Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Feb 25th, 2020 10:10 am
Tags:
None
Deal Guru
Jan 27, 2006
12134 posts
5272 upvotes
Vancouver, BC
JayLove06 wrote: Much of the blame game is coming from the bears. Stocks should not be compared to housing. Bears constantly do this for some reason.
Then it shouldn't be marketed as investments. Anything that is done from the point of view of an investment should be processed using similar standards. After all, we aren't talking about used cars here.
Jr. Member
Dec 5, 2009
107 posts
30 upvotes
craftsman wrote: The only time that the property tax on a home will drop is if the price of that home drops faster than the surrounding market - ie if the average Vancouver condo drops 5% in price and yours drops 5% in price, you don't see any reduction in property tax... however, if yours drops 10% vs 5% for the general market, you might see some reduction....
Erm are you sure? Property assessment values go up, property taxes go up... property assessment values go down, property taxes go down... property taxes at 1m assessment are more than property taxes at 500k assessment (assuming the surrounding market moves the same way).
Jr. Member
Dec 5, 2009
107 posts
30 upvotes
JayLove06 wrote: Much of the blame game is coming from the bears. Stocks should not be compared to housing. Bears constantly do this for some reason.
You can make the case for comparison when people have used property as investment vehicles. My family and i have done it and so have all people that i know of that can afford a 2nd/3rd/4th property. We've all bought multiple properties solely for the purpose of investment and capital appreciation. And yes, we compare the investment property returns against equities and other investment vehicles.
Deal Guru
Jan 27, 2006
12134 posts
5272 upvotes
Vancouver, BC
Alpine84 wrote: Erm are you sure? Property assessment values go up, property taxes go up... property assessment values go down, property taxes go down... property taxes at 1m assessment are more than property taxes at 500k assessment (assuming the surrounding market moves the same way).
Yes. - Property Assessments and Property Taxes: A not-so complicated relationship
Deal Fanatic
Oct 7, 2007
5899 posts
2270 upvotes
Alpine84 wrote: Erm are you sure? Property assessment values go up, property taxes go up... property assessment values go down, property taxes go down... property taxes at 1m assessment are more than property taxes at 500k assessment (assuming the surrounding market moves the same way).
In theory yes, but for all practical purposes not in Vancouver. The rate increases (this year was almost 10%) always seem to outpace any reduction.
Deal Fanatic
Feb 29, 2008
9335 posts
4463 upvotes
craftsman wrote: Then it shouldn't be marketed as investments. Anything that is done from the point of view of an investment should be processed using similar standards. After all, we aren't talking about used cars here.
Dude, everything in this day and age is marketed as an investment...from art to clothes, to shoes, to homes...and just like stocks...not on the level of a home. I hope you guys are complaining to the government about the lack of public housing because that to me is a lot more important than millenials demanding home ownership.
Deal Addict
Apr 10, 2011
1358 posts
835 upvotes
Vancouver
JayLove06 wrote: ↑ Much of the blame game is coming from the bears. Stocks should not be compared to housing. Bears constantly do this for some reason.
..............................

"Bears" believe prices are headed lower. That's all. There's no sinister plot to devalue people's additional investment properties.

I'm definitely bearish, especially with current condo prices. I think investors are great when they buy and rent out properties. I hope many more do that as it makes a better market economy.

Also, most of the so-called "Bulls" here are not really bullish at all. Although they'd like their many investment properties to rise in value, they have no desire to purchase more at these prices. They're the "bought and holding" group.
Deal Fanatic
Feb 29, 2008
9335 posts
4463 upvotes
RxMills wrote: JayLove06 wrote: ↑ Much of the blame game is coming from the bears. Stocks should not be compared to housing. Bears constantly do this for some reason.
..............................

"Bears" believe prices are headed lower. That's all. There's no sinister plot to devalue people's additional investment properties.

I'm definitely bearish, especially with current condo prices. I think investors are great when they buy and rent out properties. I hope many more do that as it makes a better market economy.

Also, most of the so-called "Bulls" here are not really bullish at all. Although they'd like their many investment properties to rise in value, they have no desire to purchase more at these prices. They're the "bought and holding" group.

Don't play that game....
Deal Addict
Mar 7, 2011
3470 posts
1609 upvotes
Vancouver
JayLove06 wrote: I hope you guys are complaining to the government about the lack of public housing because that to me is a lot more important
Best joke I've heard lately.
Deal Guru
Jan 27, 2006
12134 posts
5272 upvotes
Vancouver, BC
Alpine84 wrote: Thanks. I wonder what guidelines they use for classification and what they use for regions. My fam has properties in van and burnaby (mix of condos and sfh), and all properties have seen increases to their property taxes as their assessed values have gone up.
That might be purely coincidental to the fact that most cities ALWAYS increase their tax rates from year to year. Check out this article on the CBC with the nice graphic in the middle of the article on Vancouver tax increases since 2009... notice how I said increases and not changes as the tax rate has ALWAYS gone up in the past 10 years... - https://www.cbc.ca/news/canada/british- ... -1.4941905

Top