Real Estate Talks

Just got a letter from a large company stating that the City of Vancouver is looking at redeveloping my street and they want to discuss land assembly for my property.

On one hand this sounds great, especially the part about buying at above market value.

On the other hand, I have great tenants, zero vacancy, rising rents, low interest rates, appreciating land value, great yield, which equals a great place to hold for another 10/20 years.


Thoughts?

I would want a very substantial premium above assessed value. I've heard of condo buyouts where double assessed was offered and in at least one case was rejected by a very small minority of unit owners.

The recent 80% vote rules will make deals like that one much easier if it's a condo sale, but if it's your wholly owned apartment building it's all down to your choice.

Great position to be in, good luck with your final decision, and don't forget the tax implications!

Where's your property located?

I've also heard Developers targeting old condo buildings at the west end and offering double the market value!

Its actually a house with 4 suites not a condo or apartment building...its along E 12th

Golden ticket, or blockbusting? Depends on how you look at it:

http://www.cbc.ca/news/canada/british-c ... -1.3287657

to the moon
http://www.theglobeandmail.com/life/hom ... e26957992/

Just got a letter from a large company stating that the City of Vancouver is looking at redeveloping my street and they want to discuss land assembly for my property.

On one hand this sounds great, especially the part about buying at above market value.

On the other hand, I have great tenants, zero vacancy, rising rents, low interest rates, appreciating land value, great yield, which equals a great place to hold for another 10/20 years.


Thoughts?

don't be surprised if "above market" definition falls below your expectations.

This is the same City of Vancouver who claim the 20 hectare CN rail land is worth just 20M.
The City can easily rezone this land area into 534 x std size residential lots at an avg value of 2M each (est).
I'm sure they'd do this in a heartbeat so they can begin collecting the appropriate property taxes and development fees.

to the moon
http://www.theglobeandmail.com/life/hom ... e26957992/

There is no reason why there should be such a huge price difference between the east side and west side home prices. It is primarily historical due to snob appeal. East side neighbourhoods are just as desirable if not more so than west side ones. It's old people like Geyser that don't see this. Look for this gap to shrink even more.

to the moon
http://www.theglobeandmail.com/life/hom ... e26957992/

There is no reason why there should be such a huge price difference between the east side and west side home prices. It is primarily historical due to snob appeal. East side neighbourhoods are just as desirable if not more so than west side ones. It's old people like Geyser that don't see this. Look for this gap to shrink even more.

I've been saying this for years now. The gap will narrow...either by west down or east up

East side neighbourhoods are just as desirable if not more so than west side ones.

Obviously not, otherwise pricing would be different.

I've been saying this for years now. The gap will narrow...either by west down or east up

And for what reasons? Desirability, affordability, change in investor demographics? Why do you think that people will stop paying a premium for an west side home over an east side home? From what I see, the gap is widening, not narrowing.

There is no reason why there should be such a huge price difference between the east side and west side home prices. It is primarily historical due to snob appeal. East side neighbourhoods are just as desirable if not more so than west side ones. It's old people like Geyser that don't see this. Look for this gap to shrink even more.

If all things were equal, I would not hesitate for a second to purchase west side over east side of Vancouver. I don't think I am in the minority here.

most would pay more for West over east...including me. I just wouldn't pay 200% - and neither would anyone else if they weren't filthy rich.
I think Trudeau intends to curb those stinking rich immigrants shortly. Looks for east/west to narrow overnight if that happens

There is a very easy way to settle the argument about West Side versus East Side. Just Google "Vancouver West Side images" and look at a random few dozen of those images. Now repeat the exercise for "Vancouver East Side images".

End of argument!

The only question I have is why isn't the price gap a lot bigger? If the premium really is only 200%, that's a bit weird.

I think the liberal government can implement some changes quickly, but curbing wealthy immigrants isn't going to happen overnight. I also think a change like that would impact the east side just as much (if not more) as the west side.

Homes on the east side aren't affordable for regular working families, just like the west side. If I owned on the east side, or Burnaby, I'd be concerned about the liberals targeting the 1%. The 1% are earners. High income (as opposed the pre-existing wealthy) are the only working people who can afford to buy in Vancouver at current prices whether they buy east or west.

I think most of the posters on RET believe that things have gotten out of control in Vancouver. Cutting the supply of money into this market could sink the entire $ million plus market. And what costs less than a million right now in either vancouver, Burnaby, north Vancouver, or even Richmond?

Sell and invest in athens. WOrks your way up the ladder. You'll have a 10 Billion dollars in no time.

I'm not kidding, I did it!!! https://xavils.github.io/UEG/