Hey everyone, happy long weekend to you! Let’s do our regular open topic discussion thing.
– there may be stories added here later
But what are YOU seeing out there? Post your news links, thoughts and anecdotes here and have an excellent long weekend!
[ Chinese buyers are not preventing the Australian housing price crash that has begun ]
http://youtu.be/oE20DWnsEpo
Aired – Fri 22nd of July 2011 on Channel 7 in Australia.
an 1.4M condo has dropped to 800k
Favorite quotes :
"I don't think anyone saw it coming"
"We thought da market is going up"
I came across this video after it was posted by a rational housing bear on the Chinese RE sub-forum.
The revolution in Australia has commenced. Now Vancouver, the 2rd most unaffordable city in the English-speaking world behind Sydney, we're on deck!
<a href="http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=zh-CN&tl=en&u=http%3A%2F%2 Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D379081%2Fstart%3D200%2Flang%3Dschinese.html&act=url” target=”_blank”>http://translate.google.com/translate?js=n&pr…” target=”_blank”>Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D379081%2Fstart%3D200%2Flang%3Dschinese.html&act=url
what are we seeing out there? bears still are crying their hearts out!
Here's one to start you off – Canadian Economy stumbles in May
http://www.vancouversun.com/business/Canadian+eco…
@Van MD: Good post, although I thought the earie background music was a bit over-dramatic. Part of me hopes our turn comes soon, but the other part doesn't because of the implications on the wider economy.
I still don't see any proof of the droping prices in the lower mainland that people have been talking about over the last few days. I wouldn't call an Indian built house sitting on a 3000sq ft lot in a dumpy neighborhood in Surrey for 400K a good deal personally.
Among the Asians(Chinese, Japanese, and Koreans), Australia is favored either among two categories
a) people who don't have the skills or money to come to Vancouver or or Toronto. Australia's immigration policies are looser than those in Canada.
or
b) people who prefer a warm climate.
Other than A) and B) , they mostly prefer to come to Canada instead.
Interesting that a few Canucks have signed in what appears to be "lower than market" wages to stay in Vancouver. Sedins, now Hansen…
http://www.theprovince.com/sports/Canucks+have+ba…
Is this not endemic of the Vancouver labour mentality?
Do Indians not know how to build houses? I think that the developers of leaky real estate all non Indian.
@WFT?: Indian builders didn't build larger complexes until more recently. Have you ever been to some of the Indian built complexes in Surrey? Quality is ABSOLUTELY brutal. I'm talking build quality, I can't attest to structural. I've looked at some of the Indian built houses in East Van, you can tell by looking at the outside of the house that some of the lines aren't straight. So yes, I think it is a fair statement that the leaky Condo's weren't built by Indian builders… but just think of the disaster we would have on our hands if they were…
@Hazuchan: The difference is that unlike most businesses in Vancouver, the Canucks are a world-class competitive organization in hockey (not jingoism, just a statement of fact), so they are essentially agreeing to a pay cut in order to be part of an effective organization that has a chance of winning.
Unless you are a senior manager at Lululemon or one of the other few world class competitors here in Vancouver, there's no real equivalent. I am myself contemplating taking a pay cut to change to a job where I will actually be doing something relevant all day rather than sitting at a desk building log cabins out of pencils and posting things here.
Of course, I can afford to do so because I'm a renter and have a lot more disposable income than most…
I am myself contemplating taking a pay cut to change to a job where I will actually be doing something relevant all day rather than sitting at a desk building log cabins out of pencils and posting things here.
I actually did the opposite – I took a pay cut so I can have a job where I do nothing all day besides posting here. Say, where did you learn how to build log cabins out of pencils? Sounds interesting…
@vanpire: And you are renting so you can afford to do this? 🙂
What do you think? Of course I'm renting. I love freedom and independence above anything else. Living the life of a slave isn't exactly my forte.
@Hazuchan
Yes, clearly athletes getting paid millions of dollars who accept slightly less than market value with no real impact on standard of living to play for a winning franchise are exactly the same as middle managers making 60k a year who have to commute from Mission just to have a yard for a dog to shit in.
Come on. I mean, seriously?
@jsg: You forgot about the part where Canada wouldn't deport you back to China to face death penalty for embezzlement, tax evasion, corruption, bribery, etc without securing a promise from the Chinese government that it will press for a death penalty or ensure your safety in prison. Not to mention all the other available routes of refugee claims you can pursue. Lastly add in the fact that you might get all the legal work done for you on Canadian taxpayer's expense and collecting social welfare support at the same time!
I don't believe Australia is as lenient or as generous as Canada.
http://www.vancouversun.com/business/Looking+home…
Of course it's not dire. Why stop at Squamish or Mission.
I hear Prince Rupert is great this time of year.
I'd love to see someone get to downtown from Squamish during morning rush hour in 45 minutes. I'll give that person $100.
What is this, Amazing Race?
@900kCrackHouse: You can have two out three: speed, quality, price.
I guess maybe people who hire the Indian builders prefer really cheap and quick?
Also with the way construction industry works, can you really blame the contractors for doing shoddy jobs when they can get paid the same amount of $$ much more quickly (hence more jobs and income in a calendar year) without having to worry about liability? I think this probably goes for 90% of builders here regardless of race, though some are probably way worse than others.
Buyers protection is really lacking in BC.
@kansai92: I don't think I've ever done in 45mins during non-rush hours but then I do drive a bit slower with all the curves and such.
But did you notice the prices? Those aren't exactly cheap prices either. A lot are like $600K to $700K+!!! If they were like $300K or under, fine. But $700K+ with nighmare commute time and options?? that's examples of right price @ right location?? wow…
@Potential Buyer: I feel your pain and am in a similar situation. What stops me from buying right now is the fear that I may be buying right at the top of the market with all of the uncertainty out there right now. Did you watch the video posted earlier on Australia?
I'm not going to make predictions (as others on this site do and have been incredibly wrong so far).
@kansai92: I was rolling my eyes too when I read from Squamish or Mission to downtown in 30-45 minutes… uhm, when? at 3 am?
Fact is, if you're buying a house in the burbs from your rental downtown or nearby, because that's all you can afford, and need to commute to work downtown, prepare yourself to waking up an hour earlier every single day of your life that you live there, and getting home later.
But hey, we're building equity here, man up and stop complaining!
IMO, it boils down to whether you truly believe we're at a peak or not.
If you believe we're at the peak and things either go sideways for years (or even drop), that down-payment you speak of will be stuck in this asset whereas if you keep renting and invest your downpayment (yes, there's risk there too), than maybe renting can still make sense. Do not forget the opportunity cost on your downpayment as part of your overall cost comparison.
