Vancouver's crazy expensive. But you already knew that
Old news but Forbes named Vancouver the 6th most expensive real estate in the world on a P/E (price to earnings ratio) of 26 and change (basically it means if you own 26 dollars worth of Vancity real estate, you can expect to earn one dollar a year). Their commentary was particularly interesting though "Vancouver has one of the lowest rental yield rates of any city measured, at 3.19%, despite high prices. Across Canada, despite the same tax system, the effective annualized return rate resulted in a much better P/E of 16.31. Owners need to be aware that such a large spread keeps the rental market strong and the market for sellers more stagnant. The pool of buyers remains relatively small as renters can get the same property at significantly less cost and invest the difference."I've been saying that renters don't "throw their money away" for a while now because it is soooo much cheaper to rent nowadays. This simply confirms it, however, with our rents so cheap, I would think that they will go up fairly soon unless we get flooded with extraneous real estate. Most of my Yaletown friends get whacked with a 4% increase every year and I don't see that slowing down any time soon.
posted by myShoebox @ 9:57 PM
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