@Gordon C.: I'm not sure why your comments got voted down.

It was a good discussion and I tend to agree with you; markets are interconnected and complexity spills over especially when you are looking at projections of yeild going into the future.

@jesse: Personally, I think an employer of last resourt (ELR) labour pool could probably help them create inflation along with a long list of other benifits.

http://www.thomaspalley.com/docs/articles/macro_p…

However, republicans/austrian economics would argue it would rain fire and puppies if this went through so I don't think this would ever pass.

Note the chartalist taxes drive money concept should be thought of broadly. Example: food is a life tax that must be serviced.

@Dyugle, @“A-sharp” Accountant: Check out Mainstreets vaccancy rate numbers. Their terrible. It would be interesting to read more about this one and do analysis when i have time.

In regards to what to target, Rona is good, as well any furniture companies would be decimated once household formation drops off. Alternately taking some form of a long/short spread using options against SP500/TSX in terms of USD would be safer but may not pay off the same way.

@fatjay: "But to calculate current yield you still have to account for operating costs so it would be net income divided by price … which you can’t compute from GRM alone." For very specific types of properties, with very well understood maintenance costs and tenant prospects, we can estimate very well expected monthly NOI. Gordon C is right that certain types of property cannot be properly valued by simply looking at GRM. But for a Yaletown condo with a very well understood set of inputs (i.e. rent coming in; ongoing taxes, maintenance, general administration, and some planned renovations some years hence going out) I think there is a very tight relationship between yield (however it's defined) and GRM. Appraising isn't a 5 week course at the community college. It's complicated and high stakes. But there must be some admission that… Read more »

@VHB: I hope you don’t mind me going back to last week, but here is a challenge from Gordon C: “Jessie and VHB, I have laid out my arguments. Okay show me. Show me how you can estimate a yield from a GRM.” Not estimate–calculate. Here it is: GRM = price/(rent/month). Multiple denominator by one, expressed as (12months/1year) gives us price/(annual rent). Invert this to get (annual rent)/price. That is the definition of yield. So, to go from GRM to yield, you just divide by 12 and invert. An example: GRM is 200. 200/12 = 16/667. 1/16.667=6%. Done. To conclude, there is a direct mathematical relationship between GRM and annual yield. They both take the same inputs (rent and price) and express the same thing in different ways. I don't know if the dust has settled yet, but going back… Read more »

@Frank: Are they really that bad. They are that bad. Median price for detached residential is only down to 455k from 460k in May, but… http://www.omreb.com/page.php?sectionID=2 Quick Summary Ratio of Sales vs. Inventory 5.97% —————————————— Condo/Apt — Sales 50 Condo/Apt — New Listings 184 Condo/Apt — Inventory 1196 Condo/Apt — Sell/Inv. Ratio 4.18% Condo/Apt — Days to Sell 88 Condo/Townhouse — Sales 45 Condo/Townhouse — New Listings 154 Condo/Townhouse — Inventory 568 Condo/Townhouse — Sell/Inv. Ratio 7.92% Condo/Townhouse — Days to Sell 79 Lots — Sales 17 Lots — New Listings 140 Lots — Current Inventory 864 Lots — Sell/Inv. Ratio 1.97% Lots — Days to Sell 325 Residential — Sales 175 Residential — New Listings 507 Residential — Current Inventory 1925 Residential — Sell/Inv. Ratio 9.09% Residential — Days to Sell 65 Average House Price $480,216.68 Median House Price… Read more »

@Rob A., I think you meant: If you rent a place downtown, you don’t need a car because everything is so close. There are lots of cafes and restaurant just outside your apartment.

I was walking through the West End by Stanley Park today and noticed lots of for rent signs on nice buildings. Craiglist shows lots of place for under a grande, many with heat/hot water included. And no additional Strata Fees, Property Tax, Homeowners Insurance.

"If these guys are failing when money is free, imagine what would happen if we return to historical norms."

I've been imagining it since I moved out here 7 years ago. Got a taste in '08, so most definitely welcoming a return to normal. I am concerned for the pain it will cause people though – most likely worse than the minor inconvenience of renting I've been doing for a large portion of that time.

@No Longer Looking: "Many more “For Lease” signs on empty buildings throughout this city. Businesses are failing and new retail space is adding to the woes. Everyone with a set of eyes can see this."

So true. The thing that astounds me is that this is happening in the *absence* of interest rate increases. Anyone remember what 1981 and 1991 rate increases did to small businesses? I do. Ow. If these guys are failing when money is free, imagine what would happen if we return to historical norms.

This economy of ours is built on sand. No, scratch that. On magic fairy make belief sand.

@Anonymous:

Those strata fees seem rather ridiculous to me; they work out to almost $8,000 per year! And that doesn't even include property taxes! Yikes!

…It makes me wonder if there isn't some "exceptional" maintenance going on around the building– leaky condo repairs funded by maintenance fees, rather than a special assessment…

@Gordon C.:

Does that mean the raging debate over yield is finished?

I was hoping you guys would apply it to blueberries when you had a moment.

@Gordon C.: "Why attack the person." Bridgeman attacked your words, not your person. Go read it again.

In contrast, you attacked me and others personally.

Look in the mirror. In my experience, most people around here will respond respectfully when they are treated with respect. Often, your posts dripped with condescension. That typically doesn't go down well.