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Friday Free-for-all!

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105 Comments

It’s the end of the week! Let’s do our regular weekend news round up and open topic discussion thread, here are a few recent links to kick off the chat:

–Local realtor accused of domestic slavery
–Canada’s worst city for home affordability
–The real problem with Vancouver house prices
–Vancouver rental vacancy rate continues to increase
–UBC Hospice gets final approval
–Never lost money on a sale, $47k in debt on fees
–American home equity near record low
–Chinas growing middle class earns between $9k and $75k a year

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

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SourLemon

If you have a 1000 rmb note in your hand plus a land deed and a mortgate is that a liability or an asset?

There's no point in discussing with you. You don't even address my points.

"That is just what the previous KMT government did pre-1949 and it was one of the major reasons why they lost to the Communists.

Learn a bit of history."

So you're saying a political that had been in existance for aproximately 30 years failed just because of rampant money printing? That's like the Abolish-HST saying how alberta has the lowest sales tax and the maritime provinces having the highest because of implementing the HST.

Maybe someone should learn a bit of discussing points instead of backhanded distractions.

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Devore

@Patiently Waiting: Oh, she can deal just fine. The condo is worth what she thinks it is worth, and she "won't give it away".

This is the special kind of stupid, where sellers with significant equity will hold out a year or more to get another $10k (while paying mortgage/expenses/dealing with tenant all this time), rather than drop the price and sell something they want to get rid of today. No one sells anything profitable unless they have to, even if they just want to cash out.

Unless of course she is in that elite group of sellers who are upside down on their mortgage after transaction costs.

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Patiently Waiting

@patriotz: Yeah, makes me think of someone I know who "can't sell" her condo. She's keeping it and renting it out (maybe at a loss). In reality, she just can't deal with what its really worth. Someday, it might sink in.

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patriotz

@Patiently Waiting:

I wonder if people in the less hot suburbs realize how little equity they are gaining

No.

Unless they are trying to sell, homeowners won't catch on to a bust until they see abandoned building sites and foreclosures all around them. As I recall, according to polls most Americans thought that prices were still going up until the end of 2007.

And that also means that psychology does not have to change to bring on a bust.

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Laibach

@Ravishing Rick:

Hongcouver will become Mecca for all mainlanders disqualified in HK.

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Ravishing Rick

Sales at 10 of Hong Kong’s biggest private residential developments fell 58 percent at the weekend from a week earlier after the government raised minimum down payments and deposits for foreign buyers.

http://www.bloomberg.com/news/2011-06-13/hong-kon…

Canadian politicians are too spineless to do something like this

Hit the 1990s gangsta rap music!

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Patiently Waiting

When you look at the monthly stats package, you see how the big gains were limited to certain areas and certain housing types.

Across the board, condos haven't done anything in years. Many areas are negative at one year and/or three years. Those areas with gains are less than inflation for one year and three years. Only Richmond condos have gaining any kind of equity in the last three years.

For SFH, significant gains are limited to COV, Burnaby, West Van and Richmond. Other areas have gained little, if at all, in the last three years (when you consider that two or three percent a year is just keeping up with official inflation).

I wonder if people in the less hot suburbs realize how little equity they are gaining, especially recent buyers with huge expenses.

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painted turtle

Rent = 1800$

House value = $1 000 000

With a 5% interest rate and 35 year mortgage, I would need to pay $5000 a month. And this is JUST for renting the money from the bank (no taxes, no maintenance, no utilities, etc).

OK, may be I am wrong, may be the house is only worth $900 000, but a 2BDR condo next door just sold for 1.5 million.

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bubba

@Romeo Jordan:

Gotcha….

What happens on SW marine drive doesn't stay in Vegas…it goes RE viral.

Seriously try the drive……..there are bare lots….new homes… old homes…crash is not prejudicial

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Romeo Jordan

good observation Bubba

I told all the chumps on this board that the slowdown would become visible soon enough – hopefully McLosin gets wind of this.

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bubba

Do the drive on SW Marine from Granville to UBC

Did that today……approx 15 for sale signs…one sold

One building site near Casa Mia looks like they stopped…barely at lock up

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jesse

@SourLemon: "The gov already has all the riches, why would China worry about inflation?"

Because the government doesn't have all the riches and workers are typically paid in currency, not hard assets. I'll state it again: if you have a 1000 RMB note in your hand, is it an asset or a liability?

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Romeo Jordan

Just a shitload of For Sale signs in the Fraser Valley.

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Li Kai Shing

@Ravishing Rick:

Ok rick…

We bury the viking ferric chopstick.

We go to surrey ballet..

Ist pint on patriotz

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Patiently Waiting

The market seems to be getting more and more distorted. SFH sell/list is still way higher than the attached sell/list.

Inventory is rising at the end of the selling season, but the high end of the market still has crazed buyers. Lots of equity is getting burned-up right now, as the fanatics go in deeper.

Its very strange out there right now.

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Ravishing Rick

Li kai and I are burying the hatchet tonight and giving his old lady a much needed day to rest!

Bruins victory and celebration over a couple of Tsing Tao in Whalley's finest establishment.

Li Kai, wear a Mac Jacket and levis, aka a surrey tuxedo..

Hit the Victory music!

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Ravishing Rick

I dont understand people betting on low interest but living in fear of higher rates. All the home owners i know say, "look at how low rates are and they have been low for three years"… Implying that they will continue…yet, if i ask what the would do if rates go up by 3%, they pause and there is a bad odour in the air which is followed by the formation of a dark stain on the rear side of their pants.

People that can't take higher rates are pussy cats minus the cat!

When credit card companies issue me a card with 25% interest i call them up and say, " come on raise it, is that the best you got…come on take your best shot"… Interest rate punks

Hit the Polka music!

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vreaa

Spot The Speculators #42 – "In my neighborhood, the people who are buying the overpriced homes sold their smaller overpriced home and took on a new mortgage. They are not speculators." [Yes, they are.]

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

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patriotz

@SourLemon:

Why do they need to worry about who the creditor is, why not just turn on the press and physically print more bills, no bonds or loans needed.

That is just what the previous KMT government did pre-1949 and it was one of the major reasons why they lost to the Communists.

Learn a bit of history.

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Li Kai Shing

Watching these YouTube clips

Max Keiser

MAX KEISER: NO EXIT FOR THE BOTTOM 99.9%

MAX is on his game !!!!

http://www.youtube.com/watch?v=ZY2JKf6UVvw

Watch at 3:41

1 out of 2 Congressman (261 lawmakers )are millionaires

Congressmen are allowed to trade on INSIDE information..its a law…free to trade on inside info…..when doing bailouts were able to front run every TARP, stimulus etc..they, Congress were providing.

WTF?

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Li Kai Shing

80

Anonymous Says:

June 11th, 2011 at 8:53 pm

OK, you got me started with the months of rent calcs:

My Burnaby rental house on a large lot, nice quiet area, is 556 simply dividing BC Assessment by rent and 770 if i subtract the 6k in property taxes. I didn’t bother with maintenance.

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

not bother with maintenance ?

Very frugal…..not cutting grass and not wiping ass save much yuan

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SourLemon

"Yes, loans are booked as an asset on the bank’s balance sheet. The borrower books it as a liability. The person who gets the cash from the borrower deposits it in a bank as an asset, and the cycle continues. So says fractional reserve banking."

The borrower (the people) books it as a liability. The person who gets the cash from the borrower (the developer, quasi state owned) deposits it in the bank(state owned) as an asset.

I think I'm missing something here. The gov already has all the riches, why would China worry about inflation? Why do they need to worry about who the creditor is, why not just turn on the press and physically print more bills, no bonds or loans needed.

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terminalcitygirl

It would take us 20 years (237 months) paying our current rent to buy our place, not including taxes + strata which would add at least another $400 per month. And both the building and suite are going to need work.

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Eddie

This is the traditional way to use real estate as an investment, listen up Vancouver specuvestors who are about to get burned.

Let's look at Phoenix:

You buy a home for $60,000: http://tinyurl.com/5v24767

Your payment on a 30 year fixed is $400.00/month

You rent it out for $1300/month: http://tinyurl.com/626daxp

You pocket $900 per month, more than enough to cover maitenance etc. You can see how owning several of these can be fairly lucrative.

What's the catch? Real estate has to crash first. When that happens the banks will stop handing out money like candy, and the traditional forces of the market will return. Baristas and hair dressers will be flushed out of the market. People will actually be "throwing money away on rent", but they won't have any other choice.

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jesse

@pricedoutfornow: "New Water, for example at the end of Kerr St is still pretty quiet"

That development is at sea level across the water from Richmond so there is obviously risk of a Japanese tsunami.

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