Racist marketing and fact-free media

Look at this garbage. It’s an article submitted by “The BC Real Estate Convention” and printed as if it’s actually news in the Vancouver Sun. First off, the writing is atrocious. Don’t they even have an editor read these advertorials before they’re printed? Second, there are lots of statements presented as fact that have absolutely nothing to back them up:

Experts claim that the Chinese Mainland buyers and investors will continue to seek for overseas investment opportunities, in Vancouver.

Which ‘experts’ are these? Oh never mind, we’ll just take your word for it then.

As it is more cost efficient to purchase a property rather than renting, and considering the long term returns of the investment, purchasing properties in Vancouver become high on demand.

Yeah, somebody is ‘high on demand’ if they really believe that current prices in Vancouver make buying ‘more cost efficient’ than renting. There are many many markets around the world where buying is ‘more cost efficient’ than renting, Vancouver ain’t one of them.

However, as much as Feng shui is a well respected practice by many Chinese immigrants and potential home buyers and investors, there are always those “intelligent” ones that seek to obtain the optimal economic value from their investment in Vancouver’s real estate.

Wow. I don’t even know how to respond to that.

If you go to the The BC Real Estate Convention web site you’ll see that this trade show is sponsored by The Vancouver Sun and Province.

Then there’s this piece over at 24 hours:

Metro Vancouver will receive an influx of businessmen from mainland Chinese this week, intent on spending their two-week Lunar New Year holiday with family, as well as scooping up significant amounts of real estate.

Julia Rowell, sales manager at downtown Vancouver’s Maddox development, said this phenomenon has been going on for over 25 years, but 2012 looks to be especially busy.

Yeah? I think TPFKAA says it best:

HAHAHAHAHA! That’s absolutely hilarious!!

So in 1987, (a full five years before Deng Xiaoping’s reforms that enabled creation of individual fortunes) HAM from mainland China was increasing sales just after CNY.

/facepalm.

The hype seems to be working on the listings side. This year started off with the second highest number of listings in the last ten years and has grown at a faster rate than any of those years, especially on the west side:

I’m sure those sellers are hoping this hype pays off, and maybe it will, but then again maybe our market isn’t driven solely by wealthy offshore buyers. Most local first time buyers aren’t in the market for multimillion dollar homes anyways, so how would this even affect them?

Blaming ‘Chinese buyers’ for out of control prices is simplistic and racist. This city is nearly half asian so of course ‘Chinese buyers’ have an impact, but what about easy credit, low rates, CMHC pumping and local speculators?

Just for comparison, the city of Monterey Park in California has the highest percentage population of Chinese Americans of any US municipality. Here’s what home values there look like over the last few years:

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jesse
Member

How accurate are zillow price charts?

At least they have comps available online. Wouldn't that be something.

fixie guy
Guest
fixie guy

Is it subtle irony the Sun published that article in the Entertainment section?

rob
Guest
rob

Hardly racist… The BC Real Estate Convention was started by a Royal LePage Westside realtor named Sanghoon Lee. It is the epicentre of the pump and dump. That he has grown it so big and with such sponsors over the years is a testament to the power of the REIC.

http://www.bcrealestateconvention.com/bcrec/main/

604 Receding Gains
Member
604 Receding Gains

Local media and sales shills are a side-show. They're going to ramp up rhetoric and scare tactics as this market continues to implode – it is a sign of their fear. This article has the stench of fear all over it, with a candy-coating of corruption and vested interests.

If you really want to hit the speculators (Chinese and all others) then check out the template letters I posted last night. Enough is enough, time to hit these clowns in their pocket-book. That'll have more impact than anything else. And letters to the Canada Revenue agency is a good place to start. See the VCI forum at this link:

http://vancouvercondo.info/forum/topic/letter-wri

Peko
Guest
Peko

Keep telling yourselves that the overseas buyers and media have not "real impact" little bears…

You have been saying that for 7 years and look how right you have been…

Maybe all this backpeddling comes from your realization that you screwed yourselves over for another year with your little pre-mature inventory parties…

Hahaha…here comes chinese New Year boys and girls…and the Chinese version of the Sun..and a Chinese "Globlal TV" station…

Hahahha..keep denying the influence of rich asians…they love little "born and bred in Vancourites" who can only afford to rent their basement suites…

patriotz
Member

@rob:

This article brings to mind the "yellow peril" articles that ran about a century ago. The difference back then is that they were claiming the Chinese were going to take away our jobs rather than our houses.

If you wrote today that the Chinese were taking away our jobs you'd get the human rights people after you of course. But in the Bizarro world of RE anything goes.

And please don't say that because that article was likely written by an ethnic Chinese it's not racist. There are many cases in history of members of ethnic minorities inciting racism against their own group for personal gain.

Anonymous
Guest
Anonymous

This article brings to mind the “yellow peril” articles that ran about a century ago. The difference back then is that they were claiming the Chinese were going to take away our jobs rather than our houses.

If you wrote today that the Chinese were taking away our jobs you’d get the human rights people after you of course. But in the Bizarro world of RE anything goes

_____________

Ah…I see that the PC white liberal guilt of Ottawa has finally gotten to you Patsy…that did not take long at all..

chubster
Guest
chubster

rtyt nails it. add: the rich offshore buyer has become a RE folklore. key qualities -> somehow savvy enough to choose vanRE, yet unsavvy enough to disregard high price of crowded trade. nobody is both.

VHB
Member
VHB

Here are the projections, updated with Larry's numbers for yesterday.

Jan-2012

Total days 21

Days elapsed so far 15

Weekends / holidays 8

Days missing 0

Days remaining 6

7 Day Moving Average: Sales 82

7 Day Moving Average: Listings 278

SALES

Sales so far 990

Projection for rest of month (using 7day MA) 492

Projected month end total 1482 +/- 101

NEW LISTINGS

Listings so far 4254

Projection for rest of month (using 7day MA) 1666

Projected month end total 5920 +/- 212

Sell-list so far 23.3%

Projected month-end sell-list 25.0%

MONTHS OF INVENTORY

Inventory as of Jan 20, 2012 12764

MoI at this sales pace 8.61

We need to average 291 new listings a day to hit 6000.

We should be very close to the 13K inventory party today. Get your party hats on!

anon
Guest
anon

http://www.heraldsun.com.au/news/more-news/bloodb

Bloodbath to hit Australian real estate, analyst Jordan Wirsz says

“Right now is not a time to be buying real estate in Australia," Mr Wirsz said.

"The market has slowed substantially but residential prices are likely to fall up to 60 per cent, possibly even more, within five years."

The outlook is even grimmer for land investments, which Mr Wirsz said are more speculative and will plummet by as much as 80 and 90 per cent in value.

Commercial property will also take a hit in line with the residential sector shedding at least 50 per cent of its value.

Anonymous
Guest
Anonymous

@fixie guy:

It's always looked like the Sun has treated real estate as lifestyle and not part of the business section.

victoria
Member
victoria
Look when I lived in Toronto my daughter was in K at a private school. There were a few Russian families at the school. When I asked what do you do for a living I got "Carpenter, Painter etc." This was an expensive private school. These people lived in Rosedale in $2 million houses and the wives wore Prada. They seemed to have a new BMW or Mercedes every week. My husband went to pick our daughter up and one of these Rosedale homes. The dad said "Yes! I am carpenter. Canada good country. When we decide to leave Russia we looked at Europe but Canada more welcoming and easy". Kids went to a birthday at another Russian "house painters" house. Scary people. Big nasty looking Russian men walking around with thick necks. I remember one dad who was picking… Read more »
fixie guy
Guest
fixie guy

13 DEFAULT NAME Says: "It’s always looked like the Sun has treated real estate as lifestyle…"

Apprently the Sun still wasn't comfortable with the tenuous real world grounding implied by lifestyle. This 'adverticle' really is in entertainment.

Maverick
Guest
Maverick

Can someone get the data and fix VHB's chart?

Too many gaps in the data to compare with any confidence.

Still, love that listings are going parabolic.

Anonymous
Guest
Anonymous

@fixie guy

"Is it subtle irony the Sun published that article in the Entertainment section?"

That is because their target market only reads the entertainment section.

rp1
Guest
rp1

#12 @anon: Re: Australian bloodbath. Remember that Steve Keen fellow?

The funny thing is, I bet most people will dismiss these predictions if they come true. The will dismiss the entire idea that somebody could have and did predict such an extreme change. In short: if you didn't understand why it went up, you're probably not going to do any better on the way down.

victoria
Member
victoria

When I press on the green up botton sometimes the number actually goes down. does this happen to anyone else.

Cheers!

Patiently Waiting
Member
Patiently Waiting

It appears our local retailers may have brought down prices enough to stop some cross-border or online Christmas shopping.

http://www.news1130.com/news/local/article/323022

N
Guest
N

@Victoria:

It just updates after you press the button. So if, when you loaded the page the score was +5, and while you were scrolling and reading, two people voted it down, and then you voted it up, the updated score at that point would be +5 – 2 + 1 = +4.

Anonymous
Guest
Anonymous

You've got to love realtor math!

$469000 / 4br – 1242ft² – Great Investment Opportunity

Mortgage (assuming 5% down) at 4% for 25 years

monthly payment is 2351.77

"Current revenue property with $1530 per month rent (total)."

That's 821.77 out of pocket per month

Then add taxes 250… anybody want to guess how long that old home will go before it needs major repairs?

Sounds like a great investment 😉 (for his commission I guess).

Why anyone would speculate (I mean invest) in a home is beyond me. If you're dead set on it, at least buy a REIT to diversify and let the pros manage your money.

http://vancouver.en.craigslist.ca/rds/reb/2815680

N
Guest
N

@DEFAULT NAME:

Give credit where credit is due, the Realtor does say, "Based on purchase price and mortgage terms, with 25% down rent may cover mortgage."

Unfortunately, the guy did not have a calculator or a list of currently available mortgage terms handy, but it was nice of him to take a guess.

http://PleaseStop.co
Guest
http://PleaseStop.co

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bubbly
Member
bubbly

Only white RE skeptics are racist – by definition.

That garbage in Vancouver Sun is just savvy insight.

Devore
Member
Devore

@N: Even taking the 2.99 25 year special (5 year closed) makes it $100 more than the rental income, not counting property taxes and insurance.

fifi
Guest
fifi

how people can claim that there is free press in Canada when content is simply bought by special interest. I am sorry but Canada is plutocracy.

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