Money: Five examples of Metro Vancouver homeowners losing big in a falling market - - PressFrom - Canada
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Money Five examples of Metro Vancouver homeowners losing big in a falling market

17:20  18 november  2019
17:20  18 november  2019 Source:   vancouversun.com

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There’s a cottage industry emerging on Twitter, with various accounts and followers seeming to take delight in the financial woes besetting Metro Vancouver homeowners hoping to sell their homes , or selling their homes at crushing losses.

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an old stone building: This home on West 22nd Avenue in Vancouver's Dunbar neighbourhood sold this year for nearly $800,000 less than its purchase price two and a half years ago.© Multiple Listing Service This home on West 22nd Avenue in Vancouver's Dunbar neighbourhood sold this year for nearly $800,000 less than its purchase price two and a half years ago.

Some Metro Vancouver homeowners who bought just before or just after the start of the market correction in the summer of 2016 and have now sold their homes are being hit with staggering losses.

Naturally, this has become Twitter fodder, so here’s a look at some of the big recent losses as highlighted by Twitter handles Mortimer and Vancouver Real Estate Flip Flops .

1. 321 Monteray Ave., North Vancouver

Mortimer posted that the owner of this property in the Upper Delbrook neighbourhood took a loss of at least $700,000 on a June 6, 2016, purchase.

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According to B.C. Assessment Authority records, the buyer paid $2.45 million for the 3,400-square-foot home on a large 12,000-sq.-ft. lot. Zealty.ca records show the home, that’s renovated and even has a pool, sold last month for $1.75 million. The asking price was $1.999 million.

In what is becoming more common, after making dozens of posts on loss takers, Mortimer took some abuse from a local realtor.

2. 5375 The Terrace Rd., West Vancouver

This is another one from Mortimer, showing a $500,000 loss on this West Vancouver property that was bought on April 25, 2017, as a tear-down, for $2.2 million. The Metro Vancouver real estate market began its downturn in the summer of 2016, so perhaps the buyer thought the worst was over. Regardless, it was sold this month for $1.7 million. The home has stunning water views on a very large lot (over 18,000 sq. ft.).

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In the case of homeowners in Metro Vancouver , that tipping point has been reached. Some properties, seemingly purchased for investment purposes, during the peak of the real estate market in 2016-17 are now being sold at losses in the six figures.

3. 4047 West 18th Ave., Vancouver

This one was spotted by Postmedia News. The old home on a large 33-by-136 lot in Dunbar was bought in 2015 by a student named Yu Lin for $2.5 million. The home was assessed at just over $3 million in 2018, but as of June 30, 2019, was valued at $2.527 million. The home was originally listed at just under $3 million; however, when there were no takers, realtor Layla Yang brought the price down to $1.888 million and there was a quick sale for $2.050 million on Sept. 30, 2019.

So the owner lost $450,000 over four years.

4. 3952 West 21st Ave., Vancouver

Vancouver Real Estate Flip Flops dug into this one to find a likely loss of hundreds of thousands for the developer. In May 2015, an old home on this standard-sized lot in Dunbar was bought for $2.055 million. Less than a year later, just before the market started to fall, it was sold for $2.768 million. So at that point there was a profit of $713,000 made in 10 months (and the writer notes that back then that was the story).

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However, the developer who bought in 2016 tore the place down and set about building a 2,900-sq.-ft. luxury home on the lot. It was listed in April 2019 for $4.28 million and sold recently for $3.55 million. So, on paper, that’s a profit of $713,000. Then take away the transaction costs and there’s $614,000, minus demolition costs, permits, architect fees and building costs, and VREFF estimates the return was $118 a square foot. It costs roughly $300 a square foot to build from scratch in Vancouver.

5. 3333 West 22nd Ave., Vancouver

Another Dunbar doozy here. Mortimer points out this 2,227-sq.-ft. home on a standard lot sold for $3.2 million in March 2017 (about nine months into the downturn). The home was assessed at $3.075 million on June 30, 2019, though that figure fell to $2.628 million during the most recent assessment. After sitting on the market for 70 days, the home sold for $2.408 million. So in 31 months, the owners lost $792,000 — that’s $25,500 a month (not factoring in the hefty realtor fees and legal costs).

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The pain that homeowners feel in Metro Vancouver is linked with the time of purchase. Three-in-ten owners say they would prefer the market fall in value by about ten per cent. Notably, 35 per cent of Metro Vancouver residents say that prices are higher because Vancouver is a desirable location.

The latest Tweets from Vancouver RealEstate (@VancityBubble). A place to share information and thoughts about the state of Vancouver 's real estate market . Five examples of Metro Vancouver homeowners losing big in a plunging markethttps

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