Comments on: Friday free-for-all

By: patriotz

patriotz — Tue, 03 Apr 2007 01:20:00 +0000

However you (or these people) are living here, creating housing demand, and yet complaining and wondering why anybody lives here.Nobody's wondering why anyone lives here - it's for the same reasons as anywhere else (jobs, etc.). What we are wondering about is why people are paying prices for housing that are way, way out of line with the economic yield of those assets. I don't see anyone wondering why people pay current market rents.

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By: Reknab

Reknab — Mon, 02 Apr 2007 17:22:00 +0000

Sure...Conventional lending is when the borrower puts down the traditional dpwn payment amount of 25% and the bank lends the balance, hence the loan would be at 75% LTV. Loan being the amount of mortgage and value the purchase price/appraised value.LTV's higher than 75% are considerded high ration and must be insured as per law (by cmhc/ge etc). Generally a rental property must be have LTV of 75% or less, and generally high ratio mortgages must be "owner occupied".This may may allow investors/specualtors to get into a rental/inv. property with less down than currently is required.

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By: Jesse

Jesse — Mon, 02 Apr 2007 17:14:00 +0000

LTV=The balance of the mortgage outstanding as a percentage of the home's price. Reknab can provide specifics on what is meant by "conventional lending."

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By: digi

digi — Mon, 02 Apr 2007 16:27:00 +0000

Reknab - what is LTV?

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By: Reknab

Reknab — Mon, 02 Apr 2007 16:19:00 +0000

I was told today that legislation could be in process that will raise conventional lending LTV from 75% to 80%.

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By: Warren

Warren — Mon, 02 Apr 2007 15:28:00 +0000

betamax:1. What is it about our clean water, relatively safe streets, social safety net, and rule of law that makes us a "backwater"?Nothing, because those criteria have nothing to do with how the term was used. When I hear "backwater", I think banjo playing, no sock wearing. If you mean "non-cosmopolitan", that's a fair comment in some ways, although for its size, I think Vancouver offers a pretty good lifestyle.They have all kinds of reasons for being here. My point is that our 'most livable city' ratings aren't necessarily one of them.Demand is still demand. I'm not saying Vancouver deserves its high "livable city" rating. The decision is so personal its not worth making.However you (or these people) are living here, creating housing demand, and yet complaining and wondering why anybody lives here. Can you see the sillyness of it?

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By: Jesse

Jesse — Mon, 02 Apr 2007 09:01:00 +0000

"i've noticed that almost everything else that goes up for sale in the south granville area is selling fast"This seems reasonable as supply is still very tight on Westside.

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By: patriotz

patriotz — Mon, 02 Apr 2007 06:08:00 +0000

Oh, yes, and3. Lack of cultural bias towards ownership among francophones. They're not the whole population of Montreal of course, but more than enough to affect the whole market.

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By: patriotz

patriotz — Mon, 02 Apr 2007 00:54:00 +0000

My impression is that rent (Montreal) is similar to Vancouver, but purchase price is A LOT lower. Can anyone give me any insight to this?1. No expectation of future price increases - indeed fear of declines (political uncertainty, essentially zero population growth).2. Much higher property taxes than Vancouver (makes cost of owning higher than it would appear).Quebec also has much higher income taxes than BC, but this would impact both owners and renters.

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By: Ulsterman

Ulsterman — Sun, 01 Apr 2007 20:26:00 +0000

I walked past the regular open house being held at Crystal Court, the ugly-as-sin development on the NW corner of Fir & 14th. The 4+ 'character' houses that were renovated are still unoccupied and i'm sure they've been finished for 4-6 months. I've seen several open houses with the withered and deflated balloons hanging limp outside.The ugly 12 storey building that was shoe-horned into the back area of the lot also appears almost empty, months after the builders left.As i walked past the houses with my kid, i took some pleasure in mentioning loud enough for the couple entering the open house that "yes, they've been on the market for months now. They can't seem to sell them." It was interesting to look back a few seconds later to see the couple head to head and the guy pointing at me as i walked away.On another note, i've noticed that almost everything else that goes up for sale in the south granville area is selling fast, though i've no idea if they are getting their asking prices. However, given the pace of sales it appears unlikely that they are having to reduce their prices.

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