When do you think the Vancouver housing bubble will explode and come crashing down ?

[MaxVerstappen33]

The Crackdown Begins: Chinese Bank Sues To Seize Vancouver Real Estate Assets]

http://www.zerohedge.com/news/2016-06-28/crackdown-begins-chinese-bank-sues-seize-vancouver-real-estate-assets

 

This $3.5 million home in Surrey B.C. is one of four homes a Chinese bank
claims are owned by a fugitive who defaulted on a $10 million loan.

 

[Mike Vanderhoek]

On 5/28/2016 at 10:41 AM, Toni Zamboni said:

hopefully the entire bc housing market crashes soon.....then i can buy!

doesn't seem to be something that will slow anytime soon.

 

I bought last year for $ 315k, now could sell today for $ 425k. Exactly one year ago and it's up over $ 110k. Insane.

[Toni Zamboni]

3 minutes ago, Mike Vanderhoek said:

doesn't seem to be something that will slow anytime soon.

 

I bought last year for $ 315k, now could sell today for $ 425k. Exactly one year ago and it's up over $ 110k. Insane.

yeah, ive pretty much given up on waiting for any sort of slow down or crash...im just gonna bite the bullet and get in this fall....been actively looking for a couple months now. I feel like im gonna be paying more than i should or would like but i guess i just gotta hope things hold or continue to rise after im in.

[Mike Vanderhoek]

2 minutes ago, Toni Zamboni said:

yeah, ive pretty much given up on waiting for any sort of slow down or crash...im just gonna bite the bullet and get in this fall....been actively looking for a couple months now. I feel like im gonna be paying more than i should or would like but i guess i just gotta hope things hold or continue to rise after im in.

it goes in cycles and will only continue to go upwards. 

[MaxVerstappen33]

43 minutes ago, Mike Vanderhoek said:

it goes in cycles and will only continue to go upwards. 

There has been no cycle. That is why it is a bubble.

[Harvey Spector]

6 hours ago, LolClarkson said:

The Crackdown Begins: Chinese Bank Sues To Seize Vancouver Real Estate Assets]

http://www.zerohedge.com/news/2016-06-28/crackdown-begins-chinese-bank-sues-seize-vancouver-real-estate-assets

 

This $3.5 million home in Surrey B.C. is one of four homes a Chinese bank
claims are owned by a fugitive who defaulted on a $10 million loan.

 

So the market is gonna crash because a Chinese bank is seizing four houses?

[Harvey Spector]

6 hours ago, LolClarkson said:

Your point about rent correlation is valid and worth repeating. Property owners cannot just index their rent price to the purchase price. They can only charge what the market will pay.

 

Price to rent is some cases is getting so out of range that the property can no longer be classified as an asset. Because the rental return relative to price paid cannot even cover the property taxes and insurance cost less inflation.

My client gets $5k a month on a $1.2 million condo in Olympic Village. That's a cap of 5%. He has $1500 left over each month after he pays his mortgage, maintence fee and property taxes. And he only put down 20%. 

 

In downtown Vancouver there are furnished condos getting over $6 per foot, more than enough to pay the mortgage and maintence fees. On the Westside there are homes renting for over $15k per month. Rents have gone through the roof. Even in Coquitlam my clients are cash flowing on million dollar+ homes. 

 

You have zero facts on your claims other than rubbish you pull from the Internet. 

[Harvey Spector]

6 hours ago, LolClarkson said:

Tweet

 

Vancouver Market @vancouvermrkt

For the first time ever, the average list price of a single family house in the City of Vancouver is now over $4,000,000.

That's the average sale price for the Vancouver Westside, not the City of Vancouver. Vancouver also has an east side. That dude tweeting that is a donkey and misleading the public.  Actually MLS shows the average price for a single family home on the Westside at $3.4 million as of May 2016. 

 

The average price for a single family home in Vancouver East is $1.5 million as of May 2016. 

[Harvey Spector]

6 hours ago, Toni Zamboni said:

yeah, ive pretty much given up on waiting for any sort of slow down or crash...im just gonna bite the bullet and get in this fall....been actively looking for a couple months now. I feel like im gonna be paying more than i should or would like but i guess i just gotta hope things hold or continue to rise after im in.

Don't wait for prices to crash cause it ain't gonna happen anytime soon no matter how many flow charts or internet articles are posted on this thread claiming otherwise. Just go out and get what you can afford. With multiple offers on almost every property it's almost impossible to get what you want so just keep on trying and writing offers and hopefully you will land something you like. Good luck. 

[HKSR]

24 minutes ago, Harvey Spector said:

My client gets $5k a month on a $1.2 million condo in Olympic Village. That's a cap of 5%. He has $1500 left over each month after he pays his mortgage, maintence fee and property taxes. And he only put down 20%. 

 

In downtown Vancouver there are furnished condos getting over $6 per foot, more than enough to pay the mortgage and maintence fees. On the Westside there are homes renting for over $15k per month. Rents have gone through the roof. Even in Coquitlam my clients are cash flowing on million dollar+ homes. 

 

You have zero facts on your claims other than rubbish you pull from the Internet. 

Exactly.  Heard a great quote on Dragons Den -- a perfect example of A-students working for C-students.  In other words, there are those that spew countless textbook theories and articles off the internet to sound educated, then there are those that actually know how the real world operates.  

[Harvey Spector]

6 minutes ago, HKSR said:

Exactly.  Heard a great quote on Dragons Den -- a perfect example of A-students working for C-students.  In other words, there are those that spew countless textbook theories and articles off the internet to sound educated, then there are those that actually know how the real world operates.  

Yeah exactly. I have a client with a high school education who's a longshoreman. He owns around 10 properties and just bought an apartment building a couple years ago. Meanwhile the people posting rubbish on this thread are probably living in their parents basement. 

[MaxVerstappen33]

8 hours ago, Harvey Spector said:

So the market is gonna crash because a Chinese bank is seizing four houses?

No.  the market is going to crash regardless. This was just some news related to the topic so I posted it.

 

This probably won't help though

[Kragar]

10 hours ago, Harvey Spector said:

That's the average sale price for the Vancouver Westside, not the City of Vancouver. Vancouver also has an east side. That dude tweeting that is a donkey and misleading the public.  Actually MLS shows the average price for a single family home on the Westside at $3.4 million as of May 2016. 

 

The average price for a single family home in Vancouver East is $1.5 million as of May 2016. 

Thanks for your input there.  I about fell over when I read that yesterday, and couldn't believe the $4M average.  Context is a wonderful thing.

[MaxVerstappen33]

10 hours ago, Harvey Spector said:

My client gets $5k a month on a $1.2 million condo in Olympic Village. That's a cap of 5%. He has $1500 left over each month after he pays his mortgage, maintence fee and property taxes. And he only put down 20%. 

 

In downtown Vancouver there are furnished condos getting over $6 per foot, more than enough to pay the mortgage and maintence fees. On the Westside there are homes renting for over $15k per month. Rents have gone through the roof. Even in Coquitlam my clients are cash flowing on million dollar+ homes. 

 

You have zero facts on your claims other than rubbish you pull from the Internet. 

A person I know just bought a small  house on 4 acres. He paid 750,000 for the house. He gets a $1000 a month for rent. That is a 1.6% return on his money. Plus he has to declare that non inflation adjusted return and pay income taxes on it. So with Canada's average annual CPI at around 2-3%, he's losing money before he even begins to pay his property taxes, insurance and maintenance cost. That is no longer an asset. It is a liability

 

[MaxVerstappen33]

10 hours ago, HKSR said:

Exactly.  Heard a great quote on Dragons Den -- a perfect example of A-students working for C-students.  In other words, there are those that spew countless textbook theories and articles off the internet to sound educated, then there are those that actually know how the real world operates.  

So basic arithmetic is now a text book theory ?

 

what crazy theories am I spewing here ?  It is the bubble deniers who are spewing all kinds of theories about inventory, zoning and Chinese money and all this crap.

 

I am just saying that what has already happened in the rest of the developed world, will happen in Vancouver. A rather sizable correction/crash in real estate prices.

 

 

[MaxVerstappen33]

11 hours ago, Harvey Spector said:

That's the average sale price for the Vancouver Westside, not the City of Vancouver. Vancouver also has an east side. That dude tweeting that is a donkey and misleading the public.  Actually MLS shows the average price for a single family home on the Westside at $3.4 million as of May 2016. 

 

The average price for a single family home in Vancouver East is $1.5 million as of May 2016. 

1.5 million for a house in the less desirable area is still relatively unheard of in the developed world.

[MaxVerstappen33]

That green line looks awfully familiar. And anyone prognosticating a crash by simply making a comparison to other bubbles was vindicated

 

[Harvey Spector]

6 minutes ago, LolClarkson said:

A person I know just bought a small  house on 4 acres. He paid 750,000 for the house. He gets a $1000 a month for rent. That is a 1.6% return on his money. Plus he has to declare that non inflation adjusted return and pay income taxes on it. So with Canada's average annual CPI at around 2-3%, he's losing money before he even begins to pay his property taxes, insurance and maintenance cost. That is no longer an asset. It is a liability

 

Ummm rental incomes can be adjusted for inflation, but I guess you don't know that since you're not a professional. Rent increases follow CPI like everything else. This year the rental increase allowable is 2.9% according to the residential tenancy branch:

 

"For residential tenancies, the standard allowable rent increase for 2016 is 2.9%"...

 

Of course he has to pay income tax on the rent, it's income!!  But he can deduct all allowable deductions on that rent including interest payments on his mortgage, property taxes, regular maintenance on the home, etc.  If you buy a stock and it pays out dividends do you not pay taxes on the dividends?  It's the same for all investment holdings. 

 

As for your friend who bought 4 acres of land, I'm assuming he bought that property not for its potential rental income but for its potential as a holding property for possible re-zoning or subdivision. The value is mostly in the land that is why he is getting such low rent. You don't buy a 4 acre property in the suburbs for cash flow purposes, you buy it for the potential it gives you for land appreciation via a re-zoning or possible subdivision.  

 

It sounds more and more that you are an amateur real estate investor and someone who follows people like Peter Schiff to get your market knowledge. Peter Schiff has been calling for a complete collapse of the financial markets for the last 20 years. I guess one day he will be right. Even a blind squirrel finds an acorn once in awhile...

[Harvey Spector]

3 hours ago, LolClarkson said:

No.  the market is going to crash regardless. This was just some news related to the topic so I posted it.

 

This probably won't help though

Peter Schiff has been calling for the market to crash for upwards of 20 years. One day he will be right. Guess what?  One day me and you are gonna die. My prediction will be correct one day I can guarantee you that. 

[Harvey Spector]

18 minutes ago, LolClarkson said:

That green line looks awfully familiar. And anyone prognosticating a crash by simply making a comparison to other bubbles was vindicated

 

More internet charts. This one is from 2005. At least you're getting better as you're posting charts from the 21st century.