Friday Free-for-all! July 22nd 2016

It’s the end of another work-week and that means it’s time for another Friday free-for-all!

This is our regular end of the week news roundup and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:

CIBC goes negative on bond yield
Lower mainlands wide open areas
CMHC: Low risk in TO condos
More helicopter money?
Four reasons prices keep soaring

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

CRA plans increased ‘lifestyle audits’ in Vancouver

The CRA suspects some people in Vancouver might not be paying tax on all world-wide income and are going to be taking an extra hard look at big spenders who aren’t big tax-payers.

Over at the Globe and Mail Christine Duhaime a lawyer who focuses on financial crimes explains how it works:

“They all follow what we call the same typology. … They all want an expensive Lamborghini or a Ferrari, they want a really expensive house, they send their kids to the most expensive private schools they can get in Vancouver,” she said. “So when you try to find money launderers, that’s what you look for. Who went to the Ferrari shop? And that’s what they mean by the ‘lifestyle audit.’”

Ms. Duhaime said while many people think of money laundering as something done by drug dealers, in fact the activity is more often associated with white-collar crime and usually involves tax evasion.

Will going after tax cheats have any effect on the overinflated housing market in Vancouver?  Read the original article here.

Friday Free-for-all! July 15th 2016

It’s the end of another week and that means it’s time for another friday free-for-all!

This is our regular end of the week news round up and open topic discussion thread, here are a few recent links to kick off the chat:

Only Toronto and Vancouver?
Rates stay steady
CRA crackdown on RE
Pauls stats

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Is the end of the bubble near?

The latest spurt of ‘bubble is bursting‘ news is showing up in the local media.

Despite ever increasing sales prices, we’re also seeing a dropping sales to listing ratio month after month.

UBC’s Tom Davidoff, an associate professor at the Sauder School of Business and a real estate analyst, says the first signs of a bubble bursting might be sales volume slowing down and inventory rising. A rising rental vacancy rate could also be indicative of the market slowing down as well as lenders becoming more cautious about issuing and underwriting mortgages.

In the last few months, all of these red flags have been appearing in the Vancouver market, aside from a growing rental vacancy rate.

At the end of May, the CEO of Scotiabank, Brian Porter, said they were “a little concerned” with housing prices in Vancouver and had been easing off their mortgage lending business because of too much risk.

Read the full article over at Global News.