FFFA! Beijing, Traffic, Gluts, Price Drop & Bad Advice

What’s the time?

It’s Free-for-all time!

If this is friday that means 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:

A $29.6 Million price drop?
Beijing hunts for RE dirty money
1/2 mil in crack town?
T dot condo glut
Financial advice
Bad financial advice?
Bad traffic, world class like LA

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

“It’s different this time”

The end result will probably be the same but let’s face it: This is an unprecedented time for economies around the world and it’s hard to know exactly how it will unravel this time around.

Unfortunately, there no signs that the low interest rates and QE will stop.

Two interesting things to watch for tomorrow and the weekend:
– Anything that comes out of China in the Nov 9-12 summit
– The US jobs numbers

Naked Official #9000
Guest
Naked Official #9000

Welcome, loyal cadre! please be to submit your shift notification to your C.O. at the Shenzen Internet Harmony offce.

Johnny-boy
Guest
Johnny-boy

Here is business Canadian style.

Thorsten Heinz fails to turn around Balckberry, hundreds lose their jobs, the stock collapses and he will walk away with $25-50 Million severance package

The Board of Directors who signed that deal should be sued IMO and asked to pay for it themselves. Instead they still sit pretty in the exec suite. Wonder which ‘compensation specialist’ was advising the company?

We are so f’d up in this country.

Seafair dweller
Guest
Seafair dweller

Hi Bulls and Bears,

Any thoughts on the very metro Vancouver-like phenomenon of putting a property up for sale for a few weeks and then taking it off again? I see this over and over again – all kinds of different housing (house/condo etc.) with one factor in common: generally, the seller is asking for more than other units in the area. Units may be rented, vacant, or in some cases, temporarily occupied by a family member of the builder/developer.

Math is your Friend
Guest
Math is your Friend

My landlord is selling and I so I will likely have to move. Such is life.

The amusing part though is that I spoke to his realtor and asked why he was selling and he said “The owner is losing money every month”. I just nodded. I mean, what do you say to that, “Thanks, I know how to use a calculator”? In addition to this guy losing money each month on my rent, it looks like he is going to take a minimum 75K loss on the property. I think he is trying to sell now as he thinks it will be worse in the spring. That might turn out to be the only smart decision he has made so far.

Bailing in BC
Member

I find the Globe and Mail article extraordinary. Mr. Wiart’s advice is so wrong it’s confounding to think that he can possibly be a financial expert of any sort. Refinancing an investment property for the purposes of buying a principle residence is no more tax deductible than refinancing to spend on hookers and blow. Does no one at the G&M read their own articles or do none of them have two clues to rub together? No one in the comments even pointed out this glaring error, an over site I have now corrected.

VMD
Member

@1
Cdn 5Y bond yield up from 1.76% to 1.84% after US NFP data

Canada Dollar Drops to Two-Month Low as U.S. Data Fuel Fed Bets
Canada’s dollar slid to the weakest level in two months as stronger-than-forecast U.S. job growth fueled bets the Federal Reserve will start slowing the monetary stimulus that’s boosted riskier assets.

Government bonds fell, pushing yields on benchmark 10-year debt (GCAN10YR) to a three-week high. The yields jumped as much as nine basis points, or 0.09 percentage point, to 2.61 percent, the highest since Oct. 16

Newcomer
Member
Newcomer

@1

“it’s hard to know exactly how it will unravel this time around”

I think you mean “when” not “how.”

Newcomer
Member
Newcomer

@Math is your Friend

Remember that you can only be booted by an owner who plans to live there, even if the owner changes. Your landlord can’t ask you to move while he sells it, and if the place is bought by another would-be flipper (apparently, there are still some out there [facepalm]) they cannot ask you to leave just because they find that convenient.

They also might change their mind about selling when they see how much of a haircut they will be getting. I got all psyched up to move when my landlady told me she was putting the place on the market, but in the end I offered to increase the rent, and she refinanced, and the status quo continues.

ILoveCharts
Guest
ILoveCharts

@8 N says: “I think you mean “when” not “how.””

Perhaps saying “what triggers it” is a good compromise between when and how.

glut
Guest
glut

http://www.cowichanvalleycitizen.com/garage-showroom-doors-closing-after-10-years-1.689297

Eviction notice issued to the Duncan Showroom. Landlord under mortgage pressure?

Is there a game afoot to unlock value? (in capitalist parlance), Does it involve shaping public opinion?

We shouldn’t be surprised if the Showroom dies, is reborn, and rises like the Phoenix, since we’re in Scorpio, and since the USA won the Nobel prizes in Economics founded on the principle of Manipulating Behavior.

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

My US stocks like Microsoft and Citigroup are on fire plus I’ve made 5% on the currency. The same cheap money forces that are driving RE are driving the stock market. In a 0% interest rate environment capital must find a home.

Vancouver RE is not the only way to make money. I wonder if Bx3 can look his wife in eyes for not buying MSFT at $17 in 2009?

Math is your Friend
Guest
Math is your Friend

@N – Thanks for the comments. I think your landlord is more the norm in Vancouver. They hang on to the dream the price will get back up to what they paid for it but the longer they wait, the worse it gets. Regrettably for me, I get the feeling my landlord is willing to take his lumps now to avoid more pain down the road. Time will tell and I am definitely hanging around to see how it all plays out.

space889
Member
space889

@N – that’s only true if the renter is on a month to month or has a lease that auto converts to month to month. Most lease I have seen, especially for small time landlords, are almost always lease with a move out clause. So no freebies unless the landlord wants to break the lease midway.

space889
Member
space889
@VMD – there are actually quite a few people (like Deutsche Bank) who believes that not only QE will be permanent but Yellen will likely have to increase the size of QE!!! Given how very few people predicted that QE can last 5 years+ back in 2008, I wouldn’t be surprised if this scenario actually pans out. Will it just totally wreck the economy? Probably. Will this end in a total mess? Again very likely…but any time soon? Maybe not… If nothing else, just the fact that US federal government needs a super low interest rate to avoid default will likely result in QE being on a permanent basis as the current debt will never ever be paid back. So we could potentially end up just like Japan where BoJ has been monentizing Jap government’s debt non-stop and can’t ever… Read more »
Newcomer
Member
Newcomer

@space889

Of course, if you’ve a fixed term lease and the landlord is just asking you to leave at the end of the term, then whether he’s selling the place or using it to hold orgies is none of the tenant’s business.

4SlicesofCheese
Guest
4SlicesofCheese
patriotz
Member

@15:

Canada is not the US and Canadian interest rates aren’t necessarily tied to US rates any more than the CAD is tied to the USD.

Given Canada needs to borrow from abroad and there is no foreign lender (e.g. China) that has an interest in keeping the CAD high, CAD interest rates are going to be determined by the market. And if the CAD appears to be headed south, look out.

Son of Ponzi
Guest
Son of Ponzi

#17
Ah, the joy of living in the BPOE.
Just wait for the whining once these shoddily built units start leaking.

Barney
Guest
Barney

strong job reports both in US and Canada. I guess crash will have to wait for now.

VanRant
Member
VanRant

@20

Sorry Barney. It means interest rate will have to go up sooner rather than later which means crash will accelerate in Canada

space889
Member
space889

So nice for Vancouver Sun to make this story free of charge – RE in Van stable and ready for upswing cuz …. well all the usual suspects – stable banking system, limited land, low interest rate, immigrant wanting to invest, tight rental market, etc, etc….

http://www.vancouversun.com/business/commercial-real-estate/Real+estate+investors+pumped+about/9143385/story.html

Son of Ponzi
Guest
Son of Ponzi

Off topic.
I noticed that BugerKing and Timmy’s are hiring locally.
Does that mean that the powers to be finally put a stop to the madness called Temporary Foreign Workers?

Barney
Guest
Barney

@21
“t means interest rate will have to go up sooner rather than later”

Nudge me when the shit actually hits the fan. This is getting tedious. I’ll be in the corner drinking.

Melba
Guest
Melba

Wow, two major blows to cartel mantra in one week:

There not making any more land! Unless of course, the ALR is disbanded – but they would never do that!

Turns out there isn’t a shortage of qualified labor in Canada and not going to be one any time soon. There’s goes the old: ‘we have to be ready to welcome 10 million people to Vancouver in the next two weeks’ argument, i.e. there isn’t going to be a demand for your moldy dump.

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