Additional reason why values are climbing?

It's not just ferraris... I love Porsches, but come on...$518,000? A beautiful car for maybe 1/3 or 1/4 that. And I'm sure the salesmen tells the client who will soon part with his money it is a sure fire bet this will be a $1,000,000 car in a year or so... It's going to be an ugly end when the bubble pops!

Porsche 911 Turbo Coupe 2 Door | eBay

 

Well it is green....

 

the modern day tulips are a function of absorption, while the low volume Enzo years should be protected from major price fluctuations, the current era of high volume production of cars cannot be all absorbed, there are too many of them vs the number of buyers with the resources to hoard several cars at a time... as saturation levels are met, the new crop of production will begin to be treated more like a used car in the marketplace, albeit a high priced marketplace... basic supply and demand... allowing for significant depreciation to levels where almost Joe lunchbucket is enticed into considering a Ferrari... to preserve future value or limit depreciation Ferrari is creating special editions
by separating normal production from something more special... it may be a good thing for the true collector with patience, as the now exotic unobtainable cars may reach affordable levels

 

Beyond ridiculous.

There's no way a 993TT is worth more than a 365 GTB/4 was worth three years ago.

 

Lol, wow!!

Absolutely crazy!

 

There is way more wealth in the world so luxury items will keep climbing higher. I live in Vancouver, Canada and I can remember when everyone knew who owned a Ferrari in the city. Nowadays they are almost as common as a Toyota Camry. We have the mega rich Chinese that buy everything in site and they are big buyers of Ferrari's especially for their High School aged kids.

 

Sounds similar to the mega rich Japanese who emerged in the 80s and then bought up tons of US real estate (and many of the fast cars too, as you may recall).

Interesting point is that Japan had a much more developed government system in place, much less social tension, and greater transparency of wealth.

China has seen tremendous "wealth" volatility in recent years and their real estate investments (as "investments") have been very questionable, including Vancouver.

If we want to talk bubbles that are going to burst badly, Vancouver RE is high on that list. Then again, it has already deflated pretty badly in relative terms over the past 12 months... FX

 

Deflated pretty badly in relative terms over the past 12 months? Are you kidding me? Vancouver real state is still going off the rails. In fact there was a news story about it last night where one property received over 30 offers and sold for more than $200K over the asking price. The story was mainly about how so many houses are bought for over a million dollars just to be torn down to build a new one.

 

Am I kidding you?

FX rate. I mentioned at the very end of my sentence. The CAD has dropped like a rock. The value of the houses are a third what they used to be just a year ago. If you want to get technical, you can start looking at it against a basket of global currencies but no matter how you slice, huge impact.

 

Ferrari's and high school kids. What a toxic combination!

 

Yeah a friend of my folks let me take his Tr out for an hour when I was 21, kids have very little mechanical sympathy, appreciation of the skills needed or fear. Still that was one fun day, permenantly etched in my mind to this day.

Did you know that even with its weak diff a Tr can do a 90 degree peelout from a stop sign just like magnum Pi, at least once anyway, and that aero drag really sets in around 155.

Danger Will rogers Danger.

 

Why are Chinese buying these properties (and F-the globe and mail being so PC, its foreign money)? They want investment overseas.

Canadians have sold out their own country. It's sad. They need to 1) tax property that isn't owner occupied, yes send people to check who lives in them at 10% the assessed value per year. 2) Report all foreign buyers names to the country of their nationality and the purchase price for tax compliance and anti-fraud 3) Don't sell to a chinese buyer!

It's going to hit one of these days and its going to be ugly. Look what the Australians did. Copy that. Fortunately the only ones who loose big are the foreign buyers.

 

In the longer-term, yes the foreign buyers are the ones losing.

In the near term, the people living there at their current (very ordinary) wage rates suffer by being priced out of the market. Then again, I believe condo prices there are still more "reasonable" but even then, they suffer from being pulled up by the rest of the market (and will be pulled down too).

NYC has some similar characteristics. The difference is that A) here the income in Manhattan proper is either very high, or the people have family assets already behind them and B) the foreign buyers have typically invested for the longer-haul. Manhattan is in fact a global destination city and priced accordingly. Vancouver I'm afraid (and no offense to anyone from there) is not even near being in the same category.

Obviously there have been historical exceptions, and there are serious problems here too, but not nearly to the extent that Vancouver is suffering through.