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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اغرب 6 حالات وفاه فى العالم
اغرب 6 حالات وفاه فى العالم
6 years ago

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visit link
6 years ago

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Melba
Melba
6 years ago

…Get the picture? Low rates for a long time coupled with asset inflation. In the next 20 years, soil and clean water will be where it’s at…. 10 billion people all can’t have it all… There will be winners and loosers like this country hasn’t seen in centuries…

Imagine the market for tin foil hats!

RealityCheck
RealityCheck
6 years ago

Apparently interest rates staying low for the next 2 years as evidenced by the declining bond yields.

Then there will be a stock market question and the rich will yell “we need more QE”… rates will then be even lowered further because of the mythical deflation threat… Blah blah blah…

Get the picture? Low rates for a long time coupled with asset inflation. In the next 20 years, soil and clean water will be where it’s at…. 10 billion people all can’t have it all… There will be winners and loosers like this country hasn’t seen in centuries.

Laurey
Laurey
6 years ago

hey unplugged
that is a nice post in the provided link that i have read for “change” 🙂

crikey
crikey
6 years ago

On a day that we remember how countless people died for the freedoms we enjoy, it is reassuring to know that the Canadian government is encouraging the proliference of selfless, proud new Canadians that would park their Porches and leave behind their multi-million dollar homes at the drop of a hat in order to bleed and die for all our freedoms.
Those are the people I see around me every day. God forbid we ever had to go to war again…

View
View
6 years ago

Highest % of GDP in the Philppines is from foreign income sent back from over seas workers

tedeastside
tedeastside
6 years ago

at least the people in south central are more friendly than vancouverites, they wont gush for an hour about ocean and mountain views, and how awesome real estate is

Seafair dweller
Seafair dweller
6 years ago

@mls watch #102

Interesting link, thanks for posting. Not exactly to my taste (all that marble is a little cold) and definitely nowhere near my budget but one can still fantasize. (This is probably why the Sun keeps posting articles about grand mansions – they sell newspapers). As to the intended buyers, I’m guessing the developers tried to cover all their bases. Note the goldfish/koi pond toward the end of the video.

RealityCheck
RealityCheck
6 years ago

tedeastside:

Save some money and take a Trip to LA. Give us a first hand update. Make sure you stay SouthEast of LAX.

glut
glut
6 years ago

do a google search on ‘Money Remittance from Canada to’

top three countries:

1.Philippines
2.India
3.Pakistan

Factor the enormous number of Filipinos working in Canada, and the devastation of Yolanda/Haiyan:

Fewer pesos to support that local Vcr housing spec addiction, as ever great gobs of cash is sucked back to the homeland?

or conversely,

Vancouver an even Safer city to park your home country lootage?

tedeastside
tedeastside
6 years ago

i’ve noticed homeowners in vancouver walk around with a sense of pride,
but in Los Angeles nobody does this, is their any reason why vancouver homeowners think they’re God’s chosen people, vancouver’s not even an important city in any way, just an irrelevant afterthought town

patriotz
6 years ago

@110: “Actually even without capital appreciation, those tax deductions severely erode the whole ‘my landlord is subsidizing me’ argument…”

Actually anyone paying the market rent is not receiving a subsidy.

Landlords who are renting out at a loss are subsidizing the previous owner, not the renter.

fixie guy
fixie guy
6 years ago

@100 Landlords Win Says: “They get rental income plus deductions…”

Odd juxtaposition when income is taxable.

“Again, such surface level analyses…”

True. Speaking of smug, do you ever intend to back that hand waving with relevant numbers?
No breaths will be held.

Landlords Win
Landlords Win
6 years ago

“And here it is folks – why landlords in BC win even when the income does not fully cover the operational costs. They get capital appreciation. And they get to deduct all their operating expenses – mortgage interest, repairs, maintenance, accounting, legal, home insurance, utilities they pay, etc… “Except when they don’t. Your whole argument is based on the assumption that no matter how bad an investment RE is at current prices, somebody is going to be willing to buy it in the future as an even worse investment at an even higher price to make up your operating losses.” Actually even without capital appreciation, those tax deductions severely erode the whole ‘my landlord is subsidizing me’ argument… Bet few bears, so smug in thinking their landlord is subsidizing them, actually know that the landlords are laughing to the tax… Read more »

jesse
6 years ago

Rents are going up? That should help the price-rent ratio.

VMD
6 years ago

In Canada, The Insane Pace Of Condominium Construction Has Accelerated

Canadian condo developers must be hearing the same whispers that haunted Kevin Costner in Field of Dreams – the voice that murmured, “If you build it, he will come.” …

“The continued erection of condominiums en masse will exacerbate the supply-demand imbalance in the housing market and exert downward pressure on prices.”

– Flaherty/CMHC been peddling the little blue pills, now trying to wean Canadians off. Problem is what’s erected cannot be un-erected..

border security
border security
6 years ago

I’ve been watching that show, border security… Its crazy how many people try to work illegally in Vancouver. And almost 100% of them are white.

The Asians are up to no good too… Trying to Smuggle in meat.

Personally I think bringing in illegal meat has a more impact on the local economy than illegal workers.

RealityCheck
RealityCheck
6 years ago

Rents are much higher, gone up. Just checked kijiji listings for surrey and indeed asking prices are significantly higher as compared to last few years.

Anyone who denies this seriously need to give their head a shake.

So what happens now that rents are going up and prices stable??? That ratio we talk about is going to get whacked. Something tells me the majority of people on this blog are going to be sorely wrong. Just saying.

patriotz
6 years ago

@104: “They get capital appreciation.”

Except when they don’t. Your whole argument is based on the assumption that no matter how bad an investment RE is at current prices, somebody is going to be willing to buy it in the future as an even worse investment at an even higher price to make up your operating losses.

Think that can go on indefinitely? Do the numbers.

Landlords Win
Landlords Win
6 years ago

“Those buying a residence at today’s prices would actually be better off if it were taxable, as they would be able to write off the operating loss (i.e. rental value minus expenses) against their income, as a landlord can.”

And here it is folks – why landlords in BC win even when the income does not fully cover the operational costs. They get capital appreciation. And they get to deduct all their operating expenses – mortgage interest, repairs, maintenance, accounting, legal, home insurance, utilities they pay, etc…

Capital appreciation + tax breaks with deductions means the price difference between their operating costs and their rental income is pretty small.

All you smart little bears better learn to take your analysis to the next level. Simply thinking that landlords are ‘subsidizing’ your living is nothing but a surface level analysis.

patriotz
6 years ago

@96: “The advantage of having income tax free, capital gains tax free status for your primary residence is not as attractive as one thinks.”

Tax free status for a residence (or any other investment) is attractive only of the investment is profitable in the first place.

Those buying a residence at today’s prices would actually be better off if it were taxable, as they would be able to write off the operating loss (i.e. rental value minus expenses) against their income, as a landlord can.

Also you can’t deduct the capital loss on a principal residence against taxable capital gains. But you’re not going to sell at a loss, are you? 🙂

mls watch
mls watch
6 years ago

Downwind from a paper mill, an English manor for $7,995,000 (not $8,000,008.)
http://tinyurl.com/leqan9t

Wondering what the target market is.

tedeastside
tedeastside
6 years ago

sorry to inconvenience your perfect life