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Hear Hot Property with Ozzie Jurock every Saturday morning between 8:30-10 am on CKNW AM980
Tip of the Week:
9/1/07
Vancouver In The Top Ten In The World?
Just having won the title of most livable city by the ECONOMIST (to the chagrin of Toronto), FORBES magazine rated us in the top ten of the most overpriced real-estate markets. In fact, the 6th most overpriced market.
Monaco was found to be No.1, with Rome, Paris, Madrid, Los Angeles, Vancouver, Auckland, Zurich and Oslo following up the rest.
50 financial capitals in every continent were studied as well as financial centres in major countries (US, Canada, Switzerland etc.)
FORBES used a formula (unique to itself) to arrive at this conclusion. The formula was derived from rental income cash flow and annualized returns and even allowed for operating costs, maintenance, appreciation and inflation. I would love to see where exactly those numbers came from. The valuations were based on data from GlobalPropertyGuide.com, an international real-estate research firm. For each market, it assumed no debt financing, a constant cost of capital, a 10-year hold of the property and a non-primary residence.
Major Point: Fine formula ... if you understood it ... or if anyone could understand it, but why does it make us the most overpriced? In any case, Vancouver is in very fine company as Rome, Paris, Madrid and Zurich have had the most powerful real estate market histories for 50 years. It speaks of desirability of ownership in special places.
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