Friday Free-for-all!

Yeah, that’s right. It’s the end of the week and that means it’s time for our regular end of the week news round-up and open topic discussion thread. Here are few recent links to kick off the chat, the first one see’s our very own Vancouver Real Estate Roller Coaster show up on the evening news:

No Bubble in Vancouver (video)
Inventory now under 10 year record
Average house prices for the last year
What housing bubble?
Vancouver drags Canadian real estate
Canadian banks not immune to bubble
Half of Canada to retire with mortgage
CMHC insurance protects the lender
‘Condo king’ says bubble talk just hot air
‘Condo king’ on BC housing commission
Does Canada have ‘Dutch Disease’?
Professional women go it alone
Instant house
Real estate crash in China underway
VCI now on Twitter

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

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[…] house – you can click on the image below to enlarge it. (hat tip to Patiently Waiting on Vancouver Condo Info): […]

UnagiDon
Guest
UnagiDon

@Patiently Waiting: That ad is all kinds of stupid.
– Since the “new luxury house just completed”, why does it have the owner’s piano in it?
– If the owner must urgently return to China, why is it FSBO? I highly doubt FSBO has a faster turn-around than MLS listing?

Is it more likely a small-time builder on the verge of bankruptcy who can’t afford to hire a realturd?

Vulture Fun
Guest
Vulture Fun

I was at an open house at a neighbour’s house yesterday (off Armstrong in Burnaby), and there was a Chinese woman complaining loudly to anyone who would listen that the house only had two bedrooms, despite the fact that it clearly had three. She said there was a better open house, just down the street. Ah ha! Just trying to drive some traffic toward her sorry ass house. Then someone else was badgering the agent about prices dropping. Besides that, there was very little traffic at the open houses on Saturday or Sunday. It was not the bidding war they were looking for.

Anonymous
Guest
Anonymous

@space889: “I think most people believe the point of the CMHC insurance is so that if they go broke, the insurance company would pay out the remainder of the debt to the bond issuer (the bank).”

I find it hard to believe anyone little lone ‘most’ people believe this. It would be like thinking ICBC car insurance covers your car payment if you can’t make it.

Anonymous
Guest
Anonymous

@crashcow: “And if you’re Carney, you’ll keep telling the dog to stop eating while refilling his bowl.”

Carney’s comments were aimed at the government not consumers. Carney has to keep interest rates low for many reasons which has nothing to do with housing. For one the Canadian $ would skyrocket if he increased rates significantly, which would kill manufacturing in Canada. The borrowing for housing can be fixed with rule changes to CMHC and regulations for banks. It looks like the government has finally done something with the coming changes to CMHC. The implosion of the bubble is not far off.

Patiently Waiting
Member
Patiently Waiting

King HAM fled back to China and left his throne behind?

“Note: the owner because of a urgent to return China, so the asking price there are a lot of room for negotiation, coupled with the distribution of the total value of 80000 full set of aristocratic furniture, piano, plus on the government’s home purchase cash back, buyers will get a total of nearly 200 000 discounts, which in the vancouver west very expensive premium real estate is very difficult to find such a cheap price, welcome to the OPEN HOUSE to look at the new luxury house just completed! NEAR TO U.B.C!”

http://vancouver.en.craigslist.ca/van/reo/3026416518.html

Patiently Waiting
Member
Patiently Waiting

Interesting comment on this article http://www.moneyville.ca/article/1175064–things-to-watch-for-when-flipping-a-condo

“the most important issue one should watch for is, CRA. Flipping a condo can be deemed not as an investment, but a speculation. Hence, taxed as a speculation. There are teams of auditors inside CRA watching each and every one of the final closings of these new condo buildings. Trump Tower is a perfect example. CRA has already started calling all these so called “investors” to supply supporting documents in their tax returns next year. The builder has been very supportive in furnishing their buyers’ contact infos to CRA. Don’t turn a little speculation tax into a full audit of yesteryears. It is not worth the risk.”

So there is a branch of government that knows exactly who is speculating on condos.

Patiently Waiting
Member
Patiently Waiting

@space889: “Personally I place a lot of the blame on CMHC and the banks, it’s really bad/false advertising that give people the wrong impression about what CMHC insurance actually is.”

Can you provide an example of this? I’d imagine that if someone had a website (or was handing out brochures) that misrepresented CMHC mortgage insurance, they’d get called out pretty quickly and be in legal trouble.

Anyhow, throughout the last few years, just about everyone has had internet access where they could research this if they wanted.

Bilbo Bloggins
Guest
Bilbo Bloggins

@Loser with girls:
Talk about taking life for granted.
Didn’t the whole problem start when housing became investments instead of a roof over one’s head?

Bilbo Bloggins
Guest
Bilbo Bloggins

@southseacompany:
I’m shocked at his statement.
He usually goes with his usual “best place on Earth” and “running out of land” arsenal.
Now he’s really reaching.

space889
Guest
space889

@Contrarian Lemming: yes, that makes sense and is probably how the process is done….too many most people don’t know nor is it really explained to the people who are actually paying the premiums!

space889
Guest
space889
@Curtis: I think most people believe the point of the CMHC insurance is so that if they go broke, the insurance company would pay out the remainder of the debt to the bond issuer (the bank). In other words, the CMHC insurance is viewed like a CDS swap. The whole point of buying insurance is so when the bad things happen, insurance pay off. In fact in the last few years, a lot of RE investment advices about buying condo for investments explicitly states that CMHC insurance will bail you out if things go wrong and all you would lose is the 5% downpayment. Yes, I know this is not how CMHC insurance operates, but that’s what most people on the street think. So this type of stuff is going to become very common as more and more people find… Read more »
Clockbike
Member
Clockbike

hocca.wmod.llnwd.net/a4502/e2/20120517102423_8240_1100.wmv
CMHC’s Karen Kinsley before a Senate committee.

crashcow
Member

some say if you give a certain breed of dog enough food, the dog will eat too much too fast until his stomach flips and he dies. Don’t know if it’s true but if you give the average amateur speculator enough of the cheap n’ easy, he will lever himself until he’s bankrupt. And if you’re Carney, you’ll keep telling the dog to stop eating while refilling his bowl.

10DownerStreet
Guest
10DownerStreet

Someone linked to this blog on greater fool.

Price is what you pay:

http://www.m5vlife.com/index.html

Value is what you get:

http://poorconstruction.blogspot.ca/2012/02/m5v-condos-tas-designbuild-lifetime.html

crashcow
Member

Breaking news: used car salesman Clunker King says talk of his vehicles being overpriced is hot air. He also adds, “It’s always a good time to buy or sell.”

oo
Guest
oo

romeo jordan

you really are a stupid cunt

Anonymous
Guest
Anonymous
The Leak
Guest
The Leak

Stick a fork in ‘er boyz 🙂

registered
Member
registered

61 MM Says: “The saddest thing about the boomer generation is that they have no other values to pass on to their children.”

Don’t be despondent, that judgemental attitude of entitlement and victimization came from somewhere.

Contrarian Lemming
Guest
Contrarian Lemming
@space889: What right does CMHC has to pursue him for losses since his mortgage is with the bank? Any insurance contract will contain clauses that allow the insurance company to recover or mitigate their losses as much as possible. If someone sues you, your liability coverage will only kick in if you cooperate with the insurance company in defending the claim. If you total your car, your insurance company will likely only pay you if you transfer ownership to them, so they can sell it for parts or scrap. The same is probably true with CMHC and the banks. In return for a payout, CMHC probably wants the mortgage or foreclosure judgment transferred to them. A standard mortgage contract (or standard loan of any kind) has a clause permitting the lender to transfer the contract to anyone else, and obliging… Read more »
george
Guest
george

– Public announcement GEAB N°65 (May 16th, 2012) –

Global systemic crisis / Second half of 2012 – Convergence of four explosive factors: Banks-Stock Exchanges-Pensions-Debts

http://www.leap2020.eu/GEAB-N-65-is-available-Global-systemic-crisis-Second-half-of-2012-Convergence-of-four-explosive-factors-Banks-Stock_a10517.html

rp1
Guest
rp1
Anonymous
Guest
Anonymous

Crack shack or mansion got some exposure on Business Insider. Word is getting out slowly buy surely..

Romeo Jordan
Guest
Romeo Jordan

Chinese hate to buy things that are going down and losing popularity. They want stocks when they are hot hot hot (ie. 47xP/E multiple), now that they are 8.9%P/E forget it.

Once some Wongs fly back go Shanghai with news of a property market implosion here, watch them turn tail and repatriate.

Just like in ’98. History repeats.