| B.C. Real Estate Crashing Time to Sell !
Posted: 9/22/2008 4:28:37 PM | I would agree that Powell River presents good long term value for long term investors.
As for Gibsons ,where I live and have invested for over 30 yrs, as well as other areas in
B.C. we are a niche market investors pay attention to now and then.
Currently good view lots listed as high as $ 300,000.00 and no takers.
Waterfront lots at a million and no buyers.
The Pender Harbour area has experienced phenomenal growth in prices due to high end waterfront development. Now flat sales and some price reductions.
Gibsons prices must moderate yet before they become investment opportunities or
simply an area people can afford to buy in.
In real estate investing, timing is everything. I never invest in real estate for the long term.
Buying the near low and selling into buying strength has worked for me so far.
I do not buy rental properties.Not worth the hassle in the short term.A 5 gallon overhaul
and some cosmetics can work magic in a hot market.
As I stated previously, unless the financial debacle in the USA is brought under control,
the 2010 Olympics will not make much difference in lower mainland real estate prices.
Confidence in the economy and reasonable interest rates will give rise to a healthy housing market in B.C. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/22/2008 6:23:32 PM | 2010 Olympics will not make much difference in lower mainland real estate prices.
A couple veteran Realtors I spoke to this Summer basically concur with that. They may go up a Touch, but would not add any significant Gain to current extant Prices. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/22/2008 6:43:43 PM |
As I stated previously, unless the financial debacle in the USA is brought under control,
the 2010 Olympics will not make much difference in lower mainland real estate prices.
That is probably correct. The market here is in a long overdue corrective phase which may still see lower prices until all other market hick ups and inflationary moves are resolved, particularly oil and energy.
Possibilities of wage levels slightly increasing till 2010 and the short lived faster influx of foreign revenues into the local economy in 2010and possibly new migration into BC are likely to start a new upward trend.
No worries for those looking long term. Would keep an eye on the rental market, increases in rents may cause renters to buy low end entry level housing. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/22/2008 9:09:38 PM | | Who will buy? Where is the low end entry housing in (never mind!!!)Vancouver? Here in the Kootenays, housing is ridiculous!!! Again you can't eat scenery. Here we are in the 2000zends. Wages for most have decreased, everything that makes living bearable has increased. Please explain this conundrum to me..... Get out of your comfort zone and tell me how a 30 year old buys a house in this rapidly nutty atmosphere. Oh yeah, from his parents who leverage him/her. Otherwise who in the hell is making five-thousand smakeroos a month anymore. And if they are, what are their mortgage payments on a plain jane bungalow in Vancouver for $700,000. Sheesh. Insanity. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/23/2008 12:22:36 AM |
Here in the Kootenays, housing is ridiculous
I'm sure it is. The Kootenays have been an Albertan's favorite for at least 10 years and that pushed prices out of range while some jobs were lost in a few industries. Though there were great buying opportunities in the Kimberly area around 01 when houses sold between 40 and 80 thousand, true that jobs were few in the area then.
There are some suggestions that may work for the highly motivated and goal orientated' but there are compromises like retraining for better paying jobs, relocation to places of better opportunity or working out of province in high paying jobs, like the Ab. "oil patch" to in the NWT mining industry.
Both my sons worked in the NWT right after high school and started out at $200 + per day incl free lodging and travel. They saved nearly 100 grand each and still had lots to spare for fun. A friends son (25) works in the oil sands and now has about 4 years experience, his pay went from 300 up to 650 a day now, 4 weeks on 2 weeks off all expenses paid.
So there is opportunity. My point is that jobs or earnings do not fall into out laps. but we have to look for and take opportunities where they are.
Good luck | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/23/2008 4:16:14 AM | When the average working person has to make plans to pay for 35 years to own a home the market is just too high priced. Gone are the days you bought a home in 5 years on an average salary.
I will mot likely buy a condo or townhome at this rate and hope for a decent market and strata fee that actually has some good benifits to it. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/23/2008 7:04:42 AM | Quite simply, BC is one of the best place to live, in the world.
If you are buying a home, there is always a good deal in ANY market.
However, if you are an 'investor', this might not be a good time to buy, as the inflationary cycle of inventory/prices has passed its prime. The market will have to stablilize for the next ten years, whether prices remain at this level or decline, it is ONLY relevant to your immediate needs, your financial health, and your long term goals.
Over time, your home is the best investment in your portfolio. Even if you buy now, and prices drop 25%, that would really suck, but if you don't buy, and something happens and the prices inflate 25% and you will never afford to buy, that would SUCK worse.
There are no guarantees, but understand the risk and know your financial situation. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/23/2008 10:01:15 PM | Here's the thing. I'm in the process of looking for a place to rent, my options are limited. I'm actually considering the idea of buying a small apartment unit because I will be paying the same amount on mortgage as it is if I rent. The dilemma is the bank's current offer is 5% down and 35 years amortization. Gone is the 0% down and 40 yrs.
Check Craiglist out and one will find that most rental apartment units are ridiculously over priced. Its like paying the mortgage of the owner. Of course, they bought those properties for investment, why would they rent it out in the first place. But maybe the municipalities should do something about that. If the owner has a second property and its a rental, then it should be assessed as income generator (business). | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/23/2008 10:59:13 PM |
If the owner has a second property and its a rental, then it should be assessed as income generator (business).
they are assessed as such,one does not get the home owner grant, but not only for property tax purpose .
A Second property if not primary residence is capital gains taxable upon sale which can be a substantial amount. All things taken into consideration real estate usually is not a high return capital investment, however positive the long term gain may be.
$1000 rent for a 300,000 property is not a high income for the owner, expenses such as strata fees, property tax, management and upkeep fees, renovation cost when tenants damage the property brings little more than 3% income if that. Take the capital gain tax into account after the property is sold with 100,000 gain the investment barely kept up with inflation.
Northwest from Eden ^^^
if you have an RRSP you may take money from there to buy your own place. All taken into consideration you may actually be better off doing so even if you have to pay tax on the RRSP withdrawal. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/24/2008 2:30:06 AM | The best place to buy property is Kitimat because its very cheap out there. If your lucky enough to get river front property you can boat to work in downtown Vancouver. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/24/2008 2:09:11 PM |
they are assessed as such,one does not get the home owner grant, but not only for property tax purpose
No they aren't, they are still classified as single family dwelling, unless the owners inform the assessment office. I don't have the exact figure on my hand but a condo unit here basically sold lets say about 350,000 and going rate for rent is $1,500 to $2,250.
Thanks for the info, Mountain Lion. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/24/2008 3:54:13 PM | I'm sure there'll be some correction in the market....and it's happening...
What goes up, sooner or later.....it goes down.....
Having said that, realestate is one of those things that will always be a good investment over time, even with the ups and downs. | |
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Joined: 6/5/2008
Msg: 64 | |
| B.C. Real Estate Crashing Time to Sell !
Posted: 9/24/2008 3:56:07 PM |
I would agree that Powell River presents good long term value for long term investors.
With uncertainties and cutbacks in the largest employer in PR this might prove wrong. If the mill closes there will a very significant shift of the tax burden on the remaining tax payers. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/24/2008 10:37:07 PM | | Okay,,,,nobody answered my question. I'm caring beyond myself (i think) I am not in my thirties and please explain to me why a home (????) is an investment. And why everybody accepts or seems too the insanity of the best place to buy....B.C. ..do you know they say...Bring Cash...(B.C.) How do you justify these absolutely ridiculous prices? We are not Hong Kong (seventeen billion people ,and gung ho go for it, we do not care) But maybe we think we are. A home is not dollars folks, it is so much more a valuable a concept. Any anyways basically... B.C. economy exists in Alberta (oil sands, etc.)northern B.C. (natural gas). Well, kiss your kids goodbye....nothing changed in my lifetime. Rural eventually dies and these silly, silly, arrogant urban centres think that over the long term all is well. Enjoy your stupid $700,000 investment (home) and feel the rural fate slowly, but surely creeping your way. Where is an economy that sustains children, housing, services...etc., etc., in the near future? Try Nelson, individual tax burdens would be a great consideration before I slapped down any money. As the Beatles uttered in a song..""Get Back...""" You poor, (good! you won't starve)/ you in the middle (good, your kids go to college, good potential) /you rich (well, all is always well) and boy are we in the woods NOW. Sigh. We had a way but ignored signs. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/25/2008 8:26:15 AM | Right now is the best time to sell, or, buy, as the Government (do not vote Coservative) in all it's wisdom is removing the 40 year Mortgage and replacing it with a 35 year Mortgage, because, get this 2.67% of the 40 year Mortgages were failing, 2.67%, how eird is that? This new so called Brilliant manover is costing all 1st time buyers the opportunity to purchase a new home, the 40 year Mortgage was making it affordable, for them ,because, of the longer period of time to re-pay the lower the monthly payments, so now that gas prices are rising they increase the amounts of monthly payments 40 years to 35 years) to make it harder for first timers to qualify, & to enter into the market, thereby causing the crashing of the Market, and the Economy. I, really, do not understand politicians, how can they even think that's a good idea? The Canadian Mortgage was way harder to qualify for, then it's American counter-part, it only had a 2.67% failure rate, so they panic, and screw up the whole Canadian Market? The should've with the rising cost of gas, gave us a 50 year mortgage so more canadians, of course still maintained the higher level of qualification, so that an average person, on a lower income level could qualify with say $500.00, or, $600.00 a month payments, then your housing prices would still be way up there and we could all be getting richer. The conservatives sure are dumb! I guess they don't want Millionaire Canadians, (remember earlier this year when our dollar was worth more then the US Dollar?). I guess they want to lose this election, there is , probaly, not 1 single REALTOR in Canada that's going to vote for them and if, they do they are insane. Look at that other brilliant Canadian Real Estate Law the Conservatives came out with in June/08 where REALTORS have to collect your Driver's License, or Passport, prove your identity, confirm your occupation, all this while there is all this Identity theft going on? What are they insane? Like I have time to identify you, verify your occupation, while I'm busy trying to find you the bestt possible deal, make sure there are no hidden problems with your purchase, fill out all the numerous forms, etc. get paid by commission (not by the hour) barely enough hours during the day for a REALTOR to one deal, never mind 2, or, more deals, then they saddle us with that stupid new law? Then there's th Liberal's with their Carbon Tax Law, another brilliant ides, because, all the Realtors driving there clients around is going to use less gas right? So they (the Liberals) just lost all the REALTORS votes too. How many REALTORS in Canada 80,000 to 100,000. Makes, perfect sense just before election time doesn't it? Anyways the deadline for the end of the 440 year Mortgages is October 15/08, so there should be some activity in the next 2 to 3 weeks then "BOOM" the whole market will implode and there will be no more selling, or, Buying for ahile, especially, for first time buyers. Or, at least, in my Opinion anyways!
I am a REALTOR, in Chilliwack, BC | |
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| Realtors
Posted: 9/25/2008 11:48:51 AM | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
What do you call 500 realtors at the bottom of the sea .........
a good start
High commisions and dubious marketing are a huge part of the problem
For instance a home inspection protects the realty biz more than in protects the buyer | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/26/2008 9:23:32 PM | | Who did you vote for? (as my partner would say) Like the jokes about realtors too! Is a home an investment or a home.? A hint of where it began to go wrong. No economy for the many, a fortunate few with money to burn and here we go folks. Better hope that at least more than 50% of the population can afford a home. Ain't happening in good old B.C. There is reality in the air, get ready. Celebrate the few that view a home a home. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/29/2008 10:13:17 PM | 1.2 Trillion Dollars vaporized today on New York Stock Exchange.
It's going to affect us all in the future and not in a good way.
Batten the hatches, it's coming to BC real estate.
Read message 21 in this thread by 1 GD. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/29/2008 11:47:37 PM | I don't think it was ever a question of "if" the bubble would burst in regards to B.C. Real Estate...it has always been a matter of "when".
Timing is EVERYTHING!
I have always watched the real estate trends in B.C. as well as the U.S.
I decided to make some fast cash by purchasing two pre-construction condo's in 2005. I turned around and sold them both for a nice profit within a week of completion in 2006. I succeeded in doing so because I knew that time was still on my side... and I had done my homework.
However, NOW is NOT a good time to SELL real estate property. If you purchased a property in the last few years as a short-term investment, you have unfortunately missed the boat! You have no choice but to ride out the wave.
If you are a buyer, you're future looks bright....providing you actually QUALIFY for a mortgage!! (Forget trying to get one during this economical crisis if you only have a 5% down payment).
For those of you with enough CASH...YOU ARE KING!!!!
Buy, buy, buy, is all I can say.
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 7:59:01 AM | I have the full equity of a non-descriptive one bedroom condominium situated in New West.
If only I could somehow move it to Yale Town . Then I would really have something. As it is, it is just a place for me to live.
It would be pleasant for me if the market had just kept rising and I became a paper millionaire. The trouble is, it deforms the rest of the economy. With predictable results that we are now experiencing. For the average person a domicile used to be a place to live, not a get rich quick scheme. I know people who got caught in the early 80's. Two partners that ended up living together in their white Elephant on the North Shore.
It was a nice house and all...swimming pool, etc. But they were upside down. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 9:26:42 AM | ^^^^bodypro^^^^
If you are fortunate enough to have FULL EQUITY in your current condo in New West then a good (long term) investment for you would be to pull out 50% of that equity and purchase another new condo in the BEST location possible.
eg. Central Surrey or New West close to skytrain and the hub.
There will be alot of investers looking to unload their pre-construction condo's in these developing neighbourhoods...and most investors will not be able to afford to close on them, or even be able to find qualified buyers for them once all these pre-construction condo's are completed !!!
APPROXIMATELY 75%+ OF SOLD OUT CONDO PROJECTS CURRENTLY BEING CONSTRUCTED HAVE BEEN PURCHASED BY INVESTORS WHO HAVE NO INTENTION OF EVER MOVING INTO THESE CONDO'S!!!
RIDE THE WAVE------------^^^^^^-----------^^^^^^^^
Buy Low.....Rent it out and have the renters pay the mortgage for you until the real estate market has another ^^^^^rising surge..then SELL.
ps. Some affordable condo's will be showing up in Yaletown too....very soon....just you watch and see. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 9:45:43 AM | ^^^ not a bad suggestion
would think it is best to wait a little for things to bottom out and settle
however with hte amount of pre-paid pre-construction condos on the market there may be a drop in the rental income as many may end up vacant...something else to look and see first
a better alternative may be to move up to a larger property like a small house, perhaps even one with a suite .... in the long term the overall net tax effect will be better despite the real estate transaction costs...tho having a tenant can be a pain...lol | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 10:55:28 AM | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
First the slump is going to very dramatic .
Second it will be stagnated downwards for quite awhile.
Basically its going to get worse before it gets better. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 11:43:40 AM | I agree.....there is gonna be a *BIG* Splash and I thank my stars that I got rid of my leaky condo many years ago. I figure if this one is gonna be as *BIG* as the rumors floating around......knock 40% off your Equity at least!
Auralius. | |
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