Real Estate

Vancouver housing bubble?

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  • Mar 26th, 2024 5:10 pm
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Deal Fanatic
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Jan 14, 2009
5887 posts
4817 upvotes
Vancouver, BC
divx wrote: so what does it take to pop this housing bubble? did covid do it? do we need to ban foreign investment?
Foreign money can still get in because often immigrants have access to foreign savings and incomes. I know a few Vancouver born people who still receive financial help from parents living in HK. It's really hard to outbid them in a bidding war because they have way more money. Some of them like to flaunt their money too, quite shameless lol.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
zakarydoks wrote: Foreign money can still get in because often immigrants have access to foreign savings and incomes. I know a few Vancouver born people who still receive financial help from parents living in HK. It's really hard to outbid them in a bidding war because they have way more money. Some of them like to flaunt their money too, quite shameless lol.
Which of course completely sidesteps all of the actions taken by the various governments to limit foreign money...
Deal Addict
Apr 10, 2011
3914 posts
4767 upvotes
Canada
There are still some opportunities in Vancouver for those seeking a detached under $2M.

New on the market, this gem at 6664 Balsam Street that may attract some foreign buyers, at only $1,880,000.00.
(It's for larger families, at 2 bedrooms and 1 bathroom. Maybe good for in-laws too, for additional mortgage help.)

Actual Description: "This home will not be on the market long. Please come quick before she is gone."

(The '4' in the address might lose some buyers, while the '666' might lose a few more. And now, the property.)

Image

For more information:
https://www.point2homes.com/CA/Home-For ... 16717.html
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
With the announcement of good preliminary COVID-19 vaccine results, I wonder if this would breathe new life into the condo market? After all, if you don't have to worry about elevators and the pricing looking much more attractive than it was just several months ago, could we see a swing back into condos?

On a side note - with the talk from Vancouver city hall about potentially massive property tax increases and the freezing of rents by the government for another few months, I wonder how many individual/mom&pop landlords will be putting their properties up for sale as they can't pass higher taxes on to the renters for years to come? I don't expect rent increases to match expenses like property tax increases for at least several years with the NDP regulating those rent increases.
Banned
Jan 28, 2020
20 posts
11 upvotes
Vancouver
Hi all,

Our family is looking to purchase a detached property in east van/burnaby, with the eventual goal of a west side property in 5-10 years. We've built up a sizeable down payment, currently renting an apartment, wanting a detached for more space for the kids.

With the above goal in mind, what would you do?

A) older house ~1.7-1.8mil likely in burnaby, save the rest of the money for downpayment in future.

B) newish house in East van ~2.2-2.3 mil. I see properties that have a laneway plus two basement suites with monthly rental income ~$4000. Any particular neighborhoods i should look out for in terms of growth?

Yes I realize having three tenants means more work but its not something I mind at all. From a pure financial pov seems like a no brainer to go for option b?
Deal Addict
Jun 14, 2018
1368 posts
1662 upvotes
craftsman wrote: With the announcement of good preliminary COVID-19 vaccine results, I wonder if this would breathe new life into the condo market? After all, if you don't have to worry about elevators and the pricing looking much more attractive than it was just several months ago, could we see a swing back into condos?

On a side note - with the talk from Vancouver city hall about potentially massive property tax increases and the freezing of rents by the government for another few months, I wonder how many individual/mom&pop landlords will be putting their properties up for sale as they can't pass higher taxes on to the renters for years to come? I don't expect rent increases to match expenses like property tax increases for at least several years with the NDP regulating those rent increases.
For what it's worth, the proposed plan is for property taxes to rise an average of 4-5%.
Deal Addict
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Apr 29, 2010
1625 posts
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GTA
MarinersFanatik wrote: For what it's worth, the proposed plan is for property taxes to rise an average of 4-5%.
Isn’t Vancouver property tax dirt cheap compared to Ontario? Like 4K on a 2M house.

So 4% rise is like $200 a year...
Deal Fanatic
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Jan 14, 2009
5887 posts
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Vancouver, BC
Worldrallyblue wrote: Hi all,

Our family is looking to purchase a detached property in east van/burnaby, with the eventual goal of a west side property in 5-10 years. We've built up a sizeable down payment, currently renting an apartment, wanting a detached for more space for the kids.

With the above goal in mind, what would you do?

A) older house ~1.7-1.8mil likely in burnaby, save the rest of the money for downpayment in future.

B) newish house in East van ~2.2-2.3 mil. I see properties that have a laneway plus two basement suites with monthly rental income ~$4000. Any particular neighborhoods i should look out for in terms of growth?

Yes I realize having three tenants means more work but its not something I mind at all. From a pure financial pov seems like a no brainer to go for option b?
Similar to us but we own our Metrotown condo. I would go with the east van detached. I grew up in the south east van, Killarney area and like it slightly better than Metrotown. Metrotown is very convenient if you don't drive. Why not 1.8m east van home? You can have up to two rental suites (one illegal).
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Fanatic
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Jan 14, 2009
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Vancouver, BC
lolbeast wrote: Isn’t Vancouver property tax dirt cheap compared to Ontario? Like 4K on a 2M house.

So 4% rise is like $200 a year...
2M house would be closer to $6k maybe a bit more.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
MarinersFanatik wrote: For what it's worth, the proposed plan is for property taxes to rise an average of 4-5%.
That 4-5% is only if they cut services. They may not.

Remember that's against a backdrop of zero for rent increases for the past several months and 2% before that. If memory serves me right, property taxes increased last year as well by more than 2%. All of these bits and pieces start adding up fast.
Deal Addict
Jun 14, 2018
1368 posts
1662 upvotes
craftsman wrote: That 4-5% is only if they cut services. They may not.

Remember that's against a backdrop of zero for rent increases for the past several months and 2% before that. If memory serves me right, property taxes increased last year as well by more than 2%. All of these bits and pieces start adding up fast.
AFAIK, the only proposed plans for the 2021 budget are ones that involve property tax increases of no more than 5%. Anything more than 5% isn't being considered.
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
MarinersFanatik wrote: For what it's worth, the proposed plan is for property taxes to rise an average of 4-5%.
I saw 12% and while I like your number better, historical increases have been closer to double digits.
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
craftsman wrote: That 4-5% is only if they cut services. They may not.

Remember that's against a backdrop of zero for rent increases for the past several months and 2% before that. If memory serves me right, property taxes increased last year as well by more than 2%. All of these bits and pieces start adding up fast.
I think for Vancouver the final increase (as they kept sneaking increases through at the last minute) ended up rounding to 9% last year.
Deal Addict
Jun 4, 2013
1982 posts
1028 upvotes
Vancouver
Last I check (2 bedroom apartment in Coquitlam area) price haven't drop much is about the same price since I purchase mine in 2018. However, apartment price in Burnaby area have drop a ton. From 1bedroom $600k to around $540k listing. I think it depends on the area and how unrealastic price have gone up in certain area (600k for a 1bedroom is crazy)
Deal Fanatic
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Jan 14, 2009
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sponge5307 wrote: Last I check (2 bedroom apartment in Coquitlam area) price haven't drop much is about the same price since I purchase mine in 2018. However, apartment price in Burnaby area have drop a ton. From 1bedroom $600k to around $540k listing. I think it depends on the area and how unrealastic price have gone up in certain area (600k for a 1bedroom is crazy)
It could also be 1BR dropping more than 2BR because there are more supply of 1BR. I think Metrotown condos dropped around 15% since peak, 1BR are being sold at around $1000 psf.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Expert
Jan 27, 2006
21844 posts
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Vancouver, BC
choclover wrote: I think for Vancouver the final increase (as they kept sneaking increases through at the last minute) ended up rounding to 9% last year.
So, at the end of the day over two years, the property tax would have went up 13 to 14% in the best case scenario while rents went up 2% IF things work out for those who have a stable renter. Yep, I would love to be a landlord in those conditions.
Jr. Member
Apr 18, 2014
162 posts
114 upvotes
zakarydoks wrote: It could also be 1BR dropping more than 2BR because there are more supply of 1BR. I think Metrotown condos dropped around 15% since peak, 1BR are being sold at around $1000 psf.

Metrotown condos were 1000/sqft? I don’t recall I thought they were peaking at 800-900.

I know the peak of Brentwood was around 850-950/sqft

Downtown Vancouver has historically been over 1000/sqft
Sr. Member
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Sep 18, 2017
963 posts
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Vancouver
Looking into buying a townhouse and the market for that seems to still be quite hot. Must be all the condo dwellers looking to upgrade now because of WFH.
Deal Expert
Jan 27, 2006
21844 posts
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Vancouver, BC
kaiseki wrote: Looking into buying a townhouse and the market for that seems to still be quite hot. Must be all the condo dwellers looking to upgrade now because of WFH.
I don't think it's really due to WFH for the condo market but rather "do you want to be in an elevator for 20 floors with someone who might have COVID?" I'll bet that a lot of people are saying "Hell no" and are trying to find someplace to live without being dependent on elevators.
Newbie
Feb 21, 2007
9 posts
5 upvotes
Vancouver, BC
Alpine84 wrote: The key is to understand how compound interest plays out over generations. Nothing beats that and it’s a huge reason why the wealthiest families continue to get wealthier. It’s not the parents wealth vs the children’s wealth, it’s the family’s wealth. If each generation starts from 0 then they will have little to no chance of keeping up.
To echo this point, this speaks true to my family. We think of wealth as a collective effort rather than at the individual level. Case in point, we were able to leverage two HELOCS and one mortgage to purchase a detached in East Van recently. This wouldn't have happened if each member of the family didn't have the same mind set. I'm sure we're not the only ones given all the multiple offer situations in the East Van detached market; there seems to be a significant amount of wealth transfer or folks being able to tap into the family's equity in order to purchase.

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