El Magnifico at VREAA 31 Oct 2010 1.12pm – “Update on a rental property I posted some time ago. Rents are decreasing as well…
I have been following this 1BR 630 sq.ft. condo in the Olympic village. It has been for rent since at least early August 2 for $1750! (I even sent them an email early September to tell them that there was no way they were going to find a fool that would pay $1750 per month for that). After sitting empty for 3 months, they finally followed my advice and decreased their price to $1,650 which is still very expensive considering the size, location and bad publicity around the OV…
I’m wondering how long it will take them to find a tenant and how much it will have cost them to wait with their overpriced condo sitting empty…“
Here is the link: http://vancouver.en.craigslist.ca/van/apa/2035326065.html
This is misleading as these rent prices are completely unreasonable compared to other available units in Vancouver, just like the asking prices for these apartment. The Olympic village is not a very good gauge of Vancouver RE market as a whole and it clearly isn’t a good gauge for the rental market either.
Granted.
In response I have changed the title of the post.
(from “Update on an Olympic Village rental condo. Rents are decreasing.” to “Update on an Olympic Village rental condo, where the asking rent is decreasing.”)
In case anyone is interested, I found out some more from the landlord. The landlord is Dragonwood Enterprises and they say they rented the exact same unit one floor up for $1750.
A similarily sized unit in the same building is selling for $609,000.
At 30 years, 20% down, the payment is $1886 and that’s at a variable rate of 2.35%! Go with a fixed 5 year rate of 3.7% and you’re looking at $2,242. Other expenses would include the strata/maintenance fee (what is it for Olympic Village, $300-400?), maintenance, insurance, and HST. No to mention the opportunity cost of the 20% down payment, which is huge, given the fact that housing prices are heading downwards, whereas interest rates are headed up.
Wow, you have way too much time on your hands. Time to get a hobby! By the way, it’s been rented. Thanks for your concern.
FYI – Dragonwood Enterprises is not the landlord. It’s a personal investment. You should probably check your facts before you publish things.
Sounds like a great investment Orly, good luck with that.
Thanks David!