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Friday Free For All!

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104 Comments

Local Edition!  Friday is open topic time at VancouverCondo.info, here’s a few story links to get you started:

-Rat hotel must stay open
-10% property tax increase next year?
-Immigrants face unreliable income
-UN Human rights complaint on Van housing
-Why Vancouver RE is safe and profitable
-Surrey homeless numbers up 15%
-Bob Rennie is pro-density
-$10 million to clean up Vancouver
–Kelowna condo project financial problems

So what are you seeing out there this week?  Post your news, links, and anecdotes here and have a great weekend!

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Michael Randallbard

"If you're not buying gold then you're probably mental, "Because gold is not only your best friend, but it is the One Sure Thing (OST) that is going to protect your sorry, stupid, trusting, gullible, nasty butt against the inflationary parasite monsters that will soon be inflicted upon you, one way or the other, by a desperate Federal Reserve and a desperate government, and your bodily fluids will be sucked out through your money until you are a drained, lifeless, bankrupted husk, and you will die an ugly, painful death with the sound of the Mogambo's laughter ringing in your ears, going 'Hahaha! I told you to buy gold, silver and oil, but did you? No! And now you are broke because your stupid, precious American dollars are so debased that they don't even buy (in the original Latin) 'el… Read more »

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jesse

-A-, thanks for the link (this is the permalink). Garth touches the "subprime" issue around high LTV loans, RRSP withdrawals and, most importantly, how nobody in the lending chain seemingly has an incentive to seriously check the future risks.

He misses the other 900 pound gorilla: stated income.

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-A-

No money, No problem:

Because we don't have sub-prime:

http://www.greaterfool.ca/

"The sale is recorded by the local real estate board, showing other buyers the market is vibrant, even though prices are at historic levels and affordability levels have plunged. Reporters write stories about robust housing statistics, and bank-employed economists cite sales and prices as evidence the market fundamentals are solid.

I mean, what’s the problem?

It could never happen here."

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jesse

CBC has article on tighter credit conditions in Canada. And don't go inferring what this will mean for mortgages.

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pricedoutfornow

read on-I agree! I rent in a townhouse complex in East Van where there are a couple units for sale around the high 300s. No surprise, they're just sitting there, not selling. Meanwhile I'm saving more than $1000 a month to rent and not buy one of those units. Even with a 40 year mortgage and $50k down I'd be paying twice what I pay now. We have definitely reached the limit on affordability in this city. Game's over.

I pity those landlords who bought recently and thought they could make a profit renting. Just check out craigslist for recently completed buildings and you'll see what I mean. $1400/month for a condo in Whalley? It's so funny…and yet….it's not.

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newguy vancouver

Great links! The funniest has got to be the article that lists why Vancouver real estate will not decline. The best one — we have potable drinking water!!! Is this guy for real? I mean, come on!!!

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read on

pay 1400 for a 700k 2-bed town house in Van West….

allows me to save 3 to 4 a month….

the P/E ratio is so silly in this town.

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Anonymous

Did you guys get a chance to see this Ozzie video? He is very fair and rather bearish.

http://www.realestatetalks.com/viewtopic.php?f=8&…

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Anonymous

"Robin, I pay just over $1100 for 700 sq. feet and parking in the West End. On a $400,000 mortgage, $1100 wouldn’t even cover the interest payments for the first 12 years or so. Add in strata and other expenses and I would be losing big time."

But you can tell your friends you own a piece of the "greatest place on earth"

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RJB

"I live in Kits and a condo nearby that would rent for about $1,000/mo is selling for $399,000. Hmm… let’s see… that’s about $2,500/mo mortgage payments, plus $300 condo fees, property tax and maintinance.

I’ll hold off for now, thanks."

Robin, I pay just over $1100 for 700 sq. feet and parking in the West End. On a $400,000 mortgage, $1100 wouldn't even cover the interest payments for the first 12 years or so. Add in strata and other expenses and I would be losing big time.

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RJB

Franko, I was in Harrison two weeks ago and saw all the For Sale signs. I also saw a lot of building and For Sale signs in Agassiz. On one street in Agassiz I saw at least eight For Sale signs.

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betamax

The banks are running scared…Anyone else have that sense?

Yes. Why are those CDIC ads constantly running in prime-time, just to inform people that their savings (up to $100k) are insured? And why do the ING Direct ads now contain text stating they're members of CDIC, when they never did before?

Those commercials are expensively produced, and prime-time air costs a lot of money.

The only logical explanation for spending all that money is (despite all the public "it could never happen here" rhetoric) because they're scared of a run on the bank. They don't want a local version of Northern Rock, and the marketing campaign is designed to keep the cattle from getting spooked into a stampede.

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patriotz

Americans who bought Can RE a few years ago at a currency discount of 20% or so are obviously trying to cash out before market turns.

This is happening all over BC, particularly in Whistler and Victoria.

These people have seen the writing on the wall in letters six feet high and they don't buy the line that "the best place on earth" is "different".

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bdk

Interesting article above from the New York Times "Now, though, thousands of those houses stand empty. The I.M.F. estimates that property is overvalued by more than 15 percent. With mortgages drying up and prices swooning, speculators who once viewed Spanish property as a no-lose proposition are confronting hard reality. In 2005, Julian Felipe Fernandez bought three small apartments, as an investment, in a huge development being built outside Madrid. He paid 100,000 euros as a deposit for the units, and now he is eager to sell them to avoid having to taking on a costly mortgage. But with the market stalled, Mr. Fernandez’s asking price is what he paid for them. “Three years ago, it looked like I would be able to flip them for a nice profit before they were finished,” he said. “I just want to get them… Read more »

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franko

Took advantage of the weather today for a rare drive to Harrison Hot Springs. Upon a smile and a nod from a bored realtor on the steps of a (open house) duplex, we stopped for a look and a chat. It turned out that owner of the place (as well as another 2 listings by this agent) are Americans trying to lock in profits from the rising Can$ over the last couple of years. This guy said that about 30% of the current listings in HHS are from Americans, and that they're bailing out in droves, or at least trying to. Americans who bought Can RE a few years ago at a currency discount of 20% or so are obviously trying to cash out before market turns. I wonder what %tage of downtown condos are owned by Americans, and what… Read more »

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Carioca Canuck

I have an abservation. The banks are running scared. Scared shitless…..IMHO mortgage lending is down big time (with sales) and they see the writing on the wall as it relates to the present climate of lower sales meaning lower prices, meaning banks will be underwater even more than they are now. Anyone else have that sense ? I just finished watching a 30 second TV commerical for the CIBC. It had people "just like you and me" [colons added for sarcasm] making statements like "don't buy for today, buy for tomorrow"….."a home is for you and me"……etc, and then it cuts ot a shot of a CIBC loan officer acting very pompoous and self serving in front of a couple of clients as she says "we've shown you how to lower your payments and transfer your equity into your new… Read more »

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Anonymous

I found a place. It was very easy. Just simply look for something you like. You should have a good idea of what fair market value would be. Just offer what you think is reasonable. As long as you are a decent professional that will likely pay the rent on time and keep their place clean. Many landlord will take a hometown discount to rent to you. The price the landlord ask for is only asking. It is now becoming a renter's market as thousands of unit start to come onto the market from construction and people leaving town. Many times, when landlord ask for crazy amount of money, no one is willing to pay them. Just offer them something reasonable. Taking a decent or fair rent is better than letting the place sit empty for months.

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Via

"Anyway, I’ve been shot down for raising this before, but the low and static rents people mention just don’t match my experience on the ground (and I happen to be actively looking for a place to rent while waiting for the crash.)"

Well, 3 years ago I found my place really easy (2 bedroom) for 1,200. But now that I'm looking for a 3 bedroom the prices seem to have gone through the roof. Walk around. You'll probably find better deals that way.

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betamax

As others have said, you won't find cheap rents from a property manager or apt. complex. You have to find an owner who bought years ago, isn't trying to recoup high mortgage payments, and is more concerned about getting good tenants than getting market-value rents.

Also, it doesn't hurt to be a white-collar professional couple that landlords want to rent to and are unlikely to raise the rent on later.

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Robin

I found my place ($1,000/mo 1br in kits) by walking around the neighborhood. Just a little sign out front. Similar apartments were going for $1250, so I snapped it up.

The rental market is an inefficient market. There are lots of lazy/cheap landlords out there who can't even be bothered to properly promote their listings, or to research the market price before renting out.

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sheeplessinvancouver

Why can’t I find places that rent for $1000 like everyone else? Hate to tell you this, but it's chance/luck usually. I once followed up on an ad, went to look at the place, liked it and when I asked how much found they were asking way below the going market rates in the area. Needless to say, my next words were "where do I sign?" Tell everyone you see/know you are looking. People are often willing to rent for less if they have some connection, however tenuous, to the prospective tenant. I've never had much luck with property management companies and preferred to rent from small landlords who maybe owned a building or a couple of houses. You'll come across a lot of dumps, but if you're persistent you might find what you're looking for. This is particularly true… Read more »

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punface

Why can't I find places that rent for $1000 like everyone else? I'm a long time lurker on housing boards, and I do see rents raising. Certainly not enough to justify current prices, but still significantly.

Anyway, I've been shot down for raising this before, but the low and static rents people mention just don't match my experience on the ground (and I happen to be actively looking for a place to rent while waiting for the crash.)

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patriotz

Sorry for being testy, but I think I'm still recovering from the "average Vancouverite spends 70% of income on housing" absurdity that was circulating not too long ago.

Being a rational person in Vancouver is a bit like being Mr. Spock on the Enterprise. No actually, it's a whole lot worse – Kirk and crew were actually a pretty rational lot, just a bit heavy on the hormones.

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Robin

I live in Kits and a condo nearby that would rent for about $1,000/mo is selling for $399,000. Hmm… let's see… that's about $2,500/mo mortgage payments, plus $300 condo fees, property tax and maintinance.

I'll hold off for now, thanks.

vancouversux.blogspot.com

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