Vancouver Real Estate is Doing Just Fine

by admin on May 18, 2010


vancouverThe wrtier is a Vancouver mortgage broker.

The first quarter of 2010 reflected a 26.5% decrease in unit sales in the province of BC. Buyers in BC put down the real estate ads and picked the television remote for the Olympics. Post Olympic activity has been brisk driven by low Vancouver mortgage rates and a buyer that is increasing immune to the high real estate prices in Vancouver.

People like to live in Vancouver. The vibe of the city along with the weather seem to compensate for the high real estate prices. A recent survey did show some resistance to price increases. A TD survey revealed that 2/3 of Vancouverites would balk at spending more then $400,000 for a two bedroom condo.

Vancouver is moving towards the small and high foot print. Micro lofts with less then 270 square feet and now “laneway housing”. Small non-strata backyard homes have been approved by city council. Costs are estimated to run between $190,000 to $230,000 for a 710 square foot unit. Rental income for the units is estimated to be between $1,500 to $2000 per month.

After you deduct the increased taxes, maintenance costs and other sundry expenses the cash flow on these units is pretty thin. The bonus is the eventual tax free capital gain on the lane way home.

Vancouver will continue to be an expensive city. Competition from offshore buyers who are used to high prices will drive the market. Vancouver is still an exceptionally attractive city for those people with money.

Net, that makes Vancouver real estate a terrific long term investment.

{ 1 trackback }

Tweets that mention Vancouver Real Estate is Doing Just Fine | Vancouver Mortgage Blog -- Topsy.com
May 18, 2010 at 11:37 am

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: