have,” says one resident. “There’s definitely a lot of garbage that has been left on the street, and graffiti, some people sleep on the stoops outdoors.”
“It’s become quite strange.”
Read the full article here.