Rental deals in the Vancouver area

[Sol Tee Nutz]

With the new tax law in BC against foreign investment and letting a house sit empty there are many great deals compared to a year or two ago. The multimillion dollar houses/condos are going for cheap so the owner saves $50 to $100 K a year in taxes. I got a sweet deal on a highrise condo, probably only half the mortgage cost if it had a mortgage. New condos are being built everywhere and sold out signs when building starts..... Money laundering at its finest... Huge money here, for new drivers there is a green N to stick on your trunk, car could he a Mercedes with a 18 or old Asian.

 

[sambuca]

I'm confused is the Vancouver real estate market bad or the real estate market good. Are prices lower? Or higher? If prices are lower, why are they still building everywhere and selling out before building starts?

 

[Sol Tee Nutz]

Have not checked out the market, just see the signs where the buildings are going up. From my place I can see 5 new highrise being built, drive into downtown and many more are going up.
Not sure what the housing market is doing though.

 

[jalimon]

Vancouver would greatly benefit from a market of buyers for a few years. Glad the new restriction are doing the magic.

Problem is tho is now it's Montreal that seems to be booming with first time ghost buyers

Cheers,

 

[Sol Tee Nutz]

^^^^^^^^ My son and I split on a condo in Montreal a few months ago to rent out, figure it may be the next hot spot for Asians.

 

[sambuca]

I think foreign money is a huge factor in many North American cities. Miami has always been a refuge for Latin American buyers. London is also a wealth destination.

The fact is even before the Trump trade deal rumblings Chinese were getting cautious. They don't trust the government to protect their wealth.

 

[Tomato Soup]

It is a situation that is changing quickly. As fast as these bargain priced condos appear because of the vacancy tax, they may disappear just as quickly. If the housing market collapses the owners will unload.

 

[sambuca]

The vacancy tax can't be good for the short term (and possibly intermediate term) real estate market.

It would be interesting to see if AirBnB rentals qualify as occupancy. I'm not sure how the local hotels would feel about that, but it would be great for tourism. It would also be great for restaurants, bars and the cultural scene if there were a steady stream of AirBnB guests.

 

[Sol Tee Nutz]

Most of the people I have met here say they will never be able to buy a house here. A cheap condo is over $500 K, a house is about $1 million unless you move to Surry or Langley. I like the area but would never live here, way too expensive and crowded.

 

[ShyMan]

Most of the people I have met here say they will never be able to buy a house here. A cheap condo is over $500 K, a house is about $1 million .

That's very unfortunate. Long time local residents, especially those who were born and raised in the area, should be able to afford these new urban housing, but the wealth gap has made this impossible in many places, including Manhattan and Brooklyn, NY where ultra luxury penthouses at the new Hudson Yards are now selling for US$20 millions to US$120 millions! Talk about money laundering by the ultra super wealthy. Same is happening in LA, SF, Dubai, Toronto.

I read that some multi-million dollars (empty) mansions in Vancouver are being rented out for C$500/night to C$1,000/night so the absentee owners can escape paying "empty home" taxes. I have no interest in visiting Vancouver but it would be nice to rent out a mansion for a couple of nights and party there with some Merbits and Montreal SP's (I don't care for the SP's in Vancouver because, IMHO, Montreal SP's are the best). Turn those empty mansions into a "Playboy Mansion" for C$1,000/night

https://www.ctvnews.ca/canada/why-a...ver-mansions-being-rented-for-cheap-1.4329800

In fairness, it's not only foreigners who are buying speculative properties in Vancouver and Toronto, many Canadians are also doing so.

Montreal is also witnessing a huge construction boom, especially in downtown, but the slowing global economic realties may hamper absorptions (actual purchases) of these new condos that are rising up to the sky. Montreal is unique in that monies are flowing in from Asia, the Middle East and even the States (because of the strong USD). The new Four Seasons (owned by some rich folks in Saudi Arabia and Bill Gates) in Montreal is selling "penthouse-style" residences for C$6 millions plus; the top floor penthouses, spanning 6,000+ sf, are selling for C$13+ million plus taxes.

[FONT=&amp]https://www.cbc.ca/news/canada/british-columbia/vancouver-empty-homes-tax-1.5065236

"Vancouver imposed the empty homes tax last year, in an attempt to discourage property speculators from buying additional homes, and then leaving them empty while the city suffers through an affordable housing crisis.[/FONT]
[FONT=&amp]Carolina [/FONT][FONT=&amp]Abramovich is among almost 5,000 Vancouver property owners who missed the Feb. 4 deadline to claim an exemption and were assessed a $250 bylaw fine, which was reduced to $125 if they paid by the end of February.[/FONT]

[FONT=&amp]Abramovich, 60, lives in a home in Richmond and rents out a condo in Vancouver.[/FONT]
[FONT=&amp]She was out of the country for four months, coincidentally returning on the deadline to file for Vancouver's empty homes tax exemption — Feb. 4.[/FONT]
[FONT=&amp]The semi-retired research scientist admits it was a mistake to miss the deadline, but says the city's warning notices were mailed to her tenant in the Vancouver condo, not her Richmond home address."[/FONT]