“Gave notice to vacate my rental condo as I found a place much cheaper, suits my needs better.
Owner bought pre-construction for $525K
Building occupied late ’08
I was the second tenant.
After taxes and strata net rent is definitely not over $800/mth
Owner decides to sell over renting again.
Listed for $399K
Two showing about the day the listing hit the airwaves two weeks ago, not one since.
I’m sure this ‘investor’ when queried about his ‘real estate investments’ will say he ‘did OK’ or ‘lost a little bit’ or even brags about real his estate prowess.”
- chilled at vancouvercondo.info 14 Jan 2012 10:48am
“This anecdote got me thinking so I ran some numbers. Took all attached properties in REBGV between 398,000-399,000 which are between 2-4 years old. Where are these sellers at? Of 24 items in my sample, 13 would net a loss on sale for an average loss of 31,000 if they sold at asking price and 16 would net an average loss of 44,000 if they wold for 5% off asking price.
OF the gains, there were some. Could also be location / timing of pre-sale that drove the gains.
For some actual data, took all sales since November 1, 2011 with selling price between $385K and $395K. This resulted in 14 sales.
The results were all over the map but 8 properties sold for an average loss of $32,000 and 6 properties sold for an average gain of 75,000. Overall average was break even.
If you look at market psychology, it is easier to take a sale where you are going to make profit and thus this is an interesting sign that 8/14 transactions were at a loss. 3 of the 6 gains were in downtown and they seemed to have almost artificially low pre-sale values (which could mean they were insiders). Biggest losses were Richmond and Burnaby.”
- ZRH2YVR at vancouvercondo.info 14 Jan 2012 11:33am
Meanwhile, on YatterMatters website, here is a exchange between a visitor and Larry:
Norm Fisher Says:
So, where’s your open house this weekend?
yattermatters Says:
@norm
Marine drive is a must do for the next 5 weeks. Surprisingly a lot of traffic including off shore visitors. Methinks it’s time to abandon French as a second language in exchange for Mandarin – more relevance on the left coast.
Presales are the favourite casino game of many investors. It’s as close as one can get to a housing derivative. We all know what happens when it goes out of the money. (Or do we?
)
Like 5% down mortgages aren’t already a derivative. Seriously, you can’t even trade commodities futures contracts like wheat or oats with a paltry 5% margin these days. When Mulroney approved 5% downs for first time buyers in 1992, he turned RE into the biggest, riskiest derivative Canada has ever seen. And CMHC backing made it available to the gullible masses. Flaherty temporarily made it even worse by approving the zero-and-forty in 2006 (imagine, your margin figure is the infinity sign) before belatedly coming to his senses.
…and he apparently only did so after Dodge went over and had a stern chat with him.
Danger of earthquakes, soil liquefaction and now this: http://www.theweathernetwork.com/your_weather/details/763/5432149/4/upload/1/786
Thats amazing! I cannot imagine the damage Lower Mainland would sustain during hurricane force winds.