Tag Archives: vacation

Should you just move to an island?

Skook has a post over at VancouverPeak.com about an island dream gone sour.

A BC couple purchased land on Mayne island and started building their dream home only to run into a confluence of cost overruns and real estate market downturn.

Today, their house is only a wood frame shell that looks out over one of B.C.’s most dramatic views, with the Lower Mainland in the distance, and regular sightings of ferries, whales and seals. The tiered wooded lot is only a five-minute drive to the ferry.
It is the idyllic best that B.C. has to offer, and yet the Klingsats won’t even break even on the near $1-million they spent on the property and construction. They have relisted it for $539,000, after previous listings at $649,000 and $699,000 didn’t get any offers. “Everybody loves the place, but the people don’t want a house that’s not finished,” says Mr. Klingsat, who gave up on the project six months ago. “And I can’t do it. I haven’t got any more money to put into it. “The whole economy everywhere is lousy – nothing is gangbusters. There are places for rent all over here on Vancouver island.”

The original article in over at the Globe and Mail. Skook adds some extra thoughts and information.

RFM has also added some information summarizing other properties in that particular island market.  There are 113 properties for sale on an island with a population of 900.

Buy a house, get residency

Spain is the latest real estate bubble country to consider giving extra residency privileges to foreigners who buy property.

If they go ahead with this plan they would join Portugal, Hungary and Ireland.

Greece is also considering a similar measure.

The Spanish proposal is the cheapest so far, requiring only a $200k real estate purchase:

The Spanish government is considering offering residency to foreigners who buy property worth about $200,000 or more. With discounts as deep as 50% along the Mediterranean, a 1,100-square-foot three-bedroom beachfront apartment in Alicante goes for $130,000. Or how about a 1,200-square-foot four-bedroom with a view of Barcelona’s skyline for $175,000? A few miles inland, a two-bedroom house goes for $90,000.

The idea is to attract buyers for an estimated 700,000 empty homes scattered across Spain’s landscape, the remnants of the nation’s dramatic housing boom-and-bust. The offer is aimed at Chinese, Russians and Americans, who are usually limited to a three-month tourist visa in most parts of Europe.

Full article in the LA Times.

FFFA! Vacation! Debt! Soft Landings!

Yep, it’s that time of the week again, time for our regular end of the week news round-up and open topic discussion thread.

But FIRST! Thanks everyone for your patience while we were sluggish and inaccessible. It looks like we’re back in good shape, page load times are back to normal and we’ve changed a few things behind the scenes that will hopefully make for a more reliable site.

Here’s our regular collection of recent links to kick off the chat for the weekend:

Scotiabank: SOFT LANDING!
Have yourself a $563 holiday
New record for consumer debt
equity edges down and debt grows
Carney: Status quo
In Miami buyers pay for building
The Plunge-o-meter

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Whistlers nasty collapse

They say bubbles inflate from the center, working their way out to peripheral areas. They then tend to collapse in reverse with outlying areas crashing first as the equity vacuum works its way back to the center.

Right now Vancouver is seeing unseasonably high listings and lower than normal sales. Prices are softening, but there’s no dramatic crash yet.

Meanwhile Vancouver Island, The Sunshine Coast and the BC interior are all seeing dramatic price drops.

Just north of us you’ll find Whistler BC, the ski resort where prices just keep on melting. The Village Whisperer points out this 65% asking price drop since 2005.

On a similar note Makaya pointed out this delightful instance of Whistler bottom-calling in 2010. The supposition was that since prices had been dropping, they wouldn’t any more.

For people expecting the real estate prices in Whistler to drop after the Olympics, I’m afraid you’re going to be sorely disappointed.
According to George Klimock from The Whistler Real Estate Company, property prices in Whistler today are already 15-25% lower than previous prices in 2007. In fact, current prices in Whistler are down to 2001 levels.
With a high level of inquiries and good prices, Whistler is considered to good value in the resort market, with, for example, a 2 bedroom condo is now listed at $ 519,000 as opposed to the more expensive $ 630,000 a few years earlier.

Meanwhile prices just keep sliding down the mountain..

UPDATE: The whistler bottom-calling article linked above is not currently working. Ant saved a copy of it here on Vancouver Peak.