Friday Free-for-all!

It’s that time o’ the week again and that means it’s time for our regular end of the week news roundup and open topic thread. Here are a few recent links to kick off the chat:

Mortgage debt growth slows
BC has highest consumer debt
How to pay back $1.6 billion HST cash
Trouble at Pantages
BC families squeezed in economic vice
Four out of five workers want a different job
Three out of four in BC want a different government
Housing bubble discussion on CBC radio

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

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asiaman
asiaman
8 years ago

Wow you have been very prolific this round i am late to the game but also wanted to mention I am glad youre around too, because blogs need fibre and you are our bran. and you are polite.thank you for keeping us regualr and being brave enough to enter the bear cave.

Anonymous
Anonymous
8 years ago

@WhatProblem: …Many of these people have paid cash and simply do not need to bail at the slightest weakness…..

Ya, cause, like ya know, there's nothing rich people like better than to pay the highers possible price for an asset then hang on until it's value drops by 2/3rds.

Anonymous
Anonymous
8 years ago

@DEFAULT NAME: ….I say keep the condo, buy the house, then take a HELOC and put it down on presale condo contracts. Flip the condo and presales for double, pay off the house and by the end of 2012 you will be on easy street….

You left out: rent the house out for positive cash flow (yuk, yuk).

Makaya
Makaya
8 years ago

@Chem Guy: I agree with you, but we're not there yet. Credit rating agencies, whether we like it or not, still have a huge influence. The markets are always ahead of the rating agencies, but a lot of pension funds, for example, are not allowed to invest in a product that doesn't receive AAA rating. That's the big problem for the European countries like France and Germany. Unlike in the US where the Fed can buy as many US treasury bonds as necessary, in Europe the ECB is normally not allowed (although it's doing it for Greece) to buy Eurozone members treasury bonds. And despite the french big push to change that, Germany is fiercely fighting against it. As of tonight, Merkel seems to have won that battle for now. The big problem is: who's going to come up with… Read more »

Chem Guy
Chem Guy
8 years ago

@Makaya: I think we will gradually see the relevance of ratings firms decline to a point where things like the S&P and Moody's will no longer exist. These are the firms whose inability to assess risk caused the US bubble in the first place; why should we trust them today.

Organizations requiring a "rating" will have to build their own internal rating capability. Information is easy to access and freely available; the ratings agencies are no longer relevant or IMO required similar to the role of the encyclopaedia and the high school report.

frank
frank
8 years ago

Victoria's turkey looks cooked

http://fishyre.blogspot.com/

Best place on meth
Best place on meth
8 years ago

@paulb.:

Hi Paul,

Are you able to put up inventory numbers?

Thanks.

WhatProblem
WhatProblem
8 years ago

Many of these people have paid cash and simply do not need to bail at the slightest weakness. Where are they going to run to?
http://www.bloomberg.com/news/2011-05-16/chinese-

WhatProblem
WhatProblem
8 years ago

It is what it is..An Asian City in Canada..Pretty unique scenario.
http://www.realestatevancouver2010.com/blog/2011/

Anonymous
Anonymous
8 years ago

@bidding war:

"As long as you’re willing to pay me the money I’d lose if the gap between my condo and my house gets larger then I’m going to wait. If you’re not I’ll go with my instincts and buy as soon as possible"

I say keep the condo, buy the house, then take a HELOC and put it down on presale condo contracts. Flip the condo and presales for double, pay off the house and by the end of 2012 you will be on easy street.

paulb.
paulb.
8 years ago

New Listings 130

Price Changes 74

Sold Listings 100

http://www.laurenandpaul.ca

Drummer Boy
Drummer Boy
8 years ago

@Best place on meth:

We already have a shitload of zombies in the town and they keep coming like in 28 Days. Some of zombies prefer houses and some condos as long as hospice is not close by. It gets hard to survive these days with all of them around.

For example, yesterday at the Santa's Parade I was systematically pushed off from the spot in a second row from the street so zombies (who came late to the party) could fetch all possible freebies handed out by parade participants. It was scary to watch them screaming and yelling some inaudible sounds if they would miss candy-cane, discount coupon or a sticker. I'm not going to the Parade any more…

Anonymous
Anonymous
8 years ago

@bidding war: …I’ll go with my instincts and buy as soon as possible …

Give'er!

patriotz
8 years ago

@Troll:

"The problem I have with those kind of posts is, of course if you string together a bunch of worst case scenarios you end up with an inevitable RE crash here."

What you're not getting is that even if you string together the best case scenarios a bust is all but inevitable.

If buying is substantially more expensive than renting a bust is inevitable. That's the root cause of all RE busts and those pointing to other "causes" are just trying to pretend that excessive prices are in themselves sustainable.

bidding war
bidding war
8 years ago

"He is right and it is true".

that's very reassuring patriotz

As long as you're willing to pay me the money I'd lose if the gap between my condo and my house gets larger then I'm going to wait. If you're not I'll go with my instincts and buy as soon as possible

Troll
Troll
8 years ago

@Makaya:

Wasn’t it clear enough?

Nope. You post some long winded doom about Armageddon in Europe and then come to the conclusion that we're screwed. Is that your argument? I'm suggesting that maybe Armageddon doesn't come to pass in Europe, somehow they muddle through and come to some sort of resolution. Are we still screwed in that case? Not so far, the opposite in fact, the resultant low rates have kept things going in RE land.

The problem I have with those kind of posts is, of course if you string together a bunch of worst case scenarios you end up with an inevitable RE crash here. That's no better than RE pumpers who string together a bunch of best case scenarios. The truth'll probably be somewhere between.

Best place on meth
Best place on meth
8 years ago

@annonymous:

>>>If you think the World is ending then get a House..Way easier to defend than an apartment..<<<

Unless you're dealing with zombies.

If 28 days later taught me anything, it's that you want to be barricaded in the uppermost part of a highrise when the zombies come.

A house? Forget about it.

Makaya
Makaya
8 years ago

@Troll:

Here is what I said in my conclusion: "Canada is not immune to what’s happening in Europe and expect tough times ahead for us in general and, especially, for Vancouver RE. Their won’t be enough HAM or interest rate reduction to “save” our butts this time."

Wasn't it clear enough?

annonymous
annonymous
8 years ago

If you think the World is ending then get a House..Way easier to defend than an apartment..More storage for Vital supplies..land to grow food.. and I can guarantee no one will show up to foreclose on the place when everything turns into "Mad Max"…No Sir.

Troll
Troll
8 years ago

@Makaya: So you're saying if the world ends, it would affect housing prices? Wow, shocking.

Problem is, world is not ending. Some tough times ahead for sure, but this off the charts doomerism is way overdone.

...
...
8 years ago

@signallingthetop: Interesting article. I disagree on one thing. There is nothing the authorities can do now. Vancouver is done.

annonymous
annonymous
8 years ago

C'mon Makaya don't be an idiot.
http://business.financialpost.com/2011/11/29/cana

Anonymous
Anonymous
8 years ago

@bidding war: …I’ve been looking at houses for a couple of months now and I don’t see prices coming off at all. If anything they’re going up. The longer I wait the more this is costing me. …

Yep, go ahead an buy now – on more puff in the balloon to increase the depth of the bust to the benefit of the rest of us.

patriotz
8 years ago

@bidding war:

“There is a chance that house prices decrease in 2012″.

I hope you’re right but I doubt this is true.

He is right and it is true.

Sorry, just had to put on my logic police hat.

patriotz
8 years ago

@DEFAULT NAMEe:

:

“If both condos and houses decline by x% the dollar gap between them will close. ”

This is true, but the %-age gap will remain the same.

The word "but" apparently means something different to you than to everyone else.