Friday Free-for-all!
The end of the work-week has arrived and that means it’s time to do our weekend news roundup and open topic economic discussion. Here are a few articles and comments I’ve noticed lately:
-Vancouver: The California of the North?
-Re/Max: Housing market to remain strong in 2010
-Buy! Sell! Hold! Huh?
-Canadian Real Estate goes wacky
-Greater Vancouver real estate prices end year on high note
-Young and jobless: The recessions toll
-Canada savings bonds ‘a bit of a joke’
-Time to pay for the stimulus, here come the cuts
-Bernanke defends his record
-Orlando condo market falls 56% in one year
-Las Vegas home prices fall 34% on foreclosures
-Wealthy investors like US real estate
-Zandi: US housing market meltdown not over yet
Thanks to everyone that contributed story links. So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
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December 7th, 2009 at 6:51 pm
“Canada is perfect for their wives, parents and children. So this is where they buy houses. Simple.”
Actually, so they can have 1st concubine in Shanghai, 2nd concubine in Beijing, and 3rd concubine in Hongkong, 4th concubine in Macau, 5th concubine in Shenzhen … the list is shorter than Tiger Wood’s
December 7th, 2009 at 12:25 pm
Vancouver is not really good enough to be a resort town. But it’s perfect to park your money here for laundering or simply to bring your family here for free education and health care, while attending to business abroad.
Did you watch the CBC special on CAN vs. CHINA last week?
The interviewed investors blatantly admitted that China is much better place when it comes to business opportunities right now, so that’s where they stay, However, Canada is perfect for their wifes, parents and children. So this is where they buy houses. Simple.
December 7th, 2009 at 11:41 am
@ California:
Wouldn’t rich foreigners either be immigrating, be buying expensive pied a terre’s to sit empty for private occasional use, or be investing to rent?
In the investing to rent scenario, you’re putting $300K down one way or another in leverage or monthly payments or whatever, so that the rents pay the carrying costs. And $300K is a huge opportunity cost if the rate of appreciation even slows, because rents here are not going to make anyone rich, when vacancy loss, cleaning, upkeep, etc. get factored in. There are far better investments, and rich people the world over are rich because they make good investments.
If they’re immigrating, pretty soon you’ll run into the cost of living issue in Vancouver. It’s an expensive place to do business year round. They become part of our numbers. And our numbers don’t support these prices.
So the third idea is only way the Rich Foreigner scenario might work – that Vancouver will become empty resort town. Resorts ARE always more expensive.
Only Whistler, which is more obviously a resort town, has watched its prices suffer.
Etc.
Didn’t Florida and Vegas each already have this conversation? The world outside of Canada is ON SALE, and there are many places where you can go, at any point in the year, and have sun. And if you’re rich, you can bring friends and relatives to you. At Vancouver prices, you’d still be saving money.
I love Vancouver, but I’d be hard pressed to say it’s worth that much more as a second home when the world’s your oyster than some places up the coast, or than Vegas, or Hawaii, or Spain, or France, or Australia, or even New York. And in New York, which is at our price point, the rents justify the prices, and even we could buy out in the boroughs. And I imagine I’m the least wealthy bear here.
December 7th, 2009 at 8:38 am
@ta da: Just posted that! reload the main page to view it, or click here:
http://vancouvercondo.info/200.....es-up.html
December 7th, 2009 at 8:33 am
Globe and Mail
“Orphaned Homeowners Face Foreclosure”
read the article – it will make your blood boil.
Maybe a good topic for a post.