FFFA! Renting, Towers, Market, Bubble, Depreciation

Well looky here!

You made it to the end of another work week!

And that means on this particular website that it’s Free-for-all time!

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:

Can the media predict a bubble?
EI numbers up 10% in BC
Is ‘Depreciation’ a dirty word?
Signs of overbuilding?
Toronto prices to double in 25 years
Get drunk with the kids
Put your face on a bus stop
The cheese loophole
Not pasta sauce, the Eiffel Tower
Is US housing set for another crash?

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

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Is ‘Depreciation’ a dirty word? For many condo owners, yes. Many condo owners are scared of what the Depreciation Report will reveal. Most Vancouver condos, particularly older ones, are under funded. Most maintenance fees would increase by at least a little if stratas were properly ‘saving up’ for the maintenance items that are required, and on a timely basis. So, many owners are afraid of the truth and what it will entail. But, like anything, living in delusion doesn’t fix an issue – it only makes it worse because issues get worse when they are not addressed right away. Also, at any given point in time, usually at least one unit is for sale in a condo building. As maintenance items or repairs are put off in a condo building, this is affecting the sales prices of those suites. If… Read more »

mls watch


People are may be not that stupid. Once you realize you will be repaying your mortgage until you die, then it makes sense to delay your mortgage payment. The era of repaying your mortgage in your lifetime and leaving something behind for your children is over.


Merry Christmas and happy holidays everyone!!

New Listings 45
Price Changes 10
Sold Listings 129



#87.. this occurred one year ago, but now it’s exposed? hmmm

therein is the reason why housing prices have been jacked up to the stratosphere… they are places of Human Conception… and tptb wants reproduction rates lower.. the best way to do this is to put housing out of reach … houses then are too precious to live in,, they sit vacant… which is the plan all along..


@99 Unless you live for “free” in the woods of the Endowment Lands you always have a position in real estate.

You do not have a choice.

You are always in the market, short or long. You are either paying someone else’s dividends or paying your own.

Some people have literally shorted the market by selling and renting. Others have borrowed the shares through renting because they can’t afford to buy. Either way, the spread between your first month’s rent and your first/next mortgage payment is your short.


Bond market shutting down for the holiday (until Friday), Canada 5 year yield is the highest it’s been in a good 2 months, and as I mentioned earlier the headline 5 year yield of 1.91% is really 4 years, 8 months (Sept 1, 2018 bond). If you want a 120 day rate lock the more relevant yield is 5 years 4 months on the Canada yield curve which is basically right at 2%. Expect 3.49% to be the best 5-year fixed rate mortgage you’ll be able to find anywhere within a few weeks if this holds up. The big banks are all at 3.59% and above which they’ll be able to hold for now.

Randy Randerson


Do people too stupid to realize that when the bank gives them 3 months reprieve from mortgage, it doesn’t mean that it’s put on hold, but that the 3 months of payments + interests are added back to their mortgage. Compounding working its best in this case. People need to learn how to use a mortgage calculator before getting a mortgage.


@ Snake #87

The realtors should release their sex tape and then if their careers in real estate don’t work out, they can always fall back with jobs as porn stars or maybe even get their own reality show. Hey, it worked out for Paris Hilton.


Sitting beside a mid 30’s couple at a restaurant last night, they were there treating themselves to dinner as they were so relieved thebbank allowed them to skip 3 months mortgage payments, they said they will cross the bridge in March again


@72: “In order to sell short, you need to “borrow” the shares to sell now with the intention of buying them back later (hopefully, lower). Meanwhile, you pay the dividends.

When you rent a home you are borrowing the real estate in preparation to buy a permanent residence later. Meanwhile, you pay the rent.

Pretty much fits the description of being short.”

You just explained yourself why it doesn’t. Short selling involves selling an asset with the intention of buying it back later at a lower price to make a profit. Renting doesn’t. A change in price of the asset makes no difference to the financial position of the renter.



You sound like an escapee from Garth’s blog. Have heard that same drivel for 5 years running.



“Nobody is stepping up to buy the 10 billion bonds…..”

No need. The deficit is being reduced by more than that amount per month. So no need for anybody to buy them because they won’t be offered.

This is misinformation


franko, that could happen, I think wage growth in the US will pick up through 2014 and that will lead to credit growth. I don’t know what that means for rates but April-July of this year could have been more an “portent” than a “one-off”

I heard it put thusly: the 2% inflation target is the mean, not the ceiling. If inflation exceeds the target for some time it will be considered catch up from persistent inflation below trend. Private securities will need to compensate for this (I would think).


Point it, money is getting more expensive, it will be harder to borrow, and rates will be higher. It doesn’t matter whether it’s a fixed or variable mortgage. You may think you are more clever than all the world’s bankers, but I assure you, you are not.


FED up? Hundred years of manipulating the US dollar



@jesse #86 ” people who advance purchases are those who would normally have bought in the spring of 2014 ” With the sobering reality of tapering and higher rates there’s a new stampede of pre-approved borrowers about to lock in and take the plunge, which will wipe out even more of those 2014 buyers in the summer. Not only is no one stepping up to buy the $10 billion worth of bonds that the FED will no longer be buying, but private bond holders are bailing. The market has figured out that Bernanke’s promise to keep rates low despite tapering is a joke. The only arrows left in the FED’s quiver is to adjust the discount rate and the fed funds rate to attract corporate borrowers. But corporate America is already up to their armpits in cash since the beginning… Read more »


“Just go variable. ”

Not so fast. The variable mortgage rate is based on the BANKS’ prime rate, which the banks set as they like, plus there is a premium percentage they can fiddle to make the end user rate match market demands.

Besides, variable borrowers have to qualify at the benchmark 5 year fixed, so how much they can borrow is limited. And those ‘wave your hands and squint your eyes’ approvals are also going the way of the dodo, just watch, it is happening right now, and has the mortgage broker community up in arms again as regulators take away their ability to qualify people for mortgages they cannot afford and should not have.


“I’d love to know what the numbers are for the local dealerships!”

Why? Does it affect the price of Toyotas?

Son of Ponzi

# 87
Whaf else are they gonna do during an open house when they know no one will show up.


New Listings 80
Price Changes 25
Sold Listings 94



New Jersey Realtors Caught on Camera Having Sex in a Client’s Home



“Now that the rate hold theory has been proven false” The “theory” that’s left is that people who “advance” purchases are those who would normally have bought in the spring of 2014. That’s TD’s analysis, FWIW. Vancouver RE, the stock market, whatever, seem to be “defying” people’s valuation models/wishes, because: they want to buy at lower prices, their models are incorrect, or the next shoe hasn’t dropped yet. Being bearish on Vancouver RE was probably the most profitable conclusion I’ve made in a long time, and not because I’m “right” or I will be “right”, but because it forced me to research what turned out to be better and diversified returns elsewhere. If I had heavily invested in Vancouver RE (and FTR I do have a modest position in Vancouver RE), I would be less educated today and not much… Read more »


Question: What’s the theory du jour for sales #s? Now that the rate hold theory has been proven false.