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I found it odd that the rent vs property prices to be drastically different. Rent in Vancouver was really cheap compared to value of the property.
by antoniuschan99 11y ago
I found it odd that the rent vs property prices to be drastically different. Rent in Vancouver was really cheap compared to value of the property.
- gmarx 11y agolong term the only use for residential property is for people to live in it. Short term it may be seen as a safe place to park money you are sneaking offshore of a regime you don't trust. Of course people have to live in Vancouver and SF and NYC because that's where all the other top people live...until they don't
- freeone3000 11y agoProperty is the investment. Renting is the hedge - the property owners never plan to live there, they'll make their money from reselling a few years after. Any rental income is simply gravy.
- justinhj 11y agoRent is much more closely tied to median income than purchase prices. I live in Vancouver and people I know who own homes are either older people that got into the market when it was affordable, or younger couples where both have jobs and pay a significant amount of their salary to mortgage interest. Usually they were only able to buy because their parents are sitting on hundreds of thousands of equity in their homes and lend them a deposit. People buying here are doing so because they feel like the prices will just continue rising, so they sacrifice a lot now rather than a lot more later. On the other hand renting feels like dead money so people won't stretch as much.