Sunday, August 05, 2007

deal of the week

In desperation (of new material), and anticipation of what is to come, I am starting a new series - Deal of the Week.

# 106 1429 E 4TH AV,
Grandview, Vancouver East,

I don't know that this place is such a smoking deal, but hey! a quarter of a million will actually buy one somewhere to lay one's head in Vancouver.

The building is 25 years old, and the blurb claims The exterior of this well managed building was redone in 2001 and planned re-piping has been paid for by the sellers. That's encouraging. Isn't it? I just wonder how the exterior was redone. 100 gallons of epoxy paint? New vinyl siding? Proper rain-screen protection? A new wisteria and some gladiolus in the garden.

Nice to know that the piping is planned for provision - and paid for. Too bad you will move into a six month construction project that will see your walls and ceilings torn apart. Maybe the odd asbestos particle floating about too. (Actually, asbestos was not still used in 1982, but it makes it a more scintillating essay...)

The place is a "garden suite" (read dark and gloomy), and boasts 625 massive square feet, with a 110 sq. ft. patio. Fuggetabout The "W", you can live Off-The-Drive for only $416 per square foot! (plus interest, and $196.94/month maintenance).

For those off you who are calculation challenged (or didn't see the handy mortgage calculation button), and have a $26 G down payment burning a hole in your pocket, the Bottom Line is;

% Down Payment 10 %
Mortgage TERM : 5 Yr
Down Payment $ 26,000
First Mortgage Amount $ 234,000
Insurance Fee ( 2 % of mortgage ) $ 4,680
Total Mortgage Amount $ 238,680
Monthly Mortgage Payment $ 1,561
Monthly Property Taxes $ 61
Monthly Condo Fees $ 197
Monthly Heating Costs $ 0
TOTAL Monthly Payment $ 1,819
Household Income Required $ 64,530

Now we're talking fundamentals! The median family can almost afford this place!

Stay tuned, I have a feeling that this might become an ongoing feature here. Don't laugh. I had a dream last night.

Disclaimer - David Campbell seems to me to be a decent realtor. I have worked with his close associate - Sean Holden - and was impressed with his integrity. This is not a paid plug.


Gianni33 said...

you looking for a deal? how about MLS®: V642189, it's a 661 sqft "townhouse" on west 7th ave. "Building partially rain screened, mostly new patios. Some work already completed, copy of guarantee, engineering repo rt, and all strata info available by email."

I'm assuming the assessment is at least $150k for it to be discounted that heavily.

Dave said...

I am suprised that more people aren't talking about round two of the leaky condo's, it was the headliner on BCTV news on friday(I think). It was about how the concrete hi-rises that were built in the last 5 years are starting to leak. Due to being concrete they took longer to show. Anyone else see it?

mk-kids said...

I sold my gastown loft in 2003, it was 5 years old and my realtor said it was probably a good time to sell, he expected buildings like mine would start to show leak problems over the next 5 or so years and concrete is much more expensive to fix than woodframe. I am interested to see if his assessment is accurate...

Patiently Waiting said...

Most Vancouver RE prices are double what they should be. But these leaky condos? They are double-double.

I'd be reluctant to even pay 65K for the "deal of the week" since I have asthma. I probably couldn't even live in it.

The only way I'd buy it is as a cash-flow rental, which means making allowances for assessments etc. But than again, how could I rent out a leaky condo in good conscience and "rents are at max."

Anonymous said...

I saw the BCTV news report about leaky concrete condos, but I don't remember them saying anything about condos that were built in the past 5 years being the problem.

solipsist said...

Gianni33 said...
you looking for a deal?

Not yet. Once thigs are discounted 40% - 50% from present, I will be. That day will come.

Dave said...
I am suprised that more people aren't talking about round two of the leaky condo's

That's because it's different this time... Or so I've heard.

I will be going on a rant about construction quality any day now. Replete with photo's!

mk-kids said...
I sold my gastown loft in 2003

I wonder if your realtor would have warned any prospective purchasers of that possibility.

Me? I'm not interested in anything built post 1986, or so. There is just too much junk out there.

This boom has invited shoddy construction, and it is out there in spades (IMHO).

patiently waiting - double-double, no toil, much trouble. Or something. I liked that double-double comment.

There's always time for Tim Hortons crappy coffee.

anon - I think that those built in the last five years are likely ticking time-bombs. Get out now - before they start to leak!

Patiently Waiting said...

"Me? I'm not interested in anything built post 1986, or so. There is just too much junk out there."

But weren't the original leaky condos built in the early 80s?

As for 1970s condos, those buildings probably have a 50 year lifespan. Imagine getting a 20 year (amortization) mortgage on a building that should be torn down in 15 years.

I'm starting to come to the terms with the possibility that I'll never buy as long as I live in Vancouver.

solipsist said...

patiently waiting - I was actually thinking of SFH. I have -912% interest in CONdo living.

I'm with you on a 40 year amortization (isn't that what is being pushed these days?) on a property with a 15 year remaining lifespan though. That is a very, very good point.


M- said...

Don't assume any condo -- no matter how old -- is necessarily immune from moisture ingress.

I recently looked over a half-dozen apartment buildings for a relative. They were mostly early-70's to mid-80's, including three Landmark Arms buildings.

All but one had had remedial repairs at some point in their life. Two of the three Landmark buildings also had been leakers, in multiple walls.

I was just doing cursory once-overs to see if it was worth giving those buildings a further look before my relative hired a building inspector. In one case, there was evidence that a replaced wall had since been leaking...

Condos are a potential risk! Be careful what you offer on!

If anybody's interested, I've probably still got the photos of what I saw. I can post them on Langley Financial Planning if anyone's interested...

Anonymous said...

That's an outlandish price to pay for a one bed/one bath; that turns out to be a leaker.

A quarter millions bucks for an aging rabbit hutch?

I dunno, I must be missing something important here :(

solipsist said...

m- let's see the pic's!

patriotz said...

But weren't the original leaky condos built in the early 80s?

Well there might have been a few, but remember the market tanked in 1981 - with many condo projects literally abandoned midway through - and condo construction really didn't recover until the late 1980's.

It was this wave of construction that started leaking en masse in the early 1990's.

As for me I'd rather stick with properties built before the 1980 boom, before we started the crazy boom and bust cycles that have continued almost unabated for a generation. Steady supply of housing means better quality.

William's Real Estate Blog said...

Not all concrete Hi Rise condo leaks.

Case in point, I have owned a unit at Discovery Place in the government road area for almost 14 years, the building itself is 25 years old, and not once have I heard or made aware that the building itself leaks.

I figure if it were to leak, it would have happened by now.

mk-kids said...

Hey William's - thank you soooo much for your insightful analysis. No really.

mk-kids said...

Soli, I'm sure my realtor WOULD NOT have shared his assessment of the leak potential for my condo with a potential buyer... he's a REALTOR (tm) after all.

Anon, a little math: I owned the condo for a little more than 5 years and now it's been 4 years since I sold so the building is about 10 years old. I didn't see the BCTV report though, were 10 year old buildings the problem? What timeframe were they talking about for concrete?

Ulsterman said...

for the record i looked at one bedrooms on that block of East 4th in 2001-2 and they were selling for 93k for a 2nd floor apartment. 260k? Crazy.

Anonymous said...

258 East 3rd Street, North Vancouver BC, CANADA

Has Leaky Condo Syndrome
Engineering Report Verified

Currently Unit B is for sale, cover up's have been done on the building, there is no Strata Minutes nor are they charging Monthly Dues.

Estimated Cost for repair is $150'000 for this Stucco building, No Overhang and and a Flat Roof.

Has been on the market 30 days privately and for over 60 days through a realtor. (August 2007)

Asking price was $549,000, dropped to $529,000 in July. Value at time of inspection, July 2007 would be approximately $440,000.

258 East 3rd Street, North Vancouver BC, CANADA
Leaky Condo