Wednesday, November 15, 2006

calculations



So, I was trying to extrapolate future trends in Vancouver (un)real estate as we move forward to 2010 - the Big Party year for Vancouver.

It has been said that the median price for an SFH will be $1 million by then. So I crunched the numbers, and they made me think that this is the best time to buy!

Messrs Valouche, Muir, et al have been quite conservative in their forecasts. When I punched the numbers into my trusty calculator I came up with Error: Positive Infinity (see screen shot above).

Where did I go wrong?

3 comments:

first_time_buyer said...

"Where did I go wrong?"

Thats the question Muir et al must be asking each other. Where did they go wrong? So, wont be surprised if you see that number in their next press release. Source of data: trusty calculator. LOL

downtownguy said...

I don't need your rusty calculator.

If people are going to throw numbers around, a useful one to know is 72. Take 72 and the rate of appreciation you expect and divide. that is the number of years until your investment doubles in value. Alternatively, take 72 and the number of years you want your investment to double and that is the rate of appreciation you will need.

In 2004 when everybody was talking about their 24% appreciation rates, that means that house prices would double in three years. By 2010 they would double again. So your terrible little 400 square foot condo in yaletown that was worth $250,000 in 2004 will be worth $1,000,000 by the time the Olympics roll around.

Simple. Everyone is rich. Why work. Just flip.

solipsist said...

Thanks for posting, and making me laugh folks.

downtown, I think that the problem may have been that my trusty calculator was indeed, rusty. This rain has infiltrated my computer, and rusted my calculator!

Maybe first time can pass that way-out on to the usual suspects? Maybe you will win one of those condos for your marketing skills!