Friday Free-for-all!

It’s that time of the week again! Friday is here and the weekend draws nigh!

So lets do our regular end of the week news round up and open topic discussion thread for the weekend.

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

19,000 Listings Party!
Vancouver home sales hit 10 year low
Updated inventory graph, next leg up!
OSFI Relent on tougher rules
Your own private BC island?
Investors shy away from Genworth
US prices down 42% from peak?
Sales great in interior says BCREA
The moving-to-America experiment
Boomers double-down on real estate
Canadas mobility problem
VCI comment signal to noise graph

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

Also! For a short time we tried opening up registration on the VancouverPeak forums, but were immediately inundated with spam registrations. So we’re back to invite only for now. There are ten invite codes at the end of this post if you’re interested in registering for an account there. The main advantages of a VancouverPeak account are that you can upload images, xls files, etc to share data or analysis.

Here are those codes, you can use them at this registration link, first come first served.

Used codes removed and replaced with fresh codes Saturday Morning 9:19 am:

796p-nb1r-p48n
9n3p-f5od-5xg3
cnfn-xwc1-a1ap
nabi-g5uv-4ouk
fmtk-z3xg-1ifx
zoct-oubu-2cnh
mys4-b2cs-20rx
w8pe-g78i-g3c8
ozgp-gf0g-3ck1
vfsn-vnl9-6wax
Sort by:   newest | oldest | most voted
Loon
Guest
Loon

Yoz ! Wake up…i’m cooking up some houzes for breakface.

Loon
Guest
Loon

It’s friday the 19th.

xyz
Guest
xyz

7qhw-npc8-8gpn has been used, bring on the 19K!

registered
Member
registered

Re: “US prices down 42% from peak?“, on his academic site Robert Shiller still makes available updates to his famous American house price curve:

http://i47.tinypic.com/2i6af6.gif

If the market balance post World War 2 is any guide, median real estate values in the US still have a bit to go. If the equivalent curves for Canada are any guide, it’s going to get very ugly, particularly in the West.

xyz
Guest
xyz

Tax Evasion

The subject has come up several times. When you know a landlord is not reporting rental income, do you report them? Or just hope they meet their maker (Revenue Canada) eventually?

Anonymous
Guest
Anonymous

@xyz: It’s funny because if there is a mortgage it’s better to declare the income than not. Unless there are other issues with failure to declare income that want to be avoided…

McLovin
Guest
McLovin

xyz – In my opinion we all must pay our fair share of tax. No one wants to pay taxes but it is a cost to live in the country we do. I would absolutely report any landlord who is not declaring rental revenue. He/She is stealing from us all.

Dave
Member

@fixie guy:

Don’t think so, short of a massive spike in interest rates. Don’t hold your breath.

patriotz
Member

@Dave:
Prices are already well off peak all over BC and Alberta (except Vancouver) and some places such as Whistler and Kelowna are already into major busts.

So what he’s predicting is already under way in most of the West. If you want to bet on Vancouver being different, go ahead.

pricedoutfornow
Guest
pricedoutfornow

@xyz:

It depends. If it’s a suite, I think CRA could care less about these. Why? Because when you take into account the tax deductible portion of the mortgage, utilities, and insurance, they’re probably not making much taxable income anyway. If it’s a whole house or condo they’re not reporting, that’s another story, I would probably report them. I’m in this situation, I know someone who owns a rental house and went around work bragging about how she wasn’t reporting the income. I’m still debating whether or not I should call, or if I should let her wallow in her negative equity when prices finally crash (she and her hubby paid $800k for this place) I think they claim it’s their principal residence when in fact they’ve never lived in it for a day. I dunno, should I call?

patriotz
Member

@pricedoutfornow:
Anyone renting out any property is required to file whether the property is making a profit or loss. Also it’s my understanding that the penalty for failing to file is based on the gross rent not the net income.

My guess is that almost all recent buyers who aren’t reporting and think they’re saving taxes would actually record a loss if they did file.

Anonymous
Guest
Anonymous

@pricedoutfornow:

The mortgage isn’t tax deductible if the mortgage was initially taken out to cover a primary residence.

boogeybear
Guest
boogeybear

McCraw buying James Island was symbolic of his wealth. He bought the island to show that he could. Now McCraw needs another billionaire to show that they too can buy an island. So all we need is another self centered egotistical billionaire. Where is Conrad Black when you need him!

N
Guest
N

@xyz:

I don’t think there is a special case for real estate based tax evasion. If you call the cops on truant teenagers and notify the city when your neighbor waters their lawn outside legal hours, you would probably report the undeclared rent. I think it come down to a question of how doing that makes you feel and what you think that sort of action does to the community.

specialfx3000
Member
specialfx3000

@pricedoutfornow: @pricedoutfornow:

“went around work bragging about how she wasn’t reporting the income”

Reminds me of the rioters that post their wonderful loots on Facebook. Report them so they can learn to grow up. (Sadly, I would guess this couple is in their 30’s? even 40’s?)

Simple
Guest
Simple

@fixie guy: Awesome chart. Has anyone seen a chart like this for Canada or for Vancouver specifically? Do any of you data junkies feel like making one?

gordholio
Member

#9, Patriotz:

Absolutely.

Interesting how REALtors consistently ignore REALity, isn’t it?

Absinthe
Member
Absinthe

@patriotz: (laughing) – Haven’t you heard? Interest rates are at 10% in Whistler and Kelowna, 8% in the Fraser Valley and 5% in Richmond. Let’s help maintain ole Dave’s cognitive dissonance at all costs.
Either that or our pile of caveats must be hip-deep. Whistler was asking for it; Richmond’s under water; Kelowna’s jobs aren’t working out; the Valley’s not a slaughter…

Patiently Waiting
Member
Patiently Waiting

@pricedoutfornow: Call. She is being stupid and spreading stupidity.

Being a landlord is serious business. What other laws is she evading? Is the house safe? Is it an illegal rooming house upsetting her neighbours? Does she steal damage deposits? Does she even protect herself with proper insurance?

As for landlord tax evasion, you probably can’t use deductions once you are caught not reporting the income. So even if a tax evader just has a suite, you could probably mess them up bad if you felt like it.

As someone who goes to great pains reporting all incomes from many sources (some which I could try to hide), I show no mercy on this. I had to write a big cheque to the government this year. Took my lumps like a man. Nope, no mercy to the evaders. 🙂

patriotz
Member

More casualties of the bubble:

http://www.cbc.ca/news/canada/british-columbia/story/2012/05/29/bc-trailerparkclosure.html

Don’t miss the asinine comments by Rich Coleman at the end.

DaMann
Member
DaMann

@pricedoutfornow:

Anyone who brags about tax evasion needs to be reported just for their stupidity alone. As well as the fact that I hate tax evaders. We all have to pay our share, what makes them so special? There is tax evasion and tax aversion. Evasion needs to be reported, aversion is how we all feel about paying tax. We are all averse to paying it but we must.

Navin R. Johnson
Guest
Navin R. Johnson

@DaMann: Yup, tax evaders are scum. Screws us all!

chilled
Member
chilled
@N: “I don’t think there is a special case for real estate based tax evasion. If you call the cops on truant teenagers and notify the city when your neighbor waters their lawn outside legal hours, you would probably report the undeclared rent. I think it come down to a question of how doing that makes you feel and what you think that sort of action does to the community.” Community has become one of the most abused and misused words in the urban vernacular. Translated the word simply means; “I’m not quite getting what I want and if I can get a few people on my side maybe things will happen as I wish.” NONE of us live in a “community.” We live in a city. Those who wish to live in a “community” should move to a commune.
jesse
Member

@patriotz: “My guess is that almost all recent buyers who aren’t reporting and think they’re saving taxes would actually record a loss if they did file”

The concern I’ve heard is that “semi-legal” (read: illegal) suites will start drawing attention of the City if they are reported to CRA, and the City is obligated to cite them and if nonconforming proceed to shut them down. It’s what’s referred to as a “giant freaking matzo ball”.

I think among many homeowners with suites there is a general mistrust of authorities and there isn’t much $ on the table to take the perceived risk. It’s all about perception, but that should be no surprise in this city.

Anonymous
Guest
Anonymous

@Patiently Waiting: did you report your rich sister to the tax men as well?

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