900kCrackHouse at vancouvercondo.info February 15th, 2011 at 8:43 am – “I know a number of cases of underused houses purchased by asian buyers:
1) My friends apartment was just purchased by foreign buyers and he was kicked out for “renovations”
2) I know a 20 year old university student who’s rich aunt from Asia just bought him a house in North Burnaby. He manages the tenants and when he can afford to pay the 70% mortgage, he gets the house. Oh, and I should mention they own two more houses in Burnaby, one of them a $1 million dollar house occupied only by the Aunt’s 18 year old kid.
3) Huge house in Fraser Heights in Surrey occupied by a 90 year old Grandma. The 18 year old daughter used to live there, but she wanted to live close to UBC so they bought her a condo out there.”
What do you do when you’re the investor owner of an ‘underused house’ and the price starts steadily dropping, month after month? Along with ‘local speculator’, and ‘boomer’ supply, ‘foreign investor’ supply will all start coming into the market at the same time. These groups of investors are largely momentum players, and they’ll start leaving when prices start heading the wrong way. -vreaa
I’m going to make the far out suggestion that if China’s economy hasn’t started to fall before Vancouver prices do that even more buyers may jump in at “bargain” prices. In this scenario I’m thinking that the ingrained notions about real estate values may take more than a small bucket of cold, wet bad news to wake them up to reality.
Just a crazy thought.
I haven’t seen the price drop yet. some of the houses I am interested in are selling higher price than before. Some of these properties are flying off the shelf.