“WOW someone actually paid over asking for this place, it’s a dump inside. Need at least $200,000 to renovate it up to current standards. Needs new electrical, plumbing, drain tile, roof, total basement reno, new kitchen, bath, among a few other things, totally not worth it.”
“Land value – not home.
This 4719sqft lot means a new home of 3303sqft can be built on the site.”
“What I see is risk and the fact that they spent 900k on an asset that is extremely dangerous at this time. It’s like buying a stock after it soars. The higher it goes the higher the risk. I’m sure there is nobody in this forum that is buying right now, I’m sure some bulls here wouldn’t jump in, would they?”
“They might look like geniuses in 4-5 years from now.
Time will tell I suppose.
If anything, your language regarding “a dangerous time” makes me think they are making a contrarian move – not necessarily a bad thing in RE is it?”
[above exchange from RETalks 7 Dec 2012 1:35pm to 8 Dec 2012 6:45pm]
The vast majority of Vancouverites continue to believe that the local RE market will remain relatively strong. It’s the guy who sees the purchase as risky who is the contrarian, not the guy trying to get cute by out contrarianing the contrarian. The actual contrarian buy signal will be when the man-in-the-street in Vancouver is disgusted with RE as an asset class. This is still a long, long way off. – vreaa