Well, in a co-op essentially – residents buy a share allocated to a particular apartment in the co-op building but the building is owned by the Co-op Society. There are two kinds:
Profit and non-profit. The non-profit buildings are mostly government sponsored (through loans), have income restrictions and are meant to be given back at no profit. Actually most subsidies run out by 2020 … will be interesting to see what happens to them then!
The ‘profit’ ones are different. Actually, this style of ownership – while not popular in Vancouver is very much in vogue elsewhere. Most of New York is owned as a co-operative. And if you are paying […]
For years we hear the ads on radio and TV… “No money down, no money down”. Sounds like snake oil … yet I keep hearing that you can still buy real estate with no money down. Truth or fiction?
Well, there are ways to buy with “no money down”, some are easy and obvious, others need some work – all need thinking out of the box.
As a residential home buyer for your own use you can buy with 5% down (with CMHC insurance)… It is just a question of finding that extra 5% – there are Dad, Mum, grandparents for that…
(Buy a condo in […]
There are of course a lot of ways where we could lose money … but the big three are:
- Buying the wrong product
- Not understanding the system/jurisdiction you are in
- Buying without subject when you have not sold your current house yet.
For instance, if you had bought a regular condo (unlimited personal use) in 1998 in Whistler you would have seen values overall double, but had you bought a Phase 2 (limited personal use) condo … you would be just even. BUT, had you bought a quarter share you lost 40% or so and had you bought a hotel unit you lost 60% and more.
There are a lot of doomers out there about the Canadian housing market. First, there was Deutsche Bank as well as our Central Banker Poloz that saw us 30% overvalued. Now CMHC is raising a warning finger.
In fact CMHC in its quarterly house price and analysis and assessment of 15 markets says Toronto, Winnipeg and Regina are all now considered high-risk markets. But unlike Poloz, CMHC says Vancouver is ok … but Toronto, Regina and Winnipeg are at HIGH RISK!
Add to this that high profile demographer Harry Dent says Vancouver is the single most bubbly city on the planet.
What does Ozzie think? Subscribe to […]
Investors are always searching for profit or yield, but how do you know what actual cash flow there comes out of a given property? Well, Real Estate investors – small and large – use what they call a cap rate to find the true net income. But to find that elusive rate is one of most difficult and perplexing problems for realtors and investors. Market comparables are often hard to find and the income and expense statements often only a wild dream by the owner.
Comparables for an older apartment building may also be harder to come by – not as easy as […]
Recreational island investing … often it is better to poke yourself with a sharp stick in the behind.
Things to do – why you should be doubly careful when investing In Your Island in the Sun
- We forget that islands take ferries (some take 3 ferries)
- Building at waterfront could be impossible (can no longer go to the water – 100 ft. away)?
- Buying on a “No ferry islands” – boat access only – hardly any use?
- Location – west view is best – look where your island property gets the sun? Morning or afternoon sun?
- Mortgaging difficult – if owner carries – get 10 years length
- WATER: water well … just enough to brush your teeth. […]
Ask your bank why!
When the Bank of Canada cuts interest rates, it does so in an effort to jumpstart the economy by making it cheaper for consumers and companies to borrow money.
The central bank cut its rate by a quarter percentage point last Wednesday, the second such increase this year for a total of .5%.
It passed on that cut by only .3% … so a total of a .50 reduction by the Central bank to our fine banks … resulted in only a .30 reduction in mortgage and credit lines and all variable loans – the rest into profits for banks.
So: on a $400,000 mortgage in Vancouver you should […]
All the talk about Greece has everyone’s head spinning. People in Europe have mixed feelings.
Spain together with Italy/Portugal and a many others are watching Greece with interest. The worry by the thinkers here is that the left wing parties would gain strength if Greece is perceived to be winning (ie. will win a foregiveness of 50% of debt again). In fact Spain and Portugal the “anti-austerity parties” growing dramatic support (let’s stop paying the debts) and there is great sympathy for them.
The shocker was that yesterday Austrian Parliament faced an EXIT THE EU petition of 256,000 (collected in a week) that want to force a new stance with Brussels.
Germany never saw a collapse like Southern Europe, Spain, Portugal and the like. Prices stayed the same. Never declined. But now real estate is really on the way UP in all major cities.
We said 3 years ago in our annual forecast that we felt Berlin and most other German cities were undervalued. Since then prices have risen to such an extent (and with it rents) that it is making headlines and TV shows in Germany.
Rents are actually a lot higher and are up:
– Munich are up 29 %
– Frankfurt 23% and
– Cologne up 25% in a year
So are prices, Germany real estate deals: