“Friend sold her house in Kits/Kerrisdale area for just over $2.1M earlier this year. Buyer is trying to flip it but it has just sat on the market @ $2.4M for almost 6 months.”

“Two recent Vancouver anecdotes:
1) Friend sold her house in Kits/Kerrisdale area for just over $2.1MM earlier this year. Buyer is trying to flip it but it has just sat on the market @ $2.4MM for almost 6 months.
2) Similar story on East Van side from a realtor in the area. Earlier house in the area was put on the market for $999K, and was sold for $1.4MM. It has sat now for several months at $1.5MM.
Still no buyers for either of them. I imagine after the property transfer tax, realtor commissions, and other holdings costs (interest, property tax, insurance) that if they don’t sell by the end of the year they are going to be losing money on these ‘investments’.”

– Joey Jo Jo Jr. at vancouvercondo.info October 14th, 2011 at 6:16 pm

21 responses to ““Friend sold her house in Kits/Kerrisdale area for just over $2.1M earlier this year. Buyer is trying to flip it but it has just sat on the market @ $2.4M for almost 6 months.”

  1. Basement Suite PhD

    Glad to hear this, quick flip speculators start to get burned and maybe this thing can come to an end.

    • One more to add to list:

      One sushi cook who makes 50K a year somehow got 850K mortgage for 2 properties and is renting out both. First is house 700K with 500K mortgage upstairs rent $1500, downstairs $900. Second property is 500sq/ft apartment downtown 450K with 350K mortgage rented for $1200. Been trying to flip both for past 6 months with no offers. He says rent is covering mortgages, strata but he covers property tax and insurace. I can’t begin to tell you how badly I want this thing to explode in the faces of these idiots!

      • Basement Suite PhD

        You and me both! Thanks for that, and Get real’s story below, and so many stories of people owning multiple properties on spec and debt. Good signs. A few weeks ago I overheard a couple young guys at my gym (maybe 25) saying prices can’t stay this “low” forever, you better jump in, and how this place in Richmond he was looking at was “only” 1.5 million dollars. I thought 1.5 million dollars was a lot of money for a 25-year-old, but not anymore I guess with the Bank of Canada’s free money interest rate policy.

  2. we’d like to know the address, seller/buyer info of each.
    Without this information this a rumour and heresay, not anecdotal

    • diablo, who is the “we” in your comment? Is it “eyesthebye”, “rusty” and “rollie”? If so, here’s some more rumour and heresay for you: you bought a crappy old house in South Vancouver that you can only afford because of the lowest interest rates in history and the fact that you share your basement with a stranger. You are so insecure about your purchase that you troll real estate boards and blogs, making THOUSANDS of posts, to justify your purchase and the continued irrational exuberance of this market. You go to bed at night fearing what we all know is going to happen: a giant crash, where your house lands up worth less than what you paid and all your paper gains evaporate. I hope you enjoy your time in your drafty old house. Thanks for coming out.

    • “this a rumour and heresay, not anecdotal”

      hahahahaha
      Perhaps you’d care to tell us the difference?
      They are all ‘stories’.
      We acknowledge that anecdotes here simply have to be taken at face value.
      Can we ‘prove’ they’re all ‘true’? No. Our estimation is that the vast majority are told in good faith; very few folks waste time making up elaborate tales.
      Could some false stories have gotten into the archives? Sure. Live with that.

      On this note, “it takes a thief” as the saying goes:
      diablo, rusty, Rusty, rollie, Rollie, eyesthebye, Henley, the604 are ALL the same poster.
      This is tedious.
      Our policy here is that posters stick with one handle, for the purpose of facilitating ongoing discussion.
      We’re quite happy to tolerate opinions of all sort regarding Vancouver RE, just stick to one handle, and stick to the subject (ad hominem frowned upon).
      So, ‘diablo’ pick a a handle and stick with it.
      If you don’t, we could block your posts – and, if we do so, it’ll be because of the ‘spoiler’ consequences of multiple handles, not because of the content of your arguments.

      • 4SlicesofCheese

        No need to ban him/her. When SHTF he/she will disappear on their own, you can count on that.

      • “heresay” is not a word. Perhaps he meant “heresy”? Ah yes, now it makes sense: he’s saying that real estate is a religion, and any bearish anecdote is heresy.

    • Strange comment, Diablo. The site is a real estate anecdote archive. Our host Vreaa doesn’t pretend that the contents of all these anecdotes are hard evidence, he offers them as examples of how people are talking about real estate in and around Vancouver. No doubt any reader should take secondhand blog post anecdotes with a grain of salt. I think the vast majority of this site’s readers have no difficulty understanding this concept – they seem quite capable of thinking for themselves.

  3. many people are mouth-watering what ETB has; but if they cant have it, they might as well trash it. that is normal.

    • Conversely, many assume that anybody who is critical of a bullish owner’s RE position is being critical purely out of sour grapes.
      This is not the case: If the ‘ETB’ you refer to is a home owner with a mortgage of >50% of the current market value of their East-Van SFH, no other assets to speak of, and a tenant in the basement, then their position is not necessarily one that would engender envy.

  4. I heard the same stories in 2006, albeit with lower prices. Now look at them!

    This is NOT investment advice. Past results are not necessarily indicative of future performance.

  5. I am a medical professional and do quite well financially and can afford a large mortgage in Vancouver.

    I RENT a house because it makes no sense whatsoever to spend a million dollars to buy an old dilapidated house. I will give it another year or so, otherwise off I go to some place that actually makes sense.

    It might make sense to take on so much debt if the value is sure to go up by 15-20 percent over the next two years, but not in this town and not with these fundamentals.

    On the contrary, MY SECRETARY, who I employ, has already bought two condos in the last year and is more than $ 800K in debt, and insists on giving me real estate advice.

    This will not end well

    • It’s going to take more than a year to bottom. With low rates and full recourse mortgages it will be 5 years, at least.

      Don’t jump in too soon. Lots of people made that mistake in the States and ended up walking away from a house they bought from a bank after a walk-away.

  6. Vreea if you don’t headline the above story I’ll be mightily disappointed in you.

    🙂

    • Not to worry. It’s a doozie.

    • I moved to BC 2 years ago (after having lived in NYC, Dallas and Toronto in the last 15 years ) for compelling family reasons, and the Vancouver RE reminds me of the Pied Piper’s story.

      I rent a house and use portion of it for my office. People do not realize it but it is far more cheaper and far more comfortable than owning property in Vancouver.

      People get this false sense of security and “affluence” but do not realize the property value would have to go up at least 10 percent each year for them to break even versus renting. (This includes the cost of renting money from the bank, property taxes, agents fee (if selling) and cost of maintaining the property).

      You you feel that the property value will keep going up by 10-15 percent per year, year after year. then fine go ahead and buy.

      I personally do not think so. More over, spending over a million dollars on an old, dump does not make any sense or is a good idea for people who have to work to make money.

  7. Who lists at $2.4? Don’t they know that they need an 8? Increase the price to $2.8m and a bidding war will ensue 🙂

  8. Education is Another Bubble

    Hi:

    Didn’t BCREA’s Chief Economist mention in Van Sun that house prices went up 10% Y-to-Y in September? link: http://www.vancouversun.com/business/home+sales+rise+nearly+percent+compared+last+year/5553453/story.html

    It is still flipper’s territory for West Side homes 🙂

    In my opinion, BC has to diversify is economy. RE has an unhealthily high number of share of the economy.

    It becomes recursive, the RE professionals lobby government, which in turn feeds the frenzy. Eventually it all comes to earth – but the innocent get stung as well. My 2 cents – I am sure there must be others who share this thought….

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