FFFA! Foreclosure, stimulus, warning, investors

It’s that time of the week again!

It’s time for 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!

Warnings on household debt
Most popular day for foreclosures?
GM frets over credit for car sales
Get rich in RE? be realistic.
Developers leaving sunshine coast?
An extended period of overbuilding.
Flaherty: Fed should wind up stimulus
PTT is a hardship for millionaires
3 Gibsons developments in depth

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

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ILoveCharts
Guest
ILoveCharts

This FFFA would not be complete without this article:
http://www.businessinsider.com/3-charts-that-make-us-scared-for-canada-2013-10

ILoveCharts
Guest
ILoveCharts

What’s interesting to me is that two countries with the lowest population densities (Australia and Canada,) have the largest housing bubbles.

Wood isn’t more expensive here. We’ve got wood to spare. People are paying the premium for land in a country that has more than enough land to go around.

Why is that?
– Do our governments release less land for residential development than other governments?
– Do our governments invest less in the infrastructure (freeways, etc.) to allow for new cities or living areas to be feasible?

Someone may claim that most of our land is useless but it’s not really valid. There is a lot of land that has the same weather as Calgary or Edmonton that is uninhabited.

patriotz
Member

@2:

“- Do our governments release less land for residential development than other governments?
– Do our governments invest less in the infrastructure (freeways, etc.) to allow for new cities or living areas to be feasible?”

If either of these factors were responsible for a genuine shortage of housing rents would have risen in tandem with prices.

The fact is that rents have simply risen in line with general inflation, while prices have become detached from rents.

As has been explained ad nauseum on this forum, the cause of this in Canada and everywhere else this has happened is easy credit.

George
Guest
George
BC Liberal Government is using ICBC like a cash cow, according to a report published in BC Studies, discussed in the Vancouver Sun (this is really a scathing indictment of ICBC management and the BC Liberals): ““Public insurance was designed to be run on a break-even basis,” wrote McCandless. “This changed when the Liberal government encouraged the accumulation of an extraordinary level of surplus capital (then) changed even more with the 2010 appropriation of most of ICBC’s (cash) reserves, and the public auto insurer now became another profit centre for the government.” … The reserves are central to the Liberal method for extracting cash from ICBC ratepayers. Cabinet passes a “special” order dictating a higher level of reserves, effectively cash on hand. ICBC is then obliged to raise rates to build up the reserve. Later the Liberals appropriate the reserves… Read more »
George
Guest
George
Another BC Liberal boondoggle is the Compass Card system for transit. I just have to rant about this because it is what everyone is grumbling about on the bus to work in the morning. We are now learning that the cost has increased from 170 million to 193 million. What’s worse is that operational costs will be $12 million annually but fare evasion only costs Translink $10 million annually. So even if the Compass Card COMPLETELY ELIMATED fare evasion down to $0 (which it won’t) we are $2 million further in the whole with this new system. So it’s over budget, it’s late, and it’s not meeting its objectives. The objective of Compass was to save Translink money lost from fare evasion. Now we know that it will cost more to operation, cancelling out any savings from preventing fare evasion.… Read more »
George
Guest
George

Translink is blaming inflation for the cost-overruns on Compass. Inflation. Who could have seen that coming?! From CTV:

” Officials are blaming inflation and other factors for the overrun, which has pushed the project’s price tag up from $171 million to $194 million.

“More than half of that increase is bringing it to current day dollars,” said TransLink’s Mike Madill.”

http://bc.ctvnews.ca/compass-card-upgrade-costing-extra-23-million-translink-1.1493277

jesse
Member

Can someone explain to me how inflation in 11 million on a 200 million budget? Isn’t that 5%?

Anarchist
Guest
Anarchist

” Isn’t that 5%?”

based on my observations at Vancouver Coastal health and hiring of hundreds of “no added value” managers with starting salary of 150k, 5% wage inflation is peanuts.
we have department of 2 employes, 2 supervisors, and 3 managers.

Lenny
Guest
Lenny

“Just wait till interest rates go up!…you just wait…you’ll be sorry..you’ll lose your house…just wait…any day now!” Can you economics 101 retards please go get a life?
http://www.bloomberg.com/news/2013-10-11/rbc-says-canada-rate-rise-delay-to-2015-more-realistic-correct-.html

VMD
Member

via CMT: The Future of 85% LTV Bundles

– OSFI continues to scrutinize HELOCs

HAM Solo
Guest
HAM Solo
New BC Foreclosure Filings, Oct 11 Today’s Total / (MTD) Vancouver: 7 (55) Campbell River: 2 (3) Kamloops: 2 (9) Prince George: 2 (6) Kelowna: 1 (10) New West: 1 (13) Victoria: 0 (13) Nanaimo: 0 (9) Countrywide Cup Foreclosure Lenders Today / (MTD) TD: 3 (13) BMO: 2 (10) Royal: 1 (7) HSBC: 1 (1) First National: 1 (7) Private: 5 (17) Credit Unions: 1 (11) Thursday is a little quieter day than Wednesdays. After 9 days this month, Vancouver still moving along around 6 foreclosures per business day. I think it is pretty clear we are getting at least a trickle of foreclosures from every major populated area in the province. If prices were moving up significantly, there would probably not be any foreclosures because all the kiting lenders and mortgage brokers would be doing their thing and… Read more »
space889
Member
space889

I thought Transit police’s primary purpose was to prevent crime and ensure safety on trains and the stations. You know like warning people not to get on a train that has an individual brandishing a bladed sword and threatening people, and get that person off the train ASAP for safety of other passengers…..oh wait, they never do stuff like that…..As my VPD friend puts it, Translink police are excellent at get out of dodge and calling police.

space889
Member
space889
As for compass, don’t forget projects like these almost always will delays neccessitating $150+/hr contractors to come in and get things back on track. Having a public funded project finished on time, on budget, and meeting/exceeding requirements happens about as often as Vancouver gets through 1 month without ever any rain. As for people getting on bus without tap in, I don’t think they will get a free ride. I read that the standard policy where a person who only tapped in or only tapped out will be charged the full day 3 zone farecard rate of $8+. There is currently no dispute system in place to handle complaints either. Gathering ridership data is good though I think bus drivers used to do it manually. Also, it doesn’t help in cases where there is demand for transit but no service… Read more »
patriotz
Member

@9:

So has RBC dropped its mortgage rates to match their outlook on the BoC?

Seems they haven’t.

cris
Guest
cris

I need to know why Translink Police need to carry guns.

“If in the first act you have hung a pistol on the wall, then in the following one it should be fired. Otherwise don’t put it there.”

patriotz
Member

@5: “This is the epitome of a government boondoggle–over-budget, late, not meeting objectives, ongoing costs, inconvenience to the public.”

But it can’t be, because Christy Clark told us that sort of thing is what the NDP does.

Lenny
Guest
Lenny

Daily foreclosures?….what a bunch of miserable depressives…lol. Who occupies their day with such nonsense?

franko
Member
franko

” hey Nguyen-RCA would like a word or two ”

and hopefully the immigration dept is right behind them deportation papers

vice
Guest
vice

Lenny: STOP!

I need my daily dose of humour. Reading this blog is like continuously watching ‘Dumb and Dumber’. Funny yet stomach churning at the same time.

Nguyen
Guest
Nguyen

Franko:

STFU. Metro Van will be more Asian than european soon. We will be the majority here soon. Get that through your thick skull. Why don’t start preparing to emigrate?

Unplugged
Guest
Unplugged
The function of high density colonies has been instrumental in the evolution of life throughout the ages, without power in numbers it is doubtful life would of evolved much further beyond primordial pools. The central idea behind population colonies seems to be the same, large numbers of members working in masses to support a small centralized figure, in the ant farm this would be the queen. But what about us humans? Clearly we cannot compare ourselves to ants, we are at the very top of natures pyramid of life – but the closer one starts to examine how cities, population centers and or own social economic structures to more one may start to realize how parallel our lives actually are to that of the ant. This idea proves itself more and more true the closer one finds themselves to the… Read more »
Randy Randerson
Guest
Randy Randerson

So if Vietnamese turn from visible minorities to majorities, does that mean that they’ll open a lot of more 24hrs Pho shops to serve me? Sweet! bring more of your relatives to Canada, Nguyen, I’m tired of McD’s.

2.79% 5yr. NEVER AGAIN
Guest
2.79% 5yr. NEVER AGAIN

“Metro Van will be more Asian than european soon”

Sadly even the Asians hate the Asians.

This will be a very unhappy place.

ROGO
Guest
ROGO

Regarding the foreclosures. It sounds high, but is there anyway for you to get historical numbers to compare this to? Is this low or high in comparison to the norms?

tedeastside
Member
tedeastside

are posters like ‘vice’ angry at this blog because they love vancouver
? VCI is really pissing these trolls off

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