Onni Selling Condos at Deep Discount!?

[vanlaw]

Originally Posted by mrjauk

I don't know which rental markets you've been watching, but the supply is absolutely exploding. I assume that you're basing your assessment of the vacancy level on CMCH data. Their methodology has flaws; all it is good for is giving you an idea of the trend.

Now, rental prices are still high but as landlords face the economic reality, they'll be willing to lower their prices to reflect the new (softened) demand.

Anecdotally, I began renting in October in the West End; for the exact same apartment as mine (except two floors higher) the landlord is seeking 10% less than what I pay. I know because I called pretending I was a prospective tenant. I think that he could be talked down another 5%.

By the way, I'm not sure if you mentioned buying the Richmond place for $360,000 as a rental property, but it wouldn't cash flow. You'd be able to rent the place out for about $1500/month, but assuming 10% down, your monthly mortgage payment at 6.5% (not including property taxes, maintenance, insurance) would be about $2500.

Yup, makes great financial sense.

$324K mortgage at 6.5% w/25yr ammo is about $2100/mnth. Not bad, and you can get a far better rate than that right now - 5.5% would be $1977/mnth. 5.5% w/ 35 yr ammo is down to $1726/mnth.

Even if the rent you get can’t cover full mortgage, taxes and strata fees, and you have to top it up it can still make sense for some - someone else is still making a good chunk of your mortgage payment for you.

[jlousa]

If you beleived the monetary system is going to collapse then you should buy all the real estate you could, as well as other real assets. At least you'd have something instead of worthless paper.

In all honesty this is a marketing ploy and nothing else, and not a good one at that. Those units that are listed are all the least desireable and that's why they haven't moved. The prime units were offloaded at full price, the worse ones always need to sell for less, Onni didn't price them any cheaper hence why they didn't sell.

[vanlaw]

^^^

Exactly. $453k for 1000+sf at Aria in PM? Sure - probably lowest floor w/ no view. Was looking at listings this week - same size unit in that building up on 18th floor with great view was up around $579. Now it probably wont sell for that, but it probably wont go down to $453 either.

[Coldrsx]

Originally Posted by DKaz

Yah $360k in Richmond is still steep.

You can get a 3 bedroom single family house with a 1 or 2 bedroom mortgage helper in Mission for under $300k right now. The wife and I have been considerring selling our condo and picking up one of these wicked deals.

but then you would have to live in mission and although i enjoy racing there, it is after all still mission.

[Coldrsx]

Originally Posted by mrjauk

I don't know which rental markets you've been watching, but the supply is absolutely exploding. I assume that you're basing your assessment of the vacancy level on CMCH data. Their methodology has flaws; all it is good for is giving you an idea of the trend.

Now, rental prices are still high but as landlords face the economic reality, they'll be willing to lower their prices to reflect the new (softened) demand.

Anecdotally, I began renting in October in the West End; for the exact same apartment as mine (except two floors higher) the landlord is seeking 10% less than what I pay. I know because I called pretending I was a prospective tenant. I think that he could be talked down another 5%.

By the way, I'm not sure if you mentioned buying the Richmond place for $360,000 as a rental property, but it wouldn't cash flow. You'd be able to rent the place out for about $1500/month, but assuming 10% down, your monthly mortgage payment at 6.5% (not including property taxes, maintenance, insurance) would be about $2500.

Yup, makes great financial sense.

it is called more than 10% down...

[DKaz]

Hey I live in Mission, I like Mission.

[cornholio]

Originally Posted by jlousa

If you beleived the monetary system is going to collapse then you should buy all the real estate you could, as well as other real assets. At least you'd have something instead of worthless paper.

In all honesty this is a marketing ploy and nothing else, and not a good one at that. Those units that are listed are all the least desireable and that's why they haven't moved. The prime units were offloaded at full price, the worse ones always need to sell for less, Onni didn't price them any cheaper hence why they didn't sell.

that property you own is nothing but a piece of paper also. but your right, you would have at least physical goods that you could try and protect, my point was that it wouldn't really matter if you bought at the top or bottom of the market(for obvious reasons). see its not always bad to hoard crap, being a materialistic person can pay off.
anyways if that were to happen then there would be much biger things to worry about then what you own.
oh yeah it would also finally seperate the baby boomers from their hoarded money, that cant be a bad thing for the younger generations.
anyways back on topic

Onni might not be in a desperate situation right now, who knows, but eventually a developer will get in a desperate situation to unload their product and once that really happens then it will have a snowball effect on everyone else. Its just a matter of time right now for all the dominoes to start falling, I find it hard to believe that everyone can stay above water for possibly a year or more.

[cornholio]

Originally Posted by Coldrsx

it is called more than 10% down...

since housing prices fall slower and later then other things then I would think you would be much better of taking that money right now and pouring it in to other investments.
oil might be a good option right about now

infact i would think that the best thing to do right now would still be to unload property even if at a loss and re-invest it.
that loss would easily be made up and profits would be made.
do the oposit of what comes naturally and you will sail the markets with ease.
that is unless the monetary system collapses

[BigWilly]

Originally Posted by Coldrsx

" Richmond — a 900-square-foot two-bedroom originally priced at $472,900, or $525 per square foot, is now approximately $360,000, or $400 a square foot."

damn... time to buy.

Not good enough for me to buy yet, would be much more attractive if that's the price for a place in Vancouver but its still too expensive for Richmond. For Onni to say its a "good deal" when the price was originally way overpriced and is now less overpriced is crazy.

I'd rather invest my money in something that won't continue to depreciate in value this year. I understand realestate prices will eventually go back up over time but with prices likely spiraling downward even more this year i'd make more money sticking money in a GIC and buying later this year or early next when the price bottoms ..at the moment, i don't think its even close to bottoming.