Friday Free-for-all!

The end of the week is here and that means it’s time for another news round up and open topic discussion thread! Here are a few recent stories to kick off the chat:

Signs point to a severe housing correction
Don Campbell: I don’t like to use the word ‘bubble’ (video)
A report from the front lines of suburban condo frenzy
Condo developer defeats the HST
Larry Campbell says the Olympic Village is ‘just fine’
Are house prices ‘crippling the business community’?
Renting vs. Buying at the high end
Beijing new house prices plunge 26.7% in one month

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

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SquareNinja
Guest
SquareNinja

In the end… we will all look back at the biggest housing bubble in history, and laugh. Those of us who did not buy, or got out in time, of course. Go Canada, Go!!!

blueskies
Guest
blueskies

craigslist ad for Olympic Village
http://tinyurl.com/4x734kc

$1850 for 2 bed w/o laundry

WTF!!

SquareNinja
Guest
SquareNinja

Hey man, at least it's a pet-friendly rental, I'll give them that much!

Boombust
Guest
Boombust

"craigslist ad for Olympic Village

http://tinyurl.com/4x734kc"

THIS is the first time I have ever sen one of these units on the inside.

Talk about "CHEAP"!Everything from the appliances, kitchen cupboards, interior doors…no wonder the place is such a flop.

No fireplace, no washer/dryer. Unreal!

Did I miss a dishwasher?

polly
Guest
polly

i wouldn't count on it

but i'm sure if prices dip another 10 plane loads on the RE express will show up and BTFD

maybe this time really is different?

maybe i'm just trolling – WHO KNOWS?

patriotz
Member
Active Member

@polly:

but i’m sure if prices dip another 10 plane loads on the RE express will show up and BTFD

Didn't happen in 2008 did it?

So what did bring new buyers into the market in 2009? Hints: not airplanes, and it won't work a second time.

Advice?
Guest
Advice?
My uncle and aunt have decided to sell their long-time home in Quilchena. My cousins have all moved out and in the current market they can get about $3.5 million just for their large lot. They are well to do but it's a lot of money even for them. $3.5 million, after tax, would have been at least a couple of decades worth of earnings for them when they were still working. They are looking for ideas about where to invest the proceeds SAFELY. They may rent in which case they will have $3+ million to invest or they may buy something relatively modest in which case it will be more like $2.5 million. Either way, that's way more cash than they've ever had and they don't really know what to do with it. They're worried about inflation but also… Read more »
Fin
Guest
Fin

@Boombust: Oh yes, those OV interiors! I have a friend that lives there and when I first visited I couldn't believe it! They have peeling tiger print wallpaper in the halls and weird framed mirrors. It's dollarstore luxury. If you've ever been to the discount store 'homesense' and seen the quality and design there thats exactly what it felt like in the common areas. The inside of the suite was much better, but weirdly cramped.

CelicaMan
Guest
CelicaMan

A quote caught my eye, sorry for the link whoring.

“You read the business sections of the newspapers and they say how well the Canadian economy is doing, but my experience on the ground is that is not the case. Money is very, very tight. I think our age group is starting to think, ‘Do I really need this?’ I think the way we consume is changing.”

http://tiny.cc/vanclothiers

Best place on meth
Member
Best place on meth

@Advice?:

Tell them to put their money in Canadian income trusts – energy, utilities, banks, and then to get out of this frozen wasteland and go enjoy the beaches of Bali.

space889
Guest
space889
@Boombust: Wow this unit is a lot worse than the show units I saw. Those had better finishing, thogh still laminate cupboards and flooring. No wsher and dryer, and honestly I can't remember if they had a dishwasher or not. Maybe not all the units have it being green and all. Dishwasher do use up a lot of water. The $75/month parking seems really steep and cheap. I mean if you are renting out a condo for over $1800/month, parking space should come with the rental unless not every unit has a parking space. Charging extra for parking space seems to be cheap. What's next, another charge for the storage locker? Lastly I just noticed that the units has ceiling radiant heating? Does heat generally travel up, not down? Seems like a ceiling radiant heating wouldn't really help warm up… Read more »
space889
Guest
space889

@Advice?: Try a good private investment consel. My sis is one at TD Bank downtown. A good one is usually worth the money and the fee is generally pretty low, probably averages out around 0.5% for $3M assets.

space889
Guest
space889

@Fin: Well when I toured the display units I had the same feeling. The unit wall info placard said the unit is 1000 sq ft+, but after going through it I was like no way this is 1000 sq ft, feels more like 750 sq ft. I assumed the big bacolny got counted in the total square footage. But the units just felt cramped, really cramped and small.

I did really like the big balcony even though my wife keeps telling me you aren't going to use it with all the rainy days in Vancouver. This isn't Hawaii or California.

jesse
Member
WSJ: Taiwan Passes Luxury Tax Bill, Steps Up Fight On Inflows Taiwan's legislature on Friday passed a bill introducing a luxury tax partly aimed at reining in home prices, as the island steps up efforts to fight inflation which is being spurred by capital inflows. Strong economic growth in Asia has been attracting hot money inflows, despite the various measures taken by countries across the region in recent months to avoid asset bubbles. Measures introduced in Hong Kong include raising the minimum down-payment requirement for residential properties and introducing a special stamp duty to curb speculation, while Bank of Thailand also said last month it was ready to impose more restriction to curb inflows, if needed. Continuous inflows to Taiwan–and to Asia in general–have "unreasonably elevated" domestic home prices over the past year, Finance Minister Lee Sush-der said last month.… Read more »
Bailing in BC
Guest
Bailing in BC

Is it just me or did that OV unit look like it had those plastic stick on baseboards?

IT__Pro
Guest
IT__Pro

@blueskies: To be honest, that seems like about market value.

Patiently Waiting
Member
Patiently Waiting

@IT__Pro: I thought so at first. But then I heard about no insuite laundry, no dishwasher, $75/month parking, exaggerated size, and cramped layout. For me cramped layout could be a deal killer. I'm not going to buy all new mini-furniture to live there.

patriotz
Member
Active Member

@Advice?:

You can't even begin to answer a question like that without information on their ages, salaries, planned date of retirement, current pension resources, etc, etc.

I will give them some good advice on what NOT to do: put any of the proceeds into RE anywhere in BC.

IT__Pro
Guest
IT__Pro

@Patiently Waiting: Even without dishwasher and insuite laundry, I'm still that's approx market price. How's the view? I'm using my building as reference, which is very fairly priced….mind you the views are spectacular in my building.

Flip Flop
Guest
Flip Flop

@ BPOM:

I don't know about those banks. They may be covered by CHMC on a lot of that pdebt, but I think times will get tight when everyone finds out they're broke.

Certainly a reputable advisor, preferably through a referral from someone that knows a decent one, would be a worthwhile endeavour. I don't know if I'd walk into a bank and take the first person available. Maybe 10 banks. The guy that knows what he's talking about will certainly stand out and it sound like they could use the education. It's not like they have to work :p.

rp1
Guest
rp1

I'm not buying the Beijing numbers. It's way too politically convenient. Wen gives a speech and then blam? Last I heard, credit China was out of control with state owned enterprises lending out the back door. Michael Pettis (mpettis.com) seems to think they will alternately hit the gas and brake, which has been the story up until now. I'll wait for confirmation in building starts and investment flows. I don't believe their price indexes one bit.

Patiently Waiting
Member
Patiently Waiting

@IT__Pro: You can see a view in the pictures and its the opposite direction of the water and mountains. The way I see it, they have a starting price to open negotiations (which is better than before). First thing I would demand is free parking, and then go from there.

Will they negotiate? The big bold text in the ad answers that question.

jesse
Member

@rp1: "I’m not buying the Beijing numbers. It’s way too politically convenient."

First quarter sales in major Chinese cities were still elevated according to central government measures. The regions are not reporting things properly but that shouldn't surprise anyone.

The central government has ways of getting what it wants in the end so now it's a matter of officials positioning themselves so they won't be caught by the "eye". The hyperbolic 27% sales drop or whatever is just an attempt to divert attention to elsewhere.

Best place on meth
Member
Best place on meth

@rp1:

I also wouldn't trust any statistics from the Chinese government, they lie through their teeth.

They'll likely keep inflating their ponzi schemes until the banks blow up in year or two, then they'll need to use their $3 trillion of reserves to bail them out.

That country is corrupt to the core.

Devore
Member
Devore

@Advice?: Talk to a bunch of financial advisers/wealth managers, express their goals and concerns, and find one that understands them, can explain his plan well, and they are comfortable with. They're mostly looking for income not capital gains, so they have many options there. But that is not compatible with their inflation worries, and that can only be reconciled through a high level of diversification, so they get SOME income, and are hedged for inflation. Investing sure isn't what it used to be!

Or, as some here would probably advise, buy goald!

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