It seems another new blog charting the perilous condition of our Vancouver Real Estate bubble has emerged.
Titled Vancouver Flippers in Trouble, the site purports to set out to document real estate losses during the bursting of the bubble.
It's appears to have surfaced about a week ago and offers us such treaties as 2603-8 Smithe Mews:
This 2 bedroom, 2 bath, 1577 sq ft sub penthouse in Coal Harbour was purchased for $2,000,000 in a 2007 pre-sale.
It's currently on the market. Asking price: $1,670,000.
That's quite the drop from the original purchase price. Factor in the GST paid at the time of the purchase ($100,000), the Property Transfer Tax ($39,000), the Real Estate Commission ($61,950) and it means this seller is already looking at a loss of loss of - $530,950, assuming he/she gets the current asking price.
That's quite the drop from the original purchase price. Factor in the GST paid at the time of the purchase ($100,000), the Property Transfer Tax ($39,000), the Real Estate Commission ($61,950) and it means this seller is already looking at a loss of loss of - $530,950, assuming he/she gets the current asking price.
Ouch!
And if misery loves company, then solace can be found in the plight of the seller of 2106-8 Smithe Mews:
This 1 bedroom, 2 bath 1055 sq foot condo was purchased in a 2007 pre sale for $1,030,000.
Currently it's listed with an asking price of $799,900. Once GST on the original sale is factored in ($51,500), Property Transfer Tax ($19,600) and Real Estate Commission ($51,500), this seller is looking at a loss of -$332,697.
Should be interesting to keep our eyes on this site and see if they can continue to provide such interesting examples in the coming months.
We've also added it to the reading list on the sidebar.
We've also added it to the reading list on the sidebar.
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Wow those are quite the losses. I'm sure there will be alot more. I know a couple that are trying to sell their condo in Delta for 249K. They bought it for 265K in 2010. Realistically they might get 210 for it, if you look at the comparable sales this year in their building. After closing costs their looking at a 25% loss at least. I'm sure there will be more, a lot more of these scary stories. Greed can be a cruel mistress.
ReplyDeleteInteresting site. Look at the image of the two houses in the graphic above. Is it only me or do the rest of you also see a pair of skulls embedded in the image of the two homes?
ReplyDeleteSeriously....is it just me?
Wow indeed. If this doesn't prove the fact of HAM to the non-believers who call eveyone else racists because they feel we're targeting Asians, well please prove me wrong on this one.
ReplyDeleteI don't doubt for a second that the deep pockets of off-shore,laundered money or possibly illicit money hands are involved in this one. To simply walk away with a half million loss from this tranaaction seems a little suspect to me to anyone who had to pay over 35% in income tax while earning their money in good ol' Canada.
And please, don't try to convine us it's Americans. You gotta be freakn retarded to think an American would speculate and get burnt twice after seeing their bubble implode.
HAM brought a lot of wealth to Canadians who sold their properties in the last 5 years. Those Canadians are now spending their money here in Canada. So the only downside to the HAM is an overpriced housing market which might not be for much longer. Anyone who complains about the Influx of Asian money(or any foriegn money) into Canada needs to look at all the affects, adverse and auspicious.
DeleteThat's correct Ham brought a lot of wealth to select few Canadians who sold their props. But that is precisely the problem. How does a nation as a whole compete with foreign money being taxed 0.5% when everyone here has to try and follow an absurd HAM fed hyper-inflation in properties. We're going to get our Canadian spring when the younger generation will say no more injustice.
DeleteInteresting point about housing hyper inflation.
DeleteAnd a timely market slowdown as mentioned in this article.
http://www.telegraph.co.uk/finance/china-business/10123507/Fitch-says-China-credit-bubble-unprecedented-in-modern-world-history.html
Flippers in trouble, true. Not only flippers, but refinancers are in trouble, and that covers a big rainbow.
ReplyDeletePerhaps Visa can help them, come out with a new product called FlipperFreuden. A card you whip out when the Repo man shows up. Buys you yet another 30 days...
I wouldn't really call these people flippers. They lived there or at least owned the place for 4ish years (depending on completion date). A flipper buys, maybe renos and sells as fast as possible trying to make a profit.
ReplyDeleteMinor correction:
ReplyDeleteSmithe Mews is overlooking False Creek and is in Yaletown, not Coal Harbour.