FFFA! Debt, Stats, Assets, Low Rates

Hooray! It’s time for another Friday Free-for-all!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Poor people make poor customers
Is a condo a debt or an asset?
Feel good now, pay later
Blame busy August for slow September
Phantom listing distort stats?
Gregory Klump: no no no
Vancouver Island Foreclosures
Low rates create false sense of security
Smiling with record debt levels

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

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CanuckDownUnder
Member
CanuckDownUnder
Meanwhile in Sydney we’ve launched from an absurdly high plateau back into full-on bubble territory (or boom if you’re in the business of selling real estate). Prices here are now up 9.4 per cent year-to-date, up 6.5 per cent across the Aussie capitals. We’re on track for a 10-15 per cent rise in prices this year and most commentators are suggesting we’ll see something in the range of 10-20 per cent appreciation next year. The Reserve Bank is playing dumb, insisting that the market is not in a bubble. Surely the slashing of interest rates by 225 basis points since November 2011 has done nothing to fuel this fire. At least they have taken one out of the Mark Carney playbook and tut-tutted us mere mortals not to take on excessive debt loads. So will the new government will come… Read more »
GT
Guest
GT

Almost one half of every dollar earned in the country goes to the richest one-fifth. In 1980, 43 cents of every dollar went into the pockets and bank accounts of the top 20 per cent, a share that has slowly and steadily increased to reach a bit more than 47 cents. But even this understates the concentration of incomes since the underlying driver is the higher and higher proportion flowing to the top 1 per cent, who collected eight out of every 100 dollars earned in 1980, and 12 of every 100 in 2010.

The decline of the U.S. middle class is a Canadian story too

http://www.theglobeandmail.com/commentary/the-decline-of-the-us-middle-class-is-a-canadian-story-too/article14540755/

George
Guest
George
kinetic
Guest
kinetic

No George. It can’t be true. Patriotz said corruption is only happening in China or some other 3rd world country.

Crow...eat
Guest
Crow...eat

Wow Canuck Down Under,

You really must feel like a tool lately. For the past few years you have been all smug posting about the flat or declining market in Australia, and bragging about your ‘cheap rental’. Guess those family and inlaw get togethers are going to be all the more fun for you 🙂 Prices, up and up and up, and now you have to eat a little crow.

chojo
Guest
chojo

Realtor apparently fired for exposing CREA bubble numbers….

http://www.youtube.com/watch?v=u03UN4_nnvE

http://www.youtube.com/watch?v=2zMTHIkv-n8 (warning profanity)

ILoveCharts
Guest
ILoveCharts

http://www.news1130.com/2013/09/27/vancouver-economy-to-slow-down-conference-board/

“Vancouver’s economy is expected to moderate this year, according to a forecast from the Conference Board of Canada. It predicts local gross domestic product will rise by 2.2 per cent this year, down 4/10ths of a point from last year.”

Yellow Helicopter
Guest
Yellow Helicopter
I wrote a couple of months ago about Rennie’s ‘Wall Centre Central Park,’ and how, after months of fromt page advertising in all the 24 Hours and Metro Vancouver newspapers, they had only sold 386 units… out of close to 700 available in the ‘first phase’ of the project. You may remember their marketing: ‘Do you want to be a tenant forever?!’ Anyway, so a few months have gone by, and it looks like they’ve finally changed up their ads a bit Now we have a slick Asian couple on the front page ad, loaded down with designer shopping bags, starbucks coffee, and a dog and a stroller are even pictured. Months and months of thousands of dollars worth of ads later… And they’ve sold a grand total of 414. Yup. 28 more than months ago. Whoop-de-doo. Wonder if Rennie… Read more »
Michael Corleone
Guest
Michael Corleone

@#6

“Don’t ever takes sides against the family”

ILoveCharts
Guest
ILoveCharts

I was having an interesting conversation with someone the other day about cities.

Canada has vast amounts of land and a lot of that land is in areas that would be desirable to live.

Despite that, we have been completely inept and developing new economic centers and so the handful of existing cities (Vancouver, Calgary, Edmonton, Toronto, Montreal, etc.) continue to get increasingly dense and increasingly expensive.

At some point, shouldn’t we see increased development of new cities or is the gravitational pull of existing cities too strong?

My Van
Guest
My Van

@Crow

hey that is good one. but do you remember how bears were calling 1-2 years ago for Canada to put up the laws on foreign investor restriction like what Australia did. and what happened to Australia’s RE after they introduced the law restrictions? Prices still went up. Just pure racist scapegoating by the brainwashed KKK sheeple. there are whole bunch of them on this board. but you just shrug and tell them to go and f@#$ck themselves.

space889
Member
space889

From a strict accounting point of view, a condo is an asset. Anything you own that has a non-zero market price is an asset. Debt and equity only deals with how you bought/financed the asset purchase. Also, condo is not really something that you borrow and pay back later like with a money loan, so it can’t be considered as debt.

So asking if a condo is an asset or a debt is not even really a valid question.

space889
Member
space889

@ILoveCharts – Maybe it’s like Civ 5 where unhappiness goes up with number of cities you have and the road maintenance will eventually bankrupt your empire…..so we are following a deep strategy of few mega cities.

In fact, I think in the Civ 5 Canada Let’s Play series I saw, Canada didn’t get to all the provincial capitals before the game ended. Though if you included Iroquis(?) faction in the game then the number of Canadian cities go way up but then Canada also went to war with Iroquis to knock them back down to a tiny 1 city kingdom….just like history!!

Best place on meth
Member
Best place on meth

“Patriotz said corruption is only happening in China”

Corruption happens everywhere but in China it’s the cultural norm.

People’s Republic of Corruption.

Son of Ponzi
Guest
Son of Ponzi

@6.
This video is powerful stuff.

jesse
Member
Will Canada Reap Big Benefits from U.S. Housing Recovery? Canada has a lot of trees, and the U.S. is building a lot of houses, so you might think Canada will reap a big benefit from the housing-market rebound in the U.S. But the boost to Canada’s economy might fall short of some peoples’ expectations, according to a report from Desjardins Securities. The report says there are two ways a stronger U.S. housing market can benefit Canada’s economy. One is through the Canadian resource industries–notably the forestry sector–that provide the raw building materials. The other is through the overall expansion in U.S. demand associated with an upturn in housing. On the resource front, the housing-market collapse in the U.S. in 2007-09 was a punishing blow for the lumber and wood products industries in Canada. Desjardins says the output of lumber and… Read more »
FLO
Guest
FLO

BPOM “but in China it’s the cultural norm”

well observing the behavior of realtors and politicians (Wallinn, Duffy, Trudeua (junior)) in Canada it looks that is very much a cultural norm here as well. But maybe you try to ignore it because you have the same white ass as above mentioned group of cheaters.

jesse
Member

” video is powerful “

That guy was all over the realestatetalks forum saying all sorts of stuff that may come across as the “truth” but was highly inappropriate. A Realtor has no business spouting off about grand macroeconomic theories, frauds, and the like. His job was to sell houses to people who are wanting to buy them. Until now.

tyler
Guest
tyler

Britain prices rise at nosebleed pace. In globe and mail.

The world is awash in money.

The USA and Britain have had their crashes. Now its up up and away!

tyler
Guest
tyler

Jesse, let me help you out on the lumber:

It’s propaganda to keep rates low and get subsidies from government. Plus gov can pay for all the legal bills in soft wood lumber duties, etc…

Best place on meth
Member
Best place on meth

Wallin and Duffy were appointed by Harper who is a huge proponent of China.

Thanks to him and his pro China policies we’re in bed with the devil.

The Conservatives are no better than the Communist party, they’re both nothing more than a gang of thugs and criminals but at least in this country I can say that without being thrown in jail.

You’ll need to explain why you’ve lumped in Trudeau with the other two scumbags.

ILoveCharts
Guest
ILoveCharts
@6 chojo: I think it’s more likely that the realtor was fired for poorly representing the company or not complying with the corporate communication policy. His videos were not filmed professionally and it looked like they were the work of an amateur. I also doubt that he received corporate approval on his messages before posting and so they may have been inconsistent with the other marketing efforts of the firm. No one is stopping him from working as an independent realtor. This would only be a scandal if his license was pulled. I do wish the best for the realtor involved but I think that he would be best to try to build up his own business as an independent realtor. Some people just don’t work well inside of a larger corporation and that’s not necessarily a bad thing. Like… Read more »
Melba
Guest
Melba

….“I’ll pass along one most outsiders don’t know, when the cost of a used home exceeds the cost of a a new build, you crash.. I have seen this multiple times and its easy to predict… Its one of the only variables that is bullet proof and not controlled by outside interests!”….

Translation: I get a higher commission selling new houses.

FLO
Guest
FLO

‘The Conservatives are no better than the Communist party,’

i kind a knew you will pull that Tory vs Lib fake debate. aghhh how you don’t see that both of them are just puppets for financial elite is beyond me.
well i guess they are doing the good job keeping the masses entertained and in the dark. and NHL is starting soon. so bread & circuses like in the Roman times.

Son of Ponzi
Guest
Son of Ponzi

@I love harts.
Are you saying that, if as an employee you see your employer lie and cheat, you should just be quiet?

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