Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Jul 23rd, 2019 12:50 pm
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Deal Addict
Aug 21, 2007
4493 posts
385 upvotes
rfdchan wrote:
Apr 24th, 2019 10:52 pm
Rent comes down? can't say we don't see it coming.
I think we will see the same in GTA soon.

I already see this in some less popular area in GTA actually.
In less popular, heck, I see it in my own building where a unit is about 700 more than it should be a month...guess what, the listing has been there for 51 days with already one price reduction 3 weeks after the original one.

Despite the fact that apparently all those in the RFD GTA RE thread are making $200K+, I am sorry, but the stats are pretty clear, people are not and wages have only been rising in the last 10 years at just over inflation or less.
Deal Addict
Apr 10, 2011
1234 posts
728 upvotes
Vancouver
So much world crime money is put into Vancouver-area real estate. Here's another one.

The Canadian govt wasn't aware of it. The US detailed the extensive international cash and bitcoin transfers to Richmond.

Only the Vancouver Sun and the Globe & Mail are reporting on it.


"U.S. seeks to seize assets of Richmond criminal who aided international traffickers"

Vancouver Sun
April 24, 2019

Court documents list items that will be part of a forfeiture order, including gold and silver coins, crypto currency, a Las Vegas condo and two Richmond properties.

Richmond’s Vincent Ramos admits he made $80 million in the past decade helping international organized crime groups like the Sinaloa cartel by selling them encrypted untraceable electronic devices.

There are local accounts in Coast Capital Savings, the Bank of Montreal, Scotiabank and TD.

$751,400 in proceeds from the sale of a Richmond house, and an attached lot sold last April for a total of $1,550,000.

https://vancouversun.com/news/crime/u-s ... raffickers

.................................


CANADA... A great place to buy a passport. Everybody's welcome! It's a great place to park your crime money. And we'll protect you with our Charter of Rights so you're untouchable, or we'll pay you $10M. Your asset wealth is tax-free and local taxpayers will pay all your services.
[OP]
Deal Fanatic
User avatar
Dec 3, 2004
5011 posts
3281 upvotes
Vancouver
Apparently there is a condo building in Coquitlam offering free avocado toast for a year if you buy one of their pre-sale condos. Wow. GO GO GO!
Deal Addict
Jun 20, 2011
1796 posts
607 upvotes
VANCOUVER
adamtheman wrote:
Apr 25th, 2019 7:44 pm
Apparently there is a condo building in Coquitlam offering free avocado toast for a year if you buy one of their pre-sale condos. Wow. GO GO GO!
Holy Crap!?!?! Sign me up for 2 units!
Deal Addict
Apr 10, 2011
1234 posts
728 upvotes
Vancouver
^ Some text from the above news article...

"How a $6.5 million dream turned into a nightmare in Vancouver’s real estate meltdown"

For two years, the minimansion with a mock-Tudor roofline has been sitting at the end of its stately driveway empty, unsold and forlorn, and it's now in foreclosure.

BlueShore Financial, the credit union that loaned the homeowner and his stepson the money to redevelop the property, recently won a judgment in B.C. Supreme Court allowing it to sell the home to recoup the loan.

But the market had turned by the time Chandler, a homebuilder who owns West York Homes, finished the new house in August 2016, after the BC Liberals introduced a 15 per cent foreign-buyer tax in July.

The New Democrats were elected in May 2017 and introduced more taxes designed to rein in real-estate speculation. Those included a tax aimed at vacant properties and homeowners who don't pay taxes in B.C., an increase in the foreign buyer tax to 20 per cent and an increased property tax on homes worth over $3 million.
[OP]
Deal Fanatic
User avatar
Dec 3, 2004
5011 posts
3281 upvotes
Vancouver
RxMills wrote:
Apr 27th, 2019 7:47 pm
^ Some text from the above news article...

"How a $6.5 million dream turned into a nightmare in Vancouver’s real estate meltdown"

For two years, the minimansion with a mock-Tudor roofline has been sitting at the end of its stately driveway empty, unsold and forlorn, and it's now in foreclosure.

BlueShore Financial, the credit union that loaned the homeowner and his stepson the money to redevelop the property, recently won a judgment in B.C. Supreme Court allowing it to sell the home to recoup the loan.

But the market had turned by the time Chandler, a homebuilder who owns West York Homes, finished the new house in August 2016, after the BC Liberals introduced a 15 per cent foreign-buyer tax in July.

The New Democrats were elected in May 2017 and introduced more taxes designed to rein in real-estate speculation. Those included a tax aimed at vacant properties and homeowners who don't pay taxes in B.C., an increase in the foreign buyer tax to 20 per cent and an increased property tax on homes worth over $3 million.
I expect stories like this will become more frequent (every week or so a new one will come out). There's got to be hundreds of people who bought houses, especially around the east end, and have fixed them up (dumped major $$$ into them) and are still sitting on them praying for a profit. Reading that article above I still have no idea where all the money went. Who on earth would ask $6m dollars for a house assessed in the 3m range. Dum dums.
Deal Guru
Jan 27, 2006
10892 posts
4367 upvotes
Vancouver, BC
adamtheman wrote:
Apr 28th, 2019 6:03 pm
I expect stories like this will become more frequent (every week or so a new one will come out). There's got to be hundreds of people who bought houses, especially around the east end, and have fixed them up (dumped major $$$ into them) and are still sitting on them praying for a profit. Reading that article above I still have no idea where all the money went. Who on earth would ask $6m dollars for a house assessed in the 3m range. Dum dums.
One of the houses in my neighbourhood is going through something similar... they purchased the old house about 5 years ago for $1.3 million, let it sit for 18 months, tore the old house down, let the vacant lot sit for a few more months and have taken their own sweet time to build the replacement. Currently, the house is 3/4 built with the roof completed but the outside walls not (just a coat of cement on the walls) and most of the interior done. They have stopped work on the house due to 'high labour cost' for the past 2 months. I suspect that the owner is running low on funds and can't get further funds in this downward market so the cost to complete the house is 'too high' as they can't get the selling price they need in order to make back their money they invested in the house so they are leaving it sit their until the housing market turns around.
[OP]
Deal Fanatic
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Dec 3, 2004
5011 posts
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Vancouver
craftsman wrote:
Apr 28th, 2019 8:39 pm
One of the houses in my neighbourhood is going through something similar... they purchased the old house about 5 years ago for $1.3 million, let it sit for 18 months, tore the old house down, let the vacant lot sit for a few more months and have taken their own sweet time to build the replacement. Currently, the house is 3/4 built with the roof completed but the outside walls not (just a coat of cement on the walls) and most of the interior done. They have stopped work on the house due to 'high labour cost' for the past 2 months. I suspect that the owner is running low on funds and can't get further funds in this downward market so the cost to complete the house is 'too high' as they can't get the selling price they need in order to make back their money they invested in the house so they are leaving it sit their until the housing market turns around.
What lucky neighbours they have getting to look at that half built house without siding every day. After 3 years they probably thought they hit the jackpot when their $1.3 million dollar house was now worth $2 million. They probably took out a huge mortgage on it. They will be lucky if they can even renew the mortgage - if they took it out as a construction mortgage surely the bank will not be pleased
Deal Addict
Oct 7, 2007
4684 posts
1536 upvotes
Is the new question soon going to be, "Who is going to buy all this stuff...i.e. new condos, townhouses, and in some case houses?" The only stuff that seems to be getting bought, sold and redeveloped around me seems to involve builders and I'm still not sure how it is that they can afford to take the stuff they bought 1-2 years ago, tear it down and rebuild, sell and make a profit.
Deal Addict
Apr 10, 2011
1234 posts
728 upvotes
Vancouver
A Vancouver Real Estate Agent, indebted to his dealer, transports cocaine shipment during peak 2016 season.
(He'll have his for-sale signs up again in 2020.)


"How a Vancouver real estate agent became an Australian drug mule"
CBC NEWS
April 27, 2019

https://www.cbc.ca/news/canada/british- ... -1.5110827

A reminder... Prices on recent Vancouver-area home sales are available on Fisherly https://www.fisherly.com
[OP]
Deal Fanatic
User avatar
Dec 3, 2004
5011 posts
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Vancouver
Province cracks down on money laundering and all of a sudden the Parq casino is close to bankruptcy. Wow. if that doesn't speak to how serious the money laundering problem was in Vancouver then I don't know what does. Can't wait to see April's sales report from REBGV.

Vancouver’s Once Rollicking Casinos Hit by Dirty Money Crackdown
https://www.bloomberg.com/news/articles ... ium-canada
When Parq Vancouver, a glimmering waterfront casino, opened amid much to-do in late 2017, few would’ve anticipated that a dirty money crackdown was about to throw the city’s roaring gambling business into turmoil.

Vancouver-area casinos for years had been accepting millions of dollars in questionable cash from gamblers showing up with suitcases and hockey bags bulging with bills, according to British Columbia Attorney General David Eby. But new rules implemented last year to more tightly identify sources of funds have put a damper on that rollicking trade.

“The anti-money laundering regulations in British Columbia have been a problem," says Andrew Hood, a Toronto-based equity analyst at M Capital Partners Inc. who covers Dundee Corp., one of Parq’s two owners. “The regulations were supposed to cut down on illicit gambling but, of course, that hurt volumes across casinos."

For Parq, one of the province’s largest-ever private developments, the clampdown came at a delicate time. The plan was to replace costly construction financing with cheaper debt after opening but business picked up slower than expected amid the new restrictions. It lost nearly C$153 million ($114 million) in 2018, according to a March 28 Dundee filing. Now Parq’s in a race to refinance debt in order to make an interest payment this week on a second-lien loan, according to S&P Global Ratings.
Deal Addict
Oct 7, 2007
4684 posts
1536 upvotes
https://globalnews.ca/news/5219084/vanc ... tax-shift/

Is this like the 4th reason now for an increase to property tax homeowners in Vancouver? Last minute approval that will hit us next month.

What are the increases expected this year? Let's see:
* employer health tax for municipal staff passed onto homeowners
* school tax for some depending on assessment passed from BC Govt to homeowners
* new property tax from business shifted to residential homeowners
* general cost of living increase to give raises to City staff passed onto homeowners

Not sure if I missed any but just paying the annual taxes will soon require its own mortgage. I see BC slowly turning into California in terms of its taxation policy and its crazy left appetite for socialist tax policies. This doesn't look like it is going to get any better. Funny how those with more rationale policies were not allowed to participate in most of the recent municipal election debates. Wouldn't want sound policymakers making policy that runs our City. But I am sure this is the case all over. It will only change when the people DEMAND change.
Deal Addict
Oct 7, 2007
4684 posts
1536 upvotes
RxMills wrote:
Apr 29th, 2019 12:17 pm
A Vancouver Real Estate Agent, indebted to his dealer, transports cocaine shipment during peak 2016 season.
(He'll have his for-sale signs up again in 2020.)


"How a Vancouver real estate agent became an Australian drug mule"
CBC NEWS
April 27, 2019

https://www.cbc.ca/news/canada/british- ... -1.5110827

A reminder... Prices on recent Vancouver-area home sales are available on Fisherly https://www.fisherly.com
Is Fisherly only available to Realtors?
Deal Addict
Apr 10, 2011
1234 posts
728 upvotes
Vancouver
choclover wrote:
Apr 30th, 2019 11:42 am
Is Fisherly only available to Realtors?
It's designed for CONSUMERS.

You need to get an invite/link via a realtor but you DON'T have to be signed up with that realtor.

How do you do that? There are several mass market realtors that will be happy to do it for you, in exchange for your email address (name, and phone maybe too).

They see your interest as a chance to sign you up later. These days of few-buyers/many-sellers, they're happy to do it.

Real Estate Agents are now like a roaming pack of dogs with little food. Just the thought of a meal is exciting.

I know more than a few agents who haven't sold a property in the past 12 months.

They're learning that they have to adjust a litte more to the needs of "local buyers".

Sellers seem to be more rapidly switching agents, blaming their agent for poor results. In the old days, all they needed was their name on a listing.

To see who has that mass marketing presence, google real estate will probably work.

Again, you are not commiting to any kind of relationship in doing so, other than possibly receiving a monthly email from them, which I'm sure you could unsubscribe to.

Enjoy your sales data!
It's finally available in Vancouver, without having to call a realtor every time you'd like that sold-price, with their slow response and claims of big effort and an in-depth conversation.

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