Friday free-for-all!

It’s that time of the week again… Time for our end of the week new round up and open topic discussion thread!  Here are a few recent links to kick off the chat:

Canadians carry stupid debt levels
Canada better off than USA?
Average price to jump this month?
Chinas glut of unsold goods
-(lazy editor, More links to follow)

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

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patriotz
Member
@Anonymous: “The solution is to limit immigration and encourage CANADIAN CITIZENS to have larger families by bringing down the cost of living especially housing.” To this day, the majority of people argue — the argument is variously expressed, but always boils down to more or less the same thing — that large families are impossible for economic reasons. At the same time, it is widely known that the birthrate is highest among the low-standard nations, and, in our population, highest among the worst-paid groups. George Orwell wrote this in 1946 but it applies just as well today. The fact is both between countries and between income groups in countries, the lower the real incomes the higher the birth rates. Families were much larger in the 1950’s in Canada when real incomes were much lower. As real incomes increased, family size… Read more »
b5baxter
Member

@Anonymous:

“…The solution is to limit immigration …”

Yeah, Japan has one of the lowest immigration rates in the world and they never have any problems with housing bubbles….

Anonymous
Guest
Anonymous

@ Patriotz

The solution is to limit immigration and encourage CANADIAN CITIZENS to have larger families by bringing down the cost of living especially housing.This is done by improving housing policy NOT importing rich people who payed less taxes in their country of origin.

Crikey
Guest
Crikey
@patriotz: “Finally consider which immigrants have a choice to settle in Canada versus somewhere else. It’s the high income, high skilled ones and these are the people who would most likely end up going somewhere else where they’re not subjected to this sort of discrimination.” I certainly think there are much better ways to do things than freebie paradise that we have now, that is being used and abused by many. My post to which you are replying ends my posting with a incremental-benefits-loss idea whereby everybody, including immigrants, starts with full funded access to all services, same are now (ie: medicare, post-secondary education). Then, if after becoming a Canadian adult, or a new Canadian, they choose to live outside Canada…then for every year outside Canada, upon return to Canada coverage for hose services will cost them something proportional to… Read more »
Patiently Waiting
Member
Patiently Waiting

@VMD: That’s just nuts. Have they considered how some things seize-up without usage. Also if there was a leaky pipe or something, they might not know for a while. I can’t wait for the pop to end the insanity.

patriotz
Member
@Crikey: First of all you can’t compare a retirement benefit like OAS with a current benefit such as Medicare. Although nobody formally pays into OAS, it’s reasonable to base the benefit on the number of years that the person paid (or would be paying if employed) taxes like for CPP. Denying current benefits to immigrants is essentially imposing a head tax. If immigrants are denied Medicare you’d have to force them to pay for insurance before they immigrate, because if you don’t they’re just going to end up treated at taxpayers’ expense anyway. We’ve been though head taxes before and the very same groups that got hit then would be up in arms over a newer version. It would inevitably be challenged in the courts as discrimination based on national origin. As far as higher education goes, charging recent immigrants… Read more »
Crikey
Guest
Crikey
Ah – Patriotz – I also never replied to you on a thread a couple days ago. When I was proposing that Canada should index many services based on the amount of time spent living in Canada (as an adult), you said, “That doesn’t make any sense at all. You’re saying that someone who immigrates to Canada, and makes $100K/year from the year go and pays taxes on it, should receive less services than someone who was born in Canada but has never had a job.” If that doesn’t make sense at all, then I take it you think the Canadian Old Age Security system is being run by a bunch of senseless clowns? Here is how they do it: “Amount of benefits: The amount of a person’s pension is determined by how long he or she has lived in… Read more »
VMD
Member
@Anonymous: That’s what I’m doing, signed a lease on a 1 year new house. The owner/builder held on to the house for a year, putting his wife’s name on the property to claim own residence. Unfortunately for him, his realtor told him at current market conditions it will sell for $80k (~10%) less than his asking price, which he cannot accept. That’s where I come in to rent this place at price/rent of 400. Another interesting story from a friend from out of town staying at her friend’s family’s new house near burnaby lake. That family (asian) built the McMansion approx a year ago. In order to claim own residence, the whole family moved into the house. The funny thing is, fearing to cause wear-and-tear leading to depreciation, the entire family of 4 lived in the basement while letting the… Read more »
Crikey
Guest
Crikey
@patriotz: “I think changes in the market will swamp any differences resulting from the tax changeover” Yes, I think it is hard to isolate the changes resulting in the HST from the changes in the overall market. But I still think the HST contributes to market changes. The question is which way. If you are a developer/seller selling a new home which started building on April 1st, 2013, and you are competing against a new home that for the sake of argument is virtually identical but started building before April 1st, 2013, how will HST changes dictate that this battle plays out? Also, I wonder how much the coming HST change contributes to market decisions. If you are a builder that can start building February/March 2013, is it better for you to wait until April 1, 2013 to start building?… Read more »
patriotz
Member

@Crikey:
(3) House prices (inclusive of all taxes such as HST/GST, PTT) will be determined by what buyers are willing to pay, as always.

I think changes in the market will swamp any differences resulting from the tax changeover. Also note that under HST the builder gets HST on supplies refunded, but once it goes only the GST will be refunded and the builder has to eat the PST on supplies.

Crikey
Guest
Crikey
@Anonymous: ” I bet the price of building lots is plummeting right ” Don’t forget that anybody that buys a new home for which building is started before April 1, 2013… must still pay the “transition” HST rate. My understanding is that as HST is completely phased out for homes which start building from April 1st, this makes homes which begin building from April 1st more affordable for buyers (all other things being equal, of course). So what will be the effect of this… starting August/September 2013 or so when new homes which started being built in April 2013 are completed/sold? Does this mean: (1) new home prices will go up as the builders fill in the price gap left by the vanishing of the HST? Or, (2) buyers realize the savings? If (2), then it would effectively mean lower… Read more »
patriotz
Member

@Dan in Calgary:
I’m not so sure I’d even call prices normal in 2001, given that real prices were the highest they’d ever been except for the previous 10 years and the short 1980’s bubble.

The real bottom in 1985 was about 40% lower. Now that was a bargain.

Dan in Calgary
Guest
Dan in Calgary

@Anonymous 123, In 2001 prices were normal, not bargains.

Are you sure about this? The market had been stagnant for a while.

Anonymous
Guest
Anonymous
Just scanning Craigs List rentals and see a lot of brand new high end houses for rent which are not very common. You often see brand new condos but new houses are rare. A quick check of addresses shows all of them being listed for sale. The ads usually want a lease so I assume they will come off the market if they get their asking rent which for the most part are not realistic so it looks like those places will continue to sit empty. Just another sign the market has gone no bid for new houses over 1 million. No CMHC insurance on the mortgage and the and the HST which won’t be there in a year might have caused these home builders a little distress. I bet the price of building lots is plummeting right now as… Read more »
Anonymous
Guest
Anonymous

@Anonymous: “In 2001 there were bargains galore in Vancouver.”

In 2001 prices were normal, not bargains.

If interest rates return to 6% you will see a whole lot more than a 50% price reduction IMO.

patriotz
Member

@Anonymous:
“Seattle, now that is a different story. It’s Vancouver circa 2001.”

Nope, Seattle circa 2001 was Vancouver circa 2001.

Seattle today is Vancouver circa 2017.

No Money Down
Member
No Money Down

@Anonymous: That last comment was mine. Thought I was logged in.

Anonymous
Guest
Anonymous
@Anonymous: In 2001 there were bargains galore in Vancouver. This is not hindsite. I bought on house in 1999 in East Van for $215k. It had been on the market for 12 months. Originally listed at $270k. I picked up a second house in 2000. (no money down). It was originally listed at $350k. 6 months of open houses and no offers. I happened to wander by and the bored realtor pulled me aside and said the vendor was motivated and would accept $285k. Too good to refuse. Picked up a lot on Mayne Island on a LOC for $45k. The market was so dead the Realtor spent a whole day showing me lots (some had been on the market for 5 years). I used to drool at the bargains available, but I was maxed out with a debt/income ratio… Read more »
Anonymous
Guest
Anonymous

@ZRH2YVR: you wont get a morgage if you keep thinking about opportunity cost of having sex to your partner.

Anonymous
Guest
Anonymous

my bad, meant “too good a deal”, not “too god a deal”.

Anonymous
Guest
Anonymous

@devore, “I wonder what kind of material our trolls will come up with in the coming years.”

They will say that not only did they know about it, they actually predicted it, way back in 2001 when they realized $500k for a house with a deep lot on East Boulevard in Kits (backing on to the track) was just too god a deal to pass up. Once the insanity began, they didn’t expect such a long run, but they’re more than happy it lasted as long as it did. So the joke’s on us they’ll say.

(But that’s just what they’ll say.)

Bailing in BC
Guest
Bailing in BC

@N:
Yes

rp1
Guest
rp1
N
Guest
N

@CanuckDownUnder:

Am I right in assuming rents in Australia are quote by the week?

rp1
Guest
rp1

#111 @CanuckDownUnder: That is truly sick. Is it from the 2009 rebound to new highs? Are we now going to hear, for years, how housing is rebounding and it’s going to shoot to the moon?