Friday Free-for-all!

It’s that time of the week again, here’s our regular end of the week news round up and open topic discussion thread! A few stories to kick off the chat:

Metal thieves urban mining in Richmond
Real Estate Agents in Cars
Any new tax on non-resident buyers could be ‘disastrous’
Bogus press release from housing activists
Century 21 City View Realty license suspended
Canadas banks brace for indirect exposure to Italian debt
Canadian wage gains keep slipping
Global housing bubble bust about half over

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

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patriotz
Member

Home Prices Crash 62.5% Since September in Erdos, a Chinese "Ghost Town"

Erdos is an inner-Mongolia city with rich natural resources. However, it's a ghost town with many buildings but few people. Home prices just crashed 62% in a few months.

Dave
Member

Please say it wasn't Erdos. You sure it was Erdos and not Gerbus?

If the bubble is popping in Erdos, Vancouver can't be far behind. I'm out.

registered
Member
registered

2 Dave Says: "Please say it wasn’t Erdos."

Supply and Demand, Dave. Supply and Demand. The supply of demand for real estate investment opportunities in Vancouver will fall with the decreasing supply of buyers caused the increasing supply of Chinese creditors demanding payment on the rapidly increasing supply of ill-considered and now failing Chinese real estate gambles once in high demand.

Expect the supply of demand to plummet. Econ 101, Dave.

Eddie
Guest
Eddie

Don't worry folks, low rates continue to make housing affordable!

http://www.vancouversun.com/business/Continued+in

What an idiodic headline. Rates have nothing to do with affordability other than making your current monthly payment less. No wonder a whole generation is f****d.

Dave
Member

@fixie guy:

I thought you didn't believe in supply and demand. I guess it took an example from Mongolia to convince you.

Dave
Member

@Eddie:

That's the definition of affordability.

Nimby
Guest
Nimby
Hi guys, I've recently witnessed Nimbyism first-hand, and I'd like to get your thoughts. A neighbour came to my door asking me to sign a petition protesting his neighbour's building of a laneway house. The reasons stated on the petition: (1) Loss of privacy (2) Overcrowding in the neighborhood (3) Reduced availability of parking The guy told says he doesn't mind basement suites because he knows people need a "mortgage helper". (Nevermind that basement suites also contribute to (2) and (3).) But he doesn't like laneway housing because "you can't judge the character of people that live in your garage". I talked to the owner proposing the laneway house and it turns out it is their twenty-something son who would be living in their laneway house, and he is currently living at home anyways. So he just moves from one… Read more »
Dave
Member

@Nimby:

Tell them that your laneway house will only be used as a grow-op.

Best place on meth
Member
Active Member
Best place on meth

R.I.P. Ordos.

R.I.P. China.

🙂

Flip Flop
Guest
Flip Flop

@ NIMBY

I would think the quality of tenant in a newly built laneway house would be better than the quality of tenant in a basement unit.

On average, laneway houses must rent for more than basement suites. New ones anyways.

jesse
Member

@Nimby: "What are your thoughts? What should I tell this guy?"

Tell him to write to Vision Vancouver dominated council. Then tell him if he doesn't want a laneway for that house he can petition his neighbours to pool a fund to compensate the owner for loss of revenue.

An irony for NIMBYism is that Vancouver, for the most part, has densified consistently and relentlessly for the past 20 years. The pressure for the "rest" of Vancouver to do the same is going to increase, not decrease.

patriotz
Member

@Nimby:

Tell him that the zoning that allows laneway houses makes his property more valuable whether he builds one himself or not.

Anonymous
Guest
Anonymous

@Flip Flop: ….I would think the quality of tenant in a newly built laneway house would be better than the quality of tenant in a basement unit….

Makes you wonder: do people really aspire to live in soggy back alleys? Do people really want to buy a house just so they can rent out the basement and attic and rent rooms to students then have someone live in their garage? What wrong with people here? What's happening to the Canadian standard of living?

Oilman
Guest
Oilman

@Dave: 'Please say it wasn’t Erdos. You sure it was Erdos and not Gerbus?

If the bubble is popping in Erdos, Vancouver can’t be far behind. I’m out.'

Actually, that's pretty funny. I'm a housing bear for the last 4 years, but let's not compare a resource-rich area of Mongolia with Vancouver. For all of Vancouver's faults, it's a pretty nice, medium-sized city.

patriotz
Member

@DEFAULT NAME:

"What’s happening to the Canadian standard of living?"

You mean the Vancouver standard of living.

Patiently Waiting
Member
Patiently Waiting

@jesse: NIMBIES tend to be so self-absorbed that they don't act until its too late. Where were the NIMBIES during the public debate around rezoning?

Its not until something is actually being built that they wake up to the changes.

In Coquitlam, the Austin Heights neighbourhood had a two year consultative process that resulted in a plan actually chosen by the locals. It included some high density. It wasn't until the first tower was being marketed that the NIMBIES woke up and subsequently failed to impact the municipal election (even though the politicians didn't make the plan). Too bad, so sad.

jesse
Member

@Patiently Waiting: "Its not until something is actually being built that they wake up to the changes"

It's comical and sad when groups hit a brick wall in the planning process. There are some angry people out there who feel powerless to stop the direction of development in the city. If some of these people became interested in the city as a whole instead of their own turf I might give them some credit.

As much conflict of interest there is on council with approving development projects for campaign donors, one cannot help but smile when a laneway house in some affluent neighbourhood is seen as "destroying neighbourhood character". I think "destroying" is too harsh a word; here are some other options:

– expropriating

– de-gentrifying

– revolutionizing

– improving

I'll pick the last one.

Dave
Member

@Oilman:

You know you have affirmation bias when…

Patiently Waiting
Member
Patiently Waiting

A few vague details about City View

http://www.vancouversun.com/business/North+Vancou

Look at the picture with all the black slime around the entrance to the realty office. At least, its preparing you for the condition of so much Vancouver housing.

disbelief
Guest
disbelief

@Dave:

That's the problem with the whole system. The reason why people are so screwed after the burst. People spend more than they can afford. People need to look at what they are paying (full purchase price) not what they are paying per month.(Dave) Must be in the banking business ala Citifinancial or one of those other mouse housing lenders.

Anonymous
Guest
Anonymous

recently

I tough that I was a moron

tough that patriotz was a moron

tough that all you bears were morons

that Vancouver was different for reasons that morons can t comprehend.

However, nice to see today that

The Economist, please, agree with the morons F%$k yeah!

The whole shebang is batshit crazy overvalued

Anyway, back to earth the whole shebang IS still batshit crazy overvalued and I am still broke.

but

At least I don t feel like a moron anymore 😀

george
Guest
george

The debt dominoes are starting to fall

Deleveraging: There never was another choice

http://theautomaticearth.blogspot.com/2011/11/nov

jesse
Member

CBC: Flaherty calls Europe's debt woes 'dire'

"This dire and pressing problem threatens not only Europe itself, but all countries," Flaherty told a business audience at a luncheon for the Canadian Club in Toronto. "Ongoing uncertainty stemming from the European sovereign and banking crisis is leading to broader contagion outside Europe and global credit markets."

I can has rate cutz?

Troll
Guest
Troll

@disbelief:

The reason why people are so screwed after the burst. People spend more than they can afford. People need to look at what they are paying (full purchase price) not what they are paying per month.

People are foreclosed because they can't make monthly payments, regardless of the full purchase price. You bears are confusing affordability with whether it's a good investment or not.

jesse
Member

Flaherty said it's time for governments to take the advice they give to their own citizens: live within your means and save for a rainy day.

"Households don’t operate like this and neither should countries. When your credit card is maxed out, you don’t go out and get another one and continue to accumulate debt at 18 per cent interest,'" he said. "Instead, you figure out a way to restrain your spending and you increase your payments to reduce your debt."

This is also termed "expansionary austerity" or, for you grassroots Conservatives out there, "what's good for the goose is good for the gander". I wonder when Canada's citizens will follow its government's advice: debt-to-income ratios are approaching nosebleed levels.

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