Comments on: Friday Free-for-all!

By: “A guy just bought a house with a mortgage and was checking with his friends if the bank would lend him another $6K for CHMC insurance” « Vancouver Real Estate Anecdote Archive

Mon, 16 Nov 2009 16:29:09 +0000

[...] November 2009 · Leave a Comment This from Anonymous at vancouvercondo.info 15 Nov 2009 10:13 pm [...]

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By: rp

rp — Mon, 16 Nov 2009 11:27:14 +0000

Hey it worked for real estate, you really can't blame them for trying. It must be raining idiots!

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By: buybuybuysellsellsell

buybuybuysellsellsell — Mon, 16 Nov 2009 08:43:07 +0000

@Arit No they did not line up for a few dollars of discount. But what hit me was the goods are on craiglist asking 150% and 70% above the purchase prices.

http://vancouver.en.craigslist.....43940.html
Eee pc 8g 701sd brand new – $250 (Vancouver/Burnaby)
= asking 150% more

http://vancouver.en.craigslist.....14645.html
BRAND NEW Sony VAIO VGN-FW340DW – $850 (SURREY)
= asking 70% more

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By: doh

doh — Mon, 16 Nov 2009 08:19:42 +0000

@Supraboy: "I don’t think" Exactly.

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By: realpaul

realpaul — Mon, 16 Nov 2009 07:05:34 +0000

Potential for a very hard landing in China as stimulus lending hits 140% of GDP. Fine to ramp up the factories but at the end of the day there has to be customers for the product. The big parasite has had its day in a world that can’t carry it anymore. The saying go’s that a rising tide floats all ships. China did nothing but clamber on the riseing economies of the west and now has nothing to sustain itself as the tide is going out. Superpower my ass.

Ha ha ha

http://www.telegraph.co.uk/fin.....onomy.html

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By: Supraboy

Supraboy — Mon, 16 Nov 2009 07:02:04 +0000

There are so many bears here, it goes to show you that the RE market will continue to rise. Until there's a flood of bulls on bullboards and a swarm of buyers lining up for condos, I don't think we're even close to topping out on RE in Vancouver.

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By: doh

doh — Mon, 16 Nov 2009 06:51:20 +0000

^^ retard

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By: DEFAULT NAME

DEFAULT NAME — Mon, 16 Nov 2009 06:45:15 +0000

@Chilled: Yeah but, yeah but, Chilled, don't diss this guy(?)cos he deserves respect man, now that he's an "owner". You are clearly just a bitter renter. It 5 years he will own 15 properties and be the talk of all the cool cocktail parties.

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By: Chilled

Chilled — Mon, 16 Nov 2009 05:59:22 +0000

http://vancouver.en.craigslist.....56948.html

Tooooo Funny!!!!!

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By: DEFAULT NAME

DEFAULT NAME — Mon, 16 Nov 2009 05:13:15 +0000

@91 Thanks for the video. LOL a masserati show - are those cars 50% too! I was at Daiso $2 shop to buy toilet brushes and brooms all @$2-$3 each. And I overhead a conversation. A guy just bought a house with a mortgage and was checking with his friends if the bank would lend him another $6K for CHMC insurance.

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By: ReadyToPop

ReadyToPop — Mon, 16 Nov 2009 02:53:48 +0000

"Fleck" does it again...this could apply here as well for those of us who believe that monetary policy (and the bubblacious consequences) will echo the U.S. Arrogant Fed hasn't learned a thing

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By: domus

domus — Mon, 16 Nov 2009 02:21:32 +0000

@flip_this: Hi flip_this: that's a very good question. In normal times mortgage rates are set equal to the interest on long-term (usually 10 to 30 years) bonds, plus a premium which compensates for transaction costs and other middle-man costs. Notice: the premium usually goes up as your risk-category goes up. So, in normal times, if you have low down-payment your premium goes up. However we are not in normal times: CMHC is allowing high-risk people (with very little downpayment) to have access to really low premiums. This means that these guys get mortgage rates close to the 10-to-30 years bonds rates, which are still rock bottom (although slowly rising). CMHC is basically interefering with the market for pricing risk: it buys all the extra risk associated to these guys, so that they have access to the same low rates as people with big downpayments (sometimes even, ironically, to better rates, since their mortgages are insured by CMHC, the full faith of the Canadian Governement itself!) So, the question you have to ask yourself is: are you a taxpayer? If you are, you are carrying the mortgage costs of hundreds of thousands of high-risk Canadians who are jumping on the RE bandwagon. You have been informed.

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By: arit

arit — Mon, 16 Nov 2009 01:58:49 +0000

Hi bdk, Sorry, off topic, but no, it's not just "film while you’re driving"... I am about to release BeMeBlackBox for the Android operating system, a paid app for your vehicle. What it does is simple: It continuously records and deletes video from a windshield mounted phone. When you crash, or when you press the Save button, it saves the last X seconds, and the previous video file just in case. You can set the length of the video file. If selected, it will also upload the file automatically to YouTube. So my test files are in YouTube, that is what you were seeing. Regards

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By: flip_this

flip_this — Mon, 16 Nov 2009 01:39:38 +0000

@domus: I think you are making very good points, and to me the inflation seems to be the most probable outcome. Can you please clarify for me one thing: you state that "when the inflation hits hard, interest rates jump up." I can see that interest rates will rise on debt securities traded in a free market such as commercial credit market (bank credit, corporate bonds, etc.). From what I can see, the Canadian mortgage market is not really a free market, it is manipulated by the CMHC, BoC and the Canadian government. What in your opinion can force them to raise the mortgage rates?

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By: ..bdk..

..bdk.. — Mon, 16 Nov 2009 01:35:51 +0000

Good to see you back Arit! Do you film while you're driving? I watched your videos and was amused. A lot of people don't seem to understand stop signs, right of way or that passing in parking lanes repeatedly during rush hour is dumb.

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By: Disbelief

Disbelief — Mon, 16 Nov 2009 00:59:42 +0000

Here is an easy equation. Mortgaged to the hilt raise in the interest rate = Foreclosure . It doesn't get much simpler than that.

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By: arit

arit — Mon, 16 Nov 2009 00:37:18 +0000

"That’s when we’ll see who’s swimming naked" I am waiting for that to happen in more than one aspect. Patience... Regards

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By: Disbelief

Disbelief — Mon, 16 Nov 2009 00:33:52 +0000

When it comes to bulls(the beast of burden) they are not a particularly smart animal but when led to slaughter they begin to smell the blood and begin to panic. Wait til they smell a little blood in the street when their neighbours or friends can't refinance. That's when we'll see who's swimming naked.

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By: arit

arit — Sun, 15 Nov 2009 23:18:14 +0000

Franco, This is not a war. Nor a battle. The forum is not ours nor yours, it's the Pope's. Can you tell us a few more details about your recent purchase please? Like how much mortgage, downpayment, etc,. Regards arit

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By: Franco

Franco — Sun, 15 Nov 2009 22:27:59 +0000

@Vancouverite: YEAH!!!! Boowha,Another Bull join our battle against those stupid bear ,and soon this forum will be ours.

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By: Franco

Franco — Sun, 15 Nov 2009 22:27:34 +0000

@Vancouverite: YEAH!!!! Boowha,Another Bull join our battle against those stupid,and soon this forum will be ours.

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By: domus

domus — Sun, 15 Nov 2009 22:06:46 +0000

@flip_this: Excellent point. When talking about inflation/deflation, I am in the inflation camp for these reasons: 1) inflation is, and always will be, a monetary phenomenon: to say it with Milton Friedman, if you print/issue enough monetary instruments, you get inflation down the line. No buts, nois; 2) FED/BoC know this full well: they argue that, when the time comes, they will be willing and able to withdraw excess liquidity from the system. The two operating words are "WILLING" and "ABLE". Let's assume they were willing: how do you go about withdrawing liquidity at a really fast pace? Ask the FED/BoC to sell off all the government-derived debt they purchased over the past few years? In a matter of a few months? I believe it is not possible: it would take a few years, not a few months, to do that kind of open market operation. That would be more than enough time for inflation to take hold and raise its head. So, central bankers are lying on a simple technical issue. 3) Let's assume that it were possible to withdraw liquidity at the fast pace they want us to belive: would they be 'WILLING' to do it? No way! Such a fast withdrawing of liquidity would be utterly painful. it would imply at the very least a big slowdown in economic activity, at worst another short and painful recession 9ever heard of the 'Volker's' recession of the early 1980s in the US? I doubt that our weak bureaucrats and elected officials would be willing to do the painful right thing. Notice: when the inflation hits hard, interest rates jump up. House prices will suffer big time. Unless you have a big amount of equity in your home already, you will suffer as well. This all leaves me with a big question: why is everybody talking about deflation? It really beats me: we have low recorded inflation because energy went down a lot last year. New readings this year will show more normal inflation numbers, and they will only grow over time. They are willingly (and stealthily) making ground for an inflation bout, something which erases existing liabilities and gives a clean slate to debtors (both individuals and banks/corporations). I hope they fail. We need to be aware of what is going on. Spread the word.

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By: arit

arit — Sun, 15 Nov 2009 21:54:14 +0000

StillSpending

I visited Aberdeen Center today. For your enjoyment, I filmed THE LINE OUTSIDE NCIX.

Amazing how these people will stand in this line for a few bucks discount

Consume

Obey

No Independent Thought

Do Not Question Authority

Here is the video….

http://www.youtube.com/watch?v=YK2gwZyQI2A

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By: flip_this

flip_this — Sun, 15 Nov 2009 21:49:51 +0000

pricedoutfornow: Why do you think mortgage rates in Canada will go higher? It seems to me that if Bank of Canada wants the mortgage rates to stay low they can certainly keep them low by buying mortgages from the banks. This is what they've been doing for the last several years. From the BoC actions it is evident that they are more then willing to create enough money to keep the bubble inflated. It appears that they want inflation. The low mortgage rates is nothing more then a subsidy for the homeowners (the banks, of course, profit the most), so what can make the government stop this subsidy? There is a common feature of all entitlements: once started they are very hard (politically) to get rid off. This particular entitlement affects about 70% of Canadian population, so I don't see where political will will come from to increase the mortgage rates.

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By: incompetance

incompetance — Sun, 15 Nov 2009 20:57:12 +0000

Systemic incompetance by the health provider industry result in H1N1 vaccine being thrown out instead of giving it to ‘non high risk’ groups except for asshole hockey players and the like. Bring some competant health care workers in from Pakistan China India and the Phillipines and get rid of every single incompetant parasite current sucking blood and costing lives in the Canadian system The current bunch of unionized wankers have become entrenched through nepotism and have proven themselves and thier organization to be nothing more than total fuck ups.

http://www.theglobeandmail.com.....le1364102/

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