Real estate really

[uniped27]

The price of real estate is off the charts. Let's ask ourselves, who stands to gain from the sale of a house. Let's start at he beginning. The real estate company gets paid and the real estate agent gets paid, oh yea the government gets paid twice, once in the tax department and the other is in a transfer tax. And what's left over is for you the seller of the property and you are the last one to get paid. Let's take a look at this picture. Every one is getting a junk of this pie, but who determines the price of this pie? Not you or I. Let's go back in time. 1980, my wife and I bought our first home built brand new 3 bd rm 1 1/2 baths
unfinished basement for $69,900. Yea swallow it. Now the house I live in is worth $650,000. So, what chance is there that our children will ever be able to afford to own a home??? Highly unlikely, WHY? It's a shame that we have to live in a world of GREED.

[Even Steven]

Let's go back in time. 1980, my wife and I bought our first home built brand new 3 bd rm 1 1/2 baths
unfinished basement for $69,900. Yea swallow it. Now the house I live in is worth $650,000. So, what chance is there that our children will ever be able to afford to own a home??? Highly unlikely, WHY? It's a shame that we have to live in a world of GREED.

Well, be a good samaritan then, sell your house for $100,000. Helps somebody out, and you don't need money obviously.

Go right ahead.

Didn't think so.

[AlienSoldier]

Most people in Europe rent, there is also the negative of a high real estate market which is less spending on discretionary as people have ever higher debt. Leading to fewer jobs when that debt level becomes much larger than the economy can handle. You will also start seeing people leaving looking for higher income and/or lower cost of ownership area's.

Either way, its a cycle and it will at some point reverse.

[lesliepaul]

I remember what my house cost in the 80's and how much I was earning then. I know what our current house cost 8 years ago and believe me, my wages did not go up 5X, 6X or 10X to keep up with B.C. house prices.

Agent fees, transfer taxes are out of hand and no doubt with more being devised for our future..............YES, it is GREED!
Lets start with the root problem.........real estate agents should be paid hourly and of course start them at minimum wage and let them work up from there. In the Okanagan, their top wage should be $20.00 per hour (an amazing wage in the Okanagan if they are lucky). How much time do you think ANY of them put into selling YOUR house? NOT MUCH! No matter what they tell you about "all the time I put into your house", rest assured they cannot back it up other than the actual time spent showing the house and time writing up offers along with a few hours (being generous here) yapping on the phone while no doubt driving.

Complain about lawyers and car sales people all you want, the most overpaid scum of the earth are real estate agents. In all my years and the houses I have sold I have given a real estate agent an opportunity to list my property and EVERY single time they could not help themselves from trying to me over. They all lie and brag to get you to sign with them and then the effort stops. Within a month they will make the effort to let you know your asking price is too high (in most cases set on their expert advice).

Time to be greedy like so many and think of myself only.............I need interest rates to go up a lot and along with that mortgage rates go up ONLY 2 points overnight.........let the cleansing start in B.C.

[36Drew]

Most people in Europe rent

Really?



It would appear that only the Swedes are less likely to own than rent. Many European countries' home-ownership rates exceed Canada's (which hovers around 67%).

[seewood]

Just wondering if one could get an idea by first figuring out what a serviced lot costs, sewer, power, cable, gas, water, surveying, hydrants all at the curb. Paved road, sidewalk? Keep in mind the development costs the municipality wants. The wages and equipment costs to put the infrastructure in. Cost of materials, ( pipe, crush etc.)
OK get a figure what the, say .25 acre, lot is worth.
Bear in mind the cost of wages and materials were a lot less years ago.

Now dig footings with now expensive equipment, form and pour now expensive concrete with now expensive re-bar reinforcing. Order now expensive construction wood and frame. Trusses? CSA approved windows of course. All the while paying perhaps all in labour cost of ? $35-50+ hour. Price of plywood has skyrocketed recently evidently.

So after a lot is purchased, construction costs are from what I understand between $150-$400 per square foot depending on custom bits and pieces. Electrical, plumbing materials plus wages... a 3000 ft2 house is at the low end $450,000.00 to build plus the lot.

Now, someone explain to me what "affordable housing" is?

How does one get a house that is representable/affordable to their wages?

BC is a very desirable place to live, southern areas anyway, and the influx of individuals that can afford it are purchasing here driving up the prices of existing stock. My opinion anyway. Sooner or later a change might happen but unlikely. Think I mentioned it before but Whistler for example have provided staff housing to the RCMP. Aspen CO have their fire dept living 50+ miles away where they can afford to live. Step kids are moving out of Van as their very good wages are disappearing in rent. Hospital and schools are going to have trouble recruiting.
Solution...is there one?

[HP]

construction costs are from what I understand between $150-$400 per square foot depending on custom bits and pieces. Electrical, plumbing materials plus wages... a 3000 ft2 house is at the low end $450,000.00 to build plus the lot.

Yet, go and build the same house in the maritimes and you'll get more house for less - and it isn't all made up on wages and you can't tell me that it's cheaper to send materials to newfoundland.

Most people in Europe rent

Not true (nice graph). Europe has this thing called the "Multi-Generational Mortgage" (apparently those are catching on in North America, too). Sweden is interesting to me: according to a couple of sources, in March of 2016 they cut the maximum term of their mortgages to 105 years where the average was 140 years. Fun. I can imagine the look on my banker's face when I come in and ask for a 140 year mortgage next renewal.

[generalposter]

Paid $68,000 in 84. Valued at $650,000 now.Mortgage free since 2009. At less than 60 years of age life is looking rosy as can be. (Incredible view here too!)

[LANDM]

construction costs are from what I understand between $150-$400 per square foot depending on custom bits and pieces. Electrical, plumbing materials plus wages... a 3000 ft2 house is at the low end $450,000.00 to build plus the lot.

Yet, go and build the same house in the maritimes and you'll get more house for less - and it isn't all made up on wages and you can't tell me that it's cheaper to send materials to newfoundland.

Most people in Europe rent

Not true (nice graph). Europe has this thing called the "Multi-Generational Mortgage" (apparently those are catching on in North America, too). Sweden is interesting to me: according to a couple of sources, in March of 2016 they cut the maximum term of their mortgages to 105 years where the average was 140 years. Fun. I can imagine the look on my banker's face when I come in and ask for a 140 year mortgage next renewal.

The difference is in the lot value in the maritimes.

[Silverstarqueen]

No one has to use a real estate agent, so I don't know why the complaints about what they charge. Or a seller can use a 3% or one percent service if they want a cheaper service. Owner can sell the house him/her-self if that's how they'd rather do it.

[LANDM]

I remember what my house cost in the 80's and how much I was earning then. I know what our current house cost 8 years ago and believe me, my wages did not go up 5X, 6X or 10X to keep up with B.C. house prices.

Agent fees, transfer taxes are out of hand and no doubt with more being devised for our future..............YES, it is GREED!
Lets start with the root problem.........real estate agents should be paid hourly and of course start them at minimum wage and let them work up from there. In the Okanagan, their top wage should be $20.00 per hour (an amazing wage in the Okanagan if they are lucky). How much time do you think ANY of them put into selling YOUR house? NOT MUCH! No matter what they tell you about "all the time I put into your house", rest assured they cannot back it up other than the actual time spent showing the house and time writing up offers along with a few hours (being generous here) yapping on the phone while no doubt driving.

Complain about lawyers and car sales people all you want, the most overpaid scum of the earth are real estate agents. In all my years and the houses I have sold I have given a real estate agent an opportunity to list my property and EVERY single time they could not help themselves from trying to me over. They all lie and brag to get you to sign with them and then the effort stops. Within a month they will make the effort to let you know your asking price is too high (in most cases set on their expert advice).

Time to be greedy like so many and think of myself only.............I need interest rates to go up a lot and along with that mortgage rates go up ONLY 2 points overnight.........let the cleansing start in B.C.

You do realize that dealing with those "scum of the earth" isn’t mandatory, don’t you? It is entirely optional and it’s entirely possible to sell your home on your own.
Did your parents beat you with a real estate agent when you were little?

As for the greed thing, as others have suggested, you could be the non-greedy seller and sell for below market value so that someone else can get a super cheap deal. That is entirely possible also.......why the anger?

[lesliepaul]

LANDM................I have used agents as mentioned. All of them had a connection to me in some fashion........mostly through lot purchases where they made money from me numerous times over. Not one of them cut me a break on a house sale or went remotely (commissions) out of their way to make the deal happen. The end result was that every house I sold ended up a private sale and they got NOTHING! I was always open to them making money from me but they opted to make the maximum EVERY time even though the purchasing party did not bring an agent to the table.

The day comes when I decide to sell I will be looking at an agent that DOES NOT WORK AS A TEAM...........individual agents only. The excuse "I was busy so I had to have my partner show it" will never happen again.

[generalposter]

LANDM................I have used agents as mentioned. All of them had a connection to me in some fashion........mostly through lot purchases where they made money from me numerous times over. Not one of them cut me a break on a house sale or went remotely (commissions) out of their way to make the deal happen. The end result was that every house I sold ended up a private sale and they got NOTHING! I was always open to them making money from me but they opted to make the maximum EVERY time even though the purchasing party did not bring an agent to the table.

The day comes when I decide to sell I will be looking at an agent that DOES NOT WORK AS A TEAM...........individual agents only. The excuse "I was busy so I had to have my partner show it" will never happen again.

This is good commenting. The only thing better would be no agent at all.

[jimmy4321]

Buy & Sell private and hire a good lawyer your gonna need a lawyer anyway, that's ALL you need especially now when supply is limited.
If ever *bleep* hits the fan, a lawyer is what you'll need, the realtor can't do a thing.
Been there , done that

[LANDM]

LANDM................I have used agents as mentioned. All of them had a connection to me in some fashion........mostly through lot purchases where they made money from me numerous times over. Not one of them cut me a break on a house sale or went remotely (commissions) out of their way to make the deal happen. The end result was that every house I sold ended up a private sale and they got NOTHING! I was always open to them making money from me but they opted to make the maximum EVERY time even though the purchasing party did not bring an agent to the table.

The day comes when I decide to sell I will be looking at an agent that DOES NOT WORK AS A TEAM...........individual agents only. The excuse "I was busy so I had to have my partner show it" will never happen again.

The cool thing about it is that you both (you and the "scum of the earth") made their decisions based on full knowledge of the situation.......did you ever consider that they made their decision willingly and not based on "greed"? I have a funny feeling that you aren’t as transparent with your "connections" as you think you are and they were very happy with their decision.
Couple that with you being happy with your decision and isn’t that the best possible solution for all parties?

Still not sure where your anger is coming from? Win win for all from the sounds of it!