Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Aug 17th, 2019 5:44 pm
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Deal Guru
Jan 27, 2006
11084 posts
4488 upvotes
Vancouver, BC
JayLove06 wrote:
Jun 22nd, 2019 2:14 pm
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.
Newbie
Dec 5, 2009
96 posts
22 upvotes
craftsman wrote:
Jun 22nd, 2019 5:01 pm
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).
Newbie
Dec 5, 2009
96 posts
22 upvotes
JayLove06 wrote:
Jun 22nd, 2019 2:14 pm
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
11084 posts
4488 upvotes
Vancouver, BC
Alpine84 wrote:
Jun 22nd, 2019 9:43 pm
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
Newbie
Dec 5, 2009
96 posts
22 upvotes
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.
Deal Addict
Oct 7, 2007
4760 posts
1582 upvotes
Alpine84 wrote:
Jun 22nd, 2019 9:43 pm
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
8080 posts
3127 upvotes
craftsman wrote:
Jun 22nd, 2019 5:13 pm
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
1242 posts
737 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
8080 posts
3127 upvotes
RxMills wrote:
Jun 23rd, 2019 3:41 pm
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....
Penalty Box
Mar 7, 2011
3463 posts
1607 upvotes
Vancouver
JayLove06 wrote:
Jun 23rd, 2019 12:18 pm
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
11084 posts
4488 upvotes
Vancouver, BC
Alpine84 wrote:
Jun 23rd, 2019 4:57 am
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

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