Vancouver Ranked 3rd in Livable Cities Study
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08-22-2012, 08:00 PM
Join Date: Dec 2006
Originally Posted by
I guess I look at these numbers and think the people at the IMF spent too much time partaking in the herb.
I own a house just off the Drive. (Lakewood and 5th) When I bought the house, it came with a suite that was already rented for $1200 a month. My neighbour rents out a suite for a little less than that, but it is smaller. If I was to rent out the rest of the house to a family, I'd get between 2500-2800 and get the choice of my tenant. My neighbour would likely get more.
As far as neighborhoods go, that's probably one of the most reasonable in metro Vancouver with regards to price to rent ratio. I have relatives that own in that area and I'm continually surprised at how much farther your money goes there compared to other areas of Vancouver in terms of ownership.
But then you have a place like West Vancouver where you can rent an older house worth $2 million for $3500-4000 despite a mortgage and taxes for that house getting up near $10K a month.
My mortgage is about 800K, payments with taxes are about 3800, and the current market value is likely close to $1M. Of course there may be a correction, then there'll be another upward trend. Then a stall. Then a drop. Then a continuing growth. Then a crisis. That's life. Some people will spend most of their lives waiting to get started, some won't.
Like I said, buying a house in Vancouver can still make sense if you think you'll be in it for the long haul and are willing to ride out the fluctuations. But I also think it's pretty clear that the value isn't really there at this point in time in Vancouver real estate. Ultimately there's only so much price a population with a median household income of $67K can support long term and IMO it's a lot less than houses are currently selling for.
Simply another part of the cycle. Up and down. Sit and watch.
I'd argue 2.25% prime rates like we had a couple of years ago are not part of a normal up and down cycle. It was an extraordinary situation that produced extraordinary results.
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