FFFA! Deception! Marketing! Affordable! Snakes!

FFFA is the acronym for Friday Free-for-all, but it’s also the sound that some condo marketers may be making right now.

But not you, you’re happy because it’s Friday!

Let’s do our regular end of the week news round up and open topic discussion thread, here are a few recent links to kick off the chat:

Year of the Snake nets condo sales
Ooops! Don’t know how that happened!
Do your due diligence
Whispers get loud
Why you have to fake buyers
Second least affordable in the world?
Falling market keeps falling
15K Party Party Party
Elbowing back at the media

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

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D. Tam
Guest
D. Tam

It is unfortunate the the small time promoter got busted and ends up with the bad rap when in fact, the entire real estate industry and especially the bigger players are the most rotted.

Girlbear
Guest
Girlbear

#1. Not small time. Makes A LOT of $$$.

Anonymous
Guest
Anonymous

Conservatives just lifted visa restrictions for Mexico!
Minister Baird announced it.

Means you can enter Canada from Mexico as easy as Canadians enter Mexico.

Get ready for the flood of people, and Mexican gang influence in BC. Also, watch what happens to rents. If you are renting, secure a good place because good rentals are going to get harder to find.

My estimate is extra 10,000-20,000 medical here by summer.

Anonymous
Guest
Anonymous

Looks like the escorts from Mexico are coming back this summer!!

granite countertop
Member
granite countertop

CTV News has learned that elements of this story are false.

Huh. More than you know, guys.

G
Guest
G

And they also said MC2 were sold out last year.

But they are still available on mls.

Short'em High
Guest
Short'em High

From the other victories file. I see now that OSC’s Investor Education Fund site now has a mortgage buy/rent calculator which allows up to 5% DECREASE in property value per year!

http://www.getsmarteraboutmoney.ca/tools-and-calculators/buy-or-rent-calculator/buy-or-rent-calculator.aspx

You’ve seen it before, but now give it a whirl today. Move the slider called “Average yearly change in home value:” to the left (-5%/year) and watch the interactive equity graph go into the toilet! Finally, a mortgage calculator that tells you to rent! I love it.

It would be nice if it went to -30% per year, but this is still a huge victory that came about by people writing to complain. This is the only consumer oriented buy/rent calculator in Canada (or anywhere) without the rosy bias of ponzi bubble equity.

patriotz
Member

Any buy/rent calculator which assumes a resale price (whether higher or lower) is still faulty. The only correct method is to use fundamental value, not to assume a resale price.

Anyone who assumed a sale price a priori to determine whether a stock is a good investment would be laughed at.

Looks like the Investor Education Fund needs a little education in investing itself.

Makaya
Member
Makaya

More detail on the lie of Tyler Davies, communications officer at the Real Estate Council of British Columbia, who said he had never heard of any situation similar to this before.

After the Key Marketing similar use of fake investors (Tara Fluet, one of their employee) for their Groupon-like service, blogger “M” sent them a complaint on April 2, 2012.

RECBC assigned Carmen Amundsen to the complaint, file# 11-383. Their response letter was dated Apr 20, 2012.

I’m trying to get the full copy of the complaint and the response by RECBC. I’ll let you know as soon as I get them.

Makaya
Member
Makaya

More detail on the lie of Tyler Davies, communications officer at the Real Estate Council of British Columbia, who said he had never heard of any situation similar to this before.

After the Key Marketing similar use of fake investors (Tara Fluet, one of their employee) for their Groupon-like service, blogger “M” sent them a complaint on April 2, 2012.

RECBC assigned Carmen Amundsen to the complaint, file# 11-383. Their response letter was dated Apr 20, 2012.

I’m trying to get the full copy of the complaint and the response by RECBC. I’ll let you know as soon as I get them.

Keeping An Eye On The Pimps
Guest
Keeping An Eye On The Pimps

“Vancouver Sun reporter Wyng Chow destroyed his own integrity and put the newspaper’s credibility in jeopardy by accepting a benefit from a developer he was covering as a real estate reporter, the Sun’s lawyer said Friday.

In a final argument before arbitrator Rory McDonald, Donald Jordan said Chow, 56, crossed the line when he mixed a personal dispute with Concord Pacific Ltd. with his job as a business reporter. And he said Chow’s acceptance of a “deep discount” on a condominium he bought from the company in 2001 showed a “lack of a moral compass” that justified the newspaper firing him last month.”

Keeping An Eye On The Pimps
Guest
Keeping An Eye On The Pimps
Boombust
Guest
Boombust

What I find interesting about this MAC Solutions (and other) phoney stories is that the perpetrators don’t think they’ll ever be found out.

With their “knowledge” of public relations and communication in general, particularly these days with the internet, social media and other possible kinds, do they really think no one will notice?

You can run, but you can’t hide.

Bailing in BC
Guest
Bailing in BC

I love the way the owner of MAC is trying to go the route of “gosh I can’t imagine how that happened, perhaps they just decided to do that themselves”.

Good grief, they’re a marketing company! Shouldn’t dealing with the media be something they are good at?

How many company’s in any industry would let the CBC in to interview it’s junior staff without finding out what they are discussing?

“Whats with the film crew?” – “Oh, that’s the CBC” – “Why are they interviewing Barry from the stock room?” – “Dunno” – “Guess we’ll find out about it on the news tonight then”

No Noise
Guest
No Noise
Every MSM TV news – CBC/CTV/Global for the past 2 days have been reporting on the Vancouver RE marketing scams that have been going on. On Global this morning, Joannah Connally of BIV was interviewed and of course mentioned the last MAC “non-sisters” who had no intention of purchasing, but were instead MAC marketers posing as Chinese buyers. Also the previous KEY marketing scam and of course the helicopter ride. A new revelation added is that the website “VANCOUVERISAWESOME” is being paid to hype how good life in the Olympic Village is. Irrepairable damage has been done to the Vancouver RE marketing industry and penalties are forthcoming – all thanks to the the watershed moment right here on VCI when: SaintPatrick Says: February 11th, 2013 at 3:13 pm Re: Chinese sisters. Cursory google search turns up: Amanda Lee LinkedIn profile… Read more »
FlipFlop
Guest
FlipFlop

Story made page 4 of the Province today. Well done folks.

Short'em High
Guest
Short'em High

From the pages of “Pumper and Flipper Monthly”:

http://www.thestar.com/business/real_estate/2013/02/15/home_sales_pick_up_steam_in_toronto_and_vancouver_in_january.html
Published on Fri Feb 15 2013

Meanwhile, in the productive economy:

http://ca.reuters.com/article/businessNews/idCABRE91E0KR20130215
Published on Fri Feb 15 2013

Canada factories see biggest sales drop since May 2009
Factory sales tumbled 3.1 percent in the month, the sharpest fall since May 2009 in seasonally-adjusted terms, compared with market forecasts for a 0.8 percent decline. The setback more than erased the 1.9 percent gain in November, revised from 1.7 percent previously.

Harry Wang
Guest
Harry Wang

“It’s no secret that Vancouver’s local condominium market is soft…”

that’s the opening line for CTV’s story on the fake MAC buyers.

http://www.youtube.com/watch?v=Sbfa2xpu9Aw

Many Franks
Guest
Active Member
Many Franks

@Short’em High: Hooray, a month-over-month increase in sales activity from December to January; time to break out the champagne! Never mind the 14% YoY decrease.

I AM ASIAN
Guest
I AM ASIAN

hey guys, this is outrageous right?

False Creek residents dead set against funeral home in neighbourhood

Read more: http://www.theprovince.com/business/False+Creek+residents+dead+against+funeral+home+neighbourhood/7968064/story.html#ixzz2KzL4xxT8

N
Guest
N

@ Bailing

“Guess we’ll find out about it on the news tonight then”

What makes it even more ridiculous is that, even if that were the case, you would expect that they would at least watch news stories about the projects they were promoting and notice that their employees were posing as buyers. But then, I guess these guys have already shown us that they believe that bare-faced lies are the way to go.

Many Franks
Guest
Active Member
Many Franks

Short’em High: Oh yeah, and I notice that we’re suddenly back to pumping average prices. Let’s have a look at the much-vaunted MLS HPI:

1 month: -0.5%
3 months: -2.6%
6 months: -4.5%
1 year: -2.8%

You have to go back to the 3-year number to get out of the red, and at 4.7%, I have GICs that perform better.

But somehow the Star has found a way to report that both volumes and prices are up again, marking the end of the ever-so-imperceptible-and-nothing-to-be-concerned-about softening of the market.

mac
Member
mac

I don’t know… all this fuss over real estate. I think the crash here has as much chance of happening as an asteroid exploding over Siberia and knocking all the windows out.

mac
Member
mac

I don’t know… all this fuss over real estate. I think the crash here has as much chance of happening as an asteroid exploding over Siberia and knocking all the windows out.

VMD
Member

Vancouver rental market competition heats up
Feb 13, 2013
“Increase in vacancy rate induces competition among property owners”

As we predicted, poor sales -> reluctant landlords -> increased rental supply & vacancy rate -> downward pressure on rent.

Uh-oh.. double-whammy of a buyer’s market and a looming renter’s market.
Akin to a stock with P/E of 40 that’s dropping in both value and yield, ,costs 2%/year to maintain and another 5% to sell.

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