Among the many good things that the 2010 Olympics are bringing to Vancouver it looks like we’ll soon be able to add $55 million more from the Federal Government. Lets Party!
Miraculously the olympics are “on budget and on schedule” despite cost overruns.
Things aren’t looking so good in the US housing market. Sales are down, prices seem to have peaked and are starting to drop in some places. And as we’ve seen in the past some people don’t react to turmoil in real estate values too well.
Just how bad has it gotten? Apparently the rich and famous can no longer afford to live in Wisconsin.
More than a bell is needed to save Dustin Diamond this time around. Diamond, best known as geeky Screech Powers on the 1989-1993 teen comedy series “Saved by the Bell,” is selling T-shirts with his photo on them to try to raise $250,000 so he doesn’t lose his gray two-story house under a foreclosure order.
For the whole story you can visit Diamonds website at http://www.getdshirts.com/.
Wow! This weekend between Cambie and Broadway on 6th ave I must have seen signs for at least 15 open houses going on. A suprising number of these are ground level condos, sometimes called ‘garden suites’ or ‘basement suites’, and most starting around 350k.
Now some people might look at this and see an overheated housing market getting dangerously close to meltdown via saturation but I say tish-tosh! What we have here is an OPPOURTUNITY!
Look at it this way: The majority of people that live in basement suites are renters. Most home-owners choose not to live in the basement for whatever reason, but many many renters do. Therefore we can assume that there is GREAT DEMAND for basement suites among renters out there, but only a finite supply. See where I’m going with this?
The thing about basements is that there needs to be land to put them into, and they aren’t making anymore land! Sure they can stack condo on top of condo and get more floorspace, but they cant make more groundfloor units than the total surface of the ground that exists. Therefore groundfloor units are CLEARLY in more DEMAND than upperfloor units, particularly among renters.
And renters are going to pay our mortgage and get us rich arent they?
Some people might think that renters wont be willing to pay the $3000 per month that will make us rich off of these 600 sq foot basement suites, but you’ve got to THINK ABOUT THE FUTURE! Demand steadily increases while supply dwindles, and the one TRULY LIMITED supply is in basement suites!
BUY NOW! GET RICH LATER!
With less and less space around I guess we’ve got to figure out ways to live in smaller and smaller places. This ingenious design uses a rotating corner section of one large room to compact four rooms into one.
..So basically you’ve got your living room but with a turn of the corner cylinder you’ve got a kitchen. To bathe you rotate the cylinder to the ‘bathroom’ section and then when you’re ready to head to bed you rotate the cylinder to the ‘bedroom’ section. It’s like a futuristic version of the Murphy Bed!
So you’ve got your eye on a little condo – you’re thinking its time to get your own four walls, or at least one wall to yourself and three shared walls. But then there’s the prices and the way they’ve been running up up up for the last three years. Wouldn’t you like to get a piece of that action? So how DO you get in to this market as a first-time buyer?
Well, you’re going to need money.
A lot of money.
Luckily for you, there’s no shortage of money out there. Where’s all this money I speak of? The Banks! And they’ll gladly give you a whole bunch of it to you as long as you promise to pay it back over the next 25 years.. or 30 years.. well heck, lets go 40 years, imagine what a condo in vancouver central will be worth in forty years! Billions!!
Also, as you can understand they have to cover the risk of you absconding into the night with your condo, so they’ll charge you a small interest fee to cover that risk and make it worth their while.
So lets say you borrow $300,000 to buy a nice little condo, what do you have to pay back based on a 5% interest rate?.. Over 25 years you’d pay a little over $1750.00 a month to rent that money from the bank adding up to a smidgeon over $250,000 in interest to be payed back on top of the original $300k.
But what if $1750 is a bit much for you to pay monthly? Maybe you’re paying $900 monthly to rent that same condo now and you’re not convinced its worth the extra cost. Never Fear! The banks will work with you. If you opt for a 40 year mortgage you will save tremendously, bringing your monthly cost down to under $1450 with a total interest payment of just under $400,000. This means that as long as you dont have to pay any extra ‘hidden’ fees like property taxes, strata fees, maintenance, heating & electricity, etc, and as long as interest rates never go above %5 that $300,000 condo will cost you a total of only $700,000 over the next 40 years. Thats not much to pay for a condo that will be worth BILLIONS now is it?