specialfx3000 at vancouvercondo.info 12 Oct 2010 8.19 am – “Over the Turkey weekend, a relative asked me again if I’m still in the market. She reminds me that the rich Asians are taking their wealth out of China and will continue to pump up the Vancouver prices. She said their dirty money needs to be invested in our safe-haven country. I explained to her that I’m happy renting and she reminded me that renting is throwing away money when it could be put towards a mortgage. I told her sales are drying up and she said it’s just the season. I told her local income cannot support the prices and she says that don’t matter. She of course bragged about how much her house is worth now. Thank goodness my baby started crying so I politely ended the conversation.”
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Latest Anecdotes:
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- “We asked why he doesn’t just rent the whole house. He said he can’t, it wouldn’t cover his mortgage – he’ll get more to rent it out as two suites. These new landlords are hilarious, thinking that rent will cover their mortgage!”
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- “I just visited Manhattan for a week, and happened to snap some real estate ads on both the Upper West and Upper East sides of the island. Compare to Vancouver. It simply doesn’t compute.”
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- “The mortgage company told me they were calling in my 40-year, 0-down mortgage. I have paid nearly sixty thousand dollars towards it, but, nearly five years in, I have yet to touch the principal.”
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- “My folks find themselves at 65 still owing half the value of their home and recreation property to the bank. After almost 30 years of ownership in the BPOE and a number of boom markets, they have very little to show for it.”
- “Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”
- “They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours.”
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- “He’s sold all his properties except his current one, which is now for sale. He explained that the market’s currently in crash mode, worst that he’s ever seen.”
- “One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”
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- Kits Notes – “I’m pretty sure that this is the first 3+ bedroom property of any type that I’ve seen in the 5 years I’ve lived here that is priced below $700K.”
- “A beautiful Belfast home, in the equivalent of 1st Shaughnessy, bought at their RE peak in 2007 for £3.5 million, has now sold for £800K, almost 80%-off. The market didn’t suffer any significant economic shocks. Rates & unemployment didn’t skyrocket. They didn’t build more land. Sentiment just changed and the prices fell and fell.”
- “Two family members of hers are trapped, underwater, in condos on the East Side.”
- “Interprovincial migration is not saying good things about BC’s economy.”
- Vancouver RE: Not As Expensive Provided You Don’t Think – “It’s clear that our perception of affordability has been coloured by living on a continent where housing is unusually inexpensive.”
- More Undisclosed RE Industry Insiders Publicized As Clients – “In 1995, Allan and Karin Hoegg were mortgage-free. But no more. Today their Vancouver home is a valuable source of income as they plan for full retirement.”
- Rumor that some OV units will be reduced by 20%.
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Your relative is right about the mainland Chinese continuing to drive up property prices. They seem to be the only ones buying houses on the westside these days.
Mortgage in French = Death Contract.
Say no more.
Well – maybe SquareNinja said it best when mentioning Community College students, all into the ‘game’.
If people are cranking 74% of their bottom line for a mortgage, they are already in the glue. They will spend their days paying INTEREST on a property that is cratering = but unlike our friends in most of the States of the Union, we can’t walk away from a mortgage, because we have stricter rules on Bankruptcy.
One more thing – resist ANY temptation to buy into America, because the Foreclosure con game is being exposed for what it is. The shadow inventory and no sales for REPOS, and held back properties are pointing to a fiddling of the bottom line for Banks, in the States. The worry is that Banks, by keeping distressed properties in limbo, means the lender doesn’t have to bring that bad loan to the books. If they did, people would realize that BOA and other large lenders are BUST.
People in Canada, and in particular, here in La La Land, are sleep walking into a real jackpot.
first sorry for my English – after being here for almost a decade English still seems to be my No 1 issue. I came alone from a typical Chinese working class family and witnessed the Vancouver housing market frenzy since 2000 . I read a lot of about hot money from China but never believe in those “Van real estate shopping tour” stories – simply because either my friends or me never meet that kind of people , however a recent BBQ event brought me a chance to talk to this kind of group , which really is a eye opening . They are all below 50 , having established business in China, owning more than 1 real estate in Vancouver, don’t want to work or don’t need to work for money – translation: they are marked as low income from CCRA point of view . They are talking about how “relatively cheap” Vancouver housing market price comparing to that of Beijing/Shanghai/Guangzhou , and diversification ( in their real estate portfolio ) , how “easily ” the government in China can wipe off their wealth – really, taxing/legislative policy change can be done overnight if government of China choose to, I know that for fact . One of the guy just snapped up a upper-dear-lake house for 1.4 m – cash buy , on behalf of his “relatives” moving in next Jan . Another thing they seem to believe in the appreciation of CDN dollar therefore CDN real estate seems to be floating up with the currency – not sure how they come up with that conclusion maybe “deflation” idea has been replaced with money printing “quantitive easing” idea . Also I have a personal friend came back last week to officially apply non-residence status– he went back to China in 2003 after getting his CDN passport and obviously his biz in China took off and he starts to worry about the tax problem in the future when he comes back .
I know the sampling size is small but I can only talk what I have seen , I always believe in local buying power is the main drive to local real estate but now I start to think about the actually percentage between “local money” and “outside money” in Vancouver real estate market – will be interesting to see such data from a reliable source. If this kind of money keep flooding in Vancouver housing market might have some support somewhere, at least for the high end …
Do you honestly believe the Chinese are desperate for a BAD DEAL? It makes 0 sense. You can buy in Miami, Phoenix, LA, New Mexico and the list is endless… where its warm or near the beach for 200 grand! That’s 6 properties for the price of 1 VANCOUVER crackshack. So what the person above is saying, is that the CHINESE are dumb and ignorant as well as suckers for a bad deal. They can put their “Dirty Money” anywhere and get a better return than VANCOUVER! Correct my if I’m wrong here.
You forgot one thing: Politics and Immigration.
It is probably easier for Chinese citizens to move to Canada than the US, so even though it may be more expensive here it may still make sense.
Having said that. I find it hard to believe that they would be so stupid as to buy into a hot market, they could just park the money in an offshore account for later use.
At UBC, there are condo complexes with 100% Asian ownership (~97% Chinese and the odd Korean – no Japanese).
The schools on the west side are ~80 Asian (majority chinese); the caucasians that live out here are mostly elderly empty nesters; I tended to do a double-take if seeing a young Caucasian family.
There is nothing wrong with this – it is a barometer on what long-time Canadian residents can afford – our purchasing power is decreasing as other countries increase (China, India etc). It requires a change in planning by our government – leadership like this is sadly lacking.
The baby boomer generation had a field day – the generations following are going to have to pay the debt. Our kids and grandkids will have a substantially lower standard of living than we did.
Areas of the US are way better deals than Van with way more Asians. Dumb money.
calling other ppl dumb does not make you smarter, it’s all about financial choice and if you make mistake you pay for the price.
- as long as you affort to pay for it. IF you see the crash coming you really should find the way to short the market and make REAL money out of it.
If you don’t need to work for the money , enjoy life and do what you like to do before 50 through a legal way I’d say that’s smart
somethingtosharewith…about 50 million people in the US and more around the world, said the same DUMB thing before they lost it all in the housing market. MANY Billionaires, millionaires are all penniless. Things go in cycles. Real estate is a cycle. Commodities are in a cycle. The stockmarket is cyclical. The tulip faze was a cycle too. IF the person is dumb enough to believe that Real Estate prices go up forever, one deserves to lose it ALL. Most cycles last 20 years. Up 20, then DOWN 20..Do some research.