All Forum Posts by: Pawan J.

As an investor on the ground here in Vancouver British Columbia I can tell you that the prices are not imploding whatsoever. The stats that were in the original post at the top rend to only relate to home sales and hence determine average home prices of those sales. This is not a true indication just a way to manipulate figures. So yes sales are down but it does not imply the price has gone down that many points so the stats a very misleading. What is happening right now in Vancouver is sellers at the tail end of the peak were greedy listing very high and now are not budging on price. Some have delisted their property, However buyers are wanting a discount because they know the list price was too high to begin with. So there is a kind of standoff. In the next month you will see prices drop a little bit but only to something a little bit more realistic than The exorbitantly high prices people were listing at. Any market can only sustain a peek for so long. Australia which implemented the same foreign tax sometime ago has seen Chinese investment double last year alone. It will take some time for these folks to come back but in a city that is landlocked and beautiful it's only a matter of time :0)

It is hard in Vancouver but rents are increasing (expected 20%+ this year) which make things a little more attractive. Generally they likely break-even is what I'm finding.

We help folks earn residual income to then accelerate them buying passive income properties and we are seeing break-even in Vancouver mainly.

roughly about $200/sq ft for basic.

Hi everyone,

We are seeing price reductions on active listings, active listings are being pulled off (likely to be re-listed in the spring) and many homes are staying on the market longer and not selling at the first open. The British Columbia Lower Mainland market is normalizing it seems...

This is the case in Vancouver to Surrey as far as I can tell with the other Tri-cities likely to see the slow down soon. However there are always hot areas and in demand that will always have a quick turn around once listed.

Like any rise in prices the market can only take so much for so long and we have reached the peak and the normalization is here. Price reductions can be seen but don't be fooled by thinking that prices are going to drop or the bubble is going to burst just yet. The list prices you have seen in the last couple of months is the tail end of the peak where likely greed has set in and folks list their homes for the maximum price thinking "someone will pay it" and realtors could be telling clients to list high as they will get max price. If you recall during the price rise homes were being listed low and getting well above asking. This strategy change to list high and see how much people will pay. Some caught the bus and sold high, but many sellers have now missed the bus and may have to catch the next one or take an alternate route (lower selling price).

However if your a buyer (depending on your purpose of purchasing) in the next month is likely a great time to buy and possibly get a deal so look out for them.

I also know that banks are tightening their lending re. their property portfolios and some are tapped out all together from the recent absorption of property here. This will make it harder for some to buy or even more expensive if using B Lenders. 

Also with all the recent equity gains you might see prices on holiday homes rise or even condo markets in some areas as people use their equity. Likely also a lot of new cars and boats being bought by the non real estate savvy folks out there :0)

What are you seeing in your area in BC?

Is the GTA and Toronto, Ontario seeing the same?

Hi all, 

Many good points around basing the decision on the area the land is in and also costs to build

I would also add that the market is cooling now in Vancouver and this will soon spread to the suburbs. I will be writing a forum post on this today also.

One thing to then consider in a cooling/normalizing market (by the time you subdivide and build the market could be hot again but presume normalized but plan for 5% reduction) is the general appetite of smaller family homes is greater than larger homes. meaning more buyers for more affordable housing that the no# of buyers for larger and more expensive homes. If your talking Chilliwack then we are not talking $2m homes but generally more affordable housing sells quicker. SO do the math and if your close in numbers then do three.

Hope this helps @Murray Hall. 

@Stanley Kong if your parents have the income to support the mortgage on their new place in Langley ($800K) and the rent ocovers the mortgage and then some (use rental calc on BP) then they should keep the condo and use the rental to pay it off plus income for future once paid. Likely the new place may have a suite also and the Van rental cash flow (presuming they didnt buy it recently and mortgage is low) to pay off the new house. Some banks will fully offset the condo with rental income. 

PM or call/text me for details as I'll send you my guys details.

Hi @Tajinder Kandola is this for personal mortgage or a commercial deal?

Looking forward to seeing all the BP members at the Meetup tonight.

Keywords:

Vancouver, British Columbia, BC, Langley, Surrey, West Vancouver, North Vancouver, New Westminster, Van

What a great conversation and so many good points. Agreed this will do little to the housing market in vancouver BC, as it was mentioned the foreign buyers are generally buying over $2m and so a few less sales, if at all will do little to the average house. The CRA does look at companies with majority foreign ownership more closely but setting up a Holdco would only be for very wealthy buyers buying many properties to make the structure worthwhile. Politically they needed to do something and hence followed suite with other countries like a Australia, (where I am from) which it did little for the local market and average joe who still cant afford a house and many rent for life. Foreign investment there also doubled last year from china alone and prices continue to rise again and again. Most of these buyers are simply getting money out of their country due to instability and hence a few extra points over 5-10yrs is not a deterrent. Vancouver is still affordable on a global scale and is such a great city that I see things only going up and up!

See you there everyone.