The real estate deals where money could not buy happiness

THEY say a man’s home is his castle.

Tear-jerking scripts have been written about the David and Goliath struggle between the humble homeowner and big business, but the classic tale behind films like The Castle and Up really do happen.

Known as “nail houses” after a Chinese expression that translates as “stubborn nails” the term was coined by developers in China who consider holdout homeowners as nails which can neither be pounded down into the wood, or removed.

Fifteen years ago Norman and Janet Richards refused to give up their three-bedroom home when developers came knocking — even when they got out their fat cheque books.

But now after the passing of Mr Richards, and Mrs Richards’ move into a retirement home, 42 Mollison St will finally be sold to the highest bidder on November 18.

In 2000 the work began, but the Richards stayed put. Picture: Hanson Jamie

Australia’s own ‘Up’ house was put on the market last month and has since attracted a lot of attention according to selling agent Chris Kazonis of Drakos Real Estate.

“The interest has been interesting,” he told news.com.au, adding that everyone from homeowners to developers and restaurateurs have been calling.

“But people are pretty coy about just how much they’ll be willing to pay for it,” he said.

Mr Kazonis said there is nothing else quiet like it in the neighbourhood so it is difficult to price.

“We just don’t have any direct comprables,” he said.

According to RP Data Core Logic figures, the median sale price for a house in South Brisbane is $1 million.

The humble home is sandwiched between a shopping complex, which houses a Coles supermarket and 25 speciality shops on one side, unit blocks on the other and parking underground.

St Leonards, Sydney

For decades St Leonards on Sydney’s North Shore has been a pot pourri of apartment blocks and office towers, but one pint-sized property stood out from the developed crowd.

Sitting on a tiny 223sq m block, 19 Chandos St was the home of a family-run jewellery business John Clarke & Son for more than 75 years.

When the owner decided to wind up the business earlier this year, the single-storey residence was listed on the market with price expectations of about $3.5 million. It was bought by the family back in 1960 for 3000 pounds.

The unique property failed to sell under the hammer after in June, but has since been sold for an undisclosed sum.

 

This Content was originally posted on: Kirsten Craze

Study suggests overseas buyers impacting Vancouver real estate market

A new study supports the notion that overseas investors are squeezing locals out of Vancouver’s red-hot housing market.

The study, conducted by Andy Yan of Bing Thom Architects, found that on paper, more students than doctors are buying real estate on Vancouver’s pricey west side.

“Perhaps these students have access to a certain amount of capital,” Yan said.

That capital may be coming from overseas, according to Yan’s study of 176 home sales over a six-month period. Two-thirds of those houses are believed to be bought up by Mainland Chinese.

READ MORE: Real estate is ‘overvalued’ across much of the country, CMHC warns

“It really reinforces for me the phenomenon of what’s called the ‘astronaut family,’ which is dad’s in China, mom and the kids are in Vancouver,” said David Eby, MLA for Vancouver-Point Grey. “They’re going to school in Vancouver and dad’s supporting the family.”

Critics question how low earners can afford some of the city’s most expensive real estate.

“It’s surprising to me to see so many students and homemakers driving this market,” Eby said.

Yan’s methods are not an exact science. He conducted a title search of the homes, looking for non-anglicized Chinese names in combination with job descriptions like homemaker, student and businessperson as indicators for foreign investment.

“Relying on people’s names as an indication of certain things can be a bit unreliable,” B.C. finance minister Mike de Jong said.


READ MORE: B.C. government promises to look at foreign investors avoiding transfer tax

Yan said some of his findings need to be addressed, including how banks are signing off mortgages to buyers in the lowest tax bracket.

“Eighty-two per cent of our study population was financed,” Yan said.

That may explain why Royal Bank of Canada dropped its lending cap for borrowers with no local credit history. When asked, RBC was unavailable for comment.

“If this is what’s driving our real estate market, we’re incredibly vulnerable to a shift in economic realities in China,” Eby said. “If that part of the market dries up, where’s the resiliency in the rest of the market?”

The province admits there needs to be more study, but stops there.

“They come here, they like what they see and they want to stay here,” de Jong said. “That’s all good news.”

 This Content was originally posted on: Global News