That's like saying supply and demand have no relevance to house prices. And rental rates have no correlation with prices? ROI?
Not in Vancouver, not for the past 5-6 years. Like anything, it'll cycle back the other way eventually, but right now there is a complete disconnect between prices and rental ROI.
I live in Vancouver and many people you talk to are just cruising along with their shit homes which are now worth millions, why would they complain, almost everyone is a millionaire on paper.Everybody here very well knows this is not normal pricing. Yaletown( very expensive neighbourhood on the downtown peninsula) was developed sooo quickly with matchbox condos,which gives us a name HONGCOUVER. Yaletown was owned by a hong kong billionaire whose company concord built up all the buildings which may I add are shit quality and built fast in order to feed the insane demand we had during the boom.I remember huge line ups of people on the street buying condos which were gonna be built in year. There are still a few parking lots in downtown where I live which will be turned into high rises. There is no space left here.WE seem to be going smaller now, new condominiums on the east side( formerly very bad neighbourhood but now under huge restoration) are gonna be 200sf?? ARE You fucken kidding me?? 200sf, i couldn't beleive my eyes!I am 6'2" my wingspan probably streches from wall to wall. The residents cannot afford the prices which are now, a lot of high end condos are pure investments, many high end buildings never have their condo lights on, which tels me NOBODY lives there. Money is coming out of southeast asia. My peers and I are wondering if ever I'll be able to afford anything here unless wages rise. P.S. US pavillion is the only one not permitting anybody in, and I cannot beleive we let Arnie carry the torch after he openly bashed Vancouver and its multicultural population.still love the guy.
the facts of your posts are predictive of a formation of a top in your local real estate market. why not take advantage of the situation if u own real estate to sell into this bubble. one of the advantages of real estate is that it doesn't turn on a dime. it is possible that u might get priced out of rentals but is this the end of your world?
http://ca.news.finance.yahoo.com/s/...acks-speculators-tightens-mortgage-rules.html Related to this thread - Finance Minister tightening mortgage rules to ensure people can afford their payments when rates rise.
topping phases are followed by the reinforcement of group complacency.. It's a condition of virtually every top. Slavs comments are true, and this is what you'd expect at a top. The main issue, is will these people actually sell in time? .. very unlikely.
Interesting. The changes seem descent, especially at targeting the speculators who buy a lot of properties and just end up driving up costs for everyone. But what if there is fraud? What if no one declares the house to be as a rental property?
Of course fraud is always a possiblity. But I don't think enough people will commit fraud by not declaring a rental property to significantly effect the entire housing market.