Friday Free For All!

Friday means it’s open-topic news discussion time! Here are a few stories to kick off the weekend chat:

Most Vancouver condo buyers would rather have a house
New Home prices unchanged in March
Bleeping highrise condos on Cambie
Realtor suspended for double dealing
BC to spend $5 million on HST advertising campaign
Canadians fall short on savings front
Chinese inflation puts TSX in the red
Chile suprises with rate hike
Economy down under going under?

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

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CanuckDownUnder
Member
CanuckDownUnder

This week the Sydney Morning Herald published an article by a property spruiker disguised as news which told us that property prices can't fall because rental yields are so high.

The article claimed that property is currently providing a 5.4% return (other RE data providers have returns closer to 5%, we personally pay 4.6%). When you play around with the numbers you can see how there's plenty of room for a significant correction. If you think 8% gross is a "normal" return then property here is currently 32.5% overpriced. If you take 5% as the current return and assume that the market will overcorrect then there's no reason we won't see a 40%+ haircut here.

And Western Australia looks a lot like Alberta circa 2008:

http://www.watoday.com.au/wa-news/was-property-sl

Keeping An Eye On Th
Guest
Keeping An Eye On Th

Did I mention 8 months of inventory in Richmond, yes over 8 months of inventory(and growing) of SFH.

Where are all those rich Asians?

And:

North Okanagan real estate activity struggled during April.

Real estate sales drop

Where did all those oil rich Albertans go?

http://www.bclocalnews.com/okanagan_similkameen/v

And:

Another tough year for Okanagan housing sales

Where did all those retiring rich baby boomers go?

http://www.bclocalnews.com/okanagan_similkameen/k

AG Sage
Member

"Roshinsky, an agent for Royal Pacific Realty, listed Ms. S's home for sale at $700,000 the next day. Hours later, the developer signed an agreement to buy the house for $525,000.

On the same day, Ms. S signed an agreement to buy the apartment from C. Construction Ltd. for $245,900.

http://www.vancouversun.com/health/Real+estate+ag

==================

Wait, Roshinsky tries to defraud an mentally deficient old lady of hundreds of thousands and not only does he not get jail time, he gets a measly 1k fine and 30 days suspension? WTF?

So, basically, what the realtor's association is saying (in giant flashing neon letters) is fraud is standard operating procedure. Seriously. This is a joke.

Dave
Member

@AG Sage:

You know it's bad when a lawyer catches something unethical. 😉

Sounds like a joke of a punishment but to be fair the devil is in the details. Was it hundreds of thousands? If so, there is no way he shouldnt have been booted. I guess they have low expectations.

paradox
Guest
paradox

"Roshinsky was fined $10,000, forced to complete a remedial education course and suspended for 30-days by the real estate council"

Cant you see what is wrong with the statement above and our society right now?

The fraudsters dont get prosecuted anymore. They settle.

Banks and executives rip off the taxpayer by billions and settle for millions, Tepco executives screw the Fukushima for generations to come and all they do is say a pathetic "Sorry" before the cameras while enjoying their extravagant lifestyle.

Heck, maybe I should try to go and rob a store for thousand of dollars and try to settle for 100 bucks.

And I will say sorry too after I get to keep the money. Pathetic!

Dave
Member

I have been away and was wondering how the market was doing now that I am back. I guess the March mortgage changes have really put a damper on things, hey?

Troll
Guest
Troll

Prices are crashing Dave, higher average prices are proof enough.

AG Sage
Member
> Dave Says: May 13th, 2011 at 7:12 am @AG Sage: >You know it’s bad when a lawyer catches something unethical. >Sounds like a joke of a punishment but to be fair the devil is in the details. Was it hundreds of thousands? If so, there is no way he shouldnt have been booted. I guess they have low expectations. Well, the article said the house deal to his builder buddy was 525k instead of the list price of 700k and the apartment he sold her was also overvalued, so 25k would not be a stretch on that side of the deal. 200k is hundreds of thousands, admittedly, the lowest possible qualifying amount for that moniker. Don't mind me, this just really POed me today for some reason. Even just strip away all the morality, the criminality, everything and just… Read more »
vreaa
Member

"I have lived here my whole life, my wife and I are mid career professionals (university profs) … We are actively looking to sell out and escape to either Alberta or Montreal…. There is no future in Vancouver for the next generation (unless one is off-the-scale rich)…"

Anecdote, and poster's opinion about the downside of trying to be a "world class city"…

http://wp.me/pcq1o-2gi

Anonymous
Guest
Anonymous

"Wait, Roshinsky tries to defraud an mentally deficient old lady of hundreds of thousands and not only does he not get jail time, he gets a measly 1k fine and 30 days suspension? WTF?

So, basically, what the realtor’s association is saying (in giant flashing neon letters) is fraud is standard operating procedure. Seriously. This is a joke."

total junk, the guys an asshole, hope this is all over the news so he never gets another client

Patiently Waiting
Member
Patiently Waiting

The downside of ensuite laundry:

http://www.theprovince.com/Vancouver+apartment+bl

This and flooding. But people are too good for common laundry rooms these days.

Dave
Member

@AG Sage:

I would be interested to see the facts and all the details. I doubt their investigation process is very thorough considering the lack of punishment. I further doubt they are transparent with their processes and investigation.

This is actually quite a fucking joke and I am pretty pissed off too.

'Professional' organizations such as this as regulated by the Province. In this case, I would say the Real Estate Council of BC has seriously failed in their duties to the public. The Province should investigate this situation and fire the idiots who came up with this punishment. As a minimum, the guy should have been banished to only practice in Spuzzum. Write your MLA's folks.

jesse
Member

@Dave: "I guess the March mortgage changes have really put a damper on things, hey?"

In terms of sales volumes, yeah you could say that without hyperbole.

Anonymous
Guest
Anonymous

@Patiently Waiting:

"But people are too good for common laundry rooms these days." sounds like you don't have kids 🙂 You would spend all your time in the laundry room with the mountains of laundry the little buggers spit out.

Dave
Member
Decisions of the Real Estate Council can be appealed, but it looks like you have to be the impacted party rather than a member of the public. http://www.fst.gov.bc.ca/pdf/guides/REGuide.pdf I would like to track down the lawyer representing 'Mrs. S.' and encourage them to appeal the decision. Anybody want to do some digging? Here's the 'realtor': http://www.royalpacific.ca/find-a-realtor/realtor… The realtor is actually lucky that the lawyer caught him early because it limited the damages. There are some very good realtors out there and they should be more angry about this than anybody else. It's stuff like this that damages their collective reputations. If I look at all the transactions I have been involved in, there have been way too many unprofessional realtors. When the number is 1/3 or 1/2, there is a serious problem. It's pathetic and they need to clean house.
Anonymous
Guest
Anonymous

“Wait, Roshinsky tries to defraud an mentally deficient old lady of hundreds of thousands and not only does he not get jail time, he gets a measly 1k fine and 30 days suspension? WTF?

I'm not even sure why this is news. Realtards screw customers on every transaction.

space889
Guest
space889

@Dave: For once, I can actually say I agree with your opinion wholeheartedly.

Anonymouse
Guest
Anonymouse

@Patiently Waiting:

"But people are too good for common laundry rooms these days."

Seriously, who wants to have to either wait for their laundry to be done or deal with selfish neighbours who dump your clothes on the floor if you're not back within 3 seconds of the cycle finishing? Some of them you even have to pay for with a stack of quarters! What is this, the 1940s?

The fact that almost every new build has insuite laundry tells you one thing – the market demands it. And I doubt it's because they feel they're "too good for common laundry".

space889
Guest
space889

@Patiently Waiting: Well yeah because you don't know what kind of dirty dirt filled camping gear/stuff, or maybe dirty clothing soiled with poo, throwup, puke, puss, etc that the machine was washing right before you are planning to wash your underwear. Ok that's extreme but really when you are sharing, it only takes 1 to ruin it for everyone.

Also, take your view 1 step further, why have washer/dryer in houses and townhouse? Same problems can occur there. What are people too good for lauderymat?

Given the cause is improper maintainence, I fail to see how insuite laundry in a condo is really any different from a house/townhouse.

Troll
Guest
Troll

@jesse:

@Dave: “I guess the March mortgage changes have really put a damper on things, hey?”

In terms of sales volumes, yeah you could say that without hyperbole.

You could say that only in terms of pulling sales into March from April. Not clear whether there are any significant longer term effects of these changes. March sales were about 15% higher than 10 year average (3800 vs. 3300) and April sales were about 15% lower than 10 year average (2800 vs. 3400). This market is just not doing anything interesting in either direction right now, areas like Richmond aside. It looks pretty 'balanced'.

jesse
Member

@Troll: "Not clear whether there are any significant longer term effects of these changes"

Agreed. Still, the evidence is that there WAS a slowdown post-March 18th. It is also hard to argue that there was some marginal effect on demand, given that payments for a same mortgage went up by about 7%, and prices haven't dropped.

But in terms of "bringing demand forward" your point is valid.

jesse
Member

@Troll: "This market is just not doing anything interesting in either direction right now"

Agreed again! Vancouver is a sideshow. The proverbial "greased pig" main event is currently playing on the Kelowna stage. Way better value for your viewing pleasure.

bubbly
Member
bubbly

@AG Sage: Most realtors are slime, but this is disgusting even by realtor standards.

jesse
Member

@bubbly: "Most realtors are slime"

Not you, paulb.! Please keep posting the dailies. thx.

Anonymous
Guest
Anonymous

@Anonymouse: …The fact that almost every new build has insuite laundry tells you one thing – the market demands it. ….

What it really tells you is that there's nothing in it for a condo developer to put in common laundry when they can install the fixtures and appliances in every suite and charge the buyer 4 times what they cost, and there's nothing to maintain in a common area – let alone provide the common area. Yes, there's a demand for in suite laundry, and it comes from the developers.

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