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WhipMaster
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Renters are getting hammered too...

Wed Dec 17, 2014 7:12 pm

Purchasing Vancouver real estate is unaffordable.
And renting Vancouver real estate is unaffordable.
Vancouver’s rental vacancy rates worse than feared: MLA


The rental crisis in Vancouver is even worse than many feared, according to a Vancouver MLA.

The Canada Mortgage and Housing Corporation’s 2014 market rental report, released Tuesday, says parts of Vancouver – specifically the West End and Downtown – have vacancy rates as low as 0.3 per cent, while the city as a whole has a rental vacancy rate of just 0.5 per cent.

In comparison, the vacancy rate for the West End/Downtown in 2013 was 0.9 per cent, and the citywide rate was 1 per cent.



“That’s even worse than I imagined,” said David Eby, MLA for Vancouver-Point Grey.

Both Eby and fellow NDP MLA Spencer Chandra Herbert, representing Vancouver-West End, say their ridings have been hit hard by the shortage of rental stock.

It’s a situation that has not just frustrated perspective renters, but also put long-term tenants at risk of losing their homes.

“We’ve seen that in the West End, where landlords have pushed longer-term tenants out knowing there are other renters out there hungry to take the suite at whatever price possible,” said Chandra Herbert. “The incredibly low vacancy rate of 0.3 per cent increases the number of landlords acting badly. They know they can kick people out and make more money.”

The shrinking rates in 2014 have pushed the average rent of a two-bedroom apartment in the West End/Downtown up to $1,849 per month (compared to $1,794 last year) and $1,571 citywide (compared to $1,541 in 2013).

Tom Durning, advocate at the Tenant Resource & Advisory Centre (TRAC), said the city has long had vacancy rates below the “danger” line of three per cent.

He said the number of units available or coming online hasn’t been enough to keep up with a growing population while developers chase higher profit margins in the condominium market.

“There’s all this competition for rental housing [from rents] and nothing is being built,” said Durning. “Anything under three per cent is not a healthy market. Supply is scarce; many landlords have the upper hand. It’s not a balanced housing situation in Vancouver and the Lower Mainland.”

Those that can secure rental housing increasingly struggle to make ends meet, according to a recent report released last month from the B.C. Non-Profit Housing Association.

It reported nearly half of renters living in the region spend more than the recommended affordability cap of 30 per cent of their gross income on rent.

A quarter of renters spend more than 50 per cent of their income on rent.

According to Statistics Canada, 51.5 per cent of Vancouver households rent.

In an attempt to alleviate demand, Mayor Gregor Robertson has promised to build 1,000 rental units per year for the next four years.

But with rents as high as $1,400 for a studio, it’s not a plan without its critics.

On Tuesday, the city council approved a series of citizen advisory committees, including a Renters Advisory Committee, which the city says will give renters a “direct voice at City Hall.”

Eby has also warned of increased pressure from the provincial government.

Earlier this month, Housing Minister Rich Coleman said his government is considering a proposal to relax rent control rules, as current limits and rising operational costs “discourage” growth in rental supply.

However, Eby argues all the reform would do is make rents more unaffordable for vulnerable tenants, such as seniors on fixed incomes.

-with files from Emily Jackson and Stefania Seccia

http://metronews.ca/news/vancouver/1241 ... eared-mla/
Hoo~Cudda~Not~Nod~ed????? :-)
 
Geyser
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Re: Renters are getting hammered too...

Thu Dec 18, 2014 12:57 pm

Oh dear, it sounds like we may be running out of condo stock, and we all know what that does to prices! :shock:
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
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WhipMaster
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Re: Renters are getting hammered too...

Sat May 02, 2015 6:36 pm

You see?
There is no escape.
Renters are getting squashed too. :shock:
Hoo~Cudda~Not~Nod~ed????? :-)
 
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WhipMaster
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Re: Renters are getting hammered too...

Mon May 11, 2015 5:50 am

My friend pays $1,500 for a 560 s.f. apartment at Maynards. It's a one bedroom and den. :shock:

...it's still cheaper than buying though. :D
Hoo~Cudda~Not~Nod~ed????? :-)
 
thinktom
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Re: Renters are getting hammered too...

Wed May 27, 2015 6:58 am

We currently have a 630 sq ft 1 bed for sale at Main/7th that rents for $1885 a month. Tenants are begging me to sell to an investor so they can stay. Crazy rents these days.
 
HomelessinSD
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Re: Renters are getting hammered too...

Wed May 27, 2015 12:29 pm

We currently have a 630 sq ft 1 bed for sale at Main/7th that rents for $1885 a month. Tenants are begging me to sell to an investor so they can stay. Crazy rents these days.
What will it sell for and what are the strata fees? Might make a good investment...
 
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DAB
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Re: Renters are getting hammered too...

Wed May 27, 2015 12:52 pm

My friend pays $1,500 for a 560 s.f. apartment at Maynards. It's a one bedroom and den. :shock:

...it's still cheaper than buying though. :D
Yaletown park units are going for $1500-1550 for only 500 square feet. Seems that $1500 is the minimum for a newer 1 bedroom place.
 
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DAB
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Re: Renters are getting hammered too...

Wed May 27, 2015 12:54 pm

We currently have a 630 sq ft 1 bed for sale at Main/7th that rents for $1885 a month. Tenants are begging me to sell to an investor so they can stay. Crazy rents these days.
Wow, that is good rent. If I was the landlord of the place, I would hold and not sell. Not sure if this your case with the tenant but I find tenants with pets, they are willing to pay a bit more to find a newer place.
 
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WhipMaster
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Re: Renters are getting hammered too...

Wed May 27, 2015 3:15 pm

Homeless:
What will it sell for and what are the strata fees? Might make a good investment...
....Weren't you one of the Crasht'rds back there in 2004????
I think you were saying it wasn't different here than in San Diego?

.....hahahahaha! Changed your tune a little? :D
Hoo~Cudda~Not~Nod~ed????? :-)
 
HomelessinSD
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Re: Renters are getting hammered too...

Thu May 28, 2015 8:35 am

Checked out Tom's listing for the 7th / Main condo:

Asking $450k, strata fees of $300 / month, taxes about $1400 / year (can't remember exactly). Using Tom's mortgage calculator with 25% down at 3.25% over 25 years, monthly payments of $1600.

Still doesn't cash flow, but rents are at least catching up. $3 / sf / month is good for Vancouver, but still no where near what other large west coast Cities...

Using this as an example, asking price is north of $700 / sf to get $3 / sf / month.

Consider rents in San Francisco: $7 / sf / month and the purchase price would be around $1000 / sf. Property taxes and HOA (strata) fees are quite a bit higher in SF than Vancouver, but would make a better investment without the consideration of:

Price appreciation - if you think the 7th / Main condo will appreciate more / faster than other Cities
Rent increases - if you think that rents in Vancouver are still a good deal and destined to climb
Where you live - if you live in Vancouver you could act as your own property manager
Locking in the rate - in the US, you can lock in the rate for the entire 25 or 30 year period. Rates are slightly higher in the US, but you could still lock in for 25 years at around 3.5%. Some people enjoy the security of not having to worry about rate increases for their investments.
 
rofina
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Re: Renters are getting hammered too...

Thu May 28, 2015 10:12 am

Couple points of interest on rising rents.

Lougheed Mall area, 2 bedrooms, easy to rent, good tenant selection - $1400-1450. This is an increase of approximately $200-250 over 4-5 years.

Brentwood area, 2 bedroom, easy to rent, good tenant selection, $1700-1800. This is an increase of approximately $200-300 over 4-5 years.

With condo prices being largely stagnant over the same 4-5 year period, rents are starting to creep up and make the number more appealing, seems like a top to the Price/Rent has been set and is now returning to favour the investor.

Of course, these are 2 examples - possibly not a reflection of the broader market.
 
scoobydoo
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Re: Renters are getting hammered too...

Thu May 28, 2015 10:55 am

With condo prices being largely stagnant over the same 4-5 year period, rents are starting to creep up and make the number more appealing, seems like a top to the Price/Rent has been set and is now returning to favour the investor.
Interesting point. With recent studies/polls indicating that more people are looking to investment properties to fund retirement, are people looking at price/rent or are they banking on price appreciation? I would think the latter. My opinion is that the amateur investor will be surprised that their plans don't quite work out as they intended.

With depreciation reports all coming on line, there will be guaranteed special assessments that come into play. I know with my building, I'm looking at $80k (give or take) over the next 30 years. How will this be factored into the investors calculations?
 
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thompson2
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Re: Renters are getting hammered too...

Thu May 28, 2015 11:58 am

With depreciation reports all coming on line, there will be guaranteed special assessments that come into play. I know with my building, I'm looking at $80k (give or take) over the next 30 years. How will this be factored into the investors calculations?
80K isn't that bad actually if consider your condo will be "trouble free" for the next 30 years. Using another words, it will certainly cost you that much for a SFH as well in that time period. If you still can not settle your heart, thinking about "capital appreciation"... price may be double or triple in the 30 years... :)

But one thing I agree you that the most home owner will definitely be panic by the #, and some of them will sell their condos like no tomorrow. It is actually happening now and I treat it as an opportunity. " Depreciation report" makes me a window ( FEEL SORRY for the seller, but price can go even lower without taken). Right now I am going to buy one more unit (have bought one in last year) in a highrise building in Lougheed Mall area: two br for little bit over 200k, beside skytrain, Rofina is right it can be rented at $1400/m, cash follow nicely at $700. The catch is ---> have a $70K credit ready in the bank. :P
 
scoobydoo
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Re: Renters are getting hammered too...

Thu May 28, 2015 12:06 pm

80K isn't that bad actually if consider your condo will be "trouble free" for the next 30 years. Using another words, it will certainly cost you that much for a SFH as well in that time period. If you still can not settle your heart, thinking about "capital appreciation"... price may be double or triple in the 30 years... :)
We don't think it's that bad at all. One thing is that we are fully expecting that the total may go higher. We are funding our own CRF and if we don't need the money, well, we can take a nice holiday. The comparison to SFH is valid as well as many homeowners tend to severely underestimate the money spent on maintenance.
But one thing I agree you that the most home owner will definitely be panic by the #, and some of them will sell their condos like no tomorrow. It is actually happening now and I treat it as an opportunity. " Depreciation report" make me a window. Right now I am going to buy one more unit (have bought one in last year) in a highrise building in Lougheed Mall area: two br for little bit over 200k, beside skytrain, Rofina is right it can be rented at $1400/m, cash follow nicely at $700. The catch is ---> have a $70K credit ready in the bank. :P
That is true. There are many in our building that are already mentioning selling so there will be opportunities. It's funny that some people just don't understand that moving to another condo will make the levies go away.
 
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Re: Renters are getting hammered too...

Thu May 28, 2015 1:22 pm

http://www.bloomberg.com/news/articles/ ... 000-a-year
"The penalties for waiting to buy tend to be greater in smaller metro areas, especially in California. For example, the estimated cost of waiting one year was $61,805 in San Jose and $65,780 in Santa Cruz. Over the course of 30 years, homeowners save more than $1 million in Santa Cruz, the largest amount of any U.S. city."
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