Monthly Archives: April 2013

Chat Thread

For those who have continued to chat here regardless.
Stay well, everybody.

Taking A Break

Hi All:
Priorities greater than even the Vancouver housing market have encroached upon vreaa, so we’ll be taking a break from daily posting for an indeterminate period. [This is not health related, so not to worry.]
This doesn’t mean we’ve change our minds about the trajectory of the Vancouver RE market — we still expect weakness and price drops ahead.
In the interim, we’d direct readers to the blogs below for good local RE discussion.
Keep well, all of you
regards
vreaa

Vancouver Condo Info

Whispers from the Village on the Edge of the Rainforest

“My best guess: this property is now an ‘investment hold’ and will be built ‘when prices recover’. Good luck on that!”

“The dominos start to fall: SFR Project on indefinite hold in Van West!
This is a property I have been watching for some time: 4988 Chancellor Boulevard in University, Vancouver West. A 7,700 square foot lot with an old house in an exclusive area of mostly older homes, with a few new builds. Sold under MLS V951758 in June 2012 for about $2,600,000 listing was at $2,688,000; by June 2012, properties in Van West were already coming under some price pressure. After it was sold, a sign appeared on the site, advertising a new 4,500 square foot modern architectural home to be ‘built in 2013′ with completion by 2014, priced at $5,188,000 under V989612 still active, but listing now says ‘completion in 18-24 months’. However, after about 6 weeks the sign disappeared and from June 2012 through last week the house was vacant and there were no signs of construction. Then last week April 10, several large U-Haul trucks arrived and a pickup toting a boat. Now, there is furniture in the house, a new ‘beware of dog’ sign on the front and from the shoes outside the front door, it appears it has been rented to a family plates on vehicles are BC. Normally, a family doesn’t move lock, stock and barrel into a house on a month-to-month tenancy, so I’m guessing they have a longer lease, but I cannot find a rental listing. The developer of the new house, Natural Balance Premium Home Builders, does not list this house on its website and the purported architect, Frits de Vries’, website does not mention this project.
My best guess: this property is now an ‘investment hold’ and will be built ‘when the prices recover.’Good luck on that!”

RFM at VCI, April 15th, 2013 at 7:37am

Man Loses $745,000 Vancouver Condo Deposit

“A man who put down and then lost a $745,000 condo deposit when he failed to complete the sale can’t get his money back, says a B.C. Court of Appeal ruling.
Afrasiab Amiri agreed in 2005 to pay a 25 per cent deposit of $745,325 for a $2.9-million condo in the Erickson development, located on the oceanfront on False Creek, before construction was completed.
The condo sale was valued at more than $3 million after the developer agreed to install limestone floors, which increased the price by $71,300.
The balance of the purchase price was to be paid on closing, but the purchaser did not secure financing to complete the deal by the contract deadline.
The seller refused further extensions, and relying on the terms of the contract retained the purchaser’s deposit.
Amiri filed legal action, claiming the seller was in breach of the contract. He sought the return of his deposit, contending the contractual terms calling for its forfeiture were invalid.
The trial judge rejected Amiri’s claim, and on Tuesday three judges of the B.C. Court of Appeal upheld the lower court’s ruling.”

– from ‘Man loses $745,000 deposit after $3-million Vancouver condo deal fails: court’, Canadian Press, 9 Apr 2013

It’d be interesting to know why “the purchaser did not secure financing to complete the deal by the contract deadline”.
Was it for reasons specific to the individuals economic situation, or was it because the market value of the property had plunged and no lender would consider making the loan?
– vreaa

Graphic – Degrees of Housing Overvaluation in Canada

trailing-housing

- forwarded to vreaa via e-mail by ‘B’, 13 Apr 2013; original source of graphic as yet unknown to us.

The Rare Individual With A Negative Ownership Premium

“I love moving. The longest I’ve ever lived in one apartment is 3 years. I usually move every year or two. Sometimes I move after only a few months. Some of my moves have been because I was renovicted by the landlord. Sometimes I move because the landlord never does repairs and I am sick of taking him to the RTB. But even if there are no problems with the apartment, I’ll start thinking about moving after one year. After two years in the same apartment, I start getting really antsy to move. Real estate bubble aside, I could never buy real estate because I could never commit to live somewhere long term. I don’t really understand how people do it? Don’t they get bored with their homes after a few years? Don’t they get tired of looking at the same view every day for years on end?”
perma-renter at VCI January 22nd, 2013 at 4:31 pm

Advice Regarding Renting In Vancouver, Please – “Unfortunately, the Vancouver rental stock is absolutely atrocious. It just seems like every landlord is looking for someone to pay 100% of their mortgage on a crappy place through rental income.”

“..reading this blog I’m glad to see there are many others like me who eschew real estate and prefer to rent. My wife and I are in that camp. We moved from TO to Vancouver about a year ago, so our perceptions of the Vancouver rental market are pretty uninformed. Currently, we are looking to upgrade our rental from a small 1-bedroom, downtown apartment to something larger (a detached or 2+den apartment >1,000 sf) and within good distance of rapid transit (or at least what qualifies as transit in the rainforest). Unfortunately, the Vancouver rental stock is absolutely atrocious (at least compared to what I was used to in Toronto). Just browsing Craigslist or Kijiji becomes depressing – a large number of “garden” (re: basement) suites, or just places in serious need of some TLC. It just seems like every landlord is looking for someone to pay 100% of their mortgage on a crappy place through rental income (so much for their faith in real estate appreciation, eh?). Another challenge for us is finding a place that will except our small dog – our own doing, but she’s part of our family. Love to hear how others are fairing in their rental hunt.
Where do you guys look to find good rentals in the city? Do you use an agent? Any blogs you can recommend for people like us to share our thoughts on the rental market?”

rent_vancouver at VREAA 11 April 2013 11:01pm and on