Search This Blog

Thursday, October 27, 2011

Vancouvers money pyramid

I have been increasingly concerned with the escalating property values in very select neighborhoods.West Vancouver in particular.
 Difficult since my bread and butter comes from selling and reselling of Real estate, but my allegiance lies with the liveability, sustainablity of our neighborhood- our city. I am here for the long haul. So any fleeting financial gain in commission is wholly offset by the deterioration of what works in a neighborhood.
The current situation I find alarming.
We are pawns in very global game of chess where people with big money are coming in and buying up our property and then telling other people what a great spot this is to invest, they in turn are then selling that great property for hugely inflated prices to the next person and on it goes. The province is laughing as it reaps in the PTT over and over. But our citys , that are bearing the brunt of this localized issue are not getting any piece of the pie. It will be the City ( or in West vans case the District..) that has to deal with closed shops and bistros since many of these homes are not even lived in. Perhaps a mom and child move in, but not a whole household of contributing citizens.
here are a few examples, and this is just todays sampling.

800 block Pyrford. tax assessed at $1.982,000
sold in August 2011 for $3.288,000
Listed now at $4.180,000

1400 blk Nelson tax assessed at $1.200,000
sold in March 2010 for $1.200,000
listed  now at $2.199,000

1400 blk of Sandhust tax value$ 2.088,000
sold July 2011 for $2.088,000
listed $2.998,000

1800 blk  Queens tax assessed $1.551,000
sold May 1st 2011$ 1.728
listed now $2.398

and the best one
3100 Blk Thompson Cr
tax assessed $4.143,000
sold in 2009 for $4.142,000
listed now for $7.5 million

maybe everyone is just cashing out. maybe everyone wants to downsize. But if this keeps up where will you downsize to? When a starter home is now 1.8 million we have some serious problems. Who will live here that works here? Our nurses and firemen and teachers, and restaurantuers dont make this kind of money.Soon they will have to charge $10 for a coffee! If employees move to the suburbs,with soaring gas prices soon the commute will cost too much and we will find ourselves with a lovely area that can"t  find people to work here. Most people tend to want to live close to where they work.
It goes back to us needing a supply of smaller housing. Not more $8 million mansions on our mountains, but more small little cottages where families can start and single young people can live and enjoy our community too. This doesnt solve the problem, but perhaps it can mitigate one of its symptoms.
I am glad laneway housing and coach houses are at the forefront of this civic campaign. We have the ability to vote in people that bring this forward in a sensible way that wont overcrowd or over densify our neighborhood. But who will deal with the  Real Estate speculation?Politically, no one wants to touch it.

I dont have the answers . I just think someone has to start asking the questions.

1 comment:

  1. You bring up some interesting concepts, thanks for sharing your thoughts. It's a huge problem out here on the west coast. I grew up on Saltspring Island, and property has really boomed there. Living in Victoria right now I can't even begin to think of buying a home, old moldy houses in bad naighborhoods starting at 300,000-400,000. Insane!