How can total Real Estate Assessment in BC top 1 Trillion????

[sdifox]

Man that is messed up.

http://www.theglobeandmail.com/news...sessment-roll-tops-1-trillion/article2290193/

B.C.'s real estate assessment roll tops $1-trillion

By WENDY STUECK
Globe and Mail Update
Assessments for single-family homeowners in Vancouver expected to rise by 10-25 per cent

Although home prices slipped in some parts of the province, including Whistler and Pemberton, the total value of real estate on B.C.'s assessment roll climbed to $1.1-trillion for 2012, up 6.42 per cent from last year.
The BC Assessment Authority, a crown corporation, released figures on Jan. 3, with assessments based on estimates of property values as of July 1, 2011, and physical condition as of Oct. 31, 2011.
The province's assessment roll edged over the $1-trillion mark for the first time in 2011. The number of properties on the roll is 1.9-million, up 0.75 per cent from 2011.
In Vancouver, single-family homeowners can expect assessments to climb from 10 to 25 per cent, with typical prices for a single-family home on the East Side climbing from $816,000 in 2011 to $1-million.
However, assessments dropped in the Resort Municipality of Whistler, reflecting softening real estate prices.
"Most homes in the Resort Municipality of Whistler and in the village of Pemberton are declining in value compared to last year's assessment roll," area assessor Jason Grant said in a statement, adding that the decreases could be as much as 15 per cent.



The Globe and Mail, Inc.

 

[DrPizza]

I cannot fathom how people can afford to live there, or why, if they're skilled enough for a high paying job, they wouldn't take those same skills elsewhere & live where they can purchase 10 times the house for the same amount of money.

 

[manly]

umm see major U.S. cities, circa 2006. (granted I highly doubt it's driven by systemic fraud as it was in the U.S. bubble)

 

[Dominato3r]

Even the shittiest of places cost a ton. Ive seen old ass ranchers (at least ~40years old) go for about $1.5M in Vancouver

 

[mmntech]

Housing is very expensive in Canada and seems to be getting more expensive. I think we are in a real estate bubble situation right now. Ontario has become a bit of a banana republic in that regard. I use it as an example because I'm most familiar with it, over BC. New home construction is driving the economy. That's why they're scared to death to raise interest rates. Especially with standard single family homes pushing $500k. That's outside the city. It's why I laugh when Americans earning a decent wage fret about spending $250,000 on a two story, four bedroom house. You can't even get a condo for that here.

Of course when the government inevitably has to raise interest rates, the market will collapse and we'll be in the same situation as Japan. Not unless inflation is brought under control. Prices are artificially high and people are taking on more debt than they can chew, banking on interest rates staying at record lows. At least I'll be buying into a buyers market when I can afford a house. Fingers crossed.

I personally don't understand the allure of BC. Though I've never been, from what I hear it has some of the highest crime rates in the country. Plus housing and just about everything else is considerably overpriced.

 

[sdifox]

I guess this thing is for real after all

http://www.crackshackormansion.com/

median income in Vancouver is lower than Windsor or London, ON apparently...

 

[Dominato3r]

I guess this thing is for real after all

http://www.crackshackormansion.com/

median income in Vancouver is lower than Windsor or London, ON apparently...

100% accurate

 

[yllus]

Still waiting to buy here in Toronto. Sometimes hear the opinion, "Buy before it becomes too unaffordable to buy!" Speaker of said opinion is always a realtor. Personally, I rather diversify my investments and live somewhere where if the fridge breaks, someone else pays to fix it.

 

[Jeff7]

I guess this thing is for real after all

http://www.crackshackormansion.com/

median income in Vancouver is lower than Windsor or London, ON apparently...

You could buy some of those things for <$50k in Erie, PA.


But then you'd also have to live in Erie, PA.

 

[silverpig]

I cannot fathom how people can afford to live there, or why, if they're skilled enough for a high paying job, they wouldn't take those same skills elsewhere & live where they can purchase 10 times the house for the same amount of money.

I grew up in Vancouver and have moved to Toronto for a job that pays me more. I'm not buying out here, but am advancing my career and saving for the time when I can move back and buy something.

The city is just awesome. If you enjoy the outdoors at all, it's a great place to be. Where I used to live, I could do a 1/2 marathon from home and go along a gorgeous ridge with a view of the city, along the beach, along a sea wall, along the beach downtown, around Stanley Park, over the Lion's Gate Bridge, and end up at the top of Grouse mountain with a fantastic view of the city. 21 km (maybe a little more).

Since moving to Toronto, I've sort of figured out how people can live in Vancouver - they just don't spend as much on other stuff. Here, people go out a lot more. Dinner, drinks, brunch, lunch, bars... A lot of people I know here must spend as much on entertainment as they do on rent/mortgage.

In Vancouver it seems people are more content to be out doing free things. Take half your entertainment budget and put it into your house, then instead of going for dinner and drinks on Saturday night and brunch Sunday morning, get up early Sunday and go for a long run or a bike ride.

My social circles back in Vancouver were full of people who spent most weekends camping, or snowshoeing, going for a multi-day bike ride, doing yoga, or other nearly free activities - and I didn't hang out with the granola crowd. I'd go for 15km Saturday morning and most of the people I chatted with as I ran my route were going longer than I was.

People there are also starting to get into the densification mode for city development. More and more people are deciding they WANT to live in a townhouse or rowhouse in the city where they can ditch the car and walk to everything. A big house with a yard is not the end-all be-all goal for most homeowners.

It is pretty common for people in the suburbs to have 2 cars. Add insurance and gas for the long commute to the mortgage payment and see what that adds up to. Now add 25% of your entertainment budget on top of that. That can be your mortgage payment in a city when you don't have to commute (there are dedicated bike lanes and transit passes are about $100/mo).

Just a different style of living is all.

 

[silverpig]

Housing is very expensive in Canada and seems to be getting more expensive. I think we are in a real estate bubble situation right now. Ontario has become a bit of a banana republic in that regard. I use it as an example because I'm most familiar with it, over BC. New home construction is driving the economy. That's why they're scared to death to raise interest rates. Especially with standard single family homes pushing $500k. That's outside the city. It's why I laugh when Americans earning a decent wage fret about spending $250,000 on a two story, four bedroom house. You can't even get a condo for that here.

Of course when the government inevitably has to raise interest rates, the market will collapse and we'll be in the same situation as Japan. Not unless inflation is brought under control. Prices are artificially high and people are taking on more debt than they can chew, banking on interest rates staying at record lows. At least I'll be buying into a buyers market when I can afford a house. Fingers crossed.

I personally don't understand the allure of BC. Though I've never been, from what I hear it has some of the highest crime rates in the country. Plus housing and just about everything else is considerably overpriced.

I'm not so sure that's true. Canada's population has grown by something like 25% in the past 20 years. That's a lot of new people coming in, and a lot of new houses to build.

Most of the people buying the $2M+ houses in Vancouver are foreigners who have the cash to do it. They buy the house from overseas, demolish it, and put up a bigger and more expensive house on the lot without even seeing it. This isn't Susie teacher with 3 $1M mortgages on 3 different properties on $50k income.

Yes, there are retiring teachers who own some of these places, but they bought for $150k way back in the day.

Sure, prices are too high for the domestic market alone to support, but the market looks like it is immigration and foreigner supported, has been rising steadily for 20 years, and only took a minor blip in 2008/09. Even if it dries up, not many Canadians are going to lose their shirts because Canadian banks by and large won't give out stupid-ass loans.

 

[Doppel]

How? Stunning and breathtaking housing bubble that the arrogant and also stupid people there think they are somehow immune too. Pride before the fall. But oh they are Canadians it cannot possibly happen there...no way...

Sure, prices are too high for the domestic market alone to support, but the market looks like it is immigration and foreigner supported, has been rising steadily for 20 years

Nope, not at current rates, not even close. Much of Canada is overvalued historically. I've seen a pretty good chart showing incomes vs home prices, but not to a stunning degree like in BC, that has totally gone bat-fvck insane in the past several years and is by any reasonable standard and historical precedent at all overvalued. I'd get the F out now if I owned a house there and rent for a while as it crashes.

Most homeowners in Vancouver can expect increases of 10 to 25 per cent over last year&#8217;s assessment. <- lololololololo

 

[sandorski]

A lot of the Real Estate value has to do with Foreign Demand. Demand for Vancouver Properties is global.

 

[sandorski]

How? Stunning and breathtaking housing bubble that the arrogant and also stupid people there think they are somehow immune too. Pride before the fall. But oh they are Canadians it cannot possibly happen there...no way...

What are you going on about?

 

[Doppel]

What are you going on about?

See post #13

 

[sandorski]

See post #13

What about it?

 

[silverpig]

How? Stunning and breathtaking housing bubble that the arrogant and also stupid people there think they are somehow immune too. Pride before the fall. But oh they are Canadians it cannot possibly happen there...no way...Nope, not at current rates, not even close. Much of Canada is overvalued historically. I've seen a pretty good chart showing incomes vs home prices, but not to a stunning degree like in BC, that has totally gone bat-fvck insane in the past several years and is by any reasonable standard and historical precedent at all overvalued. I'd get the F out now if I owned a house there and rent for a while as it crashes.

Most homeowners in Vancouver can expect increases of 10 to 25 per cent over last year’s assessment. <- lololololololo

If Vancouver houses were being bought on Vancouver incomes you might have a point. But they're not.

 

[Sluggo]

Curious what percentage of assessment value they end up paying in annual taxes.

 

[DrPizza]

Housing is very expensive in Canada and seems to be getting more expensive. I think we are in a real estate bubble situation right now. Ontario has become a bit of a banana republic in that regard. I use it as an example because I'm most familiar with it, over BC. New home construction is driving the economy. That's why they're scared to death to raise interest rates. Especially with standard single family homes pushing $500k. That's outside the city. It's why I laugh when Americans earning a decent wage fret about spending $250,000 on a two story, four bedroom house. You can't even get a condo for that here.

That's another thing that doesn't make sense to me. You Canadians have a shitload of natural resources for building homes. You have all the wood you could possibly want. And, there's no shortage of land. How the hell does a tiny little house - outside the city - cost $500k? Materials in such a house, excluding the kitchen, are a small fraction of that amount (or so I'd think.)

 

[silverpig]

That's another thing that doesn't make sense to me. You Canadians have a shitload of natural resources for building homes. You have all the wood you could possibly want. And, there's no shortage of land. How the hell does a tiny little house - outside the city - cost $500k? Materials in such a house, excluding the kitchen, are a small fraction of that amount (or so I'd think.)

There's not actually that much usable land for a number of reasons:

Vancouver is basically confined to a triangle between the mountains, the US border, and the water.

Calgary and Edmonton are oil boom cities.

Toronto is just big and goes on forever so you pay a lot to get close to the city.

Montreal is built essentially on an island.

Land is the thing that costs you.

 

[Lifted]

That's another thing that doesn't make sense to me. You Canadians have a shitload of natural resources for building homes. You have all the wood you could possibly want. And, there's no shortage of land. How the hell does a tiny little house - outside the city - cost $500k? Materials in such a house, excluding the kitchen, are a small fraction of that amount (or so I'd think.)

You know better than that Dr P. We both live in NY, yet you probably pay 1/5th the rent/mortgage that I do and get 5x as much space (not to mention land). You pay much more to live in a city with high demand and little space. It's the same the world over.

 

[RbSX]

You want to know what drives this? Chinese people over speculating on the market.

Hopefully with the mortgage rule rollback the speculative market will be clawed back. I also suspect that asshat moonbeam has something to do with this too, after all, he needs to pay for those fucking bike lanes somehow.

 

[J-Money]

I just received my assessment.

A 935 sq. foot 2 bed 2 bath condo in Kelowna (obviously BC) and it's assessed at $206,400 (up from $199,600 last year). Mountain view but in the "bad" area of Kelowna (Rutland).


Now if I could just sell it that'd be sweet.

Anyone want to buy?

 

[sdifox]

I just received my assessment.

A 935 sq. foot 2 bed 2 bath condo in Kelowna (obviously BC) and it's assessed at $206,400 (up from $199,600 last year). Mountain view but in the "bad" area of Kelowna (Rutland).


Now if I could just sell it that'd be sweet.

Anyone want to buy?

D:

 

[J-Money]

D:

Scary part is it is currently the 8th cheapest condo for sale in Kelowna, and the only one of those built after the year 2000.