Outrageously Poor Cashflow – “Buy & hold. Great opportunity! Tenanted up & down.”

‘Investors’ are still being encouraged to buy Vancouver Real Estate in the hope of future price increases. Here’s an example of such encouragement from the MLS, V697723, culled 25th May 2008.

This property in Point Grey (3963 W 11TH AV, 2494 sq ft house, 6044 sq ft lot) has a price tag of $2,380,000. A mortgage at 5% rate amortized over 25 years would cost the buyer $13,800 per month.

The cheeky Realtor Blurb on MLS states: “Well maintained, but no arch master piece. 3 bdrms suite down. Definitely not a drive by. Tenanted. Buy & hold. Great opportunity! Tenanted up & down.”

Even in Point Grey, this can’t possibly be fetching more than $5,000-$6,000 per month rent. Thus the realtor is encouraging someone to ‘Buy and Hold’ this ‘investment’ at negative cashflow of over $7,000 per month. This is another bald-faced bet on property price direction, and another indicator of how far prices have become removed from fundamentals in the Vancouver RE market.

7 responses to “Outrageously Poor Cashflow – “Buy & hold. Great opportunity! Tenanted up & down.”

  1. $2.3M? For that chicken coop?
    I’m a realtor and even I think that’s the craziest thing I’ve ever seen.

  2. Bravo, Islander, for speaking truth to power.

  3. this house now assessed at 3.1 million. Someone could have made themselves a cool 1M buying this chicken coop for 2.3 back when you were sqauwking like chicken little vreaa. On a side note…the folks that bought this seem to want it for keeps – it hasn’t been for sale since

    • Geez, lots of time on your hands F1… why don’t you start your own blog?

      • No, no..don’t discourage him. We need a villain here or there won’ t be anything to talk about since almost everyone else is already on the same page (you know, preacher..choir…that kind of thing). Every good site needs a few contrary voices or they just go stale.

      • two sides to every coin.
        The sad part is that there are some folks who are making their buying decisions based on the feedback from this site. Decisions not to buy are far more damaging than any decision not to. Look at how many poster here are forced to move, priced out, moving from one rental to the next with family, etc.
        Vreaa has the potential to ruin these peoples lives with his poor advice.

        For any potential buyer I have some pieces of advice. You’ll never lose in buying a home for yourself and your family. Secure yourself a 5 year fixed @ 2.99%. Spend no more than 32-35% of your gross monthly income on your mortgage. Buy land.

  4. I see vreaa won’t touch this now with a ten foot poker cue.

    How about it vreaa. Are you in the business of ruining people’s lives with your poor financial advice?

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