1/ I think it’s important to distinguish between speculators and renovators/flippers, and their effect on the #Vancouver real estate market and prices. #vanre
2/ “Wealthy speculators” horde properties/land. They aren’t as concerned about holding costs and will purchase, allow the property to sit vacant (without adding value to it), and sell for a higher price down the road. Occasionally, they’ll re-develop. #vanre
3/ Renovators/flippers, on the other hand, purchase properties that require significant work that the average home buyer wants nothing to do with. Even if they did, the ability to finance the scope of renovations is next to impossible if you’re not cash heavy. #vanre
4/ While speculators are removing product from the market and thus contributing to higher prices, renovators/flippers are taking virtually uninhabitable product and adding it back into the market, increasing supply or at the very least, maintaining it. #vanre
5/ I assessed a project on behalf of my client last month. The home was barely livable, and the plan was to fix it up, add a mortgage helper suite, and put it back on the market within the year. Would have made for 1 additional housing unit. Expected profit margin? 15%. #vanre
6/ There are many ways you can make a 15% return (or close to) with the current state of the economy - index funds, REITs, etc. and take on less risk. To think renovators/flippers are making crazy bank is ill-informed. #vanre
7/ Speculators, on the other hand, are making significant profits without having to re-invest or add value to the real estate. So when a party wants to target “wealthy speculators” by actually targeting the renovators, this is mis-directed. #vanre
8/ Just a final note on this, I’ve used renovators and flippers interchangeably in this thread (as the party has). There is however a further distinction to be made between them, but I’ll save that for another night. ;) #vanre
• • •
Missing some Tweet in this thread? You can try to
force a refresh
