I have been reading a lot of older blog posts from non-realtor Vancouverites over the past month. A lot of their posts from 2010 and earlier all have the same theme. They post a current property listed on MLS at the time, and talk about how the buyer has overpaid for it and never be able to recoup their investment. I decided to take a look at 5 detached properties sold in 2008 range (5 years ago) which have been resold since (in the same cosmetic condition) to see what has happened. Please note these are the first 5 I came across in my search (I didn’t hand pick them) and they are all houses, attached (condo properties) are a totally different market, due to the serious lack of dirt (land) we have in the city of Vancouver.
I searched for properties within the circle
Sold in 2013
$1,200,000 – $2,800,000
Resulted in 631 Sold houses in 2013
When you add in PPT (property transfer tax) 1% of the 1st $200,000 + 2% of the balance on the 2008 purchase and commissions on the sale in 2013 of 7% of the 1st $100,000 + 2.5% of the balance, you will get the real profit.
3948 W 21ST AV, V6S 1H6 (SOLD MAY 2008, $2,070,000) (SOLD APRIL 2013, $2,208,000) + $138,000 before costs
3903 W 24TH AV, V6S 1M1 (SOLD JUNE 2007, $1,900,000) (SOLD JULY 2013, $2,390,000) + $490,000 before costs
2896 W 38TH AV, V6N 2W9 (SOLD MAY 2008, $1,850,000) (SOLD JULY 2013, $2,043,000) + $193,000 before costs
1726 W 35TH AV, V6M 1H3 (SOLD SEPTEMBER 2009, $1,690,000) (SOLD FEBRUARY 2013, $2,328,000) + $638,000 before costs
2828 W 18TH AV, V6L 1B6 (SOLD JUNE 2009, $1,400,000) (SOLD FEBRUARY 2013, $2,130,000) + $730,000 before costs