Westside Example, For The Record – Possible New Aesthetics:Price Ratio Extreme

5592 Larch Street, Vancouver Westside (V929848)
SFH built 1924; 2001sqft; 33×126 lot
Asking price: $2,100,000

[hat-tip Ben at greater fool.ca and Absinthe at VREAA]

Yeah, we know, “it’s the land value”, obviously.
Yet, why does the realtor still say in the blurb:
“This solid 4 bdrm+ 2bth+ 2kit house is in good condition with newer roof & newer water tank.”? And two thousand and ONE square feet? Really?
No matter; posted here for the chronological record, and representing a possible new Aesthetics:Price Ratio extreme.
By the way, to anybody who owns a house like this, and isn’t trying to sell it into this market… what are you waiting for?
– vreaa

37 responses to “Westside Example, For The Record – Possible New Aesthetics:Price Ratio Extreme

  1. We are in the twilight zone.

  2. Renters Revenge

    As someone said here before, if you’re putting down +$2M for a crack shack do you really care about having a “newer” hot water heater? Really? A $700 water heater is a deal breaker?

    In regards to the land value, what is the real productive economic value of this property? Now, or in the future? If rents did justify this price, who does that raw land value really belong to?
    We need Land Value Taxation – pronto.

  3. pretty sure it backs onto apartment bldgs next block over to the east – balsam? a rezoning play – i don’t mean to say it’s worth that much –

    • Chubster (Vesta here), you are correct. I also believe someone’s banking on condos (there’s a whole new set of them going up on the corner just a few houses down from this house) being extended up the block to this property.

  4. Unreal. Here’s what you can get for half the price in my neck of the woods…

    http://www.nytimes.com/2012/03/29/greathomesanddestinations/real-estate-in-mexico-city.html?_r=2&hp

    • what is the credit/wage environment like there? might be interesting to get that info for all comp ppties

      • guess i should read the article. 10%-30% down, local rates typically twice us rates – in pesos though. says foreigners mostly finance externally where credit conditions are more favorable. surely wage levels are lower. suppose that probably answers it.

      • Yup. It’s a difficult comparison because Mexico is the land of extremes. This particular house is in an upscale neighbourhood with high income earners.

    • Basement Suite

      I like a bit more privacy but I guess one could afford curtains with the extra million. 😛

      • Basement, can’t say I love the design either. But, yeah, for an extra mil one could afford the curtains. And a really nice water tank, too!

    • Of course, Mexico City is underpopulated… 😉
      .
      Nice example: great design and construction (steel, glass, stone) all for a million bucks.

  5. Note that even this house has two kitchens. The SFH, which last I checked stood for SINGLE family house, is on the verge of extinction in Vancouver.

    • “SFH” should be relegated, a woefully out-of-date term from simpler times.

      Statscan has figured it out, they looked at the 2001 census and started scratching their heads. “Why are there three separate families reporting residence at this one single family house? Johnson, get on your trenchcoat and go have a gander”. Months later Johnson reports back. “It turns out what used to be ‘single family’ homes are actually containing separate suites under the table.” “Right, Johnson, it’s a multiplex.”

      Statisticians, 10 years ahead of everyone else, 19 times out of 20.

  6. slightly OT. these guys are going to be gatewayed or wanged but the persistence of the local mania is an interesting study. money quote in the last paragraph
    http://tinyurl.com/7hbkxe5

  7. Sometimes… you’ve just got to roll with the ‘chuckle’… Today’s Quote ‘O TheDay!… brought to you by the ‘other’ Cameron…

    …”[I just want to help more people] do up their home, change their front door, improve their garden”…

    [UK Telegraph] – Council tenants to get up to £75,000 to buy their own homes, David Cameron to say

    “The Prime Minister will formally unveil a “reinvigorated” version of the ‘right to buy’ policy pioneered by Margaret Thatcher’s Government during the 1980s. If sucessful if could see another two million council homes sold off.”…

    http://tinyurl.com/6o2xxax

    • Historical context [hint: something to do with perfidy, scandal, gerrymandering and, of course, TheMoney]…

      Dame Shirley and ‘homes for votes’…

      http://tinyurl.com/5ttbthv

    • is that michael douglas with michael fox’s hair?

      • Not sure… but I’m quite certain that’s a Pastie he’s enjoying while the Met’s SO6/DPG ‘chauffeurs’ queue up their BMW525’s and Jags @ Q8’s PetrolForecourts, Chubster!

      • Afterthought for those who enjoy ‘friggy driving’… when the PM has a PastieCraving – you’d better go “Blues&Twos”… [One’s SuccessfulSuperAnnuanation depending upon, among other things, demonstrable ‘alacrity’]… And, yes! – driving like that in CentralLondon is enormous fun!… Really!

        http://tinyurl.com/7d6b25u

    • Aldus Huxtable

      Perhaps Canada will soon learn about the Poll Tax.

    • Oh my, it sounds like Ferric Dame Christy has some catching up to do.

  8. Occasional poster Taipan (a developer from Australia) is posting an interesting anecdote and diatribe series on his experiences in BC real estate: http://realestatetalks.com/viewtopic.php?f=8&t=86741

    Taipan is the real deal, I met him about a year ago when he was passing through: he is a developer in Australia and knows his stuff. His grammar is not the best but pedants should look past it and understand how he thinks and where he’s coming from.

    • Yes, I can also vouch for the fact that Taipan is the real deal.

    • I’ve conversed via email with Taipan on a couple of occasions. He was one of the only guys brave enough to wade into that den of bulls, realtors, shysters, developers, and ponzi schemers back when realestatetalks was all hype all the time. Much respect.

      • Some of his best works are buried in the RET arcana, but let’s just say he’s annoyed and brought out some interesting colours in some Realtors who should really know better.

        If they knew what’s best for them they would shut up. It’s not personal, it’s business.

    • outcome never in doubt, only the trajectory of descent … i didn’t catch if there was any insight here

    • Thanks for the article jesse, if possible please post ‘part 2’ of Taipan’s article. 😛

  9. Second bearish link in two days that came to me from an RE interested source – but not an RE bear:
    http://calgary.openfile.ca/blog/2012/open-letter-my-renter-friends-0

    • from the link: “Wait, let me rephrase that. Don’t do it unless the No. 1 reason you want to buy a home is that you’ve found a neighbourhood you can see yourself living in as a senior citizen. Because, given how long mortgages are these days, that may well be the case.*

      I know people say renting is a waste of money.

      Since when is it a waste of money to put a roof over your head?

      These same people say you need to build equity.

      Let me tell you how much equity I have—almost none. Due to down payment mortgage rules I was only sort of listening to and, obviously, still don’t understand, I have a few thousand dollars worth of equity—after five long years of paying an astronomical sum each month. There are other things you can rely on instead of equity. Like a silly little thing called savings, for example.”

  10. Ralph Cramdown

    The realtors are just confused. It’s a crappy little shack of the type where the purchaser would ask how old the water heater is, so that’s what they write. They don’t feel they’re doing their jobs if they just write “Land value. 33×126″ in the description.” Maybe the age of the tank is of interest to potential developers, poor ones, who’d actually rent the place for a year or two while they get their plans & permits lined up. I’d figure out the max buildable area, find similar redeveloped addresses in the neighbourhood, and mention them, but I’m no realtor.

    Of more interest is (from the listing) “Can be sold with adjacent lots.” I always find it telling when somebody assembles a package, then sells it again piecemeal.

  11. 4SlicesofCheese

    Wow just overheard some coworkers talking about this article, and I didn’t even bring it up!
    Mostly all are saying prices are too high, except one bull who believes its worth it cause its the BPOE.

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