Friday Free-for-all!

Well, I made it a week without posting, and I’m encouraged by the way that readers have stepped up with story submissions.  No one seems to be interested in doing the Friday Free-for-all, and I’m not sure it’s a tradition I want to let vanish yet, so here goes:

Vancouver rises in economic ranks, Regina is #1
Canada could face six years of deficits
Warnings of risky mortgages ignored
What ever happened to $200 / barrel oil?
Toronto condo boom heading for bust
Bush considers ‘orderly’ autos bankruptcy
-Grim choice: walking away from a mortgage
Harper concedes possibility of depression

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

note: any conversation on Vancouver, real estate or economics is allowed, please keep it civilized. When posting articles please only quote pertinent points and link to the original instead of pasting the entire article here. Pasting a link into your comment will automatically create a clickable hot-link.

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ConnectTheDots
ConnectTheDots
11 years ago

I love this and all the other blogs. They have certainly helped me not feel alone when I began investigating the RE market here. However I am concerned that many people here are very aware that our government and media have been complacent in making this bubble, but they have not stepped out of the RE realm to see that this is just part of the BIG PICTURE. Sure many of you have, but many have not and still see this as an isolated realm. We are heading into the ENDGAME SCENARIO of our way of life. I understand this is a RE blog and not a 9-11 truth site so I will not make this a long post but let me assure you that this economic meltdown is not by accident. It was not unforeseen. It was planned and… Read more »

vancouverboom2
vancouverboom2
11 years ago

I am very sorry for earlier post, it was very rude and disrespectful to all of the guests and posters on this blog. I admit I am an idiot and know nothing about Vancouver real estate or real estate in general. I’m pathetic, sorry :_(

Anonymous
Anonymous
11 years ago

#140 Mike – you must be Desperate to post that listing on this Blog! I just finished watching your recent You Tube Video, pathetic. If I were you, I would start looking for another line of work!

anon
anon
11 years ago

the sad thing is that once too many people agree with the bleak future of the vancouver RE, its bound to happen.

The funny thing is that after the party last weekend I am absolutely sure that the downward trend would continue. Not because of the fundamentals, or overpriced market or else. Just because that everybody I talked to agreed that it would go lower. This strikes me quite a bit, and I think that -30% is not reasonable anymore, it should/would be bigger drop, only because of the people emotions skewing the fundamentals..

The RE is very emotional investment, and this time the emotion is negative (across the board). Cheers…

Yalie
Yalie
11 years ago

Re: Krugman article. Great link. I often have a sharp difference of opinion from Paul Krugman, but this time I can't agree more. I lived in London during the mad days of the middle of this still-unnamed decade, and can say first hand what an orgy of money it truly was for the investment banksters over there. People I knew in their late 20s and early 30s were making half a million pounds a year in bonuses, on top of their already huge salaries and stock option packages. I knew back then that something was horribly wrong with the system when so many people were getting so rich by simply moving money around and not creating anything of real value. The worst thing is, they're getting bailed out while at the same time keeping the money they "earned" during the… Read more »

vancouverboom2
vancouverboom2
11 years ago

What do you mean by those people are in trouble?.

If you own a house at that age you are definitely sitting mortgage free nothing to worry about paying rent etc,maximum home owner grant at that age.

If you think of losing value? again they have nothing to lose 133% appreciation in last five year based on 2007 what it would be since when ever they own their homes?

I didn’t get you further then this unless you speak little bit more about your concern.

realpaul
11 years ago

#150. Think of it, 67 years old and no savings, these people are in trouble. It’s cat food time.

vancouverboom2
vancouverboom2
11 years ago

#136,

If 2.5 million people in greater vancouver start earning top income what will happen to housing sector you fucking idiot there are only 625.000 home in greater vancouver you fucking son of bitch don't you read that future supply at number #2 on this thread you fucking idiot those are all ready sold out you fucking bastard.

NO -LYMPICS
NO -LYMPICS
11 years ago

FINANCIAL FACELIFT

" Lose the house, buy a condo"

http://business.theglobeandmail.com//servlet/stor

NO -LYMPICS
NO -LYMPICS
11 years ago

Even more important re Vancouver Condos and the RE future !!!

" Father offers daughter to shoe-thrower"

http://www.reuters.com/article/oddlyEnoughNews/id

NO -LYMPICS
NO -LYMPICS
11 years ago

Financial crisis hits home in Hamptons (U.S.)

http://business.theglobeandmail.com/servlet/story

QUOTE:

NEW YORK — Just months after he was ousted from Lehman Brothers, Joseph Gregory put his mansion in tony Bridgehampton, N.Y., on the market for $32.5-million (U.S.)

The former president of the sinking investment bank could not have picked a worse time.

The Hamptons, a summer vacation playground for New York's financial and celebrity elite, are being hit hard as Wall Street power houses such as Lehman and Bear Stearns succumb to the financial crisis.

According to a report by Douglas Elliman, real estate prices fell 11 per cent in the third quarter in the Hamptons, an exclusive section on the eastern tip of Long Island, less than 60 kilometres from New York City.

——

Suggestion: put it on CraigList, that tends to attract the

more elite amonsgst us.

realpaul
11 years ago

#144, Yea, and if the other suite was listed for a million dollars you'd be saving $600,000, Wow , what a deal !!!!! The horrible thing is that the only thing that will matter is what they eventually sell for. I would say that this'desperate' couple can kiss their $55 grand goodbye and get ready to take a very cold financial enema. Brrrrrrrrr!!!!!!!! Waiting for a 'saviour' while holding your breath can be hazardous to your health. Fairy grandmothers have left the building. How stupid are these people?

Whats that I hear? "Help me Mommy, I've got a Boo Boo and you have to make it go away Wahhhhhhhhhhhhhhhhhh." Yup, thats the flushing whiny sound of another specu-vestor going through the meatgrinder courtesty of the Bob Rennie Crap Sausage and Bullshit factory.

observer
observer
11 years ago
M-
11 years ago

Arit: I wonder if that specuvestor on CL has any clue what a legitimate investor might be interested in knowing– they didn't say how big, how many bedrooms, where in Richmond, what's so luxurious about it…….

I wonder if they even know that much about it, or if they just bought it as a "no-lose proposition, doesn't matter what the actual specs are"!

arit
11 years ago

http://vancouver.en.craigslist.ca/reo/939986927.h

"In order to salvage some of our deposit, we are willing to assign this New Luxury condo which is ready and must be purchased immediately, for $10,000 less than the purchased price ($355,000) over 2 years ago!

The same suite is listed for $400,000 right now!

So you will be saving $55,000!

We are desperate not to lose our $55,000 deposit, So we are open to any offer.

More details are available upon request."

Yawn…. 55,000 is only a small fraction of what you are about to lose. Something like 15% of your total loss…

Regards

arit

arit
11 years ago

Lord Huggington

I am with you. If before I would consider strata living, today and in the future I am staying away from it. Another lesson learned on other people's experience.

Thank you internet.

Regarding Stewart's post:

There is a picture of Caleb (bonus point: who knows what's Caleb in Arabic?) standing next to his Corvette, where it says:

"It is clear that Caleb has chosen his career as a Realtor because he is able to put 100% of himself into his business and his clients' satisfaction. He works tirelessly to sell properties for these valued clients."

works tirelessly = post listing in a bear blog?

My definition of 'work tirelessly' is a bit different… LOL

Regards

arit

realpaul
11 years ago

#140 Mike, I think you can rephrase the question to read

" How 'far' wrong could you possibly be, $100,000.00, $200,000.00+++, maybe lose it all when the building gets tied up in litigation and you're on the hook as a principal?" This might be more to the point.

And ' assignment of contract" !!!!!; at this stage of a crash????? What kind of an idiot would step under that piano? Hey man , good luck with that.

To the guy who's touting this dog 'F-You , you F'ing sleazeball f'er. Find a job you're more suited to, like pimping and such. And have a nice day!!!!!!

Lord Huggington
Lord Huggington
11 years ago

The more I watch this train wreck in progress, the more I want to stay away from any sort of condo when the time finally comes to buy. I originally thought a townhouse or some such would suit my needs, but it seems the sheer level of neglect as to both the construction quality, and strata councils dripping with specuvestors that don't want to pay for proper maintenance is going to just thrash that segment of the market. After listening to that CKNW podcast about just how little many stratas are paying for upkeep as well as emergency reserves was the last nail in the coffin for me. I remember reading either earlier this year or some time last year about many condos in Miami turning into rotting husks because so few were being properly maintained. There was mold in… Read more »

mike stewart
mike stewart
11 years ago

Don't miss this amazing deal – it's the best in the neigborhood!!

2 bedroom, 2 bathroom, Den, Storage and Parking – unit has so much to offer sub-zero+Bosch appliances, hardwood floors, balcony and storage locker. Brand new and never lived in completes in 2008/early 2009. Assignment of Contract – Seller is selling for below what he originally paid how can you go wrong!!!

Visit our website for pictures and more info http://www.calebquinton.com

8th at Pine

other ted
other ted
11 years ago

I must have struck a chord with a bitter buyer. This guy at work who I was telling my thoughts on where real estate was going, apparently behind my back tried to paint me as a bitter renter. Apparently"I will never buy". He always acts nonchallant and carefree and cool when talking about real estate. As if he is secure and not caring where prices go. But I guess I struck a chord. Not only the behind my back lash out but apparently buying before the olympics is a no lose proposition. I really wish him luck with that. he he. All the stupid arrongant people in my life are going to make this enjoyable. Get the popcorn this is going to be fun.

realpaul
11 years ago

Hey, a lot of great commentary on the forum today. I particularily like the Freudian slip in #129 " aboslute hoesty" . "ABSOLUTE WHOREISTY", I translate . The very fact that sub-agents are unpaid salesman that say or do anything for a commission makes them bend to the unethical side when times are tough and commissions are few. You know the old saying " As cold as a whores heart?" I think that applies to the real estate industry in spades.

Have a great holiday all.

browntown9
browntown9
11 years ago

Yeah nutslaps! On the way up purchasers did would scream blue murder if they didnt get their condo at the agreed price. Why should the developer expect anything but less on the down side nutslap. Flippers were happy to take the profits. Developers were prepared to take less profit, and if the profit went to a flipper, then the developer had defrayed their risk.price go up in march Dont cry for these flippers who go broke. They were quite happy to take the profit, thinking there was no risk. If they thought there was no risk then they deserve to be forced to accept the true nature of risk and reward. How many condo's were on contract, how many flippers. That is a lot of pain for a lot of people. It wont be long before you see homeless on… Read more »

vancouverboom2
vancouverboom2
11 years ago

Many bears have pointed out the median income here is unable to support the price of housing. I'm thinking though that the problem is much more severe in Vanouver and B.C., as opposed to say, Calgary, where median income is much higher in Calgary buy the cost of housing there is much cheaper!

If what we're seeing plays out, there will be that much more speculators in Vancouver and B.C. that will be unable to complete, leading to more units being dumped back onto the market versus other Canadian cities. The supply here will balloon that much more than other Canadian cities if developers start dumping these units back on the market here versus developers in other Canadian cities where pre-sale buyers are able to complete.

What do the rest of you think?

NO -LYMPICS
NO -LYMPICS
11 years ago

Advertising on Craiglist is W-A-S-T-E of time. Tried it once…couldn't even find the ad later …and was amazed how many ads were posted in 24 hours after mine. Frikkin 100's of them . (Gee , Ya ' think maybe "free" has something to do with it?) Also, on the guilt by association, one's ad gets buried amongst those that blather on limitlessly with the most dumbest revelations, as opposed to basics like: — $ Rent per month, , — % of Utililies , –# of Bedrooms, –No Smoking/ No Pets, –References req'd etc. A good ad gets lost in this insane asylum of CraigsList, its more an "intellectual bloodsport" type of amusement to read. A classic was what one VCI posted with the landlord admitting to a mice problem now fixed? yeah right ! With apologies to pet owners,(and yes… Read more »

Keeping an Eye on Th
11 years ago

"Why did almost everyone believe in the omnipotence of the Federal Reserve when its counterpart, the Bank of Japan, spent a decade trying and failing to jump-start a stalled economy?"

http://thechronicleherald.ca/NovaScotian/1097165….