“They transformed an old Greek couple’s house into a 3 suite main house and coach house. 8 months ago they came up for sale, at a little over $1M ask on each. Now, all 4 are for rent with the same RE company that was trying to sell them.”

“House near me where an old Greek couple lived sold over a year ago for a couple million to a developer. They transformed it into a 3 suite main house and coach house. About eight months ago they came up for sale, averaging a little over a million ask on each.
This weekend I was out for a walk and I saw that all four are now for rent with the same real-estate company that was trying to sell them before.
Yikes! I’m thinking that developer bet the farm on current market softness being only temporary.
Obviously even the professionals are delirious.”

Anonymous at VCI 20 Jan 2013 10:13pm

What would each unit have to rent for to merit the $1M (each!) price tag?
What price would be realistic for each unit, given the likely rental income?
– vreaa

28 responses to ““They transformed an old Greek couple’s house into a 3 suite main house and coach house. 8 months ago they came up for sale, at a little over $1M ask on each. Now, all 4 are for rent with the same RE company that was trying to sell them.”

  1. pricedoutfornow

    I sure am seeing a lot of previously for sale places for rent….they couldn’t sell last summer and thus, are now trying to rent their places out (often for ridiculously-high rents, I guess to cover their ridiculously-high mortgages!). Too bad the renters don’t seem to be fools and the places are advertised day after day on craiglist, sometimes at lower and lower rents. Sucks to be the owner…
    Ah, I still think it’s all going to come crashing down, and soon.

  2. I saw something similar in ’08 where a large lot was subdivided into three std lots (33’W), with three near-identical Van Specials listed then at $900k each. They sat for 6 months, was looking dire, but in the spring of ’09 they sold quickly. That was early spring. In retrospect that they sold so quickly was indication of a rebound, especially since they sold close to ask.

  3. VREAA, you and some other readers might be interested.
    A whole slew of charts looking at Vancouver’s real estate market. Some you have seen, some you havn’t.

    The Vancouver Real Estate Market: Booms, Bubbles and Busts

    I should have the 2nd post up some time next week.

    • UBCghettodweller

      Great post.

      You have a typo in this graph I think:

      Sorry, too many hours spent reviewing manuscripts for submission to journals. Having a reviewer skewer you on a typo is just something you can’t afford to do. Their fangs are sharp enough when your science is good.

      • Thanks, Kevin. The charts are an eye opener. Makes you wonder how the economists we love to slag so much cannot read the obvious. It is what tells me that they are more than just willfully blind….they are running a corporate agenda.

      • Thanks, there are always a few things to tweak after a big post like that.

    • Kevin, many thanks.
      We will headline and link.

  4. Question to seasoned renters: Am planning to sell westside house and rent. I’m having a hard time figuring out what reasonable rent is for 3 bedroom decent shaghnessy house. Prices seem all over the map. Can anyone point me in the right direction?

    • HaHa. Funny Kim. Can I start by pointing you away from this site to another where the realtor trolls live……? Let my search through my rolodex first. I will find it soon enough.

    • A range is normal. Full house? Pet friendly? Updated? On side street or main drag? Close to transit? The really cheap ones are usually for short contracts.

    • Real Estate Tsunami

      I’m not sure if you are real.
      But if you are, I would sell as quickly as possible, because the market in Vancouver West is going down so fast it will make your head spin.
      Don’t worry about renting. Lots of room in DownTown Eastside Hotels.

  5. Actually not kidding. I’m looking for a rental and am surprised at the variation in price for similar houses in an area. Do people negotiate? Is there a vancouver rentals forum?

  6. West Side Survivor

    I sold my place in Kits in mid 2011. Got a great price (way over asking) and have been happily renting in Dunbar since. I’ve been watching the prices and there are some very small decreases, but nothing to indicate the market is tanking yet. I think this might take longer than most people think.
    Unless anyone else is seeing some large price drops and I’m not…

    • I think 7 years down. And it’s only just begun … and probably will bounce…

    • at 2008 levels.

    • UBCghettodweller

      Look at how look it took for the American Market(s) to finally bottom out. A half-decade for things to slide back is my prediction. Shedding 20+% in a year would be a shitstorm that I really wouldn’t want to see even if I think a lot of people deserve a kicking for their stupidity.

  7. Westside princess

    Hi Kim

    Sold my house in Dunbar and now rent a fabulous old house in Shaughnessy for 3500/month including yard maintenance. 4 year contract through a property management company and all is great. Kitchen and bathrooms are old fashioned. I dont care. My kids love the 12000 sq foot lot. Rented from amateur landlord last year and it was a nightmare.

    • Thanks, this is helpful. Can you recommend the management company you used? Also, how long did it take you to find a place?

  8. [NoteToEd: Redeveloping some previously GreekOwned Properties is notoriously tricky… you can never be too sure about the statuary.]

  9. 415 W 16th North Vancouver http://ow.ly/hczoj
    This is a similar listing. Three ground-oriented strata houses on a lot: each about $1 million. Each has a single garage and 3 or 4 bedrooms and they look quite nice. This is the market trying to invent a way to build and sell new houses on expensive land.

    Lot value is $750 divided by three, so these prices are “a lot of house”.

  10. Two small observances:

    My East Vancouver neighbourhood had a listing at $999K in November…an average price for the neighbourhood….no offers since it’s now listed at $850K….still no offers I guess. So this extremely small sample would suggest the market has fallen in expectations by at least 15%.

    Anyone looking at open houses must surely notice an extreme difference in the number of people at these events from one year ago.

    To me it’s obvious that the Vancouver market became unaffordable to sensible Canadian home buyers a long, long time ago. I’m just wondering what new Federal programs will re-lubricate the movement of Asian capital so the boomer party can continue.

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