Renting in Vancouver is more cost effective.

When was the last time you saw an article like this in the Vancouver Sun? It’s not written by a developer or a real estate marketer, and it doesn’t get all breathless about granite countertops or make vague promises about constant price increases. Indeed, it’s the first one I’ve seen in that paper to come outright and call this a property bubble. It mentions price to income ratios, the lesson of other property bubbles and the fact that the lower mainland market is currently sagging from the outside in:

So why do real estate agents continue to advocate the opposite? Because real estate agents are just that – real estate agents. They are salespeople. They make money when you buy or sell a home using their services. They are not financial advisers. They possess no great knowledge, they do not have access to either a crystal ball or reams of facts and figures that are inaccessible to the average person, and they will not be there three years from now when your financial burden is slowly killing you. But their overtly rosy picture, unfortunately, dominates media headlines.

Interesting to see this perspective in the Sun, it’s a nice thoughtful counterpoint to the empty Goodisms. If it sounds familiar, it’s because one of you wrote it. Gordholio explains his perspective here, and here’s the original story he refers to that was published on VCI last October.

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blueskies
Guest
blueskies

this was a "hairball" moment for the Vancouver Sun, messy but necessary……

Boombust
Guest
Boombust

Yeah. CYA time.

Keeping An Eye On Th
Guest
Keeping An Eye On Th
"Housing market faces years of gloom" "IT may not feel that way in some parts of Greater London but the housing market remains stuck in the doldrums. This is not surprising: the great housing bubble of the noughties hasn’t finished deflating yet." http://www.cityam.com/news-and-analysis/allister-… Yes assholes Bill Slut, Levy, Muir and Tsur, even in the UK where they are not making anymore land, and they are surrounded and hemmed by water to the north, south, east and west. Super Rich immigrants, the Russian Mafia, and lower than zero interest rates, coupled by the English mind set that one must own, can't keep the illusion going forever. It's time for another staged helicopter media stunt organized by the pimps, and their whores in the local media. Have a live broadcast on NW 98 Realty Radio from the helicopter, and have a panel… Read more »
Suguar
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Suguar

One of my clients lives in Santa Barbara…fabulous area by all accounts. In the good times, she paid $800K for a lovely house and then did a stunning $200K reno thinking the she could turn a profit because of the prime location. Now, deeply underwater…she was turned down for a loan modification because she makes too much money…she has now put her home up for a short sale for $625K and hoping the bank will align. I told her that according to "60 Minutes" banks are less interested in short sales and more interested in foreclosures. She hasn't made a mortgage payment in well over a year. And strangely enough, she sees herself as the victim and not accountable in anyway.

Eddie
Guest
Eddie

Santa Barbara is the British Properties of California. If the market can fall there it can fall anywhere.

Suguar
Guest
Suguar

Last month my friends aunt in Richmond sold their home. According to my friend it was a nice well maintained SF home but nothing special and there was a lot of kvetching about what the selling price should be given Richmond was on fire. Anyway, they landed in the $625K-$650Kish region. They had one open house and oodles of prospective buyers were lined up well hours in advance, were all Asian and no one was speaking English (I reminded her that didn't mean they couldn't speak English). They sold that day to a couple from mainland China for $963Kish. Nice pay day!

Absinthe
Member
Absinthe

Great article, Gordholio. Good for you.

jesse
Member

I think this type of ed shows:

1) The Vancouver Sun actually does some semblance of balance and wants to increase/engage readership

and/or

2) Their ad revenue is down and this article is a warning shot across the REIC's bow.

I really think it the former… but what's the bet we see another real estate industry "it's always a good time to buy or sell" puff piece in the next 1-2 days?

The article also shows the commanding attention the MSM garners, even after a 10-year onslaught of W2.0.

pricedoutfornow
Guest
pricedoutfornow

Great article. I'm surprised they actually published it, though it's all true. I wonder if the end is near, and the MSM knows. The same day, I read another article in the Globe which also spoke of falling house prices.

http://www.theglobeandmail.com/globe-investor/per

blueskies
Guest
blueskies

this was the quintessential "sphincter tightening" moment across

the entire lower mainland ……. you could here RE a**holes

snapping shut everywhere like bubble wrap in a hailstorm………

…..and that really big bang was Dave…… 🙂

jesse
Member

@blueskies: "the quintessential “sphincter tightening” moment"

…followed by a significant loosening of said sphincter when investors start to realize they might be in big trouble. That won't be for a few quarters still.

Weasel
Guest
Weasel

this was the quintessential “sphincter tightening” moment across

the entire lower mainland

___

What was the moment? When people read the article?

Please…like it balanced the thousands of pro RE articles

Anonymous
Guest
Anonymous

@Suguar: Make no mistake about it, it will be the same here when IT happens; just a bunch of hardworking, innocent victims. After all, everyone is entitled to riskless riches through real estate, simply living in the place and slapping on some granite and paint. It's worked for generations, eh?

Patiently Waiting
Member
Patiently Waiting

COV ready do battle with suing condo owners

http://www.theglobeandmail.com/news/national/brit

Drachen
Member

@Patiently Waiting:

As they should. Bunch of specuwhiners trying to break a contract after closing because they were blinded by their own greed.

Anonymous
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Anonymous

@Patiently Waiting:

Legal documents filed in response to the lawsuit say that “none of these purchasers had previously complained” about problems throughout last fall. They didn’t try to back out of their deposits, as a handful of other early purchasers did.

And they had a chance to inspect their completed units before they moved in.

The statement says the buyers filed a lawsuit only when other condos in the village went on sale at prices reduced by an average of 30 per cent in February, 2011, as the village’s receiver launched a new marketing campaign for the village.

And there it is, good for the city for calling them on it.

VANCOUVER_RE_SUCKS
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VANCOUVER_RE_SUCKS

Go Canuck GO

IT__Pro
Guest
IT__Pro

RE: Gordholio Article

Does anybody know if it actually ended up in the 'paper'?

As for the Sun site, I'm pretty sure it was a hidden link. I could not find the article otherwise.

It seems unless someone sent you the link, no way you'd see it.

If so, no risk to The Sun.

Patiently Waiting
Member
Patiently Waiting

@IT__Pro: It was on Page A9

pricedoutfornow
Guest
pricedoutfornow

@IT__Pro:

It was definitely in the paper version of the paper. Someone pointed it out to me.

Patiently Waiting
Member
Patiently Waiting

Layton to burst housing bubble

http://www.theglobeandmail.com/news/politics/seco

"At that point, long-feared interest rate hikes could accelerate, raising borrowing costs for the government and homeowners.

A modest 3 per cent increase in interest rates on a 25-year $300,000 mortgage would cost a Canadian family more than $500 a month or $6,000 a year."

space889
Guest
space889

I find it interesting that Jack Layton has so much power/influence over the interest rate and FX markets, compared to all other politicians. Harper and Ignetiaff(sp?) must be quaking in their boots.

gordholio
Member

Thanks for the props, everyone. When I asked (loudly) for the rebuttal, my contact at the Sun advised me to "make it factual." So I asked him, "Do you REALLY believe Cam Good's propoganda is factual?"

From there, the words just flowed. 🙂

And yes, it was in the printed edition. Front section – a full third of a page.

jaymow
Guest
jaymow

Anybody know why we can't comment on Gordholio's Vansun online article? It'd be interesting to see the reception. Personally, it's about time we had a little balance in the MSM. Thanks for being the voice of reason, Gordholio. I think I always fear that the critical voice will come off sounding like a 'chicken little', or worse, someone with sour grapes. You did neither.

Kudos

patriotz
Member

@space889:

Rest assured that if the NDP (improbably) becomes government after May 2 it WILL be blamed for the inevitable Canada-wide RE bust and recession, just as the new NDP government got blamed for the early 90's RE bust and recession in Ontario.

Frankly I don't see why they would want to win. Best scenario for them is to finish #2 and a snipe at a continuing Conservative minority.

wpDiscuz