3656 W 38th Ave, Vancouver (Dunbar)
5,089 sqft SFH, built 2009, on 55×165 lot
Sold 8 May 2011; Sale price $5,180,000
Nice house. Remarkable sales price.
With 10% down, 4% five year fixed, 25 yr amortization, that’s roughly $24K per month mortgage payments.
Yeah, we know, the folks who bought this likely put more down.
Regardless, the market is still valuing it at being worth $24K per month, whether the capital is yours or borrowed.
Overvalued by a factor of …… [insert your estimate here].
Noted, for the record, for future reference.
- vreaa
please stop putting up photos of my various properties, thanks
since they’re all empty i have to be sure none of the unwashed locals start squatting.
you non-owners are hooped. If this house can sell for 5M+ it raises the bar across the board. Christ, I’m wealthier than I thought
Sell now. Seriously. If somebody wants to give you an insane amount of money for your house, take it. Only a few will have the good fortune to take profits anywhere near the top.
[The house above will sell for about $1.5M in the trough, still richly valued. No sense in debating this, and no need to take my word for it; bookmark the post and review it in 1, 2, 3, 4 years.]
rusty -> PS: If you do sell, you’ll be in the exact same position as many bears on these boards… Skeptical of the market; a good amount of cash; renting.
Interesting times, eh?
I remember dealing with Nortel “millionaires” in 1999. Don’t count your chickens…
you troll.
your wooden troll nickels are no good here, rusty
you sir, are eating up all of my stale bread crumbs that i keep to feed the trolls.
wincing at the truth pollyanna? If you don’t like what I’m saying it’s because it hurts you to hear it in such plain, unadulterated language.
rusty!
you finally answered me
lol, you are quite the soothsayer
i like the truth quite a lot, no matter how ugly – that’s why i <3 vreaa, and not you, you shameless charlatan.
i wish Chiang Kai Shek had won the civil war.
Rusty,
srsly, if you do own several properties listen to vreaa. It’s all good until it’s not. Interest rates will go up slowly now that the election is over, and I wouldn’t be suprised if it goes back to a 25 year mortgage.
The sign of any top is lunacy.
The City is smiling because they will nail the mill rate and the folks from China that have leveraged their dumps in Shanghai, will lose their Red Army pants.
I love how canny these foreign investors are.
Sarah Daniels’ Manolo’s have more sense.
5mm for that? Doesn’t pass the smell test.
Black tulip.
Agree.
that’s simply crazy, especially because it’s Dunbar and not Shaughnessy
what’s next? $3m houses off Main?
this is gonna get ugly real fast on the way down
For properties like this one, we could see a few million dollars worth of market ‘value’ disappear almost overnight.
not to many years ago, one could look at a picture of a SFH and estimate the price as X +/- $100K. You know you’re in the twilight zone when your estimates are revised to X +/- $1M.
In many major US cities, the avg SFH is around 300k (give or take). Just the error in my Van SFH is enough to buy 3 houses elsewhere.
Excellent point.
$1M is now a rounding error here.
better change that ‘pick any 2′ post to ‘pick any 5′ !!!
wow
If I was going to pay $5 million for a house, you can damn well be sure you wouldn’t be able to see BOTH neighbours from a picture taken INSIDE the yard.
hahahahahaha… my thoughts as well…
So close, you can hear the neighbours changing their minds.
This means, of course, that when you’re BBQing on the back deck of your FIVE MILLION DOLLAR home, you’ll be chatting to the neighbours on their decks. Cosy, but let’s hope you like them.
So close, you can hear the neighbours changing their minds.
tell me this is your own joke
I wish it was, but I think it’s a very, very old British vaudeville joke.
“…if there’s an original thought out there, I could use it right now….”
- from ‘Brownsville Girl’, by Bob Dylan (turns 70 tomorrow!)
hahahaha..
There really ain’t nothing new under the …etc…
I was possibly correct with my vague recollection:
see:
http://www.bookrags.com/tandf/you-can-hear-them-change-their-tf/
‘you can hear them change their minds.’
“Dating from the late 1940s, this urban c.p. is applied to those who live in postwar flats and council houses, so thin are the walls.”
ah it sounded familiar…
i think you need a break, i detect a hint of the ol’ melancholy combined with a lack of mirth
Yeah, a sense of novelty appears to be essential to mirth.
(most of the time? all of the time?)
my mother told me she never wanted me to have a ‘mirthless’ laugh – the week i turned 20 some assholes decided to murder 3000 people on live television, so yeah, mirth went out the window.
I’m just speechless. Is it possible that CMHC insured a mortgage for this?
Of course CMHC would insure it… mirror? fogged… pulse? present…
Congratulations, you got CMHC insurance.
Even in the US, there’s a concept of “jumbo” mortgages which weren’t eligible for insurance… Here? Taxpayers will eventually be up in arms when we find out there was no upper limit to the mortgages on these overvalued properties.
One thing though, as someone else suggested, the price paid doesn’t pass the smell test. If were a bankster, I’d make sure the value is proven with a real (not computerized) appraisal before I gave out a CMHC mortgage. Yes, banksters are all-powerful, but so is a majority government that wants to limit CMHC losses.
Mike,
i have no faith in Harpo and the jesus freaks saying NO to the banks that funded their election, do you?
What do the banks want? I think they make mucho dinero either way.
a bailout, obviously – when this thing tanks, that is.
The other thing that should really hit home here is that, as vreaa pointed out, this owner is effectively requiring around 20k per month rent to justify the outlay, and there is little room to increase density now so no underused land premium.
Remember the cash used to buy this place is borrowed, maybe not directly, however someone is paying interest on this capital and likely at more than 4%….
Very true, but in reality there is no “justification” going on here… it’s speculation, pure and simple.
Joe Q., the $ that this person has acquired was from, ultimately, someone who is paying down debt, and that debt is likely at an interest rate higher than 4%.
I agree: this is an indication of close to zero attachment to “fundamentals”, which IS something new; before prices were high but we could generally put together some semblance of an argument for them being affordable, using: low interest rates, previous property sale, help from parents, etc. This property simply is in a league of its own for its high price relative to its banal lot size and dwelling quality (though I haven’t seen the inside…).
Well, we do hear about densification a lot here, and how SFH is valuable because land hasn’t reached its maximum use yet… but…. the lots are already so tiny, the only densification destined to happen is to raze half the block and throw up a condo, which isn’t gonna happen for several decades, if ever, if western demographics have anything to say. More likely to see people joining lots, rather than subdividing (for a strata or otherwise).
http://www.myvisuallistings.com/dhfb/53462
I hate the kitchen but the rest of the house is nice, if not overdone.
as we said: Nice house.
But how does one get from ‘Nice House’ to ‘$5.2M’ ?…
Yeah nice but take out the furniture and the ornamentation (including the Mona Lisa) and you’re left with a house again. I particularly like the chandelier in the bedroom, and kudos to the photographer — the velvet rope fences were well hidden in all the shots.
5.2 million is nothing to people who have the Mona Lisa casually propped up on their living room mantle and a Renoir in the front hall.
Classy style!
“new money is always crass”
don’t know if this money is “new” so much as “dumb”
well, i didn’t say it couldn’t be both
it definitely is the money that was once the wealth of america, pulled out of it with massive trade deficits.
Oh God,… we’d missed the Mona Lisa on our brief glance.
And agree re take out all the ornamentation…
De gustibus non disputandum est.
Mona Lisa? haha – maybe , but the “stained glass” windows framing the front door are actually stickers from home depot – $3o a roll ,I have the same ones. So Im thinking its more likely an Ikea Mona Lisa print..
Oi! I just went and looked at the link, and not only is there peel & stick stained glass windows around the front door, but there’s a really bad “trompe l’oeil” wall effect like I’ve seen in faux Italian restaurants, showing wine barrels in a stone cellar – complete with wrought iron “gates” – in the basement/games room. So tacky.
Some of the decor in there reminded me of grandparents house in the 1970s. It got old fast. That’s the danger of cheap modern stuff trying to copy true classical stuff.
This makes absolute no sense! Wonder if the buyer and seller are in cahoots with each other? Sell over-valued house for $5.2 million dollars, take money to offshore account, “buyer” has highly leveraged mortgage from CMHC, real estate crash, and “buyer” walks away leaving taxpayers on the hook. In the meanwhile, buyer and seller have sailed off with $5.2 million dollars!!
Money laundering at its finest. Didn’t a scam like this happen in Calgary with the banks, lawyers, realtors and “buyers”?
Somehow doesn’t seem right to me that this Dunbar house is selling for such a high price.
Yeah, the Home Depot faux “stained glass” stickers really cheapen the place!
That’s less money laundering than fraud, and I think it’s frankly too sophisticated for these momentum investors. But it’s certainly possible…