“The most extreme example was a house on Wesbrook Cr that had just sold for $7M. It was a crappy house being rented for ~$2K/mo, but it was on a fantastic piece of land. It had been bought by a family from China that was planning to hold the property and eventually build on it.”

“Recently when I was looking for a new rental, I came across numerous examples of recently-purchased foreign-owned houses that were being rented out. The most extreme example was a house on Wesbrook Cr that had just sold for $7M. It was a crappy house being rented for ~$2K/mo, but it was on a fantastic piece of land. I spoke to the rental agent, it had been bought by a family from China that was planning to hold the property and eventually build on it.”
M-dash at VCI 27 Oct 2012 7:30pm

This strongly suggests that the buyers bought believing that similar properties would sell for considerably more than $7M in years to come.
So much so that they are shouldering considerable carrying expenses to simply hold the property.
– vreaa

34 responses to ““The most extreme example was a house on Wesbrook Cr that had just sold for $7M. It was a crappy house being rented for ~$2K/mo, but it was on a fantastic piece of land. It had been bought by a family from China that was planning to hold the property and eventually build on it.”

  1. or wash dirty money in a jurisdiction that will turn a blind eye to such transactions.

    • This particular load went into the ol’ may-tag set at ultra hot, considerable shrinkage is to be expected.

    • On the day the Sun publishes an article about unprecedented amounts of capital “fleeing: china… You tree hugging/communist/chinese spy/general asshat (take your pick) need to insert your passive aggresive completely lame Canadian smarminess racist comment into the mix. As though what, there is no dirty money from China being washed in Canada buying r4eal estate at over inflated prices with cash. And to make any mention of it denigrates all immigrants, and is racist? You and your kind seem to dominate the discussion, or you dominate inserting your passive/aggressive manner of shutting down the discussion. Well I am taking a stand and pointing out your sad little game. And at the same time pointing to the immense amount of dirty money that has assisted inflating the price of affordable housing in the Lower Mainland for working Canadian families.

      • It’s a “crime” thang, Bob.. not a “Chineseness” thang. If YVR were LHR… we’d be writing about GreekMagnates, RussianOligarchs and ArabSheiks… and their ilk. Or to put it differently, Crime is a ColourBlind EqualOpportunity Employer… e.g. – there’s a reason they call themselves the ‘UnitedNations’…

        http://en.wikipedia.org/wiki/United_Nations_(gang)

      • Nemesis, United Nations are out in the god forsaken suburbs. Meanwhile back in the relative civilization of the city. The ethnic group that has seemingly invaded and and taken over great swaths of Vancouver and Richmond in the past 15 years with nary a thought to the social and cultural impact are chinese. not the united nations.

  2. Seems like a reasonable investment if you’re trying to move a chunk of money offshore. Maybe it’s a price someone is willing to incur to hide/launder money:

    http://www.vancouversun.com/Business/asia-pacific/Waves+illegal+money+leaving+China/7461039/story.html

    • Rusty's intuition

      Obviously, the author is a disharmonious splittist! He is just jealous of the dragon’s peaceful rise. He is a traitor like the dalai lama, liu xiaobao and that fat bastard, ai Wei Wei! I suspect he is CIA or possibly American agent – disregard this splittist’s crazy jibberish, comrades – we must move forward! Never looking backwards towards capitalism, but to the glorious socialist future, with many more junkets to Macau and the Bahamas!

  3. Not on the boat

    This is a very unique lot, you state they want to hold an build.. no mention of hold and sell…
    There are lots of very high net worth people for whom this transaction is like us buying a car…
    I am a pretty hard bear on Vancouver RE but I see more and more outlier transaction being used to demonstrate market direction which may not be the best approach.

  4. For what it’s worth, my anecdote was in the context of the impact of foreign/Chinese purchases of property locally, and the impact of hot/illegitimate money. It’s wasn’t in the context of people buying in the expectation of price appreciation.

    • There are accountants employed full-time who are tasked with making “illegitimate” money “legitimate”. Bastards.

    • Ten years ago that property might have been owned by a doctor or lawyer practising locally. Now its likely owned by someone with no skin invested in the local community, and that doctor or lawyer has displaced a middle manager from Dunbar, who in turn has displaced a teacher from Main-Fraser, who in turn has displaced a grocery clerk in Burnaby and so and so on. Exactly why selling off real estate to offshore investors is a slippery and expensive slope.

      • UBCghettodweller

        Yeah, but thing of how much short term money has been made in the last decade by property holders!!!!

  5. This doesn’t sound abnormal to me. Getting ahold of a piece of land this unique is worth much more than $7M to most wealthy Chinese, as owning land is something that couldn’t be dreamed of in China. Hold, build, keep for future generations.. I don’t think this impacts the market speculation at all.

    • other than a city, province and country so lacking in a REAL economy they will gladly accept shady possibly illegal movement of funds to prop up their Potemkin village economy

    • Rusty's PR Team

      Spam

    • Hey didn’t you used to be part of Key? Do you have any info on how they managed to misspell “New Westminster” in the newspaper and SkyTrain ads?

      • Rusty doesn't suffer fools gladly

        Racist

      • Being right isn’t a race, but have sympathy; bears aren’t that fast.

      • I haven’t worked there for over a year and a half. I find it extremely humours how they’ve managed to botch things up so bad. Not only have many local developers refused to work with them but they still claim sales that aren’t theirs.

        Misspelling ‘New Westmin(is)ster’ was just the icing on the cake. Not to mention they put the wrong phone number on their bus ads for Elliot Street Condos as well.

      • I haven’t worked there for over a year and a half. I find it extremely humorous how they’ve managed to botch things up so bad. Not only have many local developers refused to work with them but they still claim sales that aren’t theirs.

        Misspelling ‘New Westmin(is)ster’ was just the icing on the cake. Not to mention they put the wrong phone number on their bus ads for Elliot Street Condos as well.

  6. Seeking knowledge...

    I wonder if cleaning $ via RE is really that unusual compared to other cities/countries? Or do other governments actually trace where the money is coming from for each and every transaction?

    • Rusty can be whimsical

      Fairly certain other provincial and civic governments still behave in the old tradition of being patriotic and giving a shit about the citizenry – you can get away with more if people are too busy working to pay for things they dont need and cant afford. In other words, don’t hold your breath.

      • alternately, an aristocracy is no more than an invention to legitimize atrocities, plunder and slavery … the killing, robbing, etc. always came first … and then to the winners belong the task of writing casting the historical record … most power institutions are rarely troubled about wealth’s origins … where they are and citing moral arguments, that is most unusual and i tend to suspect political in motive … ps. RE a pretty clumsy laundry machine, though it does make near impossible for a foreign govt to confiscate or repatriate

  7. A comparable lot with a view like that in Shanghai and Hong Kong costs $35M and $42 respectively.. Paying $7M for this? They’re laughing! Also if you do some research you’ll find out most of these uber wealthy are actually aristocrats that inherited land that used to be worth very little.. After the recent boom all the sudden great grandpa’s farm is connect by a brand new subway or found to contain rare-earth and is now worth tens of millions or more!

    Come to think of it if whoever owned this $7M piece of land told his great grandpa who he inherited this from that it sold for this price? I think great grandpa would pop right out of the grave and laugh too! When he came from Ireland or what have you a hundred and fifty years ago he probably bought this for what? A hundred bucks? Lol..

    • Rusty is steeped in Maoist thought

      Oh yes, “josh” – because we all know the Party compensates the peasantry so well when rare earths are discovered on their NON FREEHOLD land.

      I may have misinterpreted your ramblings to suit my own.

    • Rusty is running out of ideas

      You should learn some of our history – few Irish would have been able to afford land upon arrival – many spent their savings on the ticket over, arriving with little more than a cardboard suitcase and lots of babies. Most of the original land holders were scots and wasp professionals who comprised the original local establishment – what with it being called British Columbia and all – and as it is a constant through Vancouver’s history, there were also many land speculators, known to go whining to Ottawa when their grand schemes blew up.

      • Rusty grows weary

        And I should mention, most of the original land owners cleared and worked and built the land themselves, contributing to the community and the country – what a concept.

  8. One part of BC still produces something of value… Rather than just overhyped real estate: http://www.vancouversun.com/Northern+growth+benefits+entire+province/7466047/story.html

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