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Friday Free-for-all!

Hey! The wind couldn’t blow the long weekend away, you made it to the end of the week! Lets do our regular weekend open topic economic discussion post and news roundup. Here are a few recent links:

–Canada housing bubble about to burst?
–Poll: A double dip recession?
–Land Found! Near Marine Drive
–Land Found! Near Granville Island
–Land Found! Near Airport
–Downtown inventory near record levels
–Rennie: Lack of downtown condos will help OV
–False Creek Bob
–Find out who pooped in your condo
–US: Prime loans going bust

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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observer

12 years ago

@Anonymous: my understanding is CMHC guarantees both principal and interest payments in a timely manner, on behalf of the government. But that is not the same thing as saying that the government of canada directly guarantees the timely payment of principal and interest, even though in practice, the two should be the same. The fact the the CMHC is an entity which is different from the government is perhaps the source of the spread.

Anonymous

12 years ago

@observer: does the government guarantee interest payments or just principal? Also if there is a delay in repayment that could account for the spread.

realpaul

12 years ago

BPOM. Hahahahahaah, its a shitty world. Did you hear yesterday that the fight is back on regarding the shit pouring out into the bay? The legal issue just won't die, much tothe chagrin of the bullshitters down at shitty hall. Best place on earth my ass. I've lived in India and wasn't witness to 800 million litres a day of runny infected effluent flushing into the pristine waters as we do in Super Natural BC. A second issue has arisen in some kind of deadly staph infection that git flushed out of the hospitals and is now infecting beachgoers with ugly incurable lesions.

Best place on meth

12 years ago

@realpaul:

Paul, I've coined a new word in the English language just for you:

FECETIOUS

Main Entry: fe·ce·tious

Pronunciation: fē-ˈsē-shəs

Function: adjective

Etymology: East Van English, from fecetie jest, from Latin fecetia

Date: 2010

1 : joking or jesting with liberal references to feces, scat, diarrhea, poo, excrement, coilers : waggish

2 : meant to be humorous or funny in a backdoor manner : not serious <a>

synonyms see witty

— fe·ce·tious·ly adverb

— fe·ce·tious·ness noun

realpaul

12 years ago

Next time you think that the government isn't spewing lies and propaganda remember you saw it here and were told that they actually are.

http://www.cbc.ca/canada/story/2010/05/23/social-…

Now multiply this by the local press and media (like Bill Slut and Pamela Fartin) who whore information for the advertisers without concern for the truth, the consequences or the eternal damnation that goes along with it. Quick drink your eight glass of shit laced kool aid before you wake up!!!!!!!

No More Gordocracies

12 years ago

@patriotz: Compliance Issues The Government takes very seriously breaches of policy and legislation regarding inward foreign investment. Within the Executive of the Foreign Investment Review Board (FIRB), the Compliance Unit is responsible for a two-pronged program. The program aims to maximise the level of compliance (ie ensuring prior approval is sought) through: * Increasing public awareness of the policy requirements. This involves (close co-operation) with a number of professionals and organisations, such as solicitors, financial institutions and real estate agents; and * Investigating allegations of possible non-compliance, and sample checking property transactions. This involves co-operation with relevant state authorities (land registries) and federal government immigration and police authorities. The second element of the program involves monitoring of conditions placed on proposals approved under the Government's foreign investment policy. This is particularly focussed on the real estate sector. In cases of… Read more »

patriotz

12 years ago

@spitfires:

Actually, the Gov should just stay the h-e-double-hockey-sticks out of everything.

If the government creates money out of nothing, or allows banks to create it out of nothing, it has to control how the banks multiply and manipulate that money. You can't let the banks do anything they want with it like Apple does with iPods or whatever.

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies"

– Thomas Jefferson

No Longer Looking

12 years ago

@AnonymousAA: I just took a quick glimpse at New West/Burnaby listings on Craigslist and saw many 2brdm/2bath for $1400 per month. Some new or or near new.

Check the local papers though. People pay for their ads so come up with more realistic rents. I notice there are property management agencies placing ads for landlords. You might want to chat with them as they might have more stuff in the pipeline.

observer

12 years ago

One thing I never quite understood about CMHC bonds is why they would command a yield premium over government of canada bonds, as they are guaranteed by the government of canada anyways, so it would seem from all practical purposes they are just as safe as a regular government of canada bond. The only explanation I can find is in the wording of the guarantee: CMHC bonds are guaranteed by the CMHC, on behalf of the government of canada. A subtle difference in wording and possibly not one of any practical significance since I can't think of any scenario where this wording would actually make a difference.

spitfires

12 years ago

@New Rules:

'I agree with those saying gov should impose new rules for owning second home. New rules should force people to pay min 30% down payment and speculation tax if they don’t rent it out. This should increase rental supply and thus drive down prices. Also, gov can consider taxing owners who owns the unit for less than 1 year to stop flipping from pre-sale. Lastly gov should build more affordable units and sell at reasonable market price (to only qualified 1st time buyers)'

Actually, the Gov should just stay the h-e-double-hockey-sticks out of everything. They made this mess, so you want to trust them to fix it? No thanks.

spitfires

12 years ago

OK folks nothing to worry about everything is OK in the world, Asian and European markets are up! Move along! 🙂

observer

12 years ago

Canadian good banks myth

http://communities.canada.com/vancouversun/blogs/…

Preaching to us the converted but still nice to see an article about it in the sun (or more precisely sun blog). Some eye popping facts.

New Rules

12 years ago

I agree with those saying gov should impose new rules for owning second home. New rules should force people to pay min 30% down payment and speculation tax if they don't rent it out. This should increase rental supply and thus drive down prices. Also, gov can consider taxing owners who owns the unit for less than 1 year to stop flipping from pre-sale. Lastly gov should build more affordable units and sell at reasonable market price (to only qualified 1st time buyers)

AnonymousAA

12 years ago

So Mr. Laneway House is trying to rent out the suite for $1650, anyone else notice that his original ad also said that they are renting out the basement suite as well? I can't help but point out, with a standard Vancouver city lot, renting out the suite, renting out the laneway house, how much space does this actually leave the "homeowner"'s family? What a sad statement of life in Vancouver today. You "own" a house and yet have to rent out 75% of the space just to pay the mortgage. Oh, but he can go to parties and brag about how he "owns" a million dollar plus house in Vancouver. Great. Just great.

AnonymousAA

12 years ago

@spitfires:

Never mind a few years ago, even just a few months ago I noticed prices seemed to be more reasonable, often going down as the landlord reposted, I guess with no takers on the higher rents. I wonder if more people are looking to move now, towards the summer, thus more competition and the landlord able to get more rent? I guess negotiating would be worth it, as long as there are no other tenants willing to pay the high rent. Oh well, we're in no real rush to move, perhaps prices will come down in the fall. No sense in paying more than we have to!

jesse

12 years ago

A slideshow looking at Australian property prices.

Australia didn't have the Olympics or rich Asian immigrants so any comparisons to Vancouver are specious at best.

Absinthe

12 years ago

@Best place on meth: I was out in Chilliwack about a month ago and we drove through what was once military family homes and is now called Garrison Crossing. It seems studio apartments above garages are all the rage over the place there.

ulsterman

12 years ago

@back on topic boys:

1331 Georgia, walking distance to stanley park/ shopping/ restaurant/ public transit, 1 bedroom + den quiet unit located on 30th floor, specticular view of the city & water! Includes insuite laundry/ stove/diswasher. No smoking, no pets, reference needed, please contact manager (604)512-7000 for inquiries.

I love the way the manager who put this one on craigslist also included a stove as one of the features. See the kinds of luxury you can expect when you move to the 30th floor of a Coal Harbour "residence".

spitfires

12 years ago

@AnonymousAA: I'm in the same boat as you, and I have noted in a few comments here over the last month or so that I have noticed a lot of negotiation room on the part of landlords once they find out what kind of a tenant you are. They will of course want something in return like a lease, but I have been told over the phone that the rent is negotiable. One thing I am doing as I am tired of bogus rent asking prices is telling the landlord that they are simply asking too much. I'll say something like 'this place is not worth what you are asking, sorry'. And leave it at that. On the other side of things, what I think might be happening is Craigslist may actually be increasing the price of rentals. Think of… Read more »

Anonymous

12 years ago

No property tax in store for China? China shares rise 3 pct, property surges

SHANGHAI, May 24 (Reuters) – China's key stock index surged more than 3 percent on Monday, buoyed by a surge in property shares after a local media report quoted a government official as saying a new property tax recently under discussion would not be implemented within the next three years.

realpaul

12 years ago

Debt in Canada even worse than Greece? Doesn't suprise me. The differance in Greece was the national past time of not paying taxes. Here, the 21% of the CDN population works for the government and the shortfall differential between the real cost of living was the buffer of ever raising taxation in Canada. Taxes are now hitting 100% in Canada, wirh debt at 145% of income, the shit hitting the fan here should be spectacular. Either we continue to pay the civil service outrageous sums and the rest of us go broke or we reign in the civil service and find some way to turn back inflation. "Some analysts also point out that Canadian household debt is currently even higher than in Greece, while there are also worries housing prices have moved into bubble territory. "(The Bank of Canada) needs… Read more »

AnonymousAA

12 years ago

@rubberduckie:

I wonder who would rent that for the huge price? There are SO many other options in that price range(ie bigger, better location, not above someone's smelly garage). I know someone who has a suite above their garage (ok ok not in the "special" City of Vancouver but nonetheless). They rent it out for $500 bucks a month.