The political year of 2009 in Canada was – yet again – marked too often by hypocrisy and self-interest. Looking forward to 2010 there are many ways which politicians could raise the bar higher. Start with more honesty in politics, focusing on making Canada more prosperous, instead of only worrying about grabbing and holding on to power for its own sake.

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http://www.calculatedriskblog......s-win.html

Best luck to all!

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Good article, it points out just how intertwined the housing market is with the entire economy. I was talking to someone the other day who believes that the housing market will have a hard time crashing simply because everyone, the banks, government, entire housing industry is determined to keep the market up and prices high. My argument is, well, it didn’t exactly work in the US, did it? Eventually you’ll run out of fools, like any ponzi scheme. Or so I hope.

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“Special buildings such as Museums, Mansions and Castles”

There’s Van’s next trick! We don’t have a CASTLE yet! lolz

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Full Time Borrowers
Future Taxed Bozos

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http://store.steampowered.com/app/38080/

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http://patrick.net/housing/crash2.html

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The one thing that has always struck me about Vancouver is how transitory a large portion of the population is here. No one seems particularly invested in long term solutions that might require any effort. The province is CURSED with a boom-and-bust, get rich quick, mindset that has meshed to perfection with the housing bubble. That, coupled with an almost complete absence of any entrepreneurial spirit has created a perfect storm of speculations.

Those who have lived here more than a generations seem caught in a “company town” mentality – a passive mindset that sits and waits for those at the top to close or re-open the mine, fishery, or timber patch – except now the industry is RE, so everyone just sits around speculating on interest rates, housing values, whether or not the Olympics will jump start the market – instead of actually DOING THINGS like starting a new business, that might benefit the province down the road.

For this reason, Vancouver is royally screwed when the bust comes (just like it has every single time before).

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You are very correct that housing costs need to drop in BC to encourage economic growth.

I am one of many young Canadians that migrated west to take advantage of the economic boom. I might be one of many that won’t stay cause I’m priced out of the housing market.

I’ve had discussions recently with other 25-35yos that are considering a move back east once the economy here starts to struggle or its time to start a family. It just doesn’t make sense to take on high housing costs to stay here, or when the Olympic/construction job markets dry up.

The alternative is to flee metro Vancouver to the burbs of Surrey leaving behind the beach/mountains that brought us here. Might as well continue heading east, back to where we came and much cheaper housing costs.

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http://tinyurl.com/yhdf8h3

Abolish the CMHC! Write toy our MP.

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My broker pointed this out and I was surprised. I was hoping that most FTBs were capable of saving 5%, I guess I was wrong.

Raising the downpayment will temporarily make housing affordable to those from wealthy families who can gift larger downpayments.

A much better fix would be to adjust the TDS/GDS ratios. Income is not something that can be gifted.

The TDS/GDS used to be capped at 40/32% with no exceptions. Currently its 44/35% with a couple notable exceptions:
- unlimited GDS with a credit score of 680
- 46-47% TDS with a credit score of > 720

Essentially a FTB with no debt and good credit could take a mortgage with a TDS/GDS of 47/47%. That’s insane and needs to change.

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Free ride’s over, Helmut. Time to start producing some value like everyone else.

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No to discredit VHB et al. That explains why they are still waiting for honesty in the system that has left us long before 2004.

@#16 – Don’t you see that’s the logical solution rather than to go to wars. History has taught them they can prosper, have their cakes and eat them.
As for the stupid public, they will behave with the freedom carrot dangling in front of them.

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1. Obviously biased, or
2. Incredibly stupid.

I don’t know which I prefer. It may be a combination of both.

Pastrick completely missed the boat about a year ago, and he’s missed it again.

Anything to deflate Vancouver RE prices would be a boon to our economy. It would stimulate consumption, encourage businesses to move here, and help ensure the financial health of FTBs who are the heart of the RE economy.

Does it not occur to him that a city where 60-70% of average household income is required to service mortgage debt is a disaster waiting to happen?

Does he not realize the common knowledge that BCers are up to their ears in consumer debt as well? We’re living on borrowed time here….

Any economy that rides on something as cyclical and speculative as RE will be prone to bubbles and crashes. Few assets have been so volatile, particularly in so-called “desirable” spots like Miami, SoCal and of course, here.

He should be out of a job.

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http://www.financialpost.com/n.....id=2395449

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What people are failing to understand is that ‘value’ in the traditional sense does not exist. The government has deftly undermined the market by printing money at zero intrest rates. This has reset the real estate market (Canadas fundamental economy)into a payment driven vehicle as opposed to a savings vehicle. Savings, like gold, is the enemy of the Keysian minded beuraucracy.

The Keynsian philosophy puts all power into the hands of the government. It outlines the utopian socialist model. Controlling the economy is just one small part of the plot. It is not unique to Canada. Every central government is wresting power away from the citizenry, even in the US of A for those who watch these machinations.

If any of you wonder why our government named our new currecy ‘Loonie’ think a little deeper at what this does psychologically to the average persons appreciation about the value of a dollar. This takeover has been going on for decades. The process was begun by our friend P. Trudeau who also brought us ‘sustainable development’ shifting of Canadian assets to the third world under the thin veneer of ‘climate change taxes’.

Think your smart? These assholes are way ahead of you.

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Government influence behaviour of industry and consumers through policy.

VREA is also correct about the misallocation of capital.
All this time, government could have provided incentives to all sorts of industries (research, high tech, green tech, agriculture, manufacturing, medicine, etc). But no, they choose to prop up housing, construction, realtors, banking, etc.

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North Vancouver suddenly seems a reasonable value. lol

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Yeah, but these guys tend to like rising markets. Let’s see how attached they are to their Vancouver SFHs when the Chinese Stock Index is dropping, Shanghai RE is plunging, AND Vancouver RE prices are starting their downturn. They could be an important component of the ‘speculator supply’ that many of us are anticipating.
—
For VREAA’s next-decade predictions, that some of you may have already seen -
http://tinyurl.com/y97ex74

—
BTW, thanks for the support arit (#8 above), and to our host here, the pope, who routinely lets VREAA post links to and from vancouvercondo.info.
All the Very Best for the New Year.

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Most Americans can once again afford to buy a home.

The greedy and reckless investors have lost their money, the spendthrift are foreclosed, and the housing stock has improved, as an added bonus.

Well done again, the Americans are the best capitalists, by far.

Market corrections and recessions are supposed to clear the excesses, and make way for a new growth cycle.

Flaherty and the gang missed the opportunity to let our economy grow healthy once more, because they are in perpetual election mode.

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RIGHT YOU ARE! And “gambling” is the perfect term for what’s going on. It certainly isn’t purchasing homes for shelter and you can’t even claim it’s “investing” any more.

I can’t wait to see who is swimming naked when the tide goes out.

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Canada’s Industry Minister Tony Clement said he had approved a 1.7 billion dollar acquisition by PetroChina of two Athabasca Oil Sands Corporation projects in northeastern Alberta province.
http://news.sg.msn.com/top-sto.....id=3767718

Corriente, Vancouver copper miner, accepts $679M takeover offer by Tongling, China Railway
http://ca.news.finance.yahoo.c.....offer.html

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Does anyone wonder why the COV lowered the FSR in highrise construction 47%. Was this a one way shot in the arm to the developer or does the city increase the number of tax reciepts by stuffing more guinea pigs into tiny shoe boxes instead of livable unit sizes. Why did the COV reverse its stand on living area and let 300 sq.ft permits be granted?

What if the people get angry by being cramped into small spaces? Hire more police to shoot and threaten the population of course. Does anyone wonder why there are so many police shooting citizens? Is it to cow the citizens who are being bled dry by the tax collection policies of the government? You decide.

Unqualified buyers are new blood to the government, any talk of reducing thier numbers will only draw the ire of the Finance Ministry officials. Politicians beware. if anyone thinks the government gives a shit about jobs and housing numbers they are just stupid. Its just that housing is the only game in town. Did anyone miss the end of the recession? Apparently you weren’t alone. Corporate profits are still sinking. The stimulus has run its course.

The government is trying to design a fee simple structure on native reserve lands. This is so slimy that it doesn’t bear comment. What it really is is a claw back of federal monies. Get the natives paying more taxes, great idea. And who does the CMHC sell the foreclosed house on a native reserve to? Native land is held in perpetuity by the crown and can never be sold. So whats the scam? Simple, just like all of us, the scammers want you to think you have ‘equity’ to borrow against, as soon as you have cash in hand it’s taxable.

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Just think: In Vancouver, how much of people’s disposable income goes into shelter? I bet for many recent FTBs it is a large percentage. Imagine having more disposable income for other things in life like: more savings for a rainy day, investments, education, improved lifestyle, better health, supporting children, etc. In the end, no housing bubble means a stronger, more balanced and sustainable economy!

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