“If my friend sells his Coquitlam Townhouse for what the same units are going for in his complex he will lose money. He pulled it off the market.”

“My friend was trying to sell his Coquitlam Townhouse as he’s changed jobs and leaving town. If he sells it for what the same units are going for in his complex he will lose money (he’s sunk over 45k into it on Reno’s over the last 5 years). He pulled it off the market, and is now trying to rent it for more way more than the equivalent units in his complex because his has be heavily reno’d.
Methinks there are many stories just like this out there, in the suburbs especially.”

Anonymous at VCI 11 Jul 2012 7:10pm

19 responses to ““If my friend sells his Coquitlam Townhouse for what the same units are going for in his complex he will lose money. He pulled it off the market.”

  1. I looked at a couple of townhouses in that area and they were built to be cheap, now getting to an age where they would need some serious maintenance, poly-b piping, and no way for sellers to hide this with the new strata requirements for 30 year maintenance plans.

  2. don’t worry, get insurance and arrange for the trashing of the place. This technique is tried and true, and perfected, but you need your buddies working at key positions in the process,.. ie. insurance company insider, lawyer insider, fire chief insider, media insider to say it was an Act of God, and so on…

  3. Speaking of leaving town: here’s a story on the tech brain drain out of Vancouver.

    http://www.news1130.com/news/local/article/382409–video-game-studios-leaving-could-signal-creative-brain-drain

    Interesting that they mention “economic factors”, but I work in tech and a huge problem for all companies is that people are just refusing to consider jobs in this town due to the high cost of living and low salaries. Solution: move to where you can afford to pay a wage that attracts top talent.

    • It states in the article the reason this game company is leaving is the tax credits offered by the Ontario government. And its not like Toronto is all that cheap in regards to RE.

      • 4SlicesofCheese

        Toronto no, Oakville Ontario, perhaps.
        I have a friend who was at this company, she has to decide whether to leave Vancouver now, I think she and her husband bought 3 years ago.

  4. This company, yes. However, I’m very familiar with several tech companies IRL which are relocating due to the fact that they can’t get the talent they need to fill jobs here due to the cost of living.

    • I wonder what it is specifically about the tech. sector that results in these sorts of outcomes? I’ve read several comments similar to yours, but rarely about other industries. Interesting.

      • Tech has high labour costs, and the nature of its capital investments is that they can often be moved.

  5. I’ve seen this movie before. Folks I knew in the interior (city to remain unnamed) bought a place back in the early-90s. Economy tanked. Husband’s work situation changed (for the better, in terms of security and salary… but to a different location), and they were stuck underwater.

    For years. A decade, at least.

    They had to rent out their old place at an adequate price and rent in the new place. It was only recently that they finally sold off the albatross and purchased a new place.

    It’s all playing out again, 20 years or so later.

    • People like familiar patterns more than winning the game, I’ve observed. And real estate is a game. Shouldn’t be, but it is.

  6. Also “Coquitlam townhouse” just screams “ouch!”

    • PoCoCoTownHouse “Ouch!”? Agreed. Authentic MaillardvilleMadmoiselles, however… More a case of, “OohLaLa!” Je me souviens. Forgive me, that was a České pivo! inspired reminiscence… I wonder where she is now?

  7. pulled it off the market? Now that’s a strategy I had not heard before.
    I thought inventory was supposed to climb to infinity.

    • Oh tell us what you really think.

    • 4SlicesofCheese

      Thanks to you, I thought TFSA’s were taxed.
      I was so disappointed when I recently withdrew some and I did not have to pay any taxes. So disappointed.

    • Here’s a strategy: Pull it off the market. Watch prices drop. Talk to friends about the 2009 bounce. Watch prices drop more. Insist the weakness is temporary. Get anxious. Watch prices drop even further. Put it on the market again. Note how now there are no offers at levels you previously rejected or thought preposterously low. Panic. Drop your price a bit more. Still no offers. [etc.]

      • CanAmerican

        Yes, agreed that will happen. I witnessed it in the US. The path from bull to bear is not a quick and easy switch for people. Sadly, even when these types re-list down the road at a lower price, it’s all too common they still overshoot and price, often only slightly above market – hoping for more even at the depressed levels, killing their chances of a sale.

      • Quotes je vais me souvenir:
        “Interest rates can’t go any lower”
        “You cannot understand China without seeing it for yourself”
        “Apple doesn’t understand phones”
        “We’re going to Kaizen this mofo”
        “I pulled the listing and am going to rent it out”

  8. I have been renting now for a year (I sold my property July 2011 in foresight) and our landlords are moving back in to renovate with the intention to try and sell. Interestingly, they had the property on the market for close to a year before they decided to lease it out. Since that time, and especially over the past few months I have seen a large increase in detached houses for rent. Most of these have been on the market for a while and haven’t sold, so the owners are now trying to lease them out.

    However, in talking with a number of rental managers and following the price of rent for detached homes (over $600,000 market price) people are having a difficult time getting the prices they want. This will be even more so as people dump their properties on the rental market in desperation to get their mortgages covered.

    We just signed a new lease for $1000 off the original asking price. ($2500 down from $3500). This is a newer home in Cloverdale that is over 4000 sf.

    I have a feeling next year I will be able to get an even better deal if the supply of home like this for rent increases, without demand matching it.

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