Vancouver Flippers in Trouble

Some of you may recall various ‘flippers in trouble’ blogs during the US bust.

They were popular in California, Nevada and Miami.

These chronicled various sales or attempted sales of real estate that didn’t work out as a road to easy riches.

They were the Nelson laugh of the housing bear.

Well in case you missed it Vancouver now has it’s own version.

condont

Vancouver Flippers in Trouble chronicles local sales or listing prices that work out as a loss. Here’s what they say on their ‘about’ page:

A website dedicated to following the bursting of the Vancouver Real Estate bubble by documenting real-life losses on properties purchased during the bubble.

Know of any flippers in trouble? Enter the details in the comment section or in the contact form below and we’ll try to feature them on an upcoming post.

It’s not just the flippers either, sometimes those have held for a while look to be trying to squeak out without too much of a loss.

Like this place that six years later is asking $100k less than it was bought for, or this place in Spectrum that looks like it’s up for its second sale at a loss!

If you’re looking for the antidote to ‘real estate always goes up’ you’ll find it there!

Sort by:   newest | oldest | most voted
Margin Call TIme
Guest
Margin Call TIme
2 years 11 months ago
What’s missing is what percentage of net worth was lost by each failed flipper. One $100k loss doesn’t make much difference to a portfolio of $2m. The problem is where undercapitalized amateurs are responsible for fueling most of the bubble through CHA backed loans. If CHA backed loans turn out to be a casino credit card for penniless idiots to roll the dice on condo flips with taxpayer money, there really needs to be a crackdown with very broad and brutal consequences. The law should be changed to make CHA loans non-dischargeable in bankruptcy, the same as student loans. CHA… Read more »
Anonymous
Guest
Anonymous
2 years 11 months ago

a good friend of mine works in Richmond General Hospital emergency room. there was a massive spike in suicide attempts in the last few days!! apparently knifes and pills are the preferred method 🙁

Harvey
Guest
Harvey
2 years 11 months ago

Case Shiller huge leap upwards, finaly US RE is getting in the line with Canadian. All good.

Anonymous
Guest
Anonymous
2 years 11 months ago

Case Shiller has severe lag. Prices today have likely topped for rest of year.

Margin Call TIme
Guest
Margin Call TIme
2 years 11 months ago
Despite recent gains, the [Case Shiller] 20-city composite index indicated that prices remain about one-quarter below a 2006 peak. http://www.marketwatch.com/story/home-prices-leap-in-april-2013-06-25 But there is now reason enough for Fed to start ACTUALLY tapering stimulus since the regulator of the the US home loan moral hazard has failed to crack heads despite the 2008 worldwide financial crisis caused by pinheads like #2 @Harvey who think home price cost of carry in excess of rent is a good idea. Hey @Harvey, you stupid fuck, how far up do you think home prices would be up in Canada and US without the government backed… Read more »
Margin Call TIme
Guest
Margin Call TIme
2 years 11 months ago

RE Flippers.

If CHA backed loans turn out to be a casino credit card for penniless idiots to roll the dice on condo flips with taxpayer money, there really needs to be a crackdown with very broad and brutal consequences.

The law should be changed to make CHA loans non-dischargeable in bankruptcy, the same as student loans. CHA is supposed to fulfill a social need the same way student loans do. Therefore, the consequences to borrowers who abuse the system should be similar. Make them pay back every penny until the day they die, whichever comes first!

Harvey
Guest
Harvey
2 years 11 months ago

Dallas & Denver at all time high
if you just listened you would be riding high too bears.

ch
Guest
ch
2 years 11 months ago

my god the trolling.

i almost want this bubble over just to get rid of the trolls.

Jeopardy
Guest
Jeopardy
2 years 11 months ago

Home Hardware for $399.99 Alec

An Observer
Guest
2 years 11 months ago

Don’t get too excited about Dallas hitting new highs…

http://www.realtor.com/realestateandhomes-detail/5716-Charlestown-Dr_Dallas_TX_75230_M76108-34874?row=377

That is what $1.35 million gets you in Dallas – 6400 sqft of luxury on close to half an acre. Dallas and Denver did not have the crazy price appreciation that most of the rest of the country had.

Yalie
Guest
Yalie
2 years 11 months ago

The law should be changed to make CHA loans non-dischargeable in bankruptcy, the same as student loans.

That’s a terrible idea. No loans should be exempt from bankruptcy, including student loans. Tuition and student loan debt have grown to massive bubble proportion in the last few years precisely because of policies like this.

marc
Guest
2 years 11 months ago

Next article – “The housing rental market bubble”

Burnabonian
Guest
Burnabonian
2 years 11 months ago
I disagree with Yalie. Bankruptcy is designed to help the unfortunate from becoming street people. It’s not a “get out of jail free” card that nullifies all consequences of taking massive gambles with taxpayer’s money. If you lose your job at the GM plant and you can’t make your payments anymore, it’s good for society if you’re allowed to start fresh. But if your “job” is to borrow a million dollars, abuse a social program to backstop it with a million taxpayer dollars, and then take it to the roulette wheel, the downside to you should be exactly as real… Read more »
DaMann
Member
DaMann
2 years 11 months ago

Student loans should be exempt and for good reason. It became popular to leave school at say 22 or 23, declare bankruptcy immediately and kiss off $50k in debt and start fresh. Credit will be back to normal after a few years just in time to start your life in full. Don’t want student loans exempt? Fine, don’t have them government backed then…

Contestant #1
Guest
Contestant #1
2 years 11 months ago

Bagholders sympathizing with Bagholders?

space889
Member
space889
2 years 11 months ago
@Yalie – then what’s the point of bankruptcy is no loans are discharged?? Are we going back to the debtor prison of the past? Also what do you think would happen if all a person have to look forward to is a life of debt slavery? Do you think the person is more likely to redoubt their efforts, work harder and longer, live in poverty to paid off the debt? Or more likely to say screw this, you can’t get blood from a stone and if I’m going to be poor anyways, might as well just work less, get more… Read more »
Laurey
Guest
Laurey
2 years 11 months ago

“The PBOC is giving the market “a pill to soothe the nerves,” Xu Gao, Everbright Securities Co.’s Beijing-based chief economist. “The message is clear: the central bank doesn’t want to see a tsunami in China’s financial markets and market rates will drop further.”
http://business.financialpost.com/2013/06/25/china-just-gave-markets-a-pill-to-soothe-the-nerves/

sorry bears no crash. LOL

Left already living in San Diego
Guest
Left already living in San Diego
2 years 11 months ago

here I go again:
Are you enjoying the shitty weather in the best place on earth ?
Don’t forget to go skiing in the morning, golfing in the afternoon and sailing in the evening. All in the same day of course.

VanRant
Guest
VanRant
2 years 11 months ago

Re: 17 Laurey

Just blowing more air into the bubble and delaying the Day or reckoning. More damages when it pop.

Laurey
Guest
Laurey
2 years 11 months ago

@VanRent
when? are you gona be alive by that time?

Very Little Gravitas Indeed
Guest
Very Little Gravitas Indeed
2 years 11 months ago

@8: It’s interesting. During the spring bounce, we had bullish commenters offering actual reasonable discourse (never came close to touching the price:income problem but whatever! it was constructive).

Now that the bounce is over it’s all just mindless invective. Every time I see one of these posts I imagine it was written by some specer levered to the tits on a handful of illiquid flips desperate to make someone else feel as bad as they do. Sad, really.

Laurey
Guest
Laurey
2 years 11 months ago

“mindless invective”??

care to elaborate on today’s Case Shiller massive gains?

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

#17.
yeah just pop a pill and everything will be fine tomorrow.
This is how most disillusional people deal with problems.
Sorry people, but there are no magic pills and no sugar daddys.
You will reap what you sow.

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

# 20.
I think almost all of the bears on this blog will still be alive 6 months from now.

Laurey
Guest
Laurey
2 years 11 months ago

“I think almost all of the bears on this blog will still be alive 6 months from now”

calling poster “Blast from the Past” for some posts from circa 2007 LOL

Barb Rennie
Guest
Barb Rennie
2 years 11 months ago

Rather than concentrating on the individual unsuccessful flippers, I think it is more important to think about what happens to Canada. I doubt that foreign money will declare bankruptcy, or go on social services. Foreign money will lose enthusiasm for Canada and leave faster than (insert), then spread the word back home that Canada RE is poison. Buyers will be scarce and prices will plummet. For all the bears sitting on the sidelines, it isn’t a good thing because credit will be tight and financing won’t be available.

Yalie
Guest
Yalie
2 years 11 months ago
@space889 – I agree. Read what I wrote “No loans should be exempt from bankruptcy”. In other words, a debtor should be allowed to discharge any and all loans in bankruptcy for exactly the reasons you state. @burnabonian – read what space889 wrote. The whole idea of bankruptcy is that it provides both a fresh start for the debtor, as well as a system that prevents bad loans in the first place. The alternative is debtor prison, which is what the current student loan system has created due to the absurd new laws that prevent students from going bankrupt. It’s… Read more »
Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

What we are witnessing, is the 20 year bullrun in the China shop coming to a crashing halt.
The Chinese government is trying desperately to shore up the RE and stock markets.
Remember, after every party, there is a hangover.
Don’t buy the myth that popping Aspirin will make the pain go away.

@Son of Ponzi
Guest
@Son of Ponzi
2 years 11 months ago

China crash is over son.

mosessupposes
Guest
mosessupposes
2 years 11 months ago

Can someone who has access to the “man behind the curtain” let me know what MLS V1007009 sold for. I’ll send some good karma your way.

addair
Guest
addair
2 years 11 months ago

RBC says 10-year bond yields will be nearly twice this years low by end of year.

http://business.financialpost.com/2013/06/24/economists-work-to-ballpark-bond-yields/

Scary stuff!

Anonymous
Guest
Anonymous
2 years 11 months ago

#30
Sold for $867,500 on the 10th of June.

Harvey
Guest
Harvey
2 years 11 months ago

Breaking News: Obama said Keystone is OK. Canada could not get better news. Oil bonanza continues,

today is all great news coming from US with Case Shiller’s parabolic rise and from China dropping the rates.

VMD@work
Guest
VMD@work
2 years 11 months ago
Taxman to demand more details on offshore holdings – Form for reporting foreign income revised to provide more information for audits – Art Cockfield, a tax law professor at Queen’s University, said the revised form is “a good idea” and that it will help the government audit certain individuals, but that it will do little to crack down effectively on tax evaders. “The tax cheaters, if they are committing the criminal offence of tax evasion, they’re not going to enter into compliance because of a new form,” he said. Cockfield said that some of the other measures, such as the… Read more »
Jeopardy
Guest
Jeopardy
2 years 11 months ago

Henry Ford Illness for $600, Alec

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

#30
for how much was it listed?

C. LITTLE
Guest
C. LITTLE
2 years 11 months ago

THE SKY IS FALLING, THE SKY IS FALLING!!

Anonymous
Guest
Anonymous
2 years 11 months ago

#899k

Best place on meth
Guest
Best place on meth
2 years 11 months ago

# 20
I think almost all of the bears on this blog will still be alive 6 months from now.

I don’t know, I might die laughing at these stupid cheerleaders any minute now.

patriotz
Member
2 years 11 months ago

“The law should be changed to make CHA loans non-dischargeable in bankruptcy, the same as student loans.”

Further to what Yalie said, mortgages are non-dischargeable in bankruptcy in Spain and that didn’t prevent the speculation and bubble there did it?

The problem is that borrowers are not rational and do not anticipate a situation where they will be unable to repay. The way to discourage irresponsible lending is to make it certain that the lenders lose money if the borrower is unable to repay. That means of course, getting rid of government guarantees.

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

Patriotz,
The challenge is to separate the speculators from the “true” homebuyers.
A penalty payment for those who sell before a certain period should be charged.
HongKong has a 15% tax if you sell before 2 years.
This would curb speculation and give the government extra revenue.

space889
Member
space889
2 years 11 months ago
@Yalie, I agree with what you say in principle, however removing government guarantee also generate a new set of problems. Take student loans for example, take away government guarantee and the rates will simply skyrocket. That makes it that much harder for students from poor family to go attend university. Yes, I know it can be done and I’m sure people will pop up saying how they worked 2 jobs while doing a full time engineering degress, so just work harder. But realistically, high education cost is a huge deterrent to higher education for poor families. I myself didn’t do… Read more »
patriotz
Member
2 years 11 months ago

“I’m of the view that education accessibility should only limit by merit, not one’s financial situation because education is the greatest equalizer and probably the only fair opportunity to all that a government can provide.”

Then government should provide financial assistance for those students who truly need it, not enable them to get mired in debt. Once upon a time BC actually did that.

Devore
Member
Devore
2 years 11 months ago

“Tuition and student loan debt have grown to massive bubble proportion in the last few years precisely because of policies like this.”

They have grown to epic proportions because they are guaranteed by the government.

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

On top of free University, poor students in Germany and Austria get a yearly stipend which they don’t have to pay back as long as they finish their studies with a certain grade average.

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

I think that student loans default have skyrocket because graduates can’t find decent paying jobs to repay the loans.

omfgitslikegrouponbutforcondosftw
Guest
omfgitslikegrouponbutforcondosftw
2 years 11 months ago

space889: For housing it is easy, just reinstate the original CMHC price ceiling that was removed in 2003. I believe it was $350k for Vancouver, which even 10 years later is a bit high for a program helping lower income Canadians. However, going back to $350k would be a very positive first step for true housing affordability.

Anonymous
Guest
Anonymous
2 years 11 months ago

“On top of free University, poor students in Germany and Austria get a yearly stipend which they don’t have to pay back as long as they finish their studies with a certain grade average.”

The downside is that they have to go to school in Germany. You’d have to pay me to do that too.

Son of Ponzi
Guest
Son of Ponzi
2 years 11 months ago

Anon,
Read the series “The reluctant Hegemony” in the latest The Economist.
We’re all Germans now.

HAM Solo
Guest
HAM Solo
2 years 11 months ago

Maybe I’ve missed a comment on an earlier post. But, please, someone from a bank or mortgage broker, tell me the following. 1) How much re-finance activity is going on now (my guess is zero), 2) How much your actual pre-approvals are dropping for the same income because of higher rates, and 3) what volumes of new mortgage applications you are seeing now (my guess is very close to zero). I might be wrong…but please share.

wpDiscuz