Friday Free-for-all!

It’s the end of another work week and that means it’s a good friday to have an open topic discussion thread for the weekend!

Here are a few recent links to kick off the chat:

VREB president unaware of own stats?
Updated inventory graph
Growing majority plan no home buying
Blaming Chinese for high prices racist
Line of credit rules to be tightened
Bank executives don’t follow policy?
Rules cool condo market
Real estate sales continue to cool
Hottest boomtown, Regina?
US Banks neglect seized homes 

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

PS: you’ll find a new link above the comment section that will enable you to view all comments in chronological order.

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patriotz
Member

@Anonymous:
Nope, that’s completely wrong. If you don’t view something as an investment that means you don’t care about the financial return. In the case of a house that means:

1. You don’t care about cost of ownership compared to rent.
2. You don’t care about purchase price versus future sale price.

The reason analysts are able to determine a fair price to pay for a house is that they consider it an investment, and a house is an investment because it is a place to live – its earnings equal the net rental value.

Anonymous
Guest
Anonymous

@patriotz:

It’s also wrong because a primary residence (they use the word ‘home’) shouldn’t be viewed as an investment. It’s shelter – a place to live.

RippedtoShit
Guest
RippedtoShit

Don’t worry you lumpy bumps, all is unfolding as it should. Tepid spring at best. Rates set to edge higher. NOTHING at all in sight that could lift the markets.

I expect the meltdown to last four to eight years.

Shove that down your cake hole.

jesse
Member

@AG Sage: Friday is a holiday at REBGV office. Not sure about Monday.

real_professional
Member

Paul b, any idea what the weekend was like? Me thinks slow….

AG Sage
Member

Possibly a stupid question . . . was Friday an RE holiday in Van? (no numbers from yatter or paulb)

Bob
Guest
Bob

@VMD:

Neighbour David Grewal explains why people from all over Vancouver are signing the petition.

“It really takes away from what we feel is part of the lure of Casa Mia. I kind of compare it to putting a commercial complex in front of the Taj Mahal.”

The home itself would stay and would act as a common area for the 88 seniors whose units would be in the new building.”
http://www.news1130.com/news/local/article/348888–petition-launched-to-stop-senior-care-home-in-upscale-area

================================================================
Yeah I agree….this could set a trend.

Next thing you know…condos built around the stage at #5 Orange.

I have friends in low places I better petition !

patriotz
Member

@zrh2yvr:

So, should you rent or buy? Ultimately, the decision hinges on:

• How long you plan to stay in one place (the longer the better if buying).

Wrong.

• How much you plan to put down (the more the better if buying).

Wrong.

• How your credit score looks (the better the better in both cases).

Wrong.

All of the above factors may bias the decision towards renting if buying is cheaper, but if buying is more expensive, it’s the wrong decision regardless. That’s including all future contingencies such as interest rate increases and assessments.

How great an “investment” your home is depends on how long you stay, how much you put into it, and when you happen to buy and sell.

WRONG, WRONG, WRONG. How great an investment a house is depends on how much cheaper buying is than renting.

yvr2zrh
Member

On the road again and hotel had the Seattle Times paper delivered. The Real Estate section had one sheet (4 pages) and 2 pages were the following article (Not one advertisement in the entire newspaper for the next biggest condo development.) Just before the analysis of Buy v. Rent there is a well crafted sentence which really says it all. When thinking through the buy v. rent – ” . . . . of course, you’ll have to tune out a lot of rhetoric from well-meaning friends and family and commission-driven professionals about what to do.”

Give it a read.

http://seattletimes.nwsource.com/html/realestate/2017911531_realrentvown08.html

Re-diculous
Member
Re-diculous

So I went to the open house at a plce in my building on the first floor. Listed at $705K!….wow! Quick back of the envelope calculation:

Monthly mortgage on $705K @ 3.5% = $2056
total Monthly (including strata & taxes) = $2600

With interest rates at 5%, total monthly = $3480+ Maintenance*

* all owners got slapped with a $15K levy in January for the complete re-do of water infrastructure in the building.

So, yeah – I think I’ll contnue to rent for $1700

Let’s see how quickly some financial genius comes and grabs this one.

Re-diculous
Member
Re-diculous

test, having problems with my login….again

trackback
[…] “Shadow Inventory is the inventory where the owners have removed their listing awaiting the market to improve. Some interesting stats can be seen by this and we can see that in this slow market, the shadow inventory is large. One area where I have the stats for is for Van-West detached. I took the listings at September 1, 2011 and compared to what has occurred since then. Some interesting stats have emerged. There were 648 properties listed for sale on September 1. Of these, only 238 sold or only 36%. Of the remaining 410 properties, 185 are now listed for sale and 225 are not. This means there are at least 225 of failed sales attempts which now sit in the Shadows. Add this to the actual listings and there are another 25% of listings available for Van-West. I… Read more »
pipewrench
Member
pipewrench

http://www.nytimes.com/2005/12/25/business/yourmoney/25japan.html?pagewanted=all

Real Estate Bubbles and California’s Economic Growth
part1
http://www.youtube.com/watch?v=uyOWuczlJCA
part2
http://www.youtube.com/watch?v=YrWuZQ9770c
part3
http://www.youtube.com/watch?v=ILW8OolM0Lo

After the fact lecture and New York Times piece that warns us all that housing bubbles never last. Housing prices grow at a annual rate of .2% in real terms over time and follow rental value. Anything else is just speculation.

Navin R. Johnson
Guest
Navin R. Johnson

Presidents trophy kids. Let’s get ‘er done this year boyz….

Bob
Guest
Bob

whos fart

jesse
Member

@VMD: “I kind of compare it to putting a commercial complex in front of the Taj Mahal”

Atlantic City, or Agra? I’ll sign no petition, but FWIW, I hope the City tells them to gerentrify.

Anonymous
Guest
Anonymous

This town needs a registry cleaning, the viruses kicked out of town and a reboot.

Anonymous
Guest
Anonymous

@Anonymous:

It’s not a documentary….

VMD
Member
[Petition launched to stop senior care home in upscale area] – according to other (Chinese) sources, 105 people signed the petition within 48 hours. Reasons cited include adverse impact on traffic and neighborhood living quality, danger of having frail seniors, and impacts to neighboring mansion home value. “The plan outlines a new complex to be built in front of historic Marine Drive home “Casa Mia” on SW Marine Drive. If developers have their way, a residential care facility would be built right in front of the famous Casa Mia mansion on Southwest Marine Drive. Neighbour David Grewal explains why people from all over Vancouver are signing the petition. “It really takes away from what we feel is part of the lure of Casa Mia. I kind of compare it to putting a commercial complex in front of the Taj Mahal.”… Read more »
Anonymous
Guest
Anonymous

Just watched the first episode (and last for me) of Real Vancouver Housewives.

It fits in with our city has become: plastic, pumped up, nouveau riche, show-off, money-above-all and that doesn’t even include the HAM!

N
Guest
N

Two infomercials in the Sun this morning, describing how people can over extend themselves in the most horrible possible ways to get in at the top.

The highly responsible local newspaper makes such fine suggestions as using a cash advance from your credit cards to get a down payment together, and tying your fortunes to those of your cash-strapped friends.

http://www.vancouversun.com/business/Joint+mortgages+help+increase+buying+power+come+with+complexities/6418588/story.html

http://www.vancouversun.com/business/First+time+buyers+have+options+that+important+down+payment/6419013/story.html

tam-tam
Guest
tam-tam

“There are people that live in Abbotsford and work there too, in fact the majority….. ”

have you tried going across the port mann in rush hour?…holly smolly it feels like whole abby and chiliwack is moving at the same time

real_professional
Member

Excuse spelling and typeos on android still getting used to of it

real_professional
Member

There are people that live in Abbotsford and work there too, in fact the majority….. I personally know half a dozen people that live in downtown Vancouver and work in Surrey, one that even lives in North van and works in surrey.

Some of those people are even single and could relocate close to there work if they wanted to.

As for calling places a dump, about half of Vancouver proper is pretty dumpy too. Nothern vancouver, east of granville to boundry = dump, south east. vancouver = dump, anything along kngsway = dump, granville island is rat infested = dump, most of downtown outside of coal harbour and yale town = dump

registered
Member
registered
@37 pipewrench: Much though putting the boot in is satisfying, in this case banks didn’t set the competitive environment. That’s in the hands of the Three Stooges at the top of the federal government. Faced with truckloads of taxpayer money on offer, simple economics and corporate responsibilities limit their options severely. That’s discounting backroom discussions about being ‘on board’ with government ‘Action Plans’. Nothing magic happened to buyers over the last decade. They’re driven by the same incentives and desires and limited by the same real personal incomes of the decades prior that passed without bubbles. Banks acted responsibly to their shareholders and corporate mandates, and arguably law. The massive change was in home financing policies implemented by the federal government. It can’t be said enough; those policy changes make no sense if a tsunami of lending wasn’t the desired… Read more »