CREA wants federal government out of mortgage market

..Ok, that’s not actually true, the Canadian Real Estate Association is actually just urging the federal government to leave everything as status quo so they can sell lots of houses, but it’s fun to imagine the first paragraph of this Globe and Mail article is meant to be taken literally:

The Canadian Real Estate Association has cautioned the federal government to stay out of the mortgage market until the effects of recent changes can be gauged, as it suggested buyers are racing to secure 35-year mortgages before they are banned in late March.

Imagine the mayhem that would be unleashed upon the Canadian housing market if the government via the CMHC ‘stayed out of the mortgage market’. The end of that sentence is also completely inaccurate, as 35-year mortgages obviously aren’t going to be ‘banned’ in late March, they simply won’t be eligible for tax-payer backed mortgage insurance anymore.

As Paulb points out, the remarkable thing about that article is the comments. Twelve hours after being published there are close to 300 comments, most of them unhappy with the CREA and the CMHC.

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Extremely rich Van h
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Extremely rich Van h

China government would have a interest in taking over the business.A tiny fraction of its 2000 billions reserve can jack up tiny Canada RE into perpetual upswing for at least a century.

jesse
Member
CBC: Home-sale finder's fee leads to real deal A Tsawwassen man looking to avoid paying a big real estate commission instead offered a $10,000 finder's fee to help sell his house … Ironically, the man who found him the buyers was a real estate agent. Agent Don Ross said he knew some friends who were looking for a house that matched the Tsawwassen property and he helped seal the deal. The real surprise for Dale — Ross declined the $10,000. "I put my clients interests ahead of mine," Ross said. When asked why, he said, "Because I'm a nice guy. And I'm a pro." Ross's clients were personal friends, he said, who really wanted the house. Ross did not come out of the entire deal empty-handed. He helped his friends sell their house, which yielded him a commission. Well isn't… Read more »
jesse
Member

CBC:Visas for skilled workers set to drop

Overseas visa targets

2010 2011 % change

Federal skilled worker visa 69,915 55,900 -20

Provincial nominees visas 36,650 40,300 +9

Total economic class visa 161,630 151,000 -6.6

Provincial nominees? Where oh where could that end up being?!?

AlmostPerfect
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AlmostPerfect

"The Canadian Real Estate Association has cautioned the federal government to stay out of the mortgage market…"

I fully agree with CREA. Get rid of CMHC. 🙂

cheers!

VHB
Member
VHB

Five-year is over 2.80. Not sure it will stick today though. link

millionaire bear
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millionaire bear

I was driving around in my jag in the West End yesterday and I can't believe the number of for sale signs. I went in to Whole Foods too and it was dead and so was Starbucks. It's like the whole West End is in dire straights.

Renting
Guest
Renting

Posted by anon yesterday, here is a link that confirms the recent run in Richmond may just be completely fueled by speculation and flipping.

http://www.bclocalnews.com/news/115999809.html

The company behind the deals, New Land Strategies Corp., 703-6081 No. 3 Rd., has upwards of 10 similar Richmond properties currently available.

That is 10 properties recently bought by one person/company just to flip. They are all still for sale. How many others are out there like that?

This house of cards could come down a lot faster than we think. Possibly led by a Richmond and Westside collapse as speculators exit once they realize there are no rich chinese buying.

4SlicesofCheese
Guest
4SlicesofCheese

Was wondering if anyone has info on what CMHC's forecast for prices for 2011 are.

I got an email from an agent that said prices are going up 4% and to buy now or pay 30-40 k more later. I think she just pulled that number out of nowhere, I cannot find any info on that.

I wanted to tell her fxck off but I want mls access.

UnagiDon
Guest
UnagiDon

@jesse: Very interesting.

Some information on BC provincial nominees
http://www.welcomebc.ca/wbc/immigration/come/work

Seems to cover skilled workers and investors. Is it the case that, even if the Feds decrease their skilled worker visas, the provinces can increase their skilled workers? Or do the provinces have control of the ratio of skilled workers to investors?

jesse
Member
@Renting: Here is a comment from "unicas" on Realestatetalks on the "Richmond Job": I wanted to post about this guy before this article came out. And he is not alone. This is how he works. He has full page ads on cheap free Chinese newspaper that are mostly read by mainlanders. On this ads, there are about 10-12 properties, mostly in richmond, some in vancouverWest . He pust specifics why these properties are good investment, including big lot, close to good school etc. On the ad, the guy offers $5K tips to lead about properties fitting into such specifications that someone wants to sell. He invite investors to either to buy the properties at certain price, or join him to build where investors are either guaranteed 20% return, or 50% profit. Investors will have 50% of title of the property.… Read more »
jesse
Member

I'll try to scan one of the free Chinese papers with these ads and post it on the blog at some point.

BTW these flip schemes are nothing new. There seems to be a rush to get in on the action right now.

data junkie
Guest
data junkie

@UnagiDon: Provinces have no control over immigration quotas, that's a Federal thing. They can have input into the system's criteria, but not its quantity.

Think of it this way: if PEI decided they wanted to let in 500,000 immigrants next year, it's the feds on the hook for almost all of the social benefits that come with that, and once you're into Canada via PEI, you could easily move to Quebec and piss that provincial government off something royal. So, the quotas come from the top.

Bebe
Guest
Bebe

"CBC:Visas for skilled workers set to drop"

"The 2011 targets dramatically show the substantial reduction in federal skilled workers and a slight increase in provincial selection," Kurland says. "We really should be targeting more skilled workers to make up for Canadians' inability to demographically reproduce. We need the young workers to pay the taxes to support the pensions for Canada's aging population."

The whole pension and health system in Canada is one big ponzie scheme. same like a RE.

Best place on meth
Member
Best place on meth

More "angry" Asians pissed off at the immigration cuts to parents and grandparents.

http://www.theprovince.com/Cuts+family+reunificat

Boo hoo.

Renting
Guest
Renting

@jesse:

From Unicas:

and there are ready buyers for such houses

Sure there are. That is why the guy is holding 10 of them. If there were ready buyers they would be sold.

And why do they need investors? With buyers waiting you flip the property before completion. You only need a small amount of cash as a deposit.

Crash and burn coming.

N
Guest
N

@Best place on meth:

"More “angry” Asians pissed off at the immigration cuts to parents and grandparents."

The "angry" Asians are complaining that, while more visas will be given to rich folks (who might drive up RE prices) less visas are being given to ordinary people, who are unlikely to drive up RE prices. But you don't like these "Asians" because …. Sorry, what was the reason? Is it perhaps just because they are "Asian?"

jesse
Member

@Bebe: "The whole pension and health system in Canada is one big ponzie scheme"

It used to be the case that residents wishing dependent family members to immigrate needed to show adequate financial means to support them for a period of 10 years. This of course only includes MSP premiums and other costs of living but the government is at least cognizant that there is a potential for freeloading.

I'm not defending freeloading but I can see the dilemma facing many immigrant families who are faced with caring for their parents abroad. They want to, and are, contributing to Canada — as are their children — and facilitating having their parents immigrate helps them be more productive. That's the intent of the provision anyways.

DaMann
Member
DaMann

@N:

Or perhaps that bringing your aging and dying Ma and Pa over to Canada is crippling the country. We are not a charity, bringing in old people because their kids live here is suicide on our system. They will and have paid no tax and will almost immediately start draining the system on health care and who knows what else. Asian has nothing to do with it. There is no valid reason for bringing immigrants family over "just because".

My Grandparents stayed back home in their country when my parents came over and so can every other white, asian or whoever.

The PC garbage is over the top. Canada has immigration for one reason and one reason only, to benefit Canada. We need to get back to steering immigration back to benefiting Canada and away from vote buying.

WFT?
Guest
WFT?

@Best place on meth:

They can just move back home to be with their relatives.

Best place on meth
Member
Best place on meth

@N:

>>>But you don’t like these “Asians” because …. Sorry, what was the reason? Is it perhaps just because they are “Asian?”<<<

I really don't care where they're from, I just think it's a good idea to cut back on people bringing their elderly parents and grandparents over.

Sick and dying people are bad luck.

Anonymouse
Guest
Anonymouse

Makes sense to me. When tinkering with a market that responds verrrrry slowly it seems prudent to wait and see if your previous actions had the desired effect before initiating new ones. I think everybody would agree with that, but the only issue here seems to be with who is actually saying it (the CREA).

patriotz
Member
Active Member

@jesse:

"He invite investors to either to buy the properties at certain price, or join him to build where investors are either guaranteed 20% return, or 50% profit."

Let me guess – guaranteed by 88888888 Ltd.

Best place on meth
Member
Best place on meth

@Anonymouse:

Why did the CREA even bother saying that?

Nobody in government has suggested further changes.

registered
Member
registered

Cole's Notes version of 22 Anonymouse:

– Personal Appeal for Agreement

– False Premise

– Appeal to the Crowd

– Veiled Ad Hominem

Everything here seems in order, carry on.

Anonymous
Guest
Anonymous

>>>But you don’t like these “Asians” because …. Sorry, what was the reason? Is it perhaps just because they are “Asian?”<<<

I really don't care where they're from, I just think it's a good idea to cut back on people bringing their elderly parents and grandparents over.

Sick and dying people are bad luck.

******

LMAO..priceless…

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