Gambling with contingency funds
No-lympics pointed out this article in todays Province. Apparently two BC condo strata councils have lost substantial amounts from their reserve funds by putting that money in higher risk /higher return investments than the legally allowed bonds, GICs or bank accounts.
RSS 2.0 comments feed. Both comments and pings are currently closed.“It’s been going on for years,” says Gioventu. “The first time I had to deal with it was nine years ago. People get greedy and look for shady deals. But nine years [ago], we had a pretty big drop in mutual funds and we had stratas investing in mutual funds. That was probably the first time it popped up on the radar screen.”
Legislation limits the type of investments in which condo reserve funds can invest.
The Strata Property Act Regulations, Section 6.11, says permissible investments include government bonds, GICs or simply holding the money in a bank account.
In most cases, investing in equities is not permitted.
The strata council in the Okanagan, however, alleges it was misled by an investment adviser.
“Our strata council has done something rather stupid,” wrote one strata member to Gioventu’s Condo Smarts column, published every Sunday in The Province.
“In 2005, our treasurer invited a broker from an investment firm to talk to our council about managing reserve funds. We took advantage of the advice and decided to place our contingency funds with the investment broker to gain the highest yield possible. Unbeknown to us, the funds were extremely risky.”
While the strata earned more than 10 per cent in 2006, the portfolio is now worth half its value, said the strata member.
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Tony Danza Says:
November 17th, 2008 at 12:38 pm
Idiots. They should have invested in bullet proof Vancouver condos, what were they thinking?
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jesse Says:
November 17th, 2008 at 12:46 pm
In the words of Nelson Muntz: Haw Haw!
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Gadwin Says:
November 17th, 2008 at 1:11 pm
Another Vancouver specuvestor in trouble:
“For just $94,000 you can own 50% of this $400,000 luxury condo!
The reason is simple. We will lose our deposit of $56,000 if we cannot come up with the total balance by closing date. Problem is we are approved for only $250,000 mortgage and cannot come up with the rest.
We will accept any offer that could save even half of our deposit.
So if you have cash or good credit, this is a great opportunity to own a property with at 50% of its selling price.
If interested, please contact us ASAP for more details.”
http://vancouver.en.craigslist.....02951.html
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bdk Says:
November 17th, 2008 at 1:16 pm
This is a good listing because it’s 16th floor and using a view picture from Bowen Island or something?
http://vancouver.en.craigslist.....34367.html
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richard Says:
November 17th, 2008 at 1:20 pm
estelle lo resigns.
and in brazil, a trader shot himself. times are getting tragic.
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bdk Says:
November 17th, 2008 at 1:44 pm
All these once pompous specuvestors are starting to feel less smug i bet.
Too bad I can only vent about this on a blog because I don’t want to alienate my friends and coworkers, the same people who rolled their eyes and shook their heads at me as recently as May.
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The D Says:
November 17th, 2008 at 1:58 pm
Why is it that there are laws protecting strata reserve funds to non-market investments, when the same can not be said for people’s pension funds and the people’s tax revenues given to the government? You mean to tell me that a strata reserve requires greater security, that is, zero risk investing, so to protect the money you need to spend on your home for maintenance and repairs, is more important than the savings you garner for most of your working life for your old age, since after all it is allowed to be invested in riskier market investments? I ask the same question referring to our tax dollars too.
Why is it people like politicians, corporate executives, bankers, and social engineers (from now on referred to as PCBS, pronounced as PCBs) who use other people’s money have lax laws regulating them and the use of money that does not belong to them, when we the people have to live up to more stringent requirements to use our own money? I refer specifically to the Strata Property Act Regulations, RRSP and RIFF restrictions, and the multitude of tax regulations.
It seems like to me, that all levels of governments of Canada have a lot to answer for. It seems like to me, the system is set up for the individual to be controlled and be limited to accessing their hard earned money, and to help the PCBS then take from the proletariat with impunity.
The underlining problem here is that the PCBS of the world have no respect for money that is not theirs. It is a very sorry world we live in, when your tax dollars are missed spent, your investments are missed spent, your savings are under threat, and others think they know better than you as to how you should spend your money. You can’t give money to the government, you can’t put your money into investments, you can’t safeguard your wealth in banks, and you don’t have a right to spend money the way you want, without it being under great risk of being misappropriated.
What has this world come to? A bigger question yet, why do people put up with this garbage? There was a time when people would march in the streets, when they would protest, even violently, my gosh…there was time when people would revolt! Have we really all become so bloody pathetic? Have we really all become just mindless automatons? What the hell is wrong with society today? Do we really all have to wait for some sort of monstrous depression before people then get off their fat lazy behinds and then worry about their days food requirements, little the next 50 years of food supplies?
Personally, I think we have bigger problems than just the present financial mess, and a housing bubble imploding. There is something wrong with society, a systematic sickness permeating throughout all levels of society where everyone has just become detached to their own responsibilities. Specifically, we have the PCBS telling the rest of society how to live, while at the same time, most of the rest of society follows like sheep. And remember sheep eventually end up in the slaughterhouse. That leaves the rest, quietly living, watching, and avoiding trouble, like many of you who frequent to this blog
Here’s some advice; don’t be a sheep!
+D
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NO -LYMPICS Says:
November 17th, 2008 at 2:00 pm
Hey Tony Danza:
Thanks for the tip !…VANCOUVER REAL ESTATE NEVER GOES DOWN… that’s what my waiter/broker Robert Rennie says (PS anyone heard of him ? …I hear he used to sell real estate.)
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NO -LYMPICS Says:
November 17th, 2008 at 2:48 pm
The D
Good points…but maybe you have answered your own question.
aka people ARE sheep.
The majority of people are either confused or too trusting. Knowledge is power … and if people were truly informed or kept informed there would be either (i) revolts in the streets or (ii) actually responsible and accountable Gov’t by now.
Gov’ts have effectively been co-opted to serve a minority . They are made up of Machiavellian bureaucrats and often naive malleable one- or- two -trick pony/agenda politicians.
Actually trying to create a fair and level playing field for the majority would be too much work in their minds , detract from pet projects, and hold them accountable.
The current governance structure for all levels of Gov’t basically lets those in charge get away with murder, there is little if any formal bodies to police it(ie what gov’t do) , and IMHO, it is getting worse.
Unless you have the resources to fight any issue “X” in court, consider it a lost cause even if you are 100% in the right and they are 100% in the wrong.
Until things change, it may simply be “every person for themselves ” , keep away from the given kool – aid, and avoid stratas ( a whole other level of quasi-gov’t) at all cost if you can.
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Tony Danza Says:
November 17th, 2008 at 2:55 pm
You mean to tell me that a strata reserve requires greater security, that is, zero risk investing, so to protect the money you need to spend on your home for maintenance and repairs, is more important than the savings you garner for most of your working life for your old age, since after all it is allowed to be invested in riskier market investments?
Your savings for retirement have more flexibility in their allowed investment vehicles to accommodate the needs of savers of many different age groups. If you’re 20 to 40 years old you can afford to have more of your retirement savings in riskier and hence potentially more profitable investments. If you’re 50+ and you have the bulk of your savings in risky investments then you’re ignorant and deserve any losses you suffer, you’ll have to survive off CPP and OAP, tough luck.
There’s so much literature, educational seminars, common sense etc that warn against risky retirement portfolio allocations that I feel about as sorry for a near retiree losing their life savings in the stock market as I do for SATV losing his life savings in a condo flipping investment.
It’ll soon be time for folks to accept responsibility for their own financial well being and stop depending on the Government to protect you.
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Vansanity Says:
November 17th, 2008 at 3:13 pm
Off-topic here, but I thought some of you would love this story.
http://www.bnn.ca/news/4894.html
“SEC charges Mark Cuban with insider trading”
If you know who he is, you’re likely laughing at this too. Here’s an excerpt:
“Cuban, one of the five finalists to buy the Chicago Cubs pro baseball team, faces civil charges by acting on nonpublic information and selling his entire stake in Mamma.com to avoid more than $750,000 US in losses, the SEC alleged.
Cuban, listed by Forbes magazine as one of the 400 richest Americans with an estimated net worth of $2.6 billion, said he intends to contest the allegations.”
This guy is one of the richest people in the world. He’s about to lose a whopping 0.03% of his total net worth on this investment. He uses insider info to plan his trade and gets busted. I can’t emphasize this enough: a rich guy willing to do whatever it took not to lose 0.03% of his total net worth.
Now please, someone, explain to me why so many rich foreigners will be flocking to Vancouver to buy overvalued real estate. I don’t know how the richest 1% accumlated their wealth, but I assume it wasn’t from buying overvalued assets. This little story is a reminder of how much rich people love losing money. Remember Martha? Tsk tsk Mark.
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jesse Says:
November 17th, 2008 at 3:20 pm
Martha Stewart to Mark Cuban: cave and pay the fine.
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NO -LYMPICS Says:
November 17th, 2008 at 3:38 pm
You mean, there is some truth to that saying “more money than brains”?
Isn’t the usual out to cut a deal ….pay a fine…. but with no admission of guilt ?
Ther ya go Mark Cuban…now you don’t have to hire any of OJ’s dream team of lawyers.
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Raincouver Says:
November 17th, 2008 at 3:52 pm
This is a good listing because it’s 16th floor and using a view picture from Bowen Island or something?
http://vancouver.en.craigslist…..34367.html
That’s hilarious. Why didn’t they just throw in a picture of Pacific Rim Park and some surfers, instead? Reedickulous.
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bcubbins Says:
November 17th, 2008 at 4:20 pm
RE: For just $94,000 you can own 50% of this $400,000 luxury condo!
Between contract signing and closing, these people managed to save a whopping $0 more. If they are that stretched now, how likely are they to be able to keep up with their share of the mortgage? Tenancy in common would remove some of the risk, but why would the original purchaser’s lender advance $250k for their half-share, now worth < $200k?
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Macronomics Says:
November 17th, 2008 at 4:24 pm
These strata members must have thought they were rogue traders working at Barclay’s.
I think we can attribute a lot of the consumer behaviour as well as investing behaviour over the past decade to a desire for instant gratification.
People want that quick fix, whether it’s buying the latest bling item or speculating on the next bubble.
Nobody wants to save up for a new car. They buy it now on credit.
No specuvestor wants to look at fundamentals and earnings reports. They want an over-leveraged mortgage-backed asset that they can flip to the next fool for 20% more next year.
There’s 3 different kind of buyers. Primary users, investors, and speculators.
Take a farm tractor for example.
1. Primary user – A farmer buys a tractor to work his farm.
2. Investory – An investor buys a tractor and leases it out to a farmer.
3. Speculator – A speculator buys borrows money to buy a tractor in the hopes of selling it to another speculator next year.
I think we know within which category the majority of buyers in the past 2 years fall.
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Asun Says:
November 17th, 2008 at 5:14 pm
The D, no way. You can pry my bear ETF’s out of my cold dead hands from my RRSP
What about money market funds? Are those allowed for stratas? Those aren’t “supposed” to lose any money, right, right, right?
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crabman Says:
November 17th, 2008 at 5:26 pm
900 rental listings on craigslist just today! Not only are prices falling, but looks like rents are falling too!
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readon Says:
November 17th, 2008 at 5:45 pm
“In 2005, our treasurer invited a broker from an investment firm to talk to our council about managing reserve funds. We took advantage of the advice and decided to place our contingency funds with the investment broker to gain the highest yield possible. Unbeknown to us, the funds were extremely risky.”
***************
I’m sorry, but “highest yield possible” was not equated with higher risk? These retards deserve to be sued by the other strata members.
I’m sorry, but
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anon Says:
November 17th, 2008 at 5:57 pm
Exactly. What sort of imbecile thinks that yield is inversely related to risk? (Interest rates have multiple components, including a factor designed to reflect the risk of the loan).
Not to mention that they managed to contravene the relevant statute pertaining to the allowable classes of investments. Either they were completely incompetent, negligent, or greedy. I smell a tort action being cooked up, although that may be relegated to the status of a moral victory, given that the council may not have much in the way of assets.
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dingus Says:
November 17th, 2008 at 6:01 pm
Since when is the reserve supposed to make money? It’s a RESERVE. It’s not a hedge fund. It’s not just that these people are idiots (they most certainly are), but the stupidly mistaken premise that the strata should operate like a pooled investment account and have “pursuing high returns” as a goal. Uh, no.
This real estate and equity implosion is will remind people what risk is, again, and its relationship to reward.
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jesse Says:
November 17th, 2008 at 6:32 pm
OT, but UK: House Rents Fall. I wonder what Vancouver has in common with the UK…
Job losses causing people to double up. Check.
Oversupply with amateur landlords. Check.
Price bubble fueled with debt. Check.
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Anonymous Says:
November 17th, 2008 at 6:40 pm
-
Ken Clarke warns Britain is on the brink of ‘meltdown’
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Wayne Says:
November 17th, 2008 at 6:40 pm
You would think at least one person on a strata council would have to sense to know what they were doing was not only dumb but contravened the Strata Act. They must be self-managed. Property managers are paid to provide guidance to strata councils that don’t know their asses from their elbows. I can’t see a property manager sitting still for something like that.
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BBY Says:
November 17th, 2008 at 6:57 pm
Listing for “metrotown” rentals on craigslist now 544. A few months ago it would dip below 300.
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bdk Says:
November 17th, 2008 at 7:34 pm
“Listing for “metrotown” rentals on craigslist now 544. A few months ago it would dip below 300.”
In addition to your excellent point about metrotown check out Shangri La for an indicator of where rental prices are going! $1700 and dropping (I’m looking to move there but they might come down even more).
Who’s going to pay $1750 for a unit at the ritz/sapphire or melville when you can be in a 5 star hotel and landmark?
Meanwhile $500 million dollars worth of construction jobs and materials are biting the dust weekly and leaving a lot of previously high paid construction people unable to pay the inflated rents and/or mortgage payments…
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Vansanity Says:
November 17th, 2008 at 7:55 pm
Mike McCartle (sp?) is doing one of his heartwarming pieces tonight, on the building of making Vancouver the Greatest Place on Earth. This may just save the RE market.
bdk – Where did you get $500M weekly? I’d like to see the data. I know we’re losing jobs in construction, it makes sense, but that number sounds huge, was it arbitrary?
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NO -LYMPICS Says:
November 17th, 2008 at 7:57 pm
Re Brits:
I heard on the radio they are expecting UNemployment levels of 9 %
That’s probably a conservative estimate.
Good news on the global scene is at a premium eh.(ie is it an endangered species ?)
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Anonymous Says:
November 17th, 2008 at 8:03 pm
I can’t see a property manager sitting still for something like that. Really? REALLY? Yes I’m shouting any dim whit with half a brain can become either a property manager or realitor. It takes six weeks MAX for the dumber ones. The totally incompetent take over two months! You do that job if you are no good fo0r anything!
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bdk Says:
November 17th, 2008 at 8:11 pm
Vansanity, I just guessed after Jameson and Ritz dropped off the map, weren’t they both going to cost $500 + Million?
I basically pulled that number out of my ass but it sounded good didn’t it?
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mrjauk Says:
November 17th, 2008 at 8:25 pm
The number of hits in Craigslist’s rentals section for “Downtown” passed 4100 as of earlier today. It was under 2000 in late August. It has been exploding since November 1st and prices are coming down.
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Vansanity Says:
November 17th, 2008 at 9:05 pm
bdk – Oh, I was hoping you had something more. I know that construction normally runs around 100,000 employed and today its closer to 215,000. Forestry normally 225,000 today around 100,000. So you can see what happened and what will happen if construction dries up before forestry gets going again.
FYI – The Ritz is rolling along again. I feel all the blasts from my office, several times a day I might add. They have a pretty deep hole there right now. I think there is another three months of blasting/excavating scheduled. No signs up still, but construction continues. The project was halted for about 4 days, only.
I’m with Tony Danza on the topic of construction. Build baby, build! I want them to create the mother of all glut. Let the MOI keep climbing. Let the speculators keep buying. And then let them all rush to the exits together at once.
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Vansanity Says:
November 17th, 2008 at 9:07 pm
bdk – It sounded too good… to be true.
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jesse Says:
November 17th, 2008 at 9:16 pm
“I want them to create the mother of all glut.”
Remember a canceled project also means layoffs or laid off workers being hired to accelerate other developments coming online. Either way — less employment or more supply — it has basically the same effect. Hard to know which one will cause prices to undershoot more at this point but I’ll throw it out there that unemployment is deadly for prices because it takes away demand and adds supply at the same time.
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greely Says:
November 17th, 2008 at 9:52 pm
Greed greed greed, I feel no sorrow for these strata clowns. They could have just left it in a GIC and made a low but safe return but instead they got greedy and got screwed. I am getting pretty tired of greedy people losing their money and crying whoa is me afterwards.
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BBY Says:
November 17th, 2008 at 10:12 pm
The other problem with construction workers is that they seem to be a pretty dumb group. A few months ago the Sun ran an article about all the workers with serious addiction problems working downtown. Crane operators even. Too easy access to the downtown street dealers. These guys are not likely to be savers. Gotta buy a big truck, gotta go drink’n or toke’n with the boys from the site, gotta blow money on strippers/bars/casinos/whores. They’re mostly vice magnets, and they’re spending all their paycheques getting used to living large.
There are good ones in the lot, and they’re the ones likely
to be retained on the projects that are left.
A few weeks ago I overheard a conversation on skytrain with some Olympic Village workers who were cluing into the fact that there was nothing lined up for them after that project was over. They talked about a coworker who started saving a few months ago. That’s not going to be a lot of savings.
So once the construction jobs disappear these guys will quickly boil off their savings and be hooped. Many with addictions acquired during the good times. They will land hard. Hopefully for us they will leave the city looking for work in Alberta. The desperate ones that stay could likely add to the criminal population with muggings and B&Es.
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Keeping an Eye on the Pimps Says:
November 17th, 2008 at 10:13 pm
“Remember a canceled project also means layoffs or laid off workers being hired to accelerate other developments coming online. Either way — less employment or more supply — it has basically the same effect”
Jesse, I just love the psychological trauma cancelled projects inflict on the pre construction buyers.
At first they are giddy, as they believe what the professional pumper’s carefully media delivered message which says “project is cancelled because costs have risen, and therefore any new construction coming onto the market will be selling for more”
Eventually reality sets in, and the preconstruction, and recent buyers begin to see the pattern firmly entrenched in other bubble markets, and they finally begin to see it’s just like the last crash we had in Vancouver.
Then they read the local paper and even their hero Pastrick calls for a 30% price drop.
Next comes the realization if Pastrick calls for a 30% and we calibrate the crash meter properly it will likely be a 50% drop and possibly much more.
Oh Maggie we need you mow more than ever.
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Tom Vu Says:
November 17th, 2008 at 10:20 pm
Lots of property on market mean lots of good deals for buying. Deals are not found by sitting at computer.
The doer gets rich by being in the market. The loser gets poor by sitting at the computer dreaming of the property market. Which one are you?
Get out there!
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Octagonian Says:
November 18th, 2008 at 12:39 am
At what point does this shite properly become recognized as CRIMINAL?
Yes, government monetary policy in the US and Ottawa is behind all of this. But there has been so much criminality, corruption, gross negligent incompetence, and so much over all dishonesty, cover up and deceit that I want to see some pols and real estate con men and women doing Perp Walks.
I have had it.
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Gadwin Says:
November 18th, 2008 at 12:56 am
Thanks to G for noticing this one at Rob C’s blog:
“$354000 SUPER DESPERATE SELLER – Cant make payments. Burnaby Townhome (Highgate – Stride Area)
Owner needs this sold asap.
Maplewood Terrace.
Comparables have sold for up to $380000. This unit has all of the upgrades. 2 level, 2 bedroom, 1 year old beauty. 915 sf. Stainless steel package, laminate floors. Better than new. No GST. Make an offer. Any offer. Seriously. All offers will be considered.”
http://vancouver.en.craigslist.....83292.html
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readon Says:
November 18th, 2008 at 1:36 am
Hmm, I might offer 250k, excpet for the fact my commute would be horrible. Maybe I should phone up and see…
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islander Says:
November 18th, 2008 at 1:49 am
BooBy wrote: The other problem with construction workers is that they seem to be a pretty dumb group. A few months ago the Sun ran an article about all the workers with serious addiction problems working downtown. Too easy access to the downtown street dealers. These guys are not likely to be savers. Gotta buy a big truck, gotta go drink’n or toke’n with the boys from the site, gotta blow money on strippers/bars/casinos/whores. They’re mostly vice magnets, and they’re spending all their paycheques getting used to living large.
You win the award for the stupidest person on this blog. You read a story in the fishwrap and from that you’re able to generalize about tradesmen? Wait, I hear church bells ringing? Are they calling you to the sermon or is that the ringing in your head?
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Vansanity Says:
November 18th, 2008 at 2:41 am
islander – That’s a bit harsh. Perhaps BBY went a bit far on the stereotype.
I know plenty of tradesmen, some smarter than others. But where I agree with BBY is that the ones I know have not planned for the rainy day. They spend as much as they make. The minority are savers. I suppose it’s a microcosm of society in general and not just trades that do it. We’re a society of borrow to have nows. The majority of people are more concerned with “can I afford the minimum monthly payment?” rather than “can I afford it?”
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Bob the builder Says:
November 18th, 2008 at 4:34 am
As a construction worker I got to tell yous all that I am deeply hurt and offensive at that guy’s remark. I’ll have you know I hardly ever am drunk or high at work usually most of the time. And I never go to the casino because everone knowa that slots is for suckers. I play the horses. And I don’t gotta go sneakin around on my wife and watchin strippers because I love her a lot and besides she used to be one and will give me a show anytime I want. You know, if I pay her. So quit it with the stereotypin us guys.
P.S. Does anybody know where I can score some jib?
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Alexcanuck Says:
November 18th, 2008 at 8:33 am
This’ll cheer you up! The Onion’s take on the bailout industry. Should The Government Stop Dumping Money Into A Giant Hole?
Found on Calculated Risk.
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dingus Says:
November 18th, 2008 at 9:20 am
A third of Canadians see lower house prices: survey
The number of Canadians who now expect housing prices to fall has more than doubled since last spring, a survey by a mortgage brokers group has found.
The figure now stands at 35 per cent, the Canadian Association of Accredited Mortgage Professionals (CAAMP) said Tuesday in releasing its annual fall survey on consumer perceptions. This is up from 15 per cent in the spring survey, the association said.
“Half of those surveyed gave a neutral answer while the number who thought prices would go up fell from 40 per cent to 20 per cent,” it said in a news release. “Westerners, who have endured particularly hot housing markets, are most negative, and in British Columbia, 48 per cent of those surveyed said they expect prices to fall, far above the national average.”
http://www.globeinvestor.com/s.....8/GIStory/
___________________________________
48% said the expected prices to fall. I’m guessing the other 52% had active listings on MLS.
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Downtown Vancouver Realtor Says:
November 18th, 2008 at 9:32 am
Thats unfortunate. Amateurs doing things that are way outside their area of expertise means they get their fingers burned. These strata councils may have breached their fiduciary duty. If was an owner in this building, I’d be calling my lawyer…
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Anonymous Says:
November 18th, 2008 at 9:33 am
Baby have you ever been picked up on kingsway or seymour?
Bob the builder,this site is for eunuch cumunity they had instaled security red beams to protect them and green beams for self fisting.
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betamax Says:
November 18th, 2008 at 9:43 am
“tired of greedy people losing their money and crying whoa is me afterwards”
Agreed, though it’s “woe is me”, not “whoa”.
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betamax Says:
November 18th, 2008 at 9:54 am
“You win the award for the stupidest person on this blog. You read a story in the fishwrap and from that you’re able to generalize about tradesmen?”
And you win the Miss Congeniality award. And the Lousy Reader award, as BBY talked about general workers, not “tradesmen” — not the same animal at all.
I worked in construction for years and BBY’s characterization isn’t true of everyone but definitely true of many. On average, they are a dumb bunch, increasingly so lately as anyone could get hired when things were booming.
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jay Says:
November 18th, 2008 at 10:12 am
Rents going down in Britain according to Bloomberg:
http://www.bloomberg.com/apps/.....refer=home
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Macronomics Says:
November 18th, 2008 at 10:44 am
Let’s not pick on the construction workers.
The behaviour of care-free spending, casual drugs, drinking, etc. does not discriminate.
Anecdotally, I know lawyers, teachers, post office workers, and software developers who all engage in this kind of activity.
Last year I think I remember reading a report saying that home ownership level had hit an all time high.
Something like 60% or 70%. And I recall thinking at that time, there’s no way 60% or 70% of the adult population is responsible enough (financially) for home ownership.
More than half of the people I know spend every cent they make. In fact some spend it before they make it.
One guy was making $45K and living at home. He loves his toys. Camera equipment and video games. Rather than wait two pay cheques, he would buy a new camera lens on a credit card and make minimum payments.
Another guy was changing jobs and instead of rolling the pension contributions with his old company into an locked in RSP, he decided to cash it out, go on holidays, and buy a new car.
They seem to think they don’t need to save for retirement. Maybe everyone’s getting a $2.1M inheritance from their parents when they kick the bucket.
I know I’m not going to see a dime.
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Spectrum Says:
November 18th, 2008 at 11:05 am
What I find still disturbing is the young speculators that still don’t know whats going on. They think they’ve made some money in the last couple years and they think they are so smart. In my building elevator people were talking about how they were so happy they just bought a 2bedroom/2 bathroom place in Spectrum and thinking that they were going to make so much money on it and be “house rich”. And this other woman in the building who had a gold purse and minature doberman who owned a unit felt so superior to the renters in the building for owning a unit and also having an investment unit in the one of the other towers. I couldn’t help but laugh to myself about whats in store for this person and the terrible financial moves she made in the last couple years and she doesn’t even know it. I can’t believe people like this still exist.
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bdk Says:
November 18th, 2008 at 11:31 am
Spectrum, Firenze, Woodwards and all those other downtown eastside buildings or the “new yaletown” as spectrum owners like to call it are in for a shock.
There were units renting at firenze last year for $1500 and $1600! Now that supply isn’t tight the first ones to drop in resale price and rental price are the trailer parks in the sky, as a snobby renter I wouldn’t pay $800 a month to live in that dump.
For an early 20’s service industry person, a dealer, a hooker it’s a fantastic location to rent because your neighbours will be younger and more forgiving but owning a unit there long term is just going to look worse and worse!
P.S. that gold purse dog lover is probably a hooker too
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n'ski Says:
November 18th, 2008 at 11:48 am
Grab the popcorn, sit back and enjoy the show. Coming soon to a theater near you. http://www.youtube.com/watch?v=bNmcf4Y3lGM
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NO -LYMPICS Says:
November 18th, 2008 at 12:33 pm
C’mon Bob the Builder…
From your resume’ on post #44
—- You either built Glen Clark’s deck…or your last name is Georgetti OR Sinclair.
BTW : want jib? …go to Pattison sign shop…ask for Glen, bring Cash or Canadian Tire money.
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Re-diculous Says:
November 18th, 2008 at 12:34 pm
n’ski #55
That was funny!
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mk-kids Says:
November 18th, 2008 at 12:50 pm
Well, looks like hubby & I officially rented “at the top” Crap! – but c’mon I got advice at this very place in early October that rents don’t go down!!! Ugh, should’ve trusted my gut, I had a feeling…
Proof positive though: We signed a lease in early Oct and we’re moving Dec 1 and we’re paying too much. The place we are moving from was on the market 6 weeks with 2 price drops, only now does it look like its going to rent. Started at $1695, went to $1650, now is $1600. We paid $1650 here for the last year. That’s a saving of $600-$1200 a year which is nothing to sneeze at!
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read on Says:
November 18th, 2008 at 1:26 pm
mk-kids,
Then again, it would cost you at least $600 odd bucks to move, no? So there’s no real point if you’re happy where you are.
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Anonymous Says:
November 18th, 2008 at 1:46 pm
I’m not sure if this has been mentioned yet but 2 big sponsors of the 2010 olympics are GM Motors and Nortel Networks. It is quite possible that those 2 companies may not be around by the time olympics start.
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mk-kids Says:
November 18th, 2008 at 1:46 pm
Oh gosh, the commute was killing me hence the move back to the city from suburbia… I gave it a shot but no can do. I just think of how cheap our rent was a few years ago in the city and wish we hadn’t had to move at all. 2 years in a row, moving each time to a more expensive place… our timing sucks but we are still way ahead not having bought! And if we had bought in suburbia and I was stuck with that awful commute and a place worth 20% less?!! I would probably be wanting to kill myself right now!
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kabloona Says:
November 18th, 2008 at 2:21 pm
Anon #60 – Good point….both GM and Nortel have received at least one (mainstream) analyst’s target share price of $0.0 per share….luckily, I don’t think the condo market will drop that much.
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Sanchez Says:
November 18th, 2008 at 3:58 pm
Right now, Spectrum is a TERRIBLE investment. You cannot buy today and make money. You will lose money. Rental income will not come close to covering the mortgage. My friend rents there and she tells me she her suite would have to drop 40% in price before it would be reasonable to buy.
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Drachen Says:
November 18th, 2008 at 4:11 pm
Anon 1:46
“I’m not sure if this has been mentioned yet but 2 big sponsors of the 2010 olympics are GM Motors and Nortel Networks. It is quite possible that those 2 companies may not be around by the time olympics start.”
That would be a good point if it were true. Nortel is listed as an “Official Supplier” which is the fourth of four tiers of sponsor, GM Canada is a “National Partner” which is the second tier so maybe GM Canada is a “Big” sponsor, but Nortel is not. It might mean a hit to the Olympics but it wouldn’t be a big deal if both dropped out, they’d find someone else to fill in.
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NO -LYMPICS Says:
November 18th, 2008 at 4:46 pm
Olympic sponsors bailing ?
Check out this one ( Johnston and Johnston )
http://sports.espn.go.com/oly/.....id=3709139
Question: If private sponsors bail… are the local taxpayers of the given Olympic City obligated to pick up the slack ?
I mean, we are talking anticipated or projected revenue streams from these sponsors to help pay for the given Olympics, aren’t we ?
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NO -LYMPICS Says:
November 18th, 2008 at 5:15 pm
U.S. Housing Market story…
Very pessimistic
http://www.theglobeandmail.com.....WBmarkets/
Ouch !!!
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squidly77 Says:
November 18th, 2008 at 5:39 pm
hey vancouverites you have a blog topic concernig your collapsing real estate market @ calculated risk
http://calculatedrisk.blogspot.....ouver.html
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Gadwin Says:
November 18th, 2008 at 5:48 pm
Thanks Squidly77! Make sure you keep those absurd bulls in check at Alberta Bubble blog, lol
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read on Says:
November 18th, 2008 at 7:28 pm
Scotiabank takes $890M hit
Yeah, our banks are safe as … umm ..houses…
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patriotz Says:
November 18th, 2008 at 8:36 pm
Question: If private sponsors bail… are the local taxpayers of the given Olympic City obligated to pick up the slack ?
The Olympics are sponsored by the provincial government, not the city, so all BC taxpayers would take the hit.
An exception is the Olympic village which the CoV got itself on the hook for. I think also Richmond is behind the skating oval there. But those are specific facilities, not the Games themselves.
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NO -LYMPICS Says:
November 19th, 2008 at 8:41 am
Patriotz:
Re: Olympic sponsorship:
I sent that out as a more generic comment.
Richmond put forward suggestions of a number of funding sources for its Oval. That included sponsorship. No one knows if they have acquired any. If they had signed – up private sponsorship, then how much? What if the sponsor pulled out or went broke? I recall that they were looking for several million dollars in sponsorship to help pay for the $180 Million Oval. If they haven’t, then how are they paying for it ? Is it digging deeper into City coffers ? Was the City blowing smoke to placate its own citizens ?
If say Coca Cola and other major sponsors is a sponsor for the 2010 games, does any money trickle down to the local venues ?
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Advocate Says:
December 5th, 2008 at 4:03 pm
Those strata council memebrs who approved money-losing investments contrary to the regulations could be sued personally by all owners to make up the shortfall.