This from ‘wtm’ at RE Talks Wedn Apr 23, 2008 4:10pm -
“I am renting in the West End, West of Denman in a “boring/somewhat unsightly walkup”. Common areas are nothing to write home about either….but I have a beautiful, approx 700 sq ft 2 BR for $1380 a month, which includes heat, hot water and covered, secure parking. I have hardwood floors and reno’d kitchen and bathroom. The suite is very very clean and quiet. Owner’s have live-in landlord couple who take care of every little problem within a couple of hours. Given the assumption that material capital gains in RE are off the table for at least the next 5-7 years (this is my view), there is no way it makes sense to buy when I can rent on a tree lined street in a beautiful quiet neighbourhood, a couple of blocks from the beach and Stanley Park, for such a low monthly cost. No taxes, no strata fee, no unexpected costs or assessments. When I can get in the market, in this neighbourhood, for something less than $375 a sq ft, that is when I will consider buying (I think that is possible btw, but will take 3-4 years of downward price drift). In the meantime I am saving and investing…..I have no problem being a renter in this ridiculously overpriced market.”
I live in an older two bedroom south granville large unit and reckon my breakeven rent/buy rate is about $390 psf. But, according to a recent report in the vancouver sun I read at vancouvercondo.info construction costs are about $300 psf (for office buildings.) . So for things to get into my price range, something is going to have to break.
I’d be willing to pay more than $390 for a quality new condo, although stories are starting to emerge about problems with newer concrete buildings. So, waiting things out is definitely worth it.