Dec 292016
 

The Most Expensive Home in Canada

If you’re in the market for the best property money can buy then look no further than Vancouver, B.C. Earlier this year the exclusive downtown penthouse in Coal Harbour went on the market for CDN $58,888,000, which makes it the priciest Canadian home to be listed on the MLS.

This custom designed, upscale penthouse features two full stories, and over 8,000 square feet of living space. It has a spectacular panoramic view of the ocean, mountains, Stanley Park, Lions Gate bridge, and English Bay. The drawback for most apartments is a lack of parking spaces. But you won’t have that problem here. This luxury pad comes with a private garage for 7 cars. 🙂

Luxury Living Near Central Park

What if you have lots of money and want to live on the east coast? Well not to be outdone, New York City has its own selection of ultra expensive homes for sale. A duplex penthouse on the top of the new One57 skyscraper in Manhattan sold last year to an anonymous buyer for US $100,500,000. Nope, it wasn’t me. 😛 At an incredible height of 1,000 feet (~300 m) tall, you can see just about everything from this penthouse. It has unparalleled views of Central Park, the Hudson and East Rivers, and nearly every New York landmark on the horizon. Wow. Imagine waking up to that view every morning. 😀

Located on the 89th and 90th floors, this 11,000 square feet apartment comes with a steam room, a library, a movie theatre, and 6 bedrooms including a rather large 550 square feet master suite. Not surprisingly, this sky high apartment also comes with sky high expenses. The estimated maintenance cost is around $18,000 per month, which actually isn’t bad considering the apartment’s value, eh?

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Aug 172014
 

Some experts say the North American real estate market is starting to become overvalued again. In today’s post we’ll compare property prices to rents and explore whether or not overheated markets like Vancouver are headed for a hard landing. 🙂

Rent vs Buy

Let’s take two fictitious singles, Alice and Barry, who are both from Vancouver and work for B.C. Hydro, a utility company. They each have $20,000 in savings and they both want to move closer to work. Alice plans to rent while Barry plans to buy.

Alice manages to find a suitable apartment that’s located very close to her job. It only takes her 5 minute to walk to work. 😀 She decides to invest her $20,000 of savings into the stock market.

  • Alice’s Apartment:
  • Location: 7418 Byrnepark Walk, Burnaby B.C.
  • Size: 800 sq ft.
  • 2 beds, 2 baths.
  • Rent: $1,600 a month.

Here is the actual listing on Craigslist I found. The move-in date is not until Sept 1st, 2014. So this is a real life housing situation that could happen to someone in Vancouver right now. Click on image to biggify.

14-08-rental-unit Rent vs Buy

 

Meanwhile, Barry also finds a place to buy, coincidentally in the exact same building as Alice, and also has the same number of bedrooms and bathrooms.

  • Barry’s Apartment:
  • Listed Price: $369,000
  • Location: 7418 Byrnepark Walk, Burnaby B.C.
  • Size: 792 sq ft.
  • 2 beds, 2 baths.

Here is the direct link to the actual listing on realtor.ca.I’ve taken a screenshot as well in case the listing is removed in the future.

 

14-08-purchase-unit Rent vs Buy

Barry decides to spend his savings on the down payment and get a mortgage for the remaining $350,000 balance. I’m currently paying 2.6% on my mortgage so let’s keep it simple and give Barry the same rate. Using a mortgage calculator we find that Barry’s mortgage payment amortized over 25 years is $1,585 per month. That’s almost the same as what Alice is paying for rent. 🙂

This is why a typical condo in Greater Vancouver costs $369,000. It HAS to cost this much in order to stay competitive with rental rates. Condo prices aren’t falling because lower prices would lead to lower mortgage payments, and it’s simply not rational for people to rent a place when it costs a lot less to easily own another (almost identical) unit in the same building.

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