Festival of light goes dark.

As if it’s not bad enough having the BC Real Estate Association announce their forecast of a 14% price decline on your downtown condo, now you won’t even be able to watch the fireworks in English Bay from your balcony:

The HSBC Celebration of Light, the summer fireworks festival that has attracted thousands of people to Vancouver, will not proceed this year due to a lack of funding.

The Vancouver Fireworks Festival society said Wednesday in a press release that the not-for-profit society has been unable to retain and add enough sponsorship to meet the event’s $4 million budget.

“It has been an exceptional 18-year event — the largest of its kind in the world — and it is a credit to our many exceptional sponsors that we kept the event going year after year. However, the current financial situation makes it impossible for us to continue.”

At least you can take some comfort in the fact that you still live in the “Best Place on Earth”.

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Denialisrampant
Denialisrampant
11 years ago

Disbelief:

Too bad thats not how it works. if you could make that happen you'd be a hero to a lot of people

Disbelief
Disbelief
11 years ago

The developers on genuine owner/occupier are going to be left with the deposits and then will sell for market value. You can't get money from a pauper. When you ain't got nothing you got nothing to lose…

kingroland
kingroland
11 years ago

patriotz: "Do I have to say it again? Back when people used actual gold coins for money, lenders charged interest. Got that?" Apparently my earlier post was over your head. Let me try again using grade school language. The point is not whether charging interest is a new phenomenon. Nobody is claiming that. The question is whether charging interest has always been necessary. Lenders charge interest for a variety of reasons. To guard against credit risk is one. To make a profit, if the lender engages in lending as a business venture, is another. And to protect his principal against inflation is yet another. The risk of inflation eroding your principal is a modern day phenomenon after the advent of fiat paper money. However, the desire to make money, and the risk that the schmuck who borrowed your money may… Read more »

oldslappy
oldslappy
11 years ago

Skye:

Very funny vid, Patrick is in total denial or he's desperate and trying to be 'salesman' and wants to cover the 3000 p/m he owes Re Max for his desk fee.

It would seem that he can't differentiate the real from the unreal e: rental picture on Craigslist in Vanc. There are plenty of asking prices above the $3000 p/m for one & 2 bedrooms , that doesn't mean they're renting or have any hope of getting it.

There was a place exactly like that that he must have driven by a few moments before he plugged in asking 3500 p/m for a 2 bedroom in Richmond, still for rent sadly for patrick.

Mold city
Mold city
11 years ago

Skye: That's a very funny video, I couldn't help but leave comments on that. If realtors really believe the stuff they're saying then they're in worse trouble than I thought.

Skye
11 years ago
NO -LYMPICS
NO -LYMPICS
11 years ago

scullboy;

Another great post !

Maybe the best analogy is the BCREA beams this BS into the microchip planted in the heads of realtors.

In hindsight,..the worst possible demogrpahic is a realtor say late 20's to mid 30's in age…has no clue what a real recession was like , programmed to feelings of entitlement, and THEN getting gobsmacking blindsided by "the mother of all recessions" aka edge of a depression. Some of us were at least inoculated a bit having experienced a few .

Its like being on the Titanic , parked in a sheltered bay and still smoked by the iceberg ie "where the F*ck did THAT come from" ?

NO -LYMPICS
NO -LYMPICS
11 years ago

Patriotz:

" But rest assured, the developers will not let anyone get away without either an out-of-court admission of damages – which may then be released for a nominal amount – or a court judgment. NFW."

Yes agreed, even if it is simply going through the motions to have this formally and legally acknowledged. Then closure can occur .

I envision other phenomenon…condos will be much like perishables…I can't see inventory sitting for the sake of sitting and hoping for a market turnaround . Clear the decks and move on…things like stratas need closure and certainty re: ownership and strata fees,or else new problems may evolve from unresolved ones.

realpaul
realpaul
11 years ago

realpaul:

that should be

so FEW people think to consult a lawyer

realpaul
realpaul
11 years ago

NO -LYMPICS: The fact is that these trust accounts are not very secure at all. There is a long history of 'trust accounts' getting raided. Signing authority is held with the principal, if they decide to remove monies from the account there is no one looking over thier shoulder. Ideally it would be best to use a lawyer and have trust monies lodged in the lawyers account. But so people think to consult a lawyer before purchasing real estae. Stupid, stupid ,stupid. Todays news isn't looking good. Tolko Indudtries, another wood mill is shutting down plants and idling more workmen in the interior. Bad news for towns like Armstrong. Seniors in the Okanogan are seeing thier real estate equity dissapear as is talked about in Garth Turners blog today. This is a continuum of bad news for the population as… Read more »

scullboy
11 years ago

Slightly off topic (but pretty relevant I think), I ran into a realtor friend of mine. He was just sh*tfaced drunk. I asked how HE was doing and he said (and I quote) "The market is terrible. NOTHING is moving. But it's a great time to buy! My partner and I found this *blablablablabla* (I kind of tuned out because I didn't really care). I think BCREA must beam talking points directly into realtor's head with some kind of chip or something. They all seem to say exactly the same reality defying things. It's friggin' weird. I think all realtors are in different stages of grief. My buddy's in denial. A lot of the window – lickers turning up here are in the anger stage. I think we're all going to giggle when they get to bargaining, but acceptance is… Read more »

patriotz
11 years ago

NO -LYMPICS:

However, the operating definition is “blood out of a stone”.

Yes, of course that's what I was talking about regarding out of court settlements. If the buyer has no assets to go after, there is no point in pursuing an expensive court case.

But rest assured, the developers will not let anyone get away without either an out-of-court admission of damages – which may then be released for a nominal amount – or a court judgment. NFW.

NO -LYMPICS
NO -LYMPICS
11 years ago

patriotz: True: However, the operating definition is "blood out of a stone". We are not talking about a market whereby the odd party has financial problems and the legal mechanism get triggered. We are literally talking about "stones(ie purchasers) with little blood" that put minimum down and were highly leveraged. The RE club pass was simply beleiving the realturds mantra of —Vancouver Real Estate Never goes down —Buy now or priced out forever —We have mountains and the ocean and the Olympics is the exclamation point. The developers and lenders now know they let far too many parties into the market by bypassing basic fundamentals. There is nothing really left to go after if thes eparties went 0/40 type of financing. Or go right ahead and play Snidely Whiplash, take these parties to court, and they will end up homeless… Read more »

NO -LYMPICS
NO -LYMPICS
11 years ago

Re/Max offices, broker investigated Provincial watchdog launches probe and freezes bank accounts after financial irregularities alleged http://www.thestar.com/Business/article/582576 QUOTE: The Real Estate Council of Ontario has frozen bank accounts and is investigating accounting irregularities at three Re/Max Executive Realty Inc. offices and its head broker. The council issued a freeze order as part of its probe and is "taking all appropriate action with respect to Re/Max Executive Realty Inc., and its broker of record, David Seto," according to a public advisory issued by the council on Monday. The Star was unable to reach Seto yesterday, and the council did not return calls seeking comment. When a prospective home buyer gives a deposit to a real estate agent, those funds are held in a trust account until the deal closes. Those funds, which typically are insured, are then used to pay the… Read more »

crabman
11 years ago

20% rent reduction:

On Jan 23, they wanted $4,350.

On Feb 4, they lowered the rent to $3,500.

Of course, if you don't like saving money, you could always buy the place for $1.5M.

patriotz
11 years ago

NO -LYMPICS: One comment I had read was that persons in such dilemnas should simply go back to the developer and negotiate a new price, such as current market price. IMHO, the developers are not going to consider letting any properties go to the pre-sale buyer for less than the contracted price. It would establish a dangerous precedent. Remember also that the banks financing the project have a lien on the property and if the developer settled for less than the contracted price it would impair the banks' position. Why would they agree to drop the price to the pre-sale buyer to market, when they can sell for market (by definition) and go after the pre-sale buyer for the deficiency? Settling out of court for damages to the developer is of course a different issue. But the developers are not… Read more »

NO -LYMPICS
NO -LYMPICS
11 years ago

post # 50 Noname: Interesting dilemna. The financing has been lowered based on current assessment. Whose fault is that ? Regardless, one can't get blood out of a stone. A Vancouver lawyer( Peter Ritchie ) has already enlightened us as to the court costs.we are talking tens of thousands of dollars before they even get through the courtroom door. One comment I had read was that persons in such dilemnas should simply go back to the developer and negotiate a new price, such as current market price. See where it goes. Both parties want to maximize their gain and minimize their loss. The Developer has to see the writng on the wall..they may be in a litigious mood now…in some deluded belief that the old price will be achieved or the market will turn around, but when the floodgates open…it… Read more »

betamax
betamax
11 years ago

Always liked the fireworks, it was free mindless fun and that's a commodity in short supply. Damn shame, but I won't lose any sleep over it.

patriotz
11 years ago

Easy- by asking market price. The pre-sale contracts give the developer the right to unload the properties as expeditiously as possible, and then go after the original buyer for the deficiency.

I tell you one sector that won't be hurting is litigation and bankruptcy law.

Noname
Noname
11 years ago

One of my friends bought a pre-sale two bedroom condo in Coquitlam Town Centre last year for $435000 plus GST. It is completing very soon and the appraisal came back at $300K. He was planning to put down 20% and borrowing 80% but know he can only borrow based on $300K with maximum 95%. He doesn't have the extra money for the downpayment. Just wondering how many people will be just like him. Even they want to complete, they don't have the extra money to do it. All those units will go back to he developer and how they can unload them.

realpaul
realpaul
11 years ago

Some money talk from a guy that knows a thing or two. A ) Eric Sprott Sees Depression ( PART TWO ) and $ 2000 Gold Feb. 3 (Bloomberg) — Eric Sprott, the Canadian money manager who last year predicted banking stocks would collapse, said the U.S. is at the beginning of an economic depression that will help gold prices more than double. Bullion may top $2,000 an ounce in coming years amid a series of financial catastrophes, the chairman and founder of Toronto-based Sprott Asset Management Inc. said yesterday in an interview. Banks will battle to replenish capital, Treasury auctions stand the risk of failing and the moribund economy will create a dire operating outlook for many companies, he said. “The trend is down, and there’s not one signpost that says it’s changing yet,” Sprott said yesterday from Toronto.… Read more »

NO -LYMPICS
NO -LYMPICS
11 years ago

Possible $12 million revenue drop catches Vancouver by surprise http://thetyee.ca/Blogs/TheHook/Municipal-Politic… QUOTE: With developers hesitant to build and construction slowing down, the fees paid to the city for permits and building inspections appear to be far below expectations. (The city budgeted $33 million in service and inspection fee revenue in 2008 and $30 million for 2009, a figure that doesn’t include the latest numbers.) If the trend continues through 2009, that would result in an unexpected loss of $10-12 million, which represents a 2 per cent tax increase on its own. That means that despite the city having already trimmed the budget forecast by $26 million since mid-December, residential taxpayers could still be facing an extraordinary 10.3 per cent tax increase this year, including a planned residential-to-business tax shift and the revenue shortfall. “That is absolutely unacceptable,” said Coun. Raymond Louie,… Read more »

Straightryder
Straightryder
11 years ago

hahah…. the most lamest city in the world.

Vancouver, overrated and utterly blan.