“Nothing Wrong Here!”

Maple ridge, lougheed highway and 223rd aldus huxtable
Maple Ridge: Lougheed Highway and 223rd [image and post title care of Aldus Huxtable]

26 responses to ““Nothing Wrong Here!”

  1. I know I know! Postage violates strata bylaws.

  2. TeeHee!

  3. Joe Mainlander

    Yes. They were sold… one or two years ago, after they got rezoning and started pre-selling so they could get financing to build. Those signs are the result of a market from over a year ago.

    • So just to be clear….this picture is from a sale that took place more than a year or two ago? Not sure why we need to discuss it now. Is there a story here?

    • I posted this thinking it was recent (it was sent to me via e-mail).
      If not, I apologize.
      Are we certain it was from a year ago?

      • Joe Mainlander

        No, my post was misunderstood. I was pointing out that, if that even if that is a recent photo, developers pre-sell most units before they build, and as it can take 1.5 – 2 years to build a project like that, those ‘sold’ units may have probably been sold in a different market, one from a year to two years ago. They are just trying to make it seem like they’re selling like hotcakes with those flags, but it’s typical for most units to be sold, even before construction, in any market, or else they wouldn’t have gone ahead and built the thing.

      • Not at all sure Vreaa (and no apology necessary! you have a terrific site). I was only taking my cue from Joe Mainlander who seemed to know. I don’t live in Van anymore so I rely on the comments of others to clue me in to what is happening on the ground. I would suggest to the Realtors they hang on to those signs though. Things could get prettty rocky this coming year and global growth forecasts are again being revised downward to reflect continued slowing. I still can’t get past the insanity of people buying under the circumstances we have now. You know, they could be right in the short term and I say good for them but mortgages run decades. Anyone thinking this nice period of relative calm is going to last must be nuts.

      • Joe Mainlander

        Or maybe I’m reading the signs wrong. I think they say ‘SOLD” or is that “SALE”? My eyes are not great.

      • I think at least some say SALE (you can clearly make out some As). Either way I’m suitably entertained.

      • I saw this building on June 16th, 2013. Was driving back Vancouver from Hell’s Gate. It was just like this photo.

  4. They did the exact same thing in Kelowna some years back

  5. Yep, all good in the hood says RE Board: sales are up and recovery is in progress !!! – can’t u tell. Telling the truth is just a bad business practice for RE cartel, so the news is always good.

  6. Rumour has it that the developer, who could not afford to include a ‘free’ Fiat500 with each suite, has instead capitalized on a recent disposal of surplus despots by the GreatManWaxMuseum of China…

    “Will that be a JongIl suite? Or would Madame prefer the more luxuriously appointed Mugabe?”

    [ChinaDaily] – China Museum donates wax figure of Kim Jong-il to DPRK: Remaining Stock Sold At Auction to Canadian RE Developer

    http://tinyurl.com/ljsl6qn

  7. Quote from VCI:

    All this talk about renters suck, owners are making a mint just does not add up. The average person in the GVRD who bought in the last 5 years has not even made inflation

    Using the Frankenindex HPI (which is heavily manipulated) straight from the offical website
    http://www.rebgv.org/home-price-index?region=Greater+Vancouver&type=Residential&date=2013-06-01

    Benchmark Price $601,900 June 2013

    3 yr. return 4.6% = 1.53% per year
    3 yr. return after inflation = -0.97% per year
    Total 3 yr REAL loss (assuming 1% for PPTY tax per year) -5.91%

    5 yr. return 5.7% = 1.14% per year
    5 yr. return after inflation = -1.36%
    Total 5 yr. REAL loss (assuming 1% for PPTY tax per year -11.8%

    This is before strata, maintenance, special assessments, closing costs and PPT.

    So I ask again? WHO IS MAKING MONEY?

    My rent hasn’t moved since 2008 so it has gone down by -12.5%.

    What will I do with those savings you ask? I am spending a month in Italy this summer with my kids.

    /QUOTE

    • Agreed, for anyone looking closely, condo prices are correcting, and more than just a few percent. Still a ways to go in my view. Others disagree.

      Can’t speak for SFH, but it looks like some speculation abounds in that space. I don’t track SFH closely because valuations are difficult to nail down in aggregate, and I expect SFH to eventually track condo, with the important caveat of the SFH density premium.

      • Seeking knowledge...

        What is SFH density premium and how would you estimate it?

      • Density premium is the concept that a plot of land’s “highest and best use” increases over time in a city whose population is growing but with land constraints (like Vancouver).

        Imagine a bungalow in East Vancouver in the 1950s: 3 bedroom 1400sqft finished, was the norm. These days the same plot can accommodate three suites in a main structure and potentially a laneway house. The latter’s rent is higher not only from inflation but also from its increased utility. As the city increases its density, land values will outpace same-unit rental growth. This applies less to land further away from a city core (like Vancouver proper).

        Condos, on the other hand, cannot be densified much more — the fraction of a unit’s underlying land is lower — and will have a lower growth rate.

        As to what the density premium could be, it cannot be higher than the population growth rate, but is likely greater than zero. I’ve heard estimates of 0.5% annual growth rate differential between low-density and higher-density areas. Say the growth rate differential is somewhere between 0.5 and 1.0 per cent, that would put the relative valuation between 16 and 35 per cent higher over the course of thirty years. Or hypothetically, say you have a condo that is $100,000 in 1983, at 3% growth rate it would be worth $242,000 today. A $100,000 house, on the other hand, would be worth between $280,000 to $324,000.

        The other factor that can affect differentials in SFH are income changes, ie gentrification, but this would (in theory) affect rents as well as prices. I think that has been occurring as well in a big way in certain parts of Vancouver.

        All theoretical of course. The reality of the situation is very different. I try to dissect housing from an income-return perspective relative to similar risk investments elsewhere. Through that lens, gentrification and density increases can reasonably justify lower incomes today in lieu of higher incomes in the future.

        Other factors such as financing costs and abject speculation are also at play but, in my view, don’t significantly alter the long-term business case of real estate as an investment.

  8. I can’t believe anyone would think this is a good way to advertise. it says: “No one wants to live here! There is something wrong with the units! Come live in an vacant building!”

    • Amen.

      “This building is mostly empty; no one is buying it for some reason. It’s so bad that we’re prepared to eat a large portion of the profits just to unload it.”

      They should put these signs on every condo in the lower mainland that is currently discounted. It would be a good visual reminder of how bad things are, plus an excellent boost to our pulp and paper industry!

  9. yltnboomerang

    Whaaaa??? When did VREAA come back??? I’ve got lots of reading ahead…

  10. I live on 224th and pass this building every day before getting on the west coast express. This picture is current.

    • Thanks for the update, Jake. Any idea why it is not moving? Bad location maybe…overpriced….noisy…..?

  11. The clear picture of this apparent investment building taken today:
    http://db.tt/dW883s0H
    I think this is a good way, at least you see the progress……unlike some…

  12. 4SlicesofCheese

    Trio on kingsway near Victoria has a similar marketing campaign.
    If you are ever heading west down kingsway keep an eye out on your left side.
    http://www.trioliving.ca/

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