Forget the bubble, the Chinese are invading!

[benyl]

$400K over list? WTF?

http://www.cbc.ca/news/canada/story/...investors.html

[BigMass]

Well China has been hording dollars so long it’s about time they spent their 3 trillion in US reserves. It’s all fine and dandy getting free stuff from China, but when China starts cashing in on their decade of servitude to the west, people complain. Too bad for us. We should be getting used to China buying up housing, resources and businesses in Canada and the US. This is only the beginning of China repatriating dollars. We buy their crap that ends up in dumpsters while they’re now buying our houses. They’re not stupid.

[Abeo]

I really question CBC's reporting nowadays.

Only millionaires can buy houses in TO? Straight from the source of TO's self appointed "condo king". He doesn't mention that 85% of TO's condos are bought by speculators either.

I really don't buy that investors are solely to blame for the price increase (they are a small portion of buyers, anyways). I think it has more to do with ease of credit, and more recently, low rates.

[Abeo]

CBC, Tuesday (2 days ago): Canadian home prices cooling

CBC, Today: Canadian home prices inch higher

[benyl]

Who knows what is going on. people say we are in a downturn and people don't have jobs.

So without a job, how do people buy a house to take advantage of the low rates?

[speedog]

Originally posted by Abeo
CBC, Tuesday (2 days ago): Canadian home prices cooling

CBC, Today: Canadian home prices inch higher

What to believe, eh, and this all from the same place (CBC).

[Kijho]

Fuck off

[cloud7]

Too bad this isn't happening in Calgary... houses are still sold at below asking price here...

[max_boost]

Damn.

[arian_ma]

Hahaha, look at that piece of shit house. Why would you pay over a million for that? What is that from the 50's? And don't even tell me it's in a good neighborhood, cause I know 0% of you would buy that same house for a million even if it was on top of the fucking Calgary tower!

[speedog]

Originally posted by arian_ma
Hahaha, look at that piece of shit house. Why would you pay over a million for that? What is that from the 50's? And don't even tell me it's in a good neighborhood, cause I know 0% of you would buy that same house for a million even if it was on top of the fucking Calgary tower!

One word - location. Lots of houses in Calgary sell for way more than they appear to be worth just because of the land value - knockdowns in our 50's Calgary neighborhood are running 350k if not more, but that gets you a sub-dividable 60x110-120 lot on which can be built two 750k attached homes or a huge 2 story estate home. In older areas such as Mount Pleasant or in the Marda Loop area, knockdowns are worth even more strictly because of the land value - the actual house on the lot is worth almost nothing.

[CanmoreOrLess]

Originally posted by speedog
One word - location. Lots of houses in Calgary sell for way more than they appear to be worth just because of the land value - knockdowns in our 50's Calgary neighborhood are running 350k if not more, but that gets you a sub-dividable 60x110-120 lot on which can be built two 750k attached homes or a huge 2 story estate home. In older areas such as Mount Pleasant or in the Marda Loop area, knockdowns are worth even more strictly because of the land value - the actual house on the lot is worth almost nothing.

All true and the sweet noise of construction has been going on for a few years and will continue for many, many more. I cannot recall the last summer of semi silence, nothing but hammers, saws and diesel trucks. I need to move to the country. A Calgary house only last sixty years now?

[speedog]

An example in Calgary - this 883 sq foot house is by no means worth 479k, but the land is very desirable. Our home was built in 1955 (now 57 years old) and the value of our home is virtually nothing even though it has been maintained very nicely - the land it sits on is almost all of our home's value and we are seeing our neighborhood starting to evolve. Further south of us in Cambrian Heights, Mount Pleasant and Capitol Hill, some streets have almost all new housing on them and if the economy really takes off, then so will the old home prices.

[89s1]

Originally posted by CanmoreOrLess
A Calgary house only last sixty years now?

If you have the money to buy an old house in a nice neighborhood on a really expensive piece of land you're likely less inclined to live in the aforementioned house.

Did I really need to explain that?

[arian_ma]

Originally posted by speedog
An example in Calgary - this 883 sq foot house is by no means worth 479k, but the land is very desirable. Our home was built in 1955 (now 57 years old) and the value of our home is virtually nothing even though it has been maintained very nicely - the land it sits on is almost all of our home's value and we are seeing our neighborhood starting to evolve. Further south of us in Cambrian Heights, Mount Pleasant and Capitol Hill, some streets have almost all new housing on them and if the economy really takes off, then so will the old home prices.

$500k for a knockdown is one thing, $1.2 mil is another. Your point stands though.

Is this the same property purchased by that "student"?

[speedog]

Originally posted by arian_ma

$500k for a knockdown is one thing, $1.2 mil is another. Your point stands though.

Is this the same property purchased by that "student"?

$500k, $1.2 mil - it's all based upon what the local market will bear and obviously $1.2 mil wasn't unreasonable for that particular piece of property because there were multiple big dollar offers made.

[ZenOps]

Yup, Chinas got a glut of US dollars.

Probably the only nation on earth that is actually ahead of the debt game.

They might as well invest in real estate, because for sure you don't want to be investing money in small or manufacturing businesses in eastern Canada.

For dollars coming to Alberta - it mostly goes to oil, and not as much to real estate.

Perfect sense to me.

[SilverGS]

Originally posted by Abeo
CBC, Tuesday (2 days ago): Canadian home prices cooling

CBC, Today: Canadian home prices inch higher

The titles are misleading. The first article is basically just saying that the house prices out east seems to be cooling off from increasing but in no means does it say it is dropping just stabilizing.

Overall there is still an increase in price and the number of properties changing hands.

The first article even has a blurb explaining that Alberta is not "cooling" due to bigger previous drop in 08 and slower recovery so is still continuing to go up.

[Supa Dexta]

Look to florida

This 14-Year-Old Girl Just Bought A House In Florida

http://www.npr.org/blogs/money/2012/...use-in-florida

Screw detroit zenops, I want sand and sun.

[max_boost]

Originally posted by speedog
One word - location. Lots of houses in Calgary sell for way more than they appear to be worth just because of the land value - knockdowns in our 50's Calgary neighborhood are running 350k if not more, but that gets you a sub-dividable 60x110-120 lot on which can be built two 750k attached homes or a huge 2 story estate home. In older areas such as Mount Pleasant or in the Marda Loop area, knockdowns are worth even more strictly because of the land value - the actual house on the lot is worth almost nothing.

A buddy of mine has made a small fortune off of doing exactly that. Buying houses on large lots, subdivide the land next to it and selling it to a builder. Genius. This was between 2000-2005, when brains, capital, opportunity and timing all come together. Looking at him would never know he's a self made millionaire.