Tag Archives: numbers

How much lost on a 2009 condo purchase?

Previously we highlighted b5baxters comment on the 19 months that have elapsed since Vancouver home prices have peaked (according to the REBGV home price index)

Of course there are a lot of variables in the housing market, so lets look just at condos, which Crabman has ever so helpfully run the numbers on:

I calculated the bottom line if someone bought a benchmark condo 4 years ago with a 10% DP and a 4% 30-yr mortgage. I took into account all carrying costs, rent savings and principal pay down. I also assumed rent, prop tax and condo fees increased 4%/year.

Oct 2009:
Benchmark price: $380,975
Mortgage balance: $342,878
Equity: $38,098 (10%)
Est. Rent: $1,100
Mortgage: $1,637
Condo Fees: $200
Prop tax: $89
Monthly loss: $826 (extra costs of owning vs. renting)

Oct 2013:
Benchmark price: $365,600
Mortgage balance: $317,253
Equity: $48,347 (13.2%)
Est. Rent: $1,287
Mortgage: $1,637
Condo Fees: $234
Prop tax: $104
Monthly loss: $688

Over those 4 years, equity only increased $10,249. But the extra monthly costs of ownership over that same period were $45,498, so the owner would have saved $35,249 by renting.

So it looks like the current ‘ownership premium’ for someone who bought a Vancouver condo in 2009 is just over $35k. ¬†Anybody see any problems with those numbers?

Less than a hundred reasons RE is collapsing

There are 3 sales day left in September 2012.

That’s 3 more chances to have a day when we see sales over 100.

Do you know how many days we’ve seen sales go over 100 so far this month?

ONE.

There has only been one day this month where sales went over 100.

Here’s the last couple of Septembers for historical comparison:

2010: 11 days with triple digit sales

2011: 14 days with triple digit sales

2012: 1 day of triple digit sales (max possible 4)

Thanks to VHB for the stats and PaulB for the numbers.