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December 25th, 2008 at 11:34 am
Lily Pad, that is too bad.
The going rate fr that unit is $1800 so $1500 sounded realistic considering someone has been trying to rent that unit for two months @$1990 (which won’t happen because the new ritz, shangri la etc. are going to get snapped up first and there are still countless units available)
December 25th, 2008 at 10:57 am
RE#97 check out scambaiting
http://www.youtube.com/watch?v=mfYcupcIHME
December 25th, 2008 at 8:21 am
What’s this about developers, rental housing and tax breaks?
Sorry boys, the party’s over. The economy is tanking, there is already an oversupply of residential units.
This oversupply will need to be focussed on . Will they be sold or rented? Are the developers saying they should build more housing? Why? Just to remain solvent?
The focus now is to stop these already built units from turning into a disaster,ie slums, crime dens etc. This is the looming disaster with so much overpriced and overhyped strata type of housing in a collapsing RE market. There must be a point that any given strata must have secured ownership before it unravels.
I remember the 1980′s MURB program which was dedicated to rental housing. When the economy tanked , they too were desperate for renters, but there wasn’t as much product on the market as there is now.
You cannot get tax breaks per se, you have a assessment and a mill rate. The only relief at the Local Gov’t leval is mill rate. Join the line -up of everyone else wanting a break .
December 25th, 2008 at 7:51 am
Re: #82
bdk: I emailed and got the following response on the 2 bd. 2 den 2 bath Pallisades apartment. I would say a good 30% of the ads on craigslist apartmental rentals are scams.
Thanks for your mail. I am west,the owner of the apartment you are making enquiry of .will be available for 3year or maybe longer .It was due to my transfer to EGYPT for a course ,that was why it is vacant for $1500 per month the deposit is $1000 Moreover,are you very clean,kind and easygoing?because i spent alot on my apartment,so i want somebody who can take care of the apartment as his own.Can you? .Kindly let me know as soon as possible because i want somebody who is realible to occupy it. • The ground floor 85 M2 (square meters) apartment
with central heating
• Garden 30 M2
• Large living room with wooden floor and dining room
table
• Fireplace
• bedroom with full size bed and TV
• Kitchen with dishwasher
• Bathroom with bath, new washer and dryer
• Separate toilet
• Private entrance and hall
• Desktop PC, Internet connection are included,
utilities included
Pets acceptable (deposit required) . References a must.So, Hope you are Okay with the rent -1500$ get back to me asap because i need a tenant urgently and you can also fill in the application i send to you, if you are interested..i want you to rember that am already in Egypt the key and documnet are with here i will send it to you by DHL you will recieve it within 48hr .i will send key and documnet to addresst you will give in the application form.hope to read from you soon
December 24th, 2008 at 9:40 pm
Dumboo bear who use my name to make bearish comments need not to use it because vancouver real estate has only one way exit that’s up,up,and up. What does that mean by up?That’s mean people who chose to sell at anytime in decade does not exit without making profit out of it and people who get in they never pay more than it’s future.Ask some of previous seller who has sold it on different time and different years like strataman and “sold2soon” 2005 up ,Kfinancial 2006 up, “M” and Brittanny 2007 up, Daman and Krrish2 got rid one out of his five in 2008 up.I request all the bears to use your full force put more solid argument in favour of r.e. melt down but remember one and only true fact about vancouver real estate buy without fear and buy any time of year because hey VANCOUVER REAL ESTATE NEVER GO DOWN.
December 24th, 2008 at 7:57 pm
smart money say’s no recovery until after 2010
A ) Housing Slow and Points to
Obama Economic Quandary
The massive stimulus package will be running against a slowing economy and unemployment that may add 500 ,000 persons per month to the unemployment rolls.
Now today’s new that price and sales sales are still falling – the only glimmer of hope is the decline in starts that will eat at the inventory numbers.
Sales of existing homes plunged far more than expected last month as buyers recoiled from October’s financial wreckage on Wall Street. The median sales price fell by the largest amount on record.
The National Association of Realtors said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.
Sales Price Drops 13 %
The median sales price plunged 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest price since February 2004, the biggest year-over-year drop on records going back to 1968 and most likely the biggest drop since the Great Depression.
Lawrence Yun, the normally upbeat chief economist of the Realtors group, found few positive spots in the month’s dismal data. But he did note that after prior stock market crashes home sales usually rebounded within a few months.
“We hope that, similarly, the current slowdown in home sales activity is a short-term phenomenon,” Yun said, noting that people in the real estate industry are “crossing our fingers” that the market will recover. Sales fell around the country, with the largest drop — of 12 percent — in the Northeast.
Nationally, the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in November.
Almost A One Year Inventory
There were 4.2 million unsold homes on the market in last month. At the current sales pace, it would take 11.2 months to sell all the properties, matching a record set last spring.
Housing Horrors
Housing starts have nosedived from 2.3 million, seasonally adjusted at annual rates, in January 2006 to 791,000 in October, a post-World War II low (Chart 1). Meanwhile, homebuilder sentiment is now at record lows. Leaping foreclosures, among other forces, have pushed up the homeowner vacancy rate. Some of the victims of declining homeowner rates are moving into rental apartments as the bubble years’ lure of homeownership fades or they lose their houses. But others are doubling up with friends and family, thereby adding to empty house inventories.
Foreclosure Sales
As lenders spilled foreclosed houses on the market, they were sold for only 70% of the unpaid loan balance in the third quarter compared with 78% in 2007, and losses averaged 44% of the loan balance compared with 29% a year earlier. With about 40% of existing home sales coming from foreclosures, or “short sales” in which the mortgage amount exceeds the house’s value, the prices for selling homeowners and builders are forced to decline to compete.
Housing Recovery Essential to Economic Recovery
To end the crisis, four developments are needed, in the view of gary Schilling . The elimination of excess house inventories will probably continue until at least the end of 2010, as discussed earlier. The writedowns and recapitalizations of financial institutions — at least those related mainly to mortgage-related problems that have unfolded so far — are well along.
Subsidizing the mortgages of underwater homeowners is beginning to develop. And of course the quicker the excess house inventories are eliminated, the more limited will be further house price declines and the fewer will be the additional homeowners who will slip under water. Bailouts of bad loans and securities in the three additional areas we’ve identified are big unknowns in terms of cost and feasibility. Nevertheless, policymakers are gaining experience as they grope their way through the current round of bailouts and may be real pros when further big problems surface.
Toll Brothers $ 20.36 down .18 ( .88 %)
Pulte Homes $ 13.25 down .25 ( 1.9%)
December 24th, 2008 at 7:47 pm
Sub-areas of Los Angelas now off 81%. Median house prices heading for $100,000. It’s going to happen. We’ll party like it’s 1995 !!!!
http://www.doctorhousingbubble.....alifornia/
It is widely acknowledged that BC is lagging the US market but statistics show we’re falling off a cliff and WE WILL reach terminal velocity in early ’09.
December 24th, 2008 at 7:27 pm
at a time when it appears that no one is willing to buy.
no one is willing to buy
satv!
roll this around in your head a couple of times…… bet you never thought this could actually happen did you?
no buyers…. nada!
even for TV Towers…….
umm happy holidays btw
December 24th, 2008 at 6:57 pm
VANCOUVER — With the British Columbia condo market in a deep freeze, developers are looking at constructing a form of housing that hasn’t attracted their interest for 35 years – rental apartment buildings.
Major developers say they are looking at ways to make rental work, in order to keep their companies in gear at a time when it appears that no one is willing to buy.
December 24th, 2008 at 5:33 pm
Original Globe and Mail story:
http://tinyurl.com/8vyk4w
December 24th, 2008 at 5:29 pm
an=another
I’m now going to try to locate the original story.
December 24th, 2008 at 5:28 pm
Developers considering building rental apartments
http://tinyurl.com/8cygp2
“According to the Globe and Mail, the Urban Development Institute is holding a workshop in January to help builders understand the market.
For the past 35 years, rental apartments have fallen by the wayside and many buildings in Vancouver were bulldozed to make way for condos, resulting in a severe shortage.
One developer is in talks with both Vancouver and Richmond, hoping to get a temporary break on property taxes in exchange for a promise to keep the buildings as rentals for ten years or more.”
I’m not sure how they will make this work. My guess is either low-end highly-subsidized rentals or high-end with extra special luxuries to try to justify high rents.
Either way, this is an kick in the crotch for the specuvestor accidental landlords.
December 24th, 2008 at 4:20 pm
Thompson-the-no-more-numbers-monkey said:
“Merry Christmas! Bears, Bulls, and …. Pigs.”
There must tons of them where he came from.
Crassest pig indeed.
December 24th, 2008 at 4:10 pm
All the parasitic Mike-Thompson-JH suckers are the bottom dregs that are part of this Golden Ponzi Century.
December 24th, 2008 at 3:59 pm
I, too, hope that late next year we can come up with some arguments to start looking to buy. At least to seriously start checking out some listings, even if not to the point of writing offers yet And that would indeed, be a better argument to a Realtor in desperate need of a commission cheque.
Wonder if he can hang on that long?
December 24th, 2008 at 3:55 pm
Good luck selling that condo you made your mum buy at firenze Mike Stewart.
Maybe she can furnish it and you can rent that one instead of your west end bachelor. Nice top hat too.
Best of luck being the king of the overpriced listing while workinga t downtown shittiest realty office Mike Stewart, here’s to another $200k year as that shithole you rent in the west end will only go up in price!
December 24th, 2008 at 3:43 pm
Have a good Xmas bears!
Hope you have some better arguments next year!
December 24th, 2008 at 3:40 pm
Hey…how about Wayne Cox and the Hospital Lottery ads.
I think you can either
(i) win a house “worth” over $3 Million
or
(ii) take approx. $2 Million cash instead
Dam…decisions ,….decisions
Toss a coin?
December 24th, 2008 at 3:09 pm
$1500 / 2br – Coal Harbour, Downtown 2br + 2 den + 2 bathrooms, 1000 sqft
This is The Palisades building.
16th floor, almost 1000sq feet of living facing south!
Great location near Robson st, walk to everywhere including Stanley Park and English Bay. New urban fare, close to the new Shangri-La Hotel and Urban Fare!
Prestigious living area of Downtown.
Very new cherry colour laminate floor!
2 bedrooms (master bedroom is ensuite)
1 den
2 full bathrooms
1 kitchen
1 living room
1 parking stall
1 large storage locker
Washer and dryer
Gym and swimming pool, conference room
Rent: $1500
Available: NOW
Please email me
December 24th, 2008 at 2:48 pm
Tony Danza Says:
September 13th, 2007 at 7:52 am
sweet succulent grouper: tinyurl.com, enter the link in the box click on the button, copy and past url into post.
I believe that we have only seen the beginning of RE appreciation in Vancouver. Thousands of units added to inventory, thousands of people moving to Vancouver every day to take up jobs at Tim Horton’s, many RE agents, baristas, taxi drivers and hairdressers owning multiple properties, front page stories on condo assignment flipping, etc… This market has only one place to go, up. How could it not? Who says you can’t use past performance to predict future gains?
satv, Chief, thank you guys so much for finally stringing together a cogent argument and opening my eyes to the new paradigm that is Vancouver real estate, the best real estate in the WORLD!!
December 24th, 2008 at 2:28 pm
Tony Danza,
You’re not as dumb as I thought!
September 13th, 2007 at 7:52 am
Tony Danza#98
Satv, Chief, thank you guys so much for finally stringing together a cogent argument and opening my eyes to the new paradigm that is Vancouver real estate, the best real estate in the WORLD!!
http://vancouvercondo.info/200...../#comments
December 24th, 2008 at 2:22 pm
#76 The City sold off Expoland for a song!
May be after 2010, the related land and assets will be sold off for a dime!
December 24th, 2008 at 1:35 pm
Crossroads ? :
Oh yeah
http://www.busby.ca/clients/CrossRoads/index.htm
I drove past it the other night.
Between the Vancouver City Hall and the VPD building .
Got to hand it to them for creative marketing and optimism.
Must be using the brochure language they drafted a few years back.
Reference to Expo 86 ?
Seems to be coded language trolling for Rich offshore specuvestors.
Seems to have secured a number of commercial tenants, but how many will still commit to closing in March 2009 ?
QUOTE:
” Please note that contract assignments will not be permitted after January 31st 2009.”
(aka Watch for any ads for Crossroads assignments over the next Month…ie over the next 38 days.)
QUOTE:
“With the billions of dollars about to be spent on the Olympics, Greater Vancouver is about to do it again! Permanent infrastructure, including the Canada Line, and consistent migration, will bring benefits to our real estate forever”.
( Huh ?????FOREVER???)
Hope they remembered to install toilets, locks on doors and granite countertops. Good potential view of the “soon to be sold out” Olympic Village !
December 24th, 2008 at 1:10 pm
2009 is going to be a great year for me.
Congratulations Dave on getting out of the RE racket, you’re not as dumb as I thought!
December 24th, 2008 at 1:08 pm
BDK, is that an email for the purchasers of a condo or for the latest religious cult converts?
In 1986 we hosted Expo where we handed out our business card to the world, and, well…the world kept it and came back!
With the billions of dollars about to be spent on the Olympics, Greater Vancouver is about to do it again! Permanent infrastructure, including the Canada Line, and consistent migration, will bring benefits to our real estate forever. The legacy will continue with a bright spotlight on our city’s brand.
Thank you for placing your trust in us. Remember, “We have the Fundamentals”.
December 24th, 2008 at 1:02 pm
vancouverboom2 aka Thompson aka no-more-numbers monkey
Your a mortgage broker in North Vancouver; business bad; no bonus this year; your $2300 old timer still no tenants.
Easy man. Learn from Madoff, you might just be able to lure the bears out of their basement suites. They didn’t beat the sh$t of you kind in Milan, Barcelona without a reason.
December 24th, 2008 at 12:46 pm
Crossorads is complete and sending out nuggets of RE Wisdom that I wanted to share:
Dear Purchaser,
As a valued purchaser of Crossroads, we are pleased to send you an update on the construction schedule:
LIVE
- Completion of the residential tower and City occupancy inspection will occur in late February, 2009.
- Closings of the residential units will commence in March, 2009.
SHOP
- London Drugs and Royal Bank are now open!
- Blenz Coffee is expected to open this month.
- Whole Foods, McDonald’s, medical and dental offices will open in Spring 2009
- Milestone’s Restaurant will open in Summer 2009.
WORK
- Another major office user has replaced Lululemon as the anchor tenant for the office building. Their
occupancy is expected for early summer 2009.
Please note that contract assignments will not be permitted after January 31st 2009.
In 1986 we hosted Expo where we handed out our business card to the world, and, well…the world kept it and came back!
With the billions of dollars about to be spent on the Olympics, Greater Vancouver is about to do it again! Permanent infrastructure, including the Canada Line, and consistent migration, will bring benefits to our real estate forever. The legacy will continue with a bright spotlight on our city’s brand.
Thank you for placing your trust in us. Remember, “We have the Fundamentals”.
Just a reminder of the special mortgage programs being offered exclusively to our purchasers from BMO Bank of Montreal and RBC Royal Bank. Please contact each bank directly for more information.
December 24th, 2008 at 12:29 pm
#68 realpaul: When you mention 85% of our economy being in trouble, I assume you are referring to the 85% of our *export* economy that goes to the states, no? Just pointing out that there is a difference between our export economy and our economy as a whole. Because as we all can see, it is 100% of our entire economy that is in pain right now… (sorry bulls, no good news here!)
December 24th, 2008 at 12:24 pm
Interesting tidbits/ stuff from ” Greater Fool ” blog
http://www.greaterfool.ca/
QUOTES:
Fortune magazine has issued a list of real estate disaster areas in the USA for 2009. Astonishingly, eight of the ten Ground Zero locations are in California, where the median house price (at least in the heavily populated southern area) has already collapsed by 50% from the peak point.
* The average home price in Detroit is now $18,500
* Toyota’s bleeding money for the first time since ever.
* And Rick Wallick, a 57-year-old software engineer in Arizona told USA Today the new $200,000 house he bought three years ago is now worth $80,000. He’s walking.
Still more interesting: I bought a new SUV on the weekend, a Jeep. It was $36,000 when I started. Not bad value, I thought. Then I was offered an employee pricing discount of $1,500, and another $4,500 because I was paying cash. Then I got free winter tires, and finally the price was knocked down a further $5,000 when I hesitated. When I finally write a cheque, it was for $15,500 after getting a hefty $9,000 trade-in allowance for my sputtering 2003 truck with 153,700 km on the dial.
Here’s the point: Deflation. It’s not something you need to someday fear. It’s here
==============
Rest of the GF latest post is good….
” Flip that, and you have deflation. Jeeps and houses, Toyotas and GPS thingys cost less every month. Money actually grows in value because its purchasing power rises. But debt becomes more expensive, since it has to be repaid in dollars which are worth more. This is exacerbated when deflation, falling prices, reduced sales and the accumulation of debt lead to business failures, rising unemployment, less spending and broken and dispirited consumers.
Economists and political leaders know this to be the case, but will not speak the D word. It’s like the housing market collapse which didn’t exist when it was taking place and the ‘technical’ recession which wasn’t an actual downturn. This is an irresponsible attempt at public manipulation, since people deserve the truth. ”
December 24th, 2008 at 12:20 pm
#69 alexcanuck I think it was on Marketwatch.com, if I pass it again I’ll up the link for you. Lot’s of good sites at Microcap.com FYI
Heres more suggesting stimulus packages worldwide are not working
http://www.theglobeandmail.com.....Front/home
December 24th, 2008 at 12:14 pm
The cash-strapped masses may be spending less on restaurants and entertainment, but not necessarily on the quality of their sex lives—and manufacturers of sexual aids are broadening their lines to meet the demand.
forbes.com
December 24th, 2008 at 12:01 pm
Where is your quote from, Realpaul? I want the rest, in context.
Not arguing against it, mind you!
December 24th, 2008 at 11:53 am
Sorry bulls, hoping for the best just doesn’t cut it when a vicious recession hits. Reality bites. Our neighbour to the south and 85% of the Canadian economy is going down fast and hard. We can expect massive jobloss and buisness failure this side of the border.
Read this quote and tell yourself what a NEGATIVE 7% DROP IN GDP in the US is going to do to Canadian buisness.
“The loss of 533,000 nonfarm jobs in November, announced in the Labor Dept.’s employment report released on Dec. 5—after huge revisions to the payroll loss numbers reported for September and October—makes clear that the U.S. economy hit a brick wall in September and has been spiraling downward ever since. The nation’s various economic data will set many post-Depression records during the coming two quarters as the “Great Recession” takes hold. Certainly we are in for a nasty slew of economic reports through the holiday season.
The U.S. jobs report managed to undershoot market pessimism, both with the hefty drop in payrolls, which was the report’s headliner, the downward back-revisions, and a 0.1 hour decline in the average work week, to 33.5 hours. That meant a big 0.9% decline in November hours worked. Hours worked are poised for a -7% pace in the fourth quarter, following the -2.2% third-quarter figure, and we have revised down our fourth-quarter U.S. gross domestic product forecast to an annual rate of -5.0% from -4.0%. This follows a -0.5% rate in the third quarter that looks poised for a small upward revision to -0.3%.
There was some good news, relatively speaking, in the November jobs report that diminished the headline effect from the massive payroll and workweek declines. The jobless rate “only” rose to 6.7%, as a 422,000 drop in the labor force in November mitigated some of the effect of the big 673,000 drop in civilian employment. And hourly earnings rose 0.4% in November, to leave a 4.1% year-over-year gain, restraining the negative impact of the jobs decline on income.
Surge In Unemployment
The jobless rate is still likely to post a big gain in December, and we will assume a 7.0% rate by yearend. The 0.4% hourly-earnings gain offset less than half the effect of the 0.9% drop in hours worked on wage income—but at least these figures didn’t aggravate the effects of the big payroll declines.
It is now clear that we are seeing the sharpest pace of decline for the U.S. economy since the particularly harsh 1980-82 or 1974 downturns, and possibly since the Great Depression. Media references to the “Great Recession” will keep panic alive, both among households and businesses, through the remainder of the holiday season or longer.”
December 24th, 2008 at 11:52 am
Doom and gloom deadbeats?
What, run out of fact-based debating points?
December 24th, 2008 at 11:32 am
Thanks for your posts over the year Dave, it has been refreshing to see some intelligence mixed in with all the doom and gloom deadbeats that post here.
December 24th, 2008 at 11:23 am
Yeah…we can post all sorts of doom and gloom…(such as VANOC is now considering putting certain events on the chopping block….West Fraser announced getting hit by clients who are falling behind in payments…the Japanese are relieving stress via throwing plates at walls ) but a lot of this turmoil is simply out of our “we told you so” control.
I don’t take any glee in this collapse, not even even specuvestor misery, whereby this era may best have an economic R.I.P. epitaph inspired by Michael Douglas (as Gecko) in the movie Wall Street and the famous line “Greed is Good”.
This global Ponzi scheme (re Stocks, RE etc. etc. and just about everything else you can think of) was due to collapse. Good Riddance !!!
Like somone on the radios said, a person 100 + years old has been through over 20 Recessions (and of course a couple of World Wars and the Great Depression). They survived.
Now we start over once the final domino/s falls.
Tomorrow is another day.
December 24th, 2008 at 11:21 am
There are 72% bulls in Vancouver few dumbers think they are smart if you did not buy in past or you not buying that’s your problem not bulls problem how ever i did not appose this childish picture what ever Arit is trying to make out of it but you did not see any picture of bears and you won’t be able to see it because mostly bears goes cracked in privacy of their stinky basements.
There were only 5,500 bulls got traped in last two picture on this post every one else is doing fine otherside 28% bears got trapped either they have missed they boats or they have lost their jobs in last four year.I know you guys never going to buy any thing so just enjoy your self fisting tools and our pictures to see how we do it.
December 24th, 2008 at 11:18 am
Merry Christmas and Happy New Year to all!
My Christmas message to everyone is to always look on the bright side of life. Don’t let negative economic news get you down. There is always opportunity in times of uncertainty if you are willing to look for it.
2009 is going to be a great year for me. Hopefully it will be for you as well.
December 24th, 2008 at 11:07 am
http://www.financialpost.com/story.html?id=1112377
“foriegn weakness spilling over into the domestic market”
It’s only just begun
December 24th, 2008 at 11:01 am
Merry Christmas and Seasons Greetings to all !
Best Wishes for a Happy and Prosperous New Year !
December 24th, 2008 at 11:00 am
#58 Merry Christmas to you Richard and to all on the forum. I am in a very pleasent state of mind going into the holidays. I grew up with the recessions of the 60′s, 70′s and 80′s. The recession in the 90′s was a non-event. But I remember the really fierce recessions of the past and realise that these economic events shaped my life.
So, with this recession shaping up to be the worst one ever, I am feeling all warm and fuzzy, it’s like going home. I know there will be a lot of personal tragedies, a lot of people who lose evrrything and will never recover, but in retrospect it seems to me that it’s just life isn’t it. In the 80′s I remember Ph.D’s being interviewed in the mile long lines to apply for kitchen jobs.
My Christmas message to everyone is to get ready for something really ugly to happen to the world around you and do your best to think about survival.
Cry Havoc, Set loose the dogs of war.
http://www.globeinvestor.com/s.....4/GIStory/
A Happy and Prosperous New Year to all.
December 24th, 2008 at 10:49 am
Nice link, Lily Pad. Just one point.
Hurricanes.
The concept of floating cities has been well covered in science fiction. Some with fairly good engineering concepts. What is called “hard” sci-fi has some pretty sound scientific principles underlying it.
What I like myself is the concept of seeding vast stretches of the ocean with iron powder, which is a key element in critically short supply in the open ocean.
This would promote a much richer plankton population, which would
A) Soak up vast quantities of CO2.
B) Support a very productive open ocean fish farm. Security of harvesting rights for that would be a sticking point, as offshore fishing is a free for all, strongly entrenched under the law of the sea.
December 24th, 2008 at 10:25 am
merry christmas to everyone!
December 24th, 2008 at 9:36 am
Who says we are running out of land? Why not just build a lily pad?
http://www.dailymail.co.uk/sci.....ugees.html
December 24th, 2008 at 9:32 am
Regarding the inflation/deflation issue, it seems to me the real issue is the real mortgage rate = mortgage rate minus inflation rate. One can have an increase to inflation, but if the mortgage rate remains the same, the real mortgage rate drops, making it cheaper to borrow. But if the mortgage rates go up faster than inflation (because banks need to ensure they get good real returns on their loans), then real mortgage rates increase and we are back to 1981. On the other side of the coin, if deflation happens, and the mortgage rates remain the same (again, because banks want to ensure higher real returns), then the real mortgage rate increases (and we are back to 1981 in a sense). Of course it is possible that the banks drop their mortgage rates in reaction to deflation if they are confident enough the deflation won’t be a risk to their business (but seems unlikely because deflation has other “negative” repercussions for economy).
December 24th, 2008 at 8:54 am
Henderson Development did tinseltown mall no?
It’s been a disaster since day 1 with more security guards and junkies than customers.
December 24th, 2008 at 8:06 am
“One of the bull arguments I am seeing right now is that hyperinflation will save the day”
Ironically, another main bull argument for the 81 crash was that interest rates (inflation) were too high.
Even if inflation came on strong, if a typical mortgage rate was 10-12% in say 2-3 years, I think there is a strong argument that this would wreak serious havoc on the housing market, worse than anything we are seeing now.
December 23rd, 2008 at 10:42 pm
No problem MrBear:
Your post added to what I found out. I found the whole Tinseltown bizarre and felt inspired and then searched it out.
Whoever owns it must have deep pockets. It’s too bad, it is an interesting concept. Maybe they should convert it into condos, real shortage in the area !!!!.
============================================================
Post #52
All those condos will act like black holes to “traditional ” landlords. Tenants will have a field day seeking/grinding deals from desparate amateur landlords in a flooded condo market. Vacancy rates will shoot up and rents will come down.
December 23rd, 2008 at 10:24 pm
I overheard my landlord today while waiting to talk to her. She was with her husband discussing the various types of incentives they need to look at to get some of the vacant units rented out. I heard two – free rent for a month and free parking for a year. This is a rental building in the West End. You know, those ones that are impossible to get into with the 0.5% vacancy rate and all.
Arit, thanks for the laugh!
December 23rd, 2008 at 10:21 pm
Damn, I wish the ‘preview’ button would pull in new posts so you would know if someone had just scooped you. Thanks for the link, no-lympics.