A friend of mine bought a 2 bdrm condo In East Van about 7 months ago for $570k. The unit across the hall, which is smaller and not as nice, just listed for $650. Another 2 bdrm down the hall, which was a bit bigger and nicer, was listed for $750k and sold for $808k in a week or so. My friend's agent told him he could easily pocket $100k if he wanted to flip it. In 7 months. He said that while houses have cooled slightly, the condo market is insane.
Interesting. Perhaps there's a mortgage broker or realtor reading this thread, but consider these high priced condo's vs. older SFH in east van where you rent the basement suite for $1900 and skip the $300 strata fee? Better still, pretend you're like most and don't mention the rental income at tax time. All this presumes you have the 20% down….
Where I'm going with this is that most don't have $300K (20% of $1.5) equity for the older SFH down payment so they drive up the prices on condos. BUT, if you can stomach the bank statement that says you own $1.1M, I wonder how much more you pay a month after rental and strata are considered (ie you net $2200-2400 more a month than condo guy, maybe just $2K if you consider property tax) in this low interest rate setting. Sure, the bears will come in and say the big rate hike is around the corner, but with oil down [HTML_REMOVED] out I don't see it.
I guess my point is that the system seems stacked in favour of those willing to take leverage. Wait another year of SFH cooling and then pounce whilst your condo buddy read over depreciation reports and special assessments? I mean, the renters will beat a path to your door in this market, so its not like you can't pick [HTML_REMOVED] choose.
The big x factor here is the future price increases. If the SFH price stagnates and condos stay hot, this could tip the scales. Assignment sales are exempt from 15% and that could have a knock-on effect in the condo market. Another consideration is to get even more from AirB[HTML_REMOVED]B for the SFH suite. The city hearings on AirB[HTML_REMOVED]B had SFH owners coming out says the only way they can make the numbers work is AirB[HTML_REMOVED]B…but that's a whole 'nother topic..