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October 14th, 2009 at 11:58 pm
“negative ratings” that is…
October 14th, 2009 at 11:57 pm
Does any one else see the similarities between “history guy” and Realpaul??? Apart from the negative rantings based on their rants? lol
October 14th, 2009 at 11:50 pm
I don’t about that, it’s a ‘if the shoe fits wear it’ situation no? You’ve got a bunch of anal simians trying to suppress the truth and a cadre of mindless collaborators backing them up in the bizarre hope that the betrayal of any morals and their fellow citizens will enrich them. History has shown that these Judas types usually go to wall along with the others, just more pathetically and much less heroically.
October 14th, 2009 at 10:17 pm
2 bedroom, 2 bath at Canadian at Wall Centre for $1650..
Leading up to the Olympics and back to 2003 prices?
http://vancouver.en.craigslist.....31742.html
October 14th, 2009 at 10:09 pm
@RennieWhereRU?: HP is junk, pick a different brand.
October 14th, 2009 at 9:52 pm
Off topic, does anyone know good computer store in Seattle area? Down there next week and am looking to buy desk top, name brand like HP? Thanks bears.
October 14th, 2009 at 9:05 pm
@censorthisassholescomments: Drat! That rascal Garth has foiled me with his secret weapon: He started his own blog and I am powerless to censor the truth that he speaks! I hate it when bad news gets out!
@historyguy: Oh come on now, you’re not even trying. The trick to a good trolling comment is to at least attempt to make people think you believe what you’re writing.
October 14th, 2009 at 7:46 pm
Actually that “income property” show focuses on fools who bought homes in toronto and can only afford them if they rent out the moldy basement suite. The host/pimp on the show extols the virtues of doing this and never ever mentions anything about paying income tax on the rent too which is something for the CRA to look at I guess.
October 14th, 2009 at 7:24 pm
@oneangryslav2: #38
For those wondering how that makes sense (like me about 15minutes ago) they eliminate land value in the data, so the 14% increase is in the selling price of a model (i.e. benchmark) home based on the house only.
Soooo…what does that suggest? I wonder how this relates to condos, since they have virtually no land value to begin with.
October 14th, 2009 at 7:19 pm
Vancouver, the city of amateur landlords. When will the city look itself in the mirror and start subdividing, instead of making its residents take on what amounts to part time jobs?
October 14th, 2009 at 7:19 pm
@oneangryslav2: I made a mistake with the annual percentage increase over that 12-year period. The formula is correct, but I inputed the wrong numbers the first time I made the calculation. The correct answer for log(114/100)/12=1.09%. That is the correct annual growth rate for new home prices in Vancouver between August 1997 and August 2009.
October 14th, 2009 at 6:32 pm
$580,000 average mortgate for 35 years, 5 year fixed at:
4% = $2556
5% = $2908
6% = $3278
7% = $3664
8% = $4064 (historical norm for mortgage rates)
BRING….IT…..ON…..
October 14th, 2009 at 6:26 pm
@censorthisassholescomments:
In the comment to that post, someone posted a link to the Statscan data.
http://www.statcan.gc.ca/daily.....a1-eng.htm
Very, very interesting!
They use 1997 as the base (1997=100) for their New Housing Price Index. Using, 1997 as the base year, as of August 2009, new home prices had increased in Vancouver only 14%. That’s an annual percentage gain of (approximately– [log(114/100)]/12, or 1.16 % annually).
Of the major metropolitan areas in Canada only Victoria, Windsor and Sudbury grew less than Vancouver. (Note that these are metropolitan areas.) Moreover, the Canadian average was a 12-year increase in new home prices of 53.7%, versus Vancouver’s 14%.
October 14th, 2009 at 6:16 pm
Wow, talk about a strange repeat of history. Wierd Karma at play here. The Nazi’s push the reporters and protestors representatives out of the headlines ( by killing them) and civic rights and freedoms begin to disappear. The a guy called ‘The Pope’ turns his back on the disenfranchised and hides behind privelage while the fascists murder millions. The people of Germany say after the war that they weren’t aware of the atrocities taking place and hide behind ignorance of the fact.
When someone sent me a link to this site today and told me how civic rights were being snatched from the stupid and the naive I instantly thought of the parrallel. Deju vu Vancouver. Don’t cry later for what you’ve agrred to do today.
October 14th, 2009 at 5:04 pm
Garth is saying some negative things again. Pope, censor this immediatley. We can’t have the truth getting out.
“Why is it that resale house prices are up 11% in the middle of a recession, when new house prices are down 3.1%? Like, huh? Don’t young couples want to rush into contracts with desperate, price-slashing builders so they can have viriginal digs to consummate?
Sure they do. So where are the bidding wars, gushing realtor hype and romping prices that we’re treated to every four weeks from the real estate boards in Toronto, Vancouver and the horsey bits inbetween?
Oh, wait. Resale home prices are compiled by realtors who together make up self-regulated real estate boards. Wait again. They used average unweighted pricing in compiling their stats, which means if one delusional dweeb in, say, Calgary, spends $10 million on a faux palace, it drives the numbers skyward. And, by gosh, it is the arithmetic average of the unweighted local averages which are used by CREA to calculate the national average – then dutifully spoon-fed to a waiting and voracious media.”
October 14th, 2009 at 4:56 pm
MOST major banks would lend 6x family pre-tax income, based on experience from families and friends. That’s first half of 2009. So yes, 6x family income with 10% down is perfectly prime, as far as I can tell, no shady brokers required.
October 14th, 2009 at 3:59 pm
If the landlord uses an agency they will usually inform you of this just make sure you don’t sign anything and actually get the eviction as some sneaks will get you to sign an agreement to end tenancy then you get nothing. The other thing is, make sure you get a notice before you shop around for a new place as there is nothing worse than finding a new place and then the new landlord calls the old one for a reference… you sign with the new place and then the old landlord waits you out for you to give notice as they know you have to or rent two places!
October 14th, 2009 at 3:38 pm
@Bently
Thanks! I did not know that!
October 14th, 2009 at 3:26 pm
“can you (or anyone else) explain the ‘month rent bonus cheque’ you mentioned earlier? What is it and how does it work”
From the ‘Tenant Survival Guide 2008’, found on the BC Tenancy site:
“If you are given an eviction notice for “landlord use” you are entitled to one month’s rent as compensation from your landlord. The landlord must either pay you this money or give you the last month’s rent free.”
In addition….
“If the landlord does not use the property for the reason stated on the eviction notice, you can ask for compensation. For example, your landlord might evict you because their immediate relative is moving in, but later you find out that the relative didn’t move in. If for at least six months after you moved the place was not used for the purpose stated on the notice, the landlord owes you the equivalent of double your monthly rent.”
ka-ching!
October 14th, 2009 at 2:38 pm
From Garth’s blog:
Chartered bank mortgage rates — 14.10.09
One year closed 3.7%
Two year closed 3.85
Three year closed 4.35
Five year closed 5.49
=======
Looks like all sorts of forces are coming into play that will reek havoc.
http://www.greaterfool.ca/
October 14th, 2009 at 2:37 pm
@YLTNBoomerang
can you (or anyone else) explain the ‘month rent bonus cheque’ you mentioned earlier? What is it and how does it work
thanks
October 14th, 2009 at 2:32 pm
With Olympics Came New Laws to Sweep up Homeless
Four recent host cities criminalized and removed street dwellers leading up to Games.
http://thetyee.ca/News/2009/10.....elessLaws/
October 14th, 2009 at 2:19 pm
Olympics street closures to relocate homeless in early Feb.
http://thetyee.ca/Blogs/TheHoo.....-homeless/
February 5, 2010, is eviction day for homeless people sleeping near the Georgia viaduct, Vancouver’s city manager said today.
Starting then, the busy thoroughfare connecting downtown to east Vancouver will be closed to normal traffic. It’s part of the 2010 Games transportation plan. And Penny Ballem confirmed anyone sleeping near or under the viaduct will have to leave.
================
October 14th, 2009 at 1:53 pm
25
October 14th, 2009 at 1:51 pm
@NO – LYMPICS:
#18 was not me.
Eviction was due to sale with new owner moving in. We have friends (spys) in the building who are going to confirm whether the new owner moves in. We are crossing our fingers that the owner doesn’t move in and tries to rent it out for higher rent as the extra two month rent payout would be great to fund an Olympic trip down South!
October 14th, 2009 at 1:49 pm
@kansai_92:
#24 K, you thinks its bad here, chack out this article.
http://www.thisislondon.co.uk/.....d-93000.do
I don’t know wether it passes the new ‘libel’ laws as interpreted by the snivellers who’ll willingly denegrate the truth but I ‘ll post it anyway.
October 14th, 2009 at 1:35 pm
#5 PorkyFlu said
“Anyone seen the new show “income property”? It doesn’t look like it’s based in Vancouver oddly enough. It looks like Toronto.”
That’s because you can’t make income on properties in Vancouver.
Everything’s negative cash flow with the traditional 20-25% down.
October 14th, 2009 at 1:21 pm
I too think that the new VCI censorship policy is good. My husband was very frustrated reading these negative comments. We have to put up with the newspapers printing articles which expose police actions we shouldn’t have to share this information with our neighbours as well.
Thanks Pope for bending to the complaints of the ‘DBoy’ and “Bravery”, they knew you’d fold like you did the last time when the REBGV sent you a email. In the future don’t allow any diverse opinions or any information about police ‘misdeeds’ get out to the public on your site. The fact that our husbands accidentally kill drunks in the cells or seniors off their medication or guys like that slime ball at the airport ( you know that story) shouldn’t mean that it become public information.
October 14th, 2009 at 1:20 pm
So ridiculous when a “SFH” actually is a “MFH” but people brag that they now own a house-a SFH plus basement suite tenants! Oh please. I know people who share a house with the landlord and I wonder why, is it really worth the hassle? They don’t even have a backyard (it’s all paved for parking/back deck) Wouldn’t a townhouse be better (and more private?) The city’s gone mad, what people will do just to say they have a house!
October 14th, 2009 at 1:13 pm
@Purp:
Purp
Thanks for the info.
With higher interest rates also comes higher rates on all the Home equity loans too. So that $160k could be closer to 200k
October 14th, 2009 at 1:07 pm
YLTNBoomerang:
If you don’t mind my asking, why did you get an eviction notice? They had to submit grounds, didn’t they ?
October 14th, 2009 at 1:05 pm
18 X YLTNBoomerang:
Is that really you in comment # 18 or Supraboy?
October 14th, 2009 at 1:01 pm
Bear is in agony and crying for answer;the answer is Chinese purchasing power is invincible worldwide.Give up now or you will be crushed miserably for the yrs to come.
October 14th, 2009 at 12:54 pm
Good comments:
I agree, the article is a joke.
IMHO, they are dredging the bottom of the bag of tricks to create sales.
I think more signs indicate it will be a renters market.
McMansions will end up as rooming houses.
Basement Rental suites ?
Those tend to be in older housing stock that has often had its mortgage paid off years ago…or a holding property. Careful re: if they are legal, or require a City license, or if your neighbour complains or don’t report to CRS.
As a mortgage helper these days?…not worth the risk or the hassle. Don’t be dependent on a renter,all that does is help keep the bubble inflated . Virgin landlords can get be the first to get screwed by a number of circumstances.
October 14th, 2009 at 12:53 pm
@DaMann “$100k income needed for a $580k mortgage? Let’s see how much income is needed when interest rates are 7%”
…$160,000…according to BMO mortgage calculator
October 14th, 2009 at 12:50 pm
I don’t understand those numbers in the article. Assuming you receive $1500/month rental income, this is only $18,000 annually (of which only 80% is applied to the mortgage, according to the article, less than $15,000). However, they’re claiming a income requirement reduction of over $40,000, to ‘below $60,000′. How does that jive?
BTW, using BMO’s mortgage calculator ($100K income, $200/month tax, $100/month heating), to carry a $580,000 mortgage requires a 35 year amortization with an interest rate of 2.9%! Frightening.
October 14th, 2009 at 12:43 pm
Evicted! It’s official, we got our 2 month notice, found a place a couple days later and gave our 10 days notice; can’t wait for the month rent bonus cheque (will cover the move including packing and boxes plus enough for a new TV!). Our new landlord only wanted a 6 month lease as she is unsure what she will do with the place so looks like we’ll get cheaper rent again in 6 months and maybe another bonus move cheque. The only problem in this scenario is that as rents decline, eventually the bonus month cheque won’t cover moving expenses (and a tv! ha!)…I guess then it is time to buy.
So my question is if the one month’s rent is supposed to cover moving costs and a full service move costs maximum $800 for a 2 bdrm local move, is $800-1000 where our rent should be?
October 14th, 2009 at 12:28 pm
Yup, friends have a place on 11th a block or so from Alma, which has to be “worth” 1.5 mil, and they only get $1500 for their basement suite.
article read like a POS to me.
October 14th, 2009 at 11:35 am
Ok, I just did a search for 4+ bedroom 2+ bathroom house on MLS, in the 550-650k range, by the time you get anything big enough to charge $1,500 for a suite it’s too far east for you to get $1,500, if you up the size you have to go farther and farther east and it looks to me like you’d never actually reach any house in that price range that you could realistically live in and rent out for 1.5k at the same time.
So don’t even have realistic market assumptions to plug into their theory. Given the size and capability of the bank I’m sure they COULD have looked up the numbers if they’d wanted to (and so could the reporter, it only took me 2 minutes) so this is a propaganda piece both by the bank and the newspaper with no basis in reality.
October 14th, 2009 at 11:13 am
@buff_butler:
I agree with that. If homeownership is at all time highs, where are the renters coming from to support the mortgage helpers? Something doesn’t add up.
October 14th, 2009 at 10:47 am
If what BMO suggests becomes the new norm, we’ll see a massive increase in rental suites, meaning a massive decrease in rents, meaning more renters and fewer buyers, meaning a massive decrease in home prices, meaning more people will buy, meaning fewer renters…
In others words, it’s not a very good plan to rely on a rental suite to pay for your house.
October 14th, 2009 at 10:47 am
Thanks VCI for getting rid of those nasty bears. The negative opinions expressed by people who don’t want to listen to my industries message were really getting annoying. After all we real estate sales people have bills to pay and condos to sell. We need to keep the public happy and buying rather than have them focus on those ignorant homeless people and other bad things.
Thanks for providing a platform for persons like myself to make the message heard ‘That real estate prices will never go down’. Its only with sensible censorship initiatives that we can make sure that everyone stays on message.
October 14th, 2009 at 10:42 am
I love the term “Fonzie Scheme” – as in, you have to have a renter (at least one – my friends rented the top and basement floors to pay theirs) to make the numbers work. The last thing in the world I want is to be a landlord, so screw that!!
It’s just one of those things you have to put up with in exchange for living in “the best place on earth”.
I wonder how this lovely back-to-normal weather is going to affect the market. I think all the sun this summer cooked people’s brains.
October 14th, 2009 at 10:30 am
so in order to increase the number of owners we will need to increase the number of renters? Hmmmm… unsustainable? This is a short term solution however I think this could also throw the rental market out of wack. These people also become prime candidates for forclosure durring the next recession due to having external dependancies. Your also claiming unproven income wich is again more risk. Instead all these affordability policies are creating a vaccum for new buyers to occupy that never would have bought in the first place (or sooner then normal) further bidding up prices; I dont think this will be that big of an effect compared to 30-40yr mortgages because its rediculous but I bet a few people will go for it.
This really sounds like the product of a builders lobby group to me.
October 14th, 2009 at 10:26 am
@Purp:
Purp, The Westside rises fast and drops fast. All you have to do is look at the mini correction we had last fall before this current dead cat bounce. The city average was 15%, but westside had a good drop of 20+%. It also pulled back the highest in this latest stupid run up. It’s back up to peak levels again. So will it hold it’s value? No, I think it will get smacked just as hard as condos. There are lot’s of new families there pulling HUGE mortgages praying to god interest rates stay low.
October 14th, 2009 at 10:24 am
Anyone seen the new show “income property”? It doesn’t look like it’s based in Vancouver oddly enough. It looks like Toronto. I thought Vancouver was one of the only places in this stupid cuntry to have these basement suites. Is the stupidity spreading? Or is the moldy basement suite a nation wide epidemic?
October 14th, 2009 at 10:20 am
$100k income needed for a $580k mortgage? Let’s see how much income is needed when interest rates are 7%
This whole idea of NEEDING rental suites to buy houses is ludicrous. Why buy a house and have the headache of being a landlord? Buy a Duplex or a condo then. I thought the idea of a house was just that… a SFH ( the S stands for SINGLE).
This city is F@#&# up. Can’t wait for March 2010 and the games to be gone to get this overhyping done and over with.
For now I rent a Million dollar plus house on the westside for $2k a month…with no other renters on top or below me!
October 14th, 2009 at 10:03 am
Food for thought:
Banks only use 50% to 75% of the market rent when running their numbers.
It’s sad when families have to live with strangers in order to afford a crap shack.
October 14th, 2009 at 9:33 am
“a $580,000 mortgage, which is fairly typical for Vancouver”
Does anyone know if Vancouver area mortgage stats are publicly available? For example, % of households with a mortage, median mortage amounts, etc. I’ve found spotty information by province, but it is too general too be of much use.
I’m also wondering whether this data varies greatly between areas in the city. For example, is it possible that West side homes are primarily long time owners who either have smaller relative mortgages or paid off homes, as these are not typical ‘starter’ homes. If so, could we expect much less downward pressure in these areas as the market corrects? Downtown condos on the other hand….
October 14th, 2009 at 8:56 am
BOM will lend almost 6 times family income? Is this normal?
With the secondary suite, they actually claim you can qualify with only $60k. 9.66 times income!