‘Investors’ are still being encouraged to buy Vancouver Real Estate in the hope of future price increases. Here’s an example of such encouragement from the MLS, V697723, culled 25th May 2008.
This property in Point Grey (3963 W 11TH AV, 2494 sq ft house, 6044 sq ft lot) has a price tag of $2,380,000. A mortgage at 5% rate amortized over 25 years would cost the buyer $13,800 per month.
The cheeky Realtor Blurb on MLS states: “Well maintained, but no arch master piece. 3 bdrms suite down. Definitely not a drive by. Tenanted. Buy & hold. Great opportunity! Tenanted up & down.”
Even in Point Grey, this can’t possibly be fetching more than $5,000-$6,000 per month rent. Thus the realtor is encouraging someone to ‘Buy and Hold’ this ‘investment’ at negative cashflow of over $7,000 per month. This is another bald-faced bet on property price direction, and another indicator of how far prices have become removed from fundamentals in the Vancouver RE market.