Look Who it Was Random video

The Long Game With Land Lots | The Big Story | Real Vision™

3,308 views · Published 3 April 2018 · 3:26 · Indexed 21 October 2026

Channel: Real Vision Presents · 2018 · News & Politics

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A decade after the last crisis, is another housing bubble brewing in North America? Los Angeles-based real estate investor Nick Halaris travels to two of the continent’s hottest markets – Vancouver and Seattle – to find out. By speaking to many different types of people at the center of those markets, Nick develops a 360-degree view of both cities. This allows him to draw his conclusion –and to leave viewers with an even more important question. 

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The Long Game With Land Lots | The Big Story | Real Vision™
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Transcript: 
Yeah, so I wanted to bring you here, because it's basically like the east side of Vancouver. It's more on the outskirts. It almost borders Burnaby, which is like the adjacent city, and it's basically very family oriented.
You get a lot of renters. Like, none of these houses are going to
be like vacant. So this is more like what you typically find for people that are just here working hard and trying to afford a single family home.  I see, and what would something like this sell for in today's market? They have this one listed at like $1.3 million. So it's like, it's a smaller lot.  Yeah, what are the stats on this one? Like how big is it? Yeah, it's a 3,500 square foot lot. This one's kind of unique, because the house is only 650 square feet, but it's like a three bedroom. So I don't really know how to make that work, but basically I think what's going to happen is someone will come in here, they'll buy it, and then they'll plan to tear down and build something new. But basically, the way I look at it is like the lot value for something like this is really about $1.1 million.
And again, it's on the outskirts of Vancouver. Like, we have a very noisy busy highway behind us. And is this common to see a property of this size and scale in this neighborhood selling for over a million dollars as a teardown?Yeah, this is completely normal. The typical teardown around here is like $1.1, $1.2 million, because this is a little bit smaller, a lot closer to that busy highway. I see it around $1.1. I see, and what's in it for the group or the individual buying this and doing the teardown development? Are they going to make money on the transaction? Are they going to be able to build something and flip it? Are they going to live in it? What is the most likely thing to happen here? I don't see it as like a speculative class. I see this more as like a family looking to set its roots and live here for the next 5, 8, 10 years and really raise a family. Because this is one of those more affordable areas, where if you're trying to buy a single family home, this is where you're going to get your feet into the market, so to speak. And what about the house? Let's say you were able to build a 2,500 square foot house here. What would that rent for? 
The full house? Yeah. You'd probably get, on the high side maybe, maybe $4,000, if it's a newer home. I see, and so if you looked at the mortgage cost, your estimate was what? It was going to be worth roughly 1.5, 1.6 if it was finished? Yeah, I think by the time you buy the lot for around 1.1, throw a new
house on there, yeah, you're probably looking at least 1.5, 1.6. And so $4,000 a month is not going to cover the mortgage probably. No, definitely not. I see, and these all have basements and stuff on this neighborhood?Yeah, it's almost all basement suites, just again to support that mortgage. But as an investor, usually you're looking at it as like a long-term play, being like OK,  I'm probably going to lose money on this every single month. But the value of the land is going to keep going up, so that's where I'll make my money.

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