Housing in Vancouver

I just spent some time over at langley-financial-planning.blogspot.com, all the doom and gloom posts about the impending Lower Mainland housing market correction really cheered me up. This past week-end the weather here was beautiful and I spent Saturday walking around Main Street and the neighborhood and noticed a lot of people viewing houses for sale and getting depressed knowing how expensive those houses are and thinking I’ll never be in a position to be able to afford to be one of those people checking out a house for sale.

My funny mom’s also been putting the idea in my head that I should be thinking about buying a condo in the next little while and looking at what’s available and how expensive it is has also been depressing.

Needless to say, I will be remaining a renter for the time being. However, a lot of those article dissecting why real estate in the lower mainland is overvalued bring up the point that rents have not been rising as fast as housing prices, and I would like to know where they get their figures on rents. Because anecdotally, it sure seems like rents are rising quite a bit, like in the 10% annually range which may not be as much as the 15% housing has been appreciating (check out this CTV clip)  but I still think it’s a significant increase. These perceived rent increases almost had me convinced I needed to find and get into my dream apartment now before the rent increases so much I can’t afford it.


3 Responses to “Housing in Vancouver”

  1. 1 mohican February 20, 2008 at 4:43 pm

    Thanks for visiting – glad I could be an encouragement.

    Rents typically increase dramatically right near the end of the upswing of a real estate cycle and then they drop significantly as the down side of the cycle begins. Statistics Canada has long term rental data available.

    Historically, the vacancy rate shoots up as price growth slows. http://langley-financial-planning.blogspot.com/2007/01/rental-vacancy-rates-and-their-relation.html

  2. 2 centsprout February 20, 2008 at 6:21 pm

    Thanks for pointing me to that entry of yours, I haven’t gotten quite that far back yet, but thanks for mentioning it because it’s got some really great info.

  3. 3 bruce mccoubrey February 21, 2008 at 11:03 am

    Hi Centsprout

    Awesome blog.Lots of useful info.

    By the way I was thinking of your “should/I shouldn’t I” buy a condo dilemma and I thought I’d take a look on the MLS to see if you could find a great little pad in a great area in a good building.

    Click on the link to see a great little property-click here: REA Full Public

    Ok, so it’s $325,000 but for the Westside that’s cheap plus you only a few minutes walk from beutiful Douglas Park, Capers, Cambie Village and about 20 minutes walk to Main.

    I don’t know what you are currently paying in rent or if you can maybe convince your Mom to help you out with the downpayment (sorry mom!) but there are still some good deals out there.

    By the way, ING Direct wesbite has some awesome, easy to use mortgage calculator tools. There’s also a “rent translator” tool that’ll tell you how much mortgage you can get based on the amount of rent you are currently paying.

    By the way, if you decide to buy in the future you purchase costs would be roughly as folllows:

    -Lawyer for Conveyacing $700 approx (a notary is a bit cheaper)
    -Property Inspector to check over you new condo $400 approx
    -Realtor Fees – zero!
    -Property Transfer Tax – zero if you buy a property under $425,000

    Then you monthly strata fees will be about $200 and yearly taxes about $1200 to the City.

    Hope that helps !


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: