FFFA! Vacation! Debt! Soft Landings!

Yep, it’s that time of the week again, time for our regular end of the week news round-up and open topic discussion thread.

But FIRST! Thanks everyone for your patience while we were sluggish and inaccessible. It looks like we’re back in good shape, page load times are back to normal and we’ve changed a few things behind the scenes that will hopefully make for a more reliable site.

Here’s our regular collection of recent links to kick off the chat for the weekend:

Scotiabank: SOFT LANDING!
Have yourself a $563 holiday
New record for consumer debt
equity edges down and debt grows
Carney: Status quo
In Miami buyers pay for building
The Plunge-o-meter

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

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backwardsevolution
Guest
backwardsevolution

“B.C. Mine to Hire Only Temporary Workers for Years:

The B.C. Federation of Labour says documents show it will be 14 years before Canadians replace all the temporary foreign workers from China hired to work at an underground coal mine in northern B.C.”

http://www.cbc.ca/news/canada/british-columbia/story/2012/12/12/bc-chinese-miners-documents.html

rp1
Guest
rp1
Anonymous
Guest
Anonymous

And now a Chinese miner has filed a human rights complaint against the union, accusing the union of stirring up anti-Chinese sentiment. What a joke! I can guarantee you there was already a great deal of anti-Chinese sentiment in BC before this mining stuff came up. I can also guarantee you that, even as non-citizens, Chinese miners have way more rights in Canada than they do back home in China. How ironic. A Chinese miner comes to Canada as a temporary foreign worker and complains about a lack of human rights in Canada. Maybe these Chinese miners should first begin lobbying for human rights in China before pressing for human rights in Canada.

Alberta bound
Guest
Alberta bound

An old condo building in Edmonton with several suites listed as foreclosure sales. Several owners in the same building all went bankrupt at around the same time?

Foreclosure sales on units 101, 103, 306, 207, 307, 201, 301, 203, 303, 202, 302.

All of these units are in 11020-82 Street.

http://edmontonhousefinder.com/edmonton-foreclosure-listings.html

Landbaron
Guest
Landbaron
news junky
Guest
news junky
Just heard some guy on Canada AM talking about all the tall buildings recently built in Toronto and the rest of Canada. He was from the US-based Council on Tall Buildings and Urban Habitat. You guys would have had a good laugh. He was saying the construction boom in Canada post-2008 is based on solid “economic fundamentals” as opposed to economic stimulus. He then tells us he’s a professor of architecture. Okay, that explains your blind ignorance of economics! This prompted me to search online and I found a newspaper version of the same report: “Toronto leading the western world in highrise development” “In a report titled “Canada Rising,” the well-respected council points to the Great White North’s fast-paced push upwards in just the last eight years. And it credits Toronto with “spearheading a countrywide interest in tall building development”… Read more »
news junky
Guest
news junky
Local retailer who appeared on the Martha Stewart show is calling it quits due to demographic change and high rents. Some interesting code speak in this article. They talk a lot about the “shifting demographics” of Kerrisdale, but they never say how the demographics are shifting (more old people moving there? more young people? more urban professionals? more single mothers on welfare?). But the fact that these newcomers “want to shop in Richmond” might give us a clue about how the demographics are shifting in Kerrisdale. From the Vancouver Courier: “The gift shop, also named Hobbs and located at 2129 West 41st Ave., will close at the end of this month after doing business in Kerrisdale for more than 23 years. “I’m sad because Kerrisdale has been so good to me, but it’s changed so much,” said Hobbs. “In my… Read more »
patriotz
Member

“An old condo building in Edmonton with several suites listed as foreclosure sales.”

More likely an old rental apartment building converted to condos not long ago. Alberta has few restrictions on condo conversions so it led the country for them until recently.

Homework question: Alberta has no rent controls of any kind. Why would a rental apartment owner want to convert to condos?

news junky
Guest
news junky
Who does Bob Rennie think he is? He is now providing unsolicited advice to the Vancouver Art Gallery on where they should relocate to! His idea includes an art gallery at the base of a condo owner…real original thinking there, Bob! This article talks about Rennie’s “proposal” to the VAG. That makes it sound more formal/official than it really is. Rennie has nothing to do with the VAG relocation. His “proposal” is just him sticking his nose in where it doesn’t belong, telling peole what he thinks they should do. From the Vancouver Sun: “Rennie’s 22-page plan is much more detailed than anything released by the Art Gallery about its proposed gallery…VAG head Kathleen Bartels was diplomatic about Rennie’s proposal. “I haven’t really had a chance to review it,” she said. “All I can say at this point is that… Read more »
news junky
Guest
news junky

My last post should have said “tower” instead of “owner”. Bob Rennie is proposing an art gallery at the base of a condo TOWER, not at the base of a condo OWNER (that would be an interesting gallery0.

tulips
Guest
tulips

re Hobbs store
monthly rent 12k where 6k goes to paying property tax!
can someone explain to me why commercial property taxes are so high?

Anonymous
Guest
Anonymous

Commercial property taxes are high because residential property taxes are low. Watch for this to shift in the future.

Joe Mainlander
Guest
Joe Mainlander

@ Anonymous:
True. There is no land that is more subsidized by local govt than the single family home. They use up more infrastructure and services per sq. km. than they pay in city taxes. Commercial and even high density residential lands use less service and infrastructure per sq. km., yet, pay more per sq.km of service costs they use. If you live in high density, your subsidizing those folks in single family homes.

KL
Guest
KL
You can be forgiven if you watched the Department of Justice’s announcement yesterday of a $1.92 billion settlement with HSBC with a sense of disappointment–and déjà vu. The event checked all the boxes in a theatrical routine that has become all too familiar. Descriptions of breathtaking misconduct involving the facilitation of massive drug trafficking and transactions with rogue terror-sponsoring nations? Check. Broad boasts about the “historic” nature of the settlement that will certainly end the type of criminal misconduct alleged? Check. Mea culpas from the offending institution with promises that it has really learned its lesson this time and will never ever engage in dastardly conduct again? Yep, that too. Nothing, however, was quite as it appeared. Sure, HSBC paid a record fine, but there was something vitally important missing from yesterday’s press conference: actual criminal charges for obvious criminal… Read more »
Anonymous
Guest
Anonymous

….“In my opinion the people who live here now don’t want to buy beautiful dishes or candles or nice soap, ”…….

Really desirable commodities when you can’t afford to pay the mortgage on your leaky, moldy, rat infested Kerrisdale ‘starter’ home.

Vote Down The Facts
Guest
Vote Down The Facts

“Several owners in the same building all went bankrupt at around the same time?”

Large special assessment maybe?

Hey You Guys
Guest
Hey You Guys

Didn’t you all hear? Vancouver real estate is in it’s death spiral with no hope of every pulling out. So you can do something useful with your time. No need to read this blog and keep posting. It’s done. Why are you all still here?

Short'em High
Guest
Short'em High

@KL Says:
December 14th, 2012 at 9:05 am
Too Big to Jail – Our Banking System’s Latest Disgrace

Bring it back to Basel N Mark Carney, our own big banking apologist. Instead of figuring how to break them up, his innovation was to figure out how big banks might justify a lower reserve fraction than small banks. So even without a natural economy of scale, somebody willing to make it look like there is can be groomed and promoted into a position of public authority.

Chabar
Guest
Chabar

“We believe that the Canadian banking sector is encountering incremental pressure from headwinds facing the Canadian economy, which is heightening economic risk in the banking system,” S&P said in announcing the downgrades.”

http://www.huffingtonpost.ca/2012/12/14/canadian-banks-downgraded-standard-poors_n_2298542.html

bubbly
Member
bubbly

@news junky: Kerrisdale has changed so much in just a few years. Only 3 – 4 years ago, it was a completely different place… 🙁

Blast From The Past
Guest
Blast From The Past

In response to this question:

“I’m wondering what people’s thoughts are regarding those of us sitting on the sidelines with cash in hand..waiting and wanting to buy. Is there going to be a buying frenzy at a certain threshold…say 15% or 20% drop…”

patriotz Says:
April 17th, 2008 at 8:38 pm

Well almost all the US markets are already there, so where’s the frenzy? Did it happen in the early 90’s bust in Toronto? Early 80’s bust in Vancouver?

You think there’s going to be a buying frenzy when Vancouver is down 20%, when comparable US markets will probably be down 30-40%, and almost the whole world into a bust at that point? Can people stay that stupid – and that solvent – for that long?

—–

lol! patriotz, you don’t understand the market ;0)

Devore
Member
Devore

If you live in high density, your subsidizing those folks in single family homes.

And if you rent, you are subsidizing owners with the principal residence exemption.

Reality Check
Guest
Reality Check

news junky;

Kerrisdale is changing. Within 20 years, many cities within Metro Vancouver will become mini-countries. The tolled bridges only speeds up this process.

Vancouver grows by about 50,000 people a year. So in 20 years, Vancouver Area population around 3.2 Million. 60-70% — visible minority… so only a few areas will resemble Vancouver circa 1970’s.

It may be a good thing or a bad thing, only time will tell.

patriotz
Member

“And if you rent, you are subsidizing owners with the principal residence exemption.”

More precisely, owners who are paying less to own than to rent. If owners are paying more to own than to rent, they would be better off if the property were treated as a taxable investment.

jesse
Member
@tulips: “can someone explain to me why commercial property taxes are so high” Because there are way fewer business tax payers than residential tax payers who can vote. 😉 Since Vancouver is at the centre of the region it will get revenue from non-Vancouver residents. A way of extracting extra tax on “visitors” is via business owners passing on high tax burdens to their prices. Looking at the City budget, there are, in reality, few things that can be substantially cut to lessen the burden on property tax payers. I think patriotz mentioned some time ago that Vancouver is actually running a reasonably tight ship already. The real problem is real estate prices have been jacked so high that it’s pulling teeth raising taxes, and will be even more difficult if they need to increase property tax revenues to offset… Read more »
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