Tag Archives: Landlords

“We spoke to a friend of ours yesterday. Even though she has purchased a house, she wants to keep (and rent out) the condo she’s living in, because she thinks prices will only go up.”

“We spoke to a friend of ours yesterday. Even though she has purchased a house, she wants to keep (and rent out) the condo she’s living in, because she thinks prices will only go up. She estimates her condo to be worth $530K, and rent she would receive to be $1800/mo. After taxes and condo fees, this appears to be a yield of 3%, without taking into account repairs/upkeep on the unit itself. She’s getting a one-year fixed rate of one point something percent to finance the thing. Sounds crazy to me!”
- from ‘s’ via e-mail to VREAA 13 Jun 2013

“The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”

“I spoke to an older gentleman who bought his home in the 70′s and is now selling. He told me an interesting story of his ex-wife which may represent a lot of Vancouverites. She is unemployed. In 2009 she had 250k left on her mortgage on her primary home. The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.
How does she pay the mortgage on both properties? By sharing a room with her daughter and renting out rooms individually. Is this a risky scenario or what?! How many people are in her situation?”

- Anon at VREAA 17 Jun 2013 4:52pm

A Bed in the Bathroom, Why Not? [Let Us Count The Reasons...]

image.php

“Here is another great Vancouver rental listed on Craigslist [link no longer active]. A bed in the bathroom..”

“Rental information:
Newly finished 1 bedroom with own ensuite. Furnished.
Access to dining room, living room and kitchen on main floor.
$500/month includes utilities, washer and dryer, and wireless internet.
Close to transit and shops.
No smoking. No pets.
Perfect for international students and short term renters.”

- from ‘Vancouver rentals: A Bed in the Bathroom, Why Not?’, vancitybuzz.com, 28 May 2013 [hat-tip space889]

Outrageous!
The underlying message, of course, is that we are Tokyo.
Again, consider this idea in relation to Canada’s vast expanse of land.
The bubble continues to grossly distort our thinking.
- vreaa

Vancouver-Rental-bedroom-in-a-bathroom

“We asked why he doesn’t just rent the whole house. He said he can’t, it wouldn’t cover his mortgage – he’ll get more to rent it out as two suites. These new landlords are hilarious, thinking that rent will cover their mortgage!”

“Called a guy today about a house he has for rent. Turns out he’s only renting the upper half (for more than what the market will pay, I think, considering I’ve seen it advertised for awhile). Since we really don’t want to rent half a house and live in fear about who lives in the basement (and share laundry), we asked why he doesn’t just rent the whole house. He said he can’t, it wouldn’t cover his mortgage – he’ll get more to rent it out as two suites. These new landlords are hilarious, thinking that rent will cover their mortgage!
By running the numbers, it looks to me like he put $400k down (he told us how much his mortgage payment is). I also think it’s a failed flip – I’ve been watching it awhile and when I googled the address two weeks ago, it was for sale and there was an open house that weekend, though another google search tells me the Vancouver sun featured it in their real estate section as being bought in December 2012. This guy must be panicking….
I think our time has come, bears! Anyway, it’s a nice house, maybe we’ll be able to buy it for $400k one day (lol).”

- pricedoutfornow at VCI 26th May 2013 12:50pm

“Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”

2_carousel
7541 Kerr Street, East Vancouver (Fraserview)
2518 sqft SFH on 45×110 lot

“We considered renting this SFH a few months ago. It stayed on the market for a few months, looks like the landlord never got any tenants (rent went from $2500 to $2200) and today when I walked by – - it’s for sale for $999,999! Gee… tough choice, rent for $2200 a month or… buy and have a mortgage of $4,310 per month (based on 3.09%, 25 year, 100k down). Why would anyone buy?
Thanks, I think we will remain renters until prices come back down to earth. Or never buy in Vancouver.”

- pricedoutfornow at VCI 5 Apr 2013 7:38pm

Think of this situation like this:
This landlord can’t find anybody who will pay $2,200 per month to actually use the house as a home, but they are hoping to find somebody who is prepared to pay over $4,310 per month to make use of the house as a financial instrument, by using it to bet on increasing prices.
The house’s fundamental value is that which one could calculate based on a yield of less than $2,200 per month. The speculative market has been valuing it at substantially higher than that. As the speculative mania unwinds prices will fall to reflect fundamental values.
- vreaa

“I know someone who just declared bankruptcy because her condo was assessed at $150k and she bought it presale north of $250k in 2005 or 2006.”

“I know someone in BC who just declared bankruptcy because her condo was assessed at $150k and she bought it north of $250k in 2005 or 2006 (presale). Tried to rent it out for the past few years but the rents kept drifting lower and lower, and the tenants stayed shorter and shorter terms (I think they moved on to better places, this is a city in BC where rents are down significantly since there was a boom-the boom is long over). She was losing more than $10,000 a year and just couldn’t get ahead. Time to hand the keys back to the bank and start over.
I hear stories like this all the time. A friend’s dad in the same city bought a house during the boom “everyone wants to live here!”. Now his mortgage is $2500/month (blue collar worker) and he tries to rent out the basement suite for $1000 a month (no takers-though it worked during the boom). The house is worth about 30% less than what he paid for it (maybe less, not a lot of sales these days).
All we have to do is look north a bit to see these stories.
Quiet suffering. These stories don’t seem to make the news but they do exist.”

- pricedoutfornow at VREAA 1 April 2013 7:55 pm

Sturdy, With Views – “Calling Froogle Scott!… Is Dr. Scott ‘In The House’?” [Not In This One, Certainly]

Poster ‘DNAspark99′, [on the forum bcsportsbikes, 22 Mar 2013 and onwards; hat-tip RE Lurker] has posted images of a ‘building’ that is under construction, with this commentary: “So, my landlord has taken it upon himself to build a ‘toolshed’. For a roto-tiller. At least, that’s the entirety of what he told us – there are, however, some inherent communication issues. (He’s Korean, and not yet well versed in English (though certainly much better than my Korean)). There’s one door so far, and a lawnmower will not even fit through it. (I don’t think he knows that yet though)
So, this is the ‘project’ thus far. For one, the ground it’s being built is mushy moist marshland – your feet sink with every step. Which is always ideal for a good foundation – or complete lack thereof.
It may not be immediately obvious, but I don’t think this man has a background in construction.
It appears he owns a hammer and saw, perhaps a measuring tape, perhaps not. Certainly nothing like a square, straightedge, or level.
I guestimate that he has seen no more than 3 episodes of various home improvement shows, and maybe at best he’s driven by a construction site atleast once in his life. After all, “How hard could it be?”

8464NX6h

W12cBmBh

1kwHzbch

7ufZKOwh

oYl9buTh

KIfrnpWh

Q1WsR4mh

3irQtoJh

best

LLbsCCeh

lNNFUqGh

1k2fdd0h

cZ56D2Nh

qSrLyPvh

vLS9PAPh

z8L744gh

5GWBOzJh

fVyvc2Jh

jiDkBB5h

X0WRQoWh

iS0uVA6h

X8RgcP3h

And now, in time-lapse video:

More:

yU12tKq

aMCiLeZ

A second time-lapse video [posted 2 Apr 2013], worth the watch for casual efficiency, for the horse, for the stuff falling off the roof, and for the paint-job: