the elevators that need replacing in three of the four buildings,the sinking ground floor patios which led to the discovery of foundation issues,the rotting patios that need replacing on the second and third floor of one of the buildings.I have kept in touch with some neighbours who still own and they figure high five figure assessment to do immediate repairs.With more to come,it’s not even a leaky condo(leaks cash though).This is why I would never own a condo again.
Follow me man look at the names of my followers. I don’t read.. So I’m going by their self promotion.
 Tapping into that market on book delivery day.
Their is only one Smoking Man…only book that counts.
How did your open house go today? Don’t you love working on Sundays?
Last week the US 5 year variable rate came up from 3.0% to 3.4%. On a 500K mortgage, this an increase of monthly interest of 150$. Things can get bad pretty quickly when you are leveraged. Live wisely, cheers!
What did you search for on kijiji to find these types of ads?
That blew you away. You don’t get out much do you?
I have some other news for you that might blow you away. People who own real estate have not gained anything unless they sell. They still have the same house or condo after 10 years (actually an older, more dated one that requires more maintenance). Nothing has changed other than the market value they can sell if for. Unless they sell they have gained nothing. Same as someone renting. The renter still rents the same place at marginally higher rent. The RE owner will have higher property taxes and maintenance costs which may be similar to the higher rental rates over 10 years. If the renter invested the capital over 10 years they would have put into RE they would also have a nice portfolio producing income, not a property that consumes income. That portfolio is liquid and they don’t have to move and pay 5% commission to realize the gain.
Now lets see what happens over the next 10 years. All of those people who own RE and don’t sell will see those paper gains evaporate when interest rates reverse course and credit dries up. The property will be another 10 years older and require more maintenance. I bet that will really blow you away.
I see a few of these types of people every month in Victoria. They bought in the early 2000s with the expectations of continued 10 to 20% annual price increases in Victoria real estate. Back then, Victoria was the “next” San Diego accord to real estate guys.
Problem is the market stalled in 2007 and most have not made any money, most in fact are $10s of thousands underwater.
Typically they paid $400 to $500k for a new condo they could rent out at a loss of $800 to $1500/month. Then when they go to sell in 2015 the condo is worth about what they paid, less $18K realtor fees and $20K in paint, new carpet and minor repairs.
All told most walk aways with a loss of $50 to $100K.
Victoria is a foreshadow of things to come in the rest of Canada over the next decade.
You might be a wooden spoon survivor but when she’s broken all the wooden spoons in the house on you and she comes after you with the metal spoons it’s up to you to say “enough is enough, you’re going way too far”.
Words are more effective than weapons.
People who buy condos to rent out have most likely not rented to students in their basement.
In 1990 or so, renting 2 basement rooms to students was the only way to meet the mortgage. Then later, international students placed by the university.
Mostly positive, but there was enough hassle and general PIA to the process to make me glad that I did not have a separate dwelling to rent. Renters can get up to all sorts of fun when the landlord is far away (3 streets is probably far enough).
So, when we sold last fall, I considered buying a condo to rent for about 7 nanoseconds.
I moved into a brand new downtown Vancouver condo 5 years ago. My net rent is 2% of the market value (rent minus property tax and maintenance fees). My rent has not increased in 5 years.
My landlord paid $1 million for the place as a presale around 2007/08. Todays market value is about $800K to $850K. Over the past 5 years while I have had no rent increase the maintenance fees and property taxes the landlord pays have gone up $1800 per year.
You do the math on who won.
While you are correct that the rent pays off their mortgage, if the person is on a variable mortgage, and rates rise at all, their effective amortization will extend by many more years. This is a risk. On renewal, it might become cash flow negative without significant rent growth. That’s the bigger risk, particularly when new condos are coming online all the time and interest rates are very low. And if the guy has multiple units and all are cash flow negative, he’ll be in trouble.
My parents just sold their executive home in Grande Prairie, AB for $490k after realtor commission (over 100k less then they wanted). They paid $465k four years ago, so the market for these homes is definitely in a pile of hurt right now.
Its a whole new “improved” Millennial world out there.
Translation: Your rationale is moronic.
We all play our part. ‘Reality’ is to painful and stinky.
There are plenty of those kinds of deals in Toronto …. if you believe in unicorns.
The only thing I am really terrified about is the frank self realization I am simply not smart enough.
Not smart enough to figure out who is really telling the truth about anything and everything that matters (besides peace, love, happiness, family & friends — I have that part nailed thankfully and maybe that is enough).
Also somewhat terrified, but probably more disappointed, I do not have a deep, academic based intelligence on the economy (local and global) or finances (in all its facets). Which is probably, in part, why I am driven to read GT’s pathetic blog daily — and majority of the comments.
I did learn how to save at a young age and stay out of consumer debt but somehow that discipline & practice does not seem enough anymore.
The only knowledge I am 100% sure of includes (1) no body really knows what is going on and (2) nothing is ever, ever as it seems and (3) that I will go to my grave, in 30 years give or take, knowing very, very little in the grand scheme of things.
What is also troubling is fact ~ 35 years ago, I really believed I knew everything.
Yup. I am terrified.
Having said all that, I do take some measure of comfort in knowing I am at least consciously unconscious.
I’m a B.C. Realtor and I just did a search of single family homes selling in Vancouver for under $1,000,000 and found 74 of them.
You need to invite the “Dyslexic Speedreaders” to be the musical entertainers for the grand book launch.
If I post the links the host is sure to delete it!
I picked a good day to post. I’m renting in New West – best decision I could have made. 1100 sq ft in a ten year old building for $1700 a month. Beautiful pet friendly building, all amenities, includes parking and storage locker and an amazing outdoor space. I can walk to shop or go to the park, take the skytrain downtown Van to go to the symphony or run the seawall, and I’m 20 minutes from work by car. What’s not to like? I worked in Yaletown for four years and I don’t miss it. And if I bought here, the equivalent suite would be well over $430k.
One of my kids is renting a few blocks away, sharing with a friend, one year old building, smaller space than mine but two bedrooms and a den and two balconies, for $1500 a month.
Oh, and the bubble in the Lower Mainland is at it’s peak. I know this because my ex just bought a place in North Delta because “houses in Vancouver only go up in price”. He left me for his girlfriend (now long gone, apparently) and the house in Burnaby sold last November in one week, $30k over asking. We’d been there 30 years, and did very nicely, thank you, on the sale.
I’ve been reading Greater Fool for while now and have paid off all my debts (divorces are expensive, sadly), maxed out my RRSP and TFSA, and am slowly getting a diversified portfolio in place. I’m thrilled that I no longer have to worry about a leaky roof, gutters, waterlines, painting, drainage, or the manic construction going on on my old street. I may even be able to retire now. And I’m planning trips to Montreal, London and San Francisco next year; all I have to do is call the pet-sitter and lock the door and I’m good.
Ex? 60-some odd years old, poor health, self-employed, no pension, no work benefits, a small RRSP, no handy man. Went to the bank and asked for the maximum mortgage he could get and then bought a place on price alone. His commute