Here is a mini preview of a new report showing flips gone bad – this is not a complete list, just a small sample from East Vancouver which was supposed to have done relatively well this past year.
Transaction costs are determined by taking PTT of 1% of first $100K and 2% of remainder for purchase price, realtor fees of 8.4% of first 100K and 2.8% of remainder for selling price (these are standard rates after HST is charged on commission) plus $4000 flat rate for all other fees on the 2 transactions
Address:3250 E 50TH AV, Killarney, Vancouver East
| March 09 |
V932047 |
$948,000 |
$0 |
0% |
| May 01 |
V932047 |
removed |
|
|
| June 08 |
V955363 |
$889,800 |
$-58,200 |
-6% |
| Open House: Jun 10 |
| Open House: Jun 17 |
Assessment: $846,600
Last Sale: $930,000 on 18/Jul/2011
Net Loss IF sold for asking price = $52,114 in transactional costs + $40,200 in loss = $92,314 loss
Prime Killarney location near Killarney High School & community centre & transit, solid clean house with 4 bedrooms & 2 full bathrooms. Large master bedroom. Excellent to move in or investment property in Killarney area with over 4400 SF lot or to build approx 3080 SF house. Open House, Sun, June 17th, 2-4PM. Priced to sell. Please come & try offer!
Address:3214 E 45TH AV, Killarney, Vancouver East
| June 11 |
V955799 |
$1,328,800 |
$0 |
0% |
| Open House: Jun 17 |
| Open House: Jul 08 |
Assessment: $1,299,000
Last Sale: $1,275,000 on 17/May/2011
Net Loss IF sold for asking price = $71,306 in transactional costs + $53,000 profit = $18,306 loss
Must see this lovely 5 year new 2 level home on large 52 X 119 lot in prime Killarney! This spacious 8 bedroom and 4 bathroom home features new appliances, fully fenced entertainment sized private yard with patio, granite and hardwood floors throughout, granite countertops in kitchen & bathroom, alarm system , cozy gas fireplace, bright skylights, 2 fully finished ground level suites and just steps to bus, schools & shopping!
Address:# 103 1516 CHARLES ST, Grandview, Vancouver East
| September 02 |
V969030 |
$335,000 |
$0 |
0% |
| Open House: Sep 08 |
| Open House: Sep 09 |
| Open House: Sep 15 |
| Open House: Sep 16 |
Assessment: $294,500
Last Sale: $329,000 on 11/Apr/2011
Net Loss IF sold for asking price = $24,560 in transactional costs + $6,000 profit = $18,560 loss
A Gardener’s Delight! Huge outdoor deck area with this large1 bedroom corner unit at one of Commercial Drive’s best buildings “Garden Terrace”. Nicely updated kitchen, bathroom & laminate flooring throughout. Very well laid out with a large bedroom, separate dining area off the galley style kitchen & an oversized living room featuring a cozy gas fireplace. Sliding glass doors onto your own very private, South facing urban oasis. The perfect place for summer entertaining! Great building with newer roof, updated plumbing & exterior paint. Rentals allowed & very pet friendly! Proactive strata council & nice community feel to the building. Just 1 1/2 blocks to the heart of “the Drive”. Open house Sat/Sun, Sept. 8th/9th 1-3pm.
Address:# 302 2133 DUNDAS ST, Hastings, Vancouver East
| May 05 |
V947899 |
$238,000 |
$0 |
0% |
| May 17 |
V947899 |
$229,900 |
$-8,100 |
-3% |
| Open House: May 19 |
| June 28 |
V947899 |
$224,900 |
$-13,100 |
-6% |
| Open House: Jul 29 |
| Open House: Aug 18 |
| Open House: Aug 26 |
Assessment: $247,000
Last Sale: $215,000 on 16/Feb/2011
Net Loss IF sold for asking price = $19,197 in transactional costs + $9,900 in profit = $9,297 loss
Open House August 18, from 3:30pm-5pm.
Vancouver Price Drop 
Great work as usual! Including a % loss figure would have been nice too.
Isn’t 1,328,800 – 1,275,000 = 53,000?
Wouldn’t it be 71,306 – 53,000 = 18,306 loss?
Yeah, thanks for pointing that out
That’s a big, unlikely IF for all of them. Add in the fact that the govt may now seriously start looking at flippers falsely claiming their flips as personal residences and the losses could become serious.
Well these people will have little to worry about even with the government clamping down on things because you only get taxed on profit!
What’s considered a flip? Anything purchased in any month of 2011? Any manual components of this report? If not, maybe let it run for every home you have data for — and post the self-updating report weekly on your website for all homes… it would be the biggest hit of the century, probably crash your server, as you help home flippers everywhere understand their real costs.
I’ll probably rename it and remove the word flip. I suspect some will be flips, some will be builders / owners planning to build who instead try to get out or people who realize they can’t afford the place they bought.
Unfortunately a lot of this is manual but still should make for some interesting results
I would define a flip as any home that was re-listed within 12 months of purchase, thereby making it a taxable transaction?