FFFA! debt! sales! developers! buyers! $350k!

It’s that time of the week again!  Lets round up the recent news links and have our open topic chat thread for the weekend.  Here are few recent links to kick things off:

BC overboard in debt
Conditions favor buyers
Fewer hoops for developers
What $350k gets you
Teranet index is out
MOI / price change update
Bottom Calls!
Transit drives condo demand
Skytrain spread poverty
Fleeing debt for Canada
CMHC Tweets!
Island sales steady

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

Sort by:   newest | oldest | most voted
C.Junta
Guest
C.Junta

Apparently, this piece was not mentioned here yet:

“Trump, Talon International focus of multi-million dollar lawsuit by investors”

http://bit.ly/SWIwP0

A few quotes:

“It was an absolute shock to us to find out that these buyers were of limited means. They, like everyone else, were riding the boom in the condo market and took comfort in the Trump name.”

“…they were hit with maintenance fee increases and commercial property taxes at least 40 per cent more than originally promised.”

“At least 40 buyers, many of whom still owe at least $500,000 on their units, have been consulting lawyers, desperate to rescind deals they say no longer make financial sense and retrieve deposits of more than $150,000 before they are turned over to Talon next week”

Enjoy your Friday!

patriotz
Member

@C.Junta:
Well once in a while even the Trump organization tells the truth:

“Trump is not the owner or the developer of the project, it just manages the hotel, which is open and operating and has received rave reviews. This sounds like a case of buyers’ remorse to me.”

Just like the OV buyers, if they had managed to flip these units before completion they’d be bragging to their friends. Now that it turns out that they’ve simply bought bad investments they portray themselves as victims.

Vote Down The Facts
Guest
Vote Down The Facts

@patriotz:

Serves them right for touching anything with “Trump” in the name.

N
Guest
N

For the What 350k Gets You article, it would be interesting to know what equivalent rents are in each of those cities. In other words, I wonder if it costs as much to rent an upscale house in Winnipeg and a one bdrm in Vancouver.

Anonymous
Guest
Anonymous

Did yesterday’s numbers ever get posted?

Makaya
Member
Makaya

@N: I wonder if it costs as much to rent an upscale house in Winnipeg and a one bdrm in Vancouver.

No, the rental market is definitely cheaper in Winnipeg, but the difference between Vancouver and Winnipeg is not as big as it is when buying a house. My 2BR condo in downtown Vancouver was $1,800, and I’m currently paying $1,300 for a larger but older apartment in downtown Winnipeg.

The rental market in WPG is very tight (only 1% vacancy rate), which explains why it still makes sense to buy here despite the huge run up in prices in the past 10 years.

yvr2zrh
Member
Noble Member

61 Sales on Thursday. What’s going on with our site!!!

92 Listings

vanpire
Guest
vanpire

@N:
When I lived in Winnipeg it was cheaper to own than to rent and I believe it still is – the only sound reason to buy a house IMHO.

Patiently Waiting
Member
Patiently Waiting
NIMBYs fear geriatric criminals. The funny thing is this area is already rundown and has many low income apartments and basement suites. Not to mention a Hells Angels clubhouse. Even in the dumpiest neighbourhoods, homoaners think they’re something special: Coquitlam councillors were both shocked and mystified Monday as they read through submission after submission from southwest Coquitlam residents opposing a planned affordable housing project for seniors. Located at 325 Marmont St., the site is currently occupied by a two-storey duplex. The applicant behind the proposal, the Bulgarian Home Society of B.C., is planning to convert the duplex into a seven-unit project for low-or moderate-income seniors. … In an interview Tuesday, Mayor Richard Stewart said the negative feedback likely has little to do with the occupants themselves, but rather the fact that they are renters. “I’ll be blunt – I’m embarrassed… Read more »
anon123
Guest
anon123

Any intel on 2410 Cornwall Ave ? (Balsam and Cornwall)

Evey time I pass by, those apartments are being sold, frequently “by the owner” (who else ?).

This has been ongoing for years, wonder how many flips have been there.

Rob
Guest
Rob

Hahaha! That “350k in other places” vid cracked me up! Before the segment ran there was an advert for the “Credit Counselling Society”! Brilliant placement.

BTW, they chose some pretty crap homes to compare. A snowed in Alberta? A stately home in run-down Windsor? A junker in Scarbs? Really? How about what you can get in Durham? Or Quebec City? Or Ottawa?

Anonymous
Guest
Anonymous
@Patiently Waiting: This is a good quote from the article you posted: “”Some of the comments that have been made that somehow crime in the area will increase . can you imagine [people] 65 years old and higher will create some crime in the area? My God, that is really reaching,” said Coun. Lou Sekora.” This part about the petition is also good: “Though no name is attached to the letter portion of the petition, the person behind the document suggests, “we are very uncomfortable with having affordable rental apartment [sic] in our neighbourhood. As we’ve seen, even with the current residents at 352 Marmont, there have been regular disturbances between the tenants, and few cases where police had to show up. possibly [sic] even for growing marijuana.” The petition also goes on to suggest that the area is already… Read more »
mac
Member
mac

We should add this to the weekend roundup: Rosie not uberbearish on housing:

http://www.canadianbusiness.com/blog/investing/107838–housing-market-correcting-not-collapsing-says-rosenberg

He changed his stance over a year ago.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@mac: Being wrong for 4 years has that effect on people…. well, some people.

Patriotz' No. 1 Fan
Guest
Patriotz' No. 1 Fan

I never understood all this BS terminology these economists try to use to make people feel better.

For example, it’s not collapsing, it’s correcting. It’s not a crash, it’s soft landing. Does it matter what you call it? All of those different expression, soft landing, correction, etc. mean that prices WILL go DOWN so it’s not good news no matter what wording someone uses.

Patriotz’ No. 1 Fan

Anonymous
Guest
Anonymous

One more thing about the Coquitlam homoaning NIMBYs who signed a petition against seniors rental housing.

The article notes that residents’ concerns include fears of “decreased property values”.

Given the growing awareness of the crashing real estate bubble, homeowners are probably trying to preserve as much equity as they possibly can. Thus, we may see an escalation of NIMBYism. Homeowners who are losing equity in a deflating real estate market are going to fight to not lose any more equity than they have to. Conversely, when the bubble is still inflating, can we say that NIMBYism is reduced somewhat? Who cares about the new social housing building down the block, when your property value is going up 10% annually anyways due to cheap credit?

jesse
Member

@mac: Rosenberg missed one of the largest bull runs on the stock market by not accounting for a rebound in auto sales. I think he needs to resolve and directly address his point of view with that of Bob Shiller who is calling out Canada as being overvalued.

VMD
Member

Vancouver Sun columnist Shelley Fralic has this to say today:
What, exactly, is wrong with a 35-year mortgage?
Nov 23, 2012
“Government as babysitter is pricing many, especially first-time buyers, out of the market”

Shelley Fralic recently also wrote the article “Can’t afford Vancouver housing? Move out

* Shelley Fralic is also the industry director on the BC Press Council.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@jesse: “Rosenberg missed one of the largest bull runs on the stock market”

ah yes, the missed bull run. jesse, have you ever missed a bull run?

Wut?
Guest
Wut?

regarding the coquitlam NIMBYs… i think people have to be sensitive. disrespect and abandoning elders is a part of caucasian culture. we live in a multicultural society and we have to respect that.

these seniors have no support because their children are following cultural practices by casting them out, and now the residents of this neighbourhood are continuing that practice. we have to be sensitive to this and let it play out.

patriotz
Member

@VMD:
Fralic: “Government as babysitter is pricing many, especially first-time buyers, out of the market”

Absolutely right – government mortgage guarantees are what’s responsible for the current bubble. Oh that’s not what you meant?

Maybe you meant that people won’t be able to afford current prices with 25 year amortisations? Well what will have to happen to prices then?

No, the house I sold was a rental in New Westminster, an affordable investment property that I bought in the market downturn of 2008 and decided to sell recently because I wanted to buy something else.

Well it’s pretty clear why Shelly has her knickers in a knot.

Tony
Guest
Tony

Thong-Hungry Throng Of Teenage Girls Crash Victoria’s Secret on Black Friday
what a lunatic nation these americans
http://www.youtube.com/watch?v=70_HrjI_K6k&feature=player_embedded

Naked Official #9000
Guest
Naked Official #9000

@Wut?:

Comrade, keep the mirrors on your balconies and windows at all times! It keeps the ghosts away from fellow cadres!

Also, comrade – bulgaria was steeped in Marxist leninist thought for many decades – support the landlords of this glorious project of filial piety!

Smash whitey!
Hate whitey!

Feel our wrath, whitey!

bibi
Guest
bibi

@Tony
Amerikan youht wants to look like a hooker, a porn star or a tattoed gang banger. The future is looking up !

Village Whisperer
Member
Village Whisperer

@jesse: @jesse: I think the significant thing here is that Rosenberg is countering the calls by those who want the mortgage changes removed because those changes are destroying the market and causing it to plunge.

Rosenberg isn;t saying the market won’t do what he predicted, he is saying the current mortgage changes, on their own, won’t collapse the market.

wpDiscuz