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!

109 Responses to “FFFA! Renting, Towers, Market, Bubble, Depreciation”

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    ILoveCharts Says:
    1

    http://www.businessweek.com/articles/2013-12-19/chinese-students-in-u-dot-s-dot-boost-luxury-car-sales#r=lr-sr

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

    Like or Dislike: Thumb up 4 Thumb down 4

    @1: haha, it’s like a time machine, only 30 years ago you’d replace the word ‘china’ with the word ‘japan’.

    Hot debate. What do you think? Thumb up 17 Thumb down 4

    RealityCheck Says:
    3

    Hidden due to low comment rating. Click here to see.

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    RealityCheck Says:
    4

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 7 Thumb down 18

    tedeastside Says:
    5

    in Vancouver hope the rich kids like the cold rain and general lack of anything to do,

    while some poorer kids are stuck at Orange County beaches or hanging out at Times Square

    Hot debate. What do you think? Thumb up 26 Thumb down 10

    Many Franks Says:
    6

    Will Dunning’s out with some bearish predictions:

    Vancouver’s real estate market faces a rough ride in the coming years, says a new report from Royal LePage.

    The report foresees a dark period for Vancouver housing due to factors such as low job creation, rising interest rates and changes to federal mortgage policy.

    “The Vancouver housing market is clearly in a state of transition, from an environment of very rapid growth of house prices to a period in which price growth will provide much less impetus to housing demand … and to job creation,” the report by market economist Will Dunning said.

    In other words, the rowboat is about to hit a big patch of steam in the Vancouver saucepot.

    Well-loved. Like or Dislike: Thumb up 51 Thumb down 2

    @Ilovecharts

    LOLd my pants, what are they teaching the kids back home ?:

    “Most schools are recruiting [Chinese] students for whom the difference between a $20,000 and a $40,000 education is a rounding error,” Krommenhoek says.

    Hot debate. What do you think? Thumb up 8 Thumb down 3

    Everyone has been asking for a chance to short Canadian housing. Well, here it is folks!

    “Investors in Canada are to get the chance to bet against their own real estate market as one of the first short-focused funds is set to launch in the country, where concerns have grown that there is a housing bubble ready to burst.”

    ““The thesis behind the fund is that the Canadian housing market is one of the most overvalued in the world,” said Mr Brown. “A lot of things people observed in the US in the run-up to 2007-8 crisis are happening here.”
    The OECD has ranked Canada as one of the countries most at risk of a price correction, especially if borrowing costs increase or income growth slows. Deutsche Bank recently said Canada is the most overvalued market in the world, with a 60 per cent overvaluation, above Belgium and Norway.”

    http://www.ft.com/cms/s/0/b0ca8fd4-68b9-11e3-996a-00144feabdc0.html#ixzz2o2APmITj

    http://www.ft.com/intl/cms/s/0/b0ca8fd4-68b9-11e3-996a-00144feabdc0.html?siteedition=intl#axzz2o2A1kdJZ

    Hot debate. What do you think? Thumb up 11 Thumb down 1

    Son of Ponzi Says:
    9

    # 8
    the simplest form to short Canadian housing, particularly in Vancouvsr, is to rent.

    Hot debate. What do you think? Thumb up 23 Thumb down 5

    @9:

    Renting is not a short position. If you rent in a building owned by a REIT are you short the REIT?

    @8:

    “Investors in Canada are to get the chance to bet against their own real estate market”

    Which is not the same as selling short. In a short sale you are making a bet against the buyer of the actual asset.

    This fund provides the opportunity for RE bears to bet against RE bulls. But you need both sides of the bet. If no bulls are willing to take a position there will be no positions available to the bears.

    Hot debate. What do you think? Thumb up 14 Thumb down 5

    Son of Ponzi Says:
    11

    I’m renting until house prices have fallen to a point were I’ll buy again.

    Hot debate. What do you think? Thumb up 12 Thumb down 4

    Joe Mainlander Says:
    12

    Now you can invest in the coming housing slump. If you’re a wealthy investor.

    “The hard-landing hedge fund: A new way to bet against housing”, Globe & Mail

    http://www.theglobeandmail.com/report-on-business/the-hard-landing-hedge-fund-a-new-way-to-bet-against-housing/article16063936/

    “A Toronto financial firm is creating a hedge fund that will allow Canadian investors to bet on a housing slump, a move that underscores the skepticism that exists about policy makers’ ability to engineer a soft landing for the real estate market.”

    ““I think it’s a tough slog going forward,” said Michael Brown, the portfolio manager of the new fund at Spartan… “It may not be a fall of 50 per cent, but it’s got to be a fall of 30 per cent,” he says.”

    Hot debate. What do you think? Thumb up 10 Thumb down 2

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    Joe Mainlander Says:
    14

    ‘Cause it’s a hedge fund, and they are limited to very wealthy investors, not common folk like us.

    Like or Dislike: Thumb up 7 Thumb down 2

    Joe Mainlander Says:
    15

    More bubble talk; CBC, “Why a housing bubble is good (but maybe bad for you)”

    http://www.cbc.ca/news/business/why-a-housing-bubble-is-good-but-maybe-bad-for-you-1.2470614

    “We’ve had another year of foreboding on global property prices from very respectable sources. New homes in big Chinese cities are up another 20 per cent despite attempts by the government to cool the market. In London, prices are rising at six times the rate of inflation.

    Even Mark Carney, the Canadian-born head of the Bank of England, can’t keep a lid on it. Canada comes in for special treatment. The latest of the doomsayers, Deutsche Bank, said in a Scrooge-like pre-Christmas superlative that Canadian property was the most overvalued on the planet — some 60 per cent above what it should be. Just in November it was the Organization for Economic Co-operation and Development — the rich countries think tank — that singled out Canada’s property market for a potential “disorderly correction.”

    Hot debate. What do you think? Thumb up 19 Thumb down 1

    i have become vaguely numb Says:
    16

    http://www.investing.com/analysis/2013:-10-shocking-charts-196557

    There are only seven oilfields in the world that produce one million barrels per day (bpd) or more of oil. Three of them are now in the United States – the Permian Basin, the Eagle Ford and the Bakken.

    http://english.pravda.ru/business/finance/17-12-2013/126406-oil_market_collapse-0/

    The expectations of some Russians and foreign experts are similar, but their goals are different. “People heard something vague about the so-called “Dutch disease…”

    Like or Dislike: Thumb up 1 Thumb down 1

    Brian Ripley Says:
    17

    Real Estate is a good investment if it produces an acceptable yield. That’s the rub eh? (for instance property taxes in Vancouver are going up 1.9% in 2014)

    Bloomberg has a graphic out that shows Blackstone’s model and I notice if I have done the math correctly that their income statement allows for 58% of gross income to allocate to the expense side before debt service and that includes a 10% vacancy rate: http://www.chpc.biz/2/post/2013/12/buy-low-sell-high.html

    My May 2013 Vancouver Condo Study in its most conservative scenario allocated only 39% of gross income before debt service:
    http://www.chpc.biz/2/post/2013/05/vancouver-condo-yield-case-study.html

    I wonder what real Vancouver Rental Property income statements look like.

    Like or Dislike: Thumb up 7 Thumb down 1

    patriotz patriotz Says:
    18

    @12: “Mr. Brown declined to discuss specific trades, but the fund will short stocks or other securities in a bet that their values will fall. He said he’s looking at financial companies, insurers, real estate and consumer firms.”

    So the fund is actually going to short stocks whose performance they think is tied to RE.

    Hot debate. What do you think? Thumb up 8 Thumb down 2

    UBC in crisis mode Says:
    19

    From MoneyGeek.com

    Housing Market Update
    If you’re like most young professionals, you either own, or dream of owning a home one day. On every half month update, we’ll provide you with news and commentary that relates to the housing market.

    Below are November’s changes in the Teranet House Price Index (reproduced with permission). The index gauges the state of the housing market.

    (Region): (Change since last month), (Change since last year)

    National Average: -0.1%, +3.4%
    Calgary: -0.3%, +5.9%
    Edmonton: -0.2%, +3.0%
    Halifax: +0.6%, +0.8%
    Hamilton: +0.3%, +5.2%
    Montreal: -0.6%, +0.8%
    Ottawa: -0.2%, +1.2%
    Quebec: -0.2%, +3.7%
    Toronto: -0.2%, +4.2%
    Vancouver: +0.6%, +3.9%
    Victoria: -1.8%, -1.4%
    Winnipeg: +0.1%, +2.8%

    The Teranet numbers are much more relevant than some of the metrics the media likes to use. Various media outlets often report the change in average housing prices, which are not very useful, for reasons outlined in this blog post.
    http://www.moneygeek.ca/weblog/2013/08/12/pitfalls-using-housing-price-indices/?utm_source=MoneyGeek+Newsletter&utm_campaign=b569ac49b1-MoneyGeek_Jul_2013_Half_Month_Update7_22_2013&utm_medium=email&utm_term=0_19555f4f2d-b569ac49b1-68008225

    Like or Dislike: Thumb up 3 Thumb down 1

    The Vancouver Peak post about the new building on Bidwell needing to stoop to rentals has incorrect info. Rentals were always part of the plan, which was as a “mixed-use development
    containing rental and condominium housing and at-grade commercial uses”.

    http://former.vancouver.ca/ctyclerk/cclerk/20091103/documents/p3.pdf

    Like or Dislike: Thumb up 2 Thumb down 0

    Hey JoJo, Re: #20

    Why not head to VanPeak and post that info as a ‘Reply’ in the thread. VanPeak is a forum and its wide-open for yours and everyone’s comments regarding anything you read there.

    Like or Dislike: Thumb up 5 Thumb down 3

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 0 Thumb down 11

    New Listings 68
    Price Changes 23
    Sold Listings 88
    TI:13297

    http://www.paulboenisch.com

    Well-loved. Like or Dislike: Thumb up 49 Thumb down 2

    INCOME PROPERTY ONLINE

    http://www.hgtv.ca/incomeproperty/episodes/

    Like or Dislike: Thumb up 2 Thumb down 2

    @ Jenna 22

    Actually, assessed property values only influence what share of the total property taxes a given property will pay. If your house is worth two million and my house is worth one million. Then you pay, say, two thousand bucks and I pay one thousand. If there is a crash and your house is now worth one million, while mine is worth only half a million, you will still pay two thousand and I will still pay one thousand.

    Hot debate. What do you think? Thumb up 17 Thumb down 1

    bestplaceonearth Says:
    26

    Hidden due to low comment rating. Click here to see.

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    Johnny-boy Says:
    27

    Two hefty HAM buys in West Van today. Combined 13 big ones. Just in time to juice the averages for December. Bless their souls, they probably wanted something special to put under the Christmas tree.

    Hot debate. What do you think? Thumb up 16 Thumb down 4

    God bless them, everyone!

    Like or Dislike: Thumb up 5 Thumb down 1

    @N # 25
    “assessed property values only influence what share of the total property taxes a given property will pay.”

    Thank you for pointing this out, N. So many people out there simply understand this.

    In a given year, the city calculates how many dollars they have to make from property taxes; generally speaking it is from this number it is determined what everybody’s property tax will be. The relative amount that you and your neighbour pay will stay proportionally the same… but how much higher or lower your property assessment changes (assuming the city is changing with you) does not matter.

    Hot debate. What do you think? Thumb up 9 Thumb down 1

    Vancouver sex-trade help group receives city funding

    http://vancouver.24hrs.ca/2013/12/19/vancouver-sex-trade-help-group-receives-city-funding
    ——————————————

    I wish they pay me to send me on sex trips

    Hot debate. What do you think? Thumb up 3 Thumb down 8

    Son of Ponzi Says:
    31

    #27
    please provide more information about the properties.
    Thank you.

    Like or Dislike: Thumb up 1 Thumb down 2

    Interesting Foreclosure in vancouver

    1)Condo for $1 million – 2202 1495 RICHARDS ST
    http://www.carros.ca/listings/mls/V1039385/vancouver-west/yaletown/2202-1495-richards-st

    2)House for 2.5 million – 6188 ALMA ST

    http://www.carros.ca/listings/mls/V1039384/vancouver-west/southlands/6188-alma-st

    3)Condo for $4.8 million – 601 499 DRAKE ST
    Looks like it sold for $3,900,000 seven years ago

    http://www.soprovich.com/home1255.html

    Hot debate. What do you think? Thumb up 14 Thumb down 0

    Anybody know what’s going with these houses in Richmond looks like lots of foreclose on this street ?

    http://www.ecorealtyinc.ca/search?q=Scratchley+Crescent

    3411 SCRATCHLEY CR
    3431 SCRATCHLEY CR
    3451 SCRATCHLEY CR
    3471 SCRATCHLEY CR
    3491 SCRATCHLEY CR

    Like or Dislike: Thumb up 7 Thumb down 2

    tedeastside Says:
    34

    everybody wants to live in Vancouver because of the outdoor activities or something,
    icey cold rain and 3pm sunsets never stop a proud vancouver from golfing and boating in the same day

    Hot debate. What do you think? Thumb up 19 Thumb down 9

    Bo Xilai Says:
    35

    Hot debate. What do you think? Thumb up 13 Thumb down 2

    Johnny-boy Says:
    36

    Chinese Stock market weakens and the Bank of China pours Billions into Banks after hours. How much will end up here?

    http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1203&MainCatID=12&id=20131221000013

    Like or Dislike: Thumb up 3 Thumb down 3

    N and crikey are you Realtor?

    Like or Dislike: Thumb up 2 Thumb down 4

    @Jenna #37:

    Wow, and what did I do to insult you? ;)
    First of all, I don’t use the term you used. Let’s call that profession what it is: Used House Salesperson
    The title they want you to use (which you use) is an attempt to improve the optics of the mundane job that it is their reality, and a way to inflate their egos and hope the public follows along. To be sure, candy sprinkles on top of shiat should still be called what it is: shiat.

    If used car salespeople insisted on being called “Vehiculors”, not only would everybody laugh at them, but it still wouldn’t change what it is they do — sell used cars.
    If you want to call people that sell houses by the contrived name they have made for themselves (and trademarked, no less!) that is your own business, but then you are basically playing by their self-serving optics games. Do you think it is in your best interest to play by their optics games, or theirs?

    Anyways, the above alone should answer your question as to whether or not that is my profession.

    Secondly, why do you ask? Is it only because ‘N’ and I understand the way annual property taxes are levied on homes in Vancouver, in a way that price fluctuation trends don’t matter?
    If that is the case, I strongly advise you that it is not very hard at all to learn those kinds of things. If you think it takes a used house saleperson to know these kinds of things, don’t forget that they must only have a minimum of a high school education and take a course for only six weeks before calling themselves a used house salesperson.

    By the way, a quick google search got me this:
    “How is the [Vancouver property]tax rate set?

    When the annual budget is adopted by city council for the current year, City Council passes a rating bylaw.

    This bylaw sets a levy rate for every taxable parcel of land, as defined on the BC Assessment roll. This levy must be sufficient to raise enough revenue to pay all debts and obligations of the city falling due within the year.”

    In other words, the annual property taxes collected by the city of Vancouver is NOT affected by fluctuations in prices. Not in the least!

    https://vancouver.ca/home-property-development/tax-rates.aspx

    Hot debate. What do you think? Thumb up 21 Thumb down 2

    Debbie Cox . But when it rains hard, the smell of sewage outside her home has sometimes been overwhelming.She gave away her garden furniture because it kept sinking into the mud in her backyard. Her water pipes, buried too close to the surface, have frozen in very cold weather.

    Mrs. Cox paid about $255,000 for her semi detached house in 2005 doubts she could get more than $95,000 for her property today.

    Debbie Cox have been renting for about $500 a month, while she pays about $1,100 a month just for her mortgage.

    It’s been such a huge disappointment,” she said. “The show house was so beautiful.”

    The number of people falling behind in the mortgage payments on their homes continued to grow last quarter, to 99,189, up 1,315 during the three months ending in September, according to Ireland’s Central Bank.

    The pace of development was so huge in the 2000s that at one point, per capita housing completions were four times as high as in the United States.

    In July 2007, Irish Independent journalist/comedian Brendan O’Connor urged people to buy property, even as the bubble was clearly bursting. In April 2011 journalist Vincent Browne admitted that the Irish media had played an important role in adding to the frenzy of the Irish property bubble.

    —————————————-

    Thank you for the link Bo Xilai. Around 2006 when i was in Ireland there was so much construction happening just like in Vancouver and Toronto.Everybody thought the house will go up in value there will be no crash. i was thinking this not going to end well because the income didn’t match the house value plus there was no big industry to support the jobs to pay for the housing debt.people were taking so much debt to own a house was astonishing just like in Canada.Most of the newspaper was allotted to realestate news about making money flipping house or has ad for presale of new house & condo construction.Look how they end up.

    Well-loved. Like or Dislike: Thumb up 23 Thumb down 2

    Softy: “How confident are you that there will not be a soft landing?”

    I actually hope there is a soft landing. Softy I hope you understand even with a ‘soft landing’ real estate prices are going down to meet fundamentals. The only difference between a soft landing and a hard landing is a soft landing avoids a recession in the general economy. The fact there is a landing required means prices are significantly above where they should be and are about to go lower. If you own real estate it does not matter whether there is a recession caused by the decline or not. Either way you lose the same by holding real estate and in both scenarios you are better off renting while the landing takes place.

    Hot debate. What do you think? Thumb up 16 Thumb down 1

    @40: ” The only difference between a soft landing and a hard landing is a soft landing avoids a recession in the general economy. ”

    Well the closest we’ve seen to a “soft landing” in a major economy is Japan and that just resulted in a longer recession.

    The more people who buy at excessive prices, the more the long term damage.

    Well-loved. Like or Dislike: Thumb up 28 Thumb down 3

    @Bo Xilai #35
    @Snake #39

    That New York Times article is an amazing read especially when viewed in light of a BBC online story posted on two days ago on the 19th.

    The NYT piece hints at that BBC story with:

    “Not all the news about Ireland’s real estate market is bad. As Ireland becomes the first euro zone country to officially emerge from an international bailout program later this month, experts say that demand for homes is up in Dublin, particularly for houses in certain neighborhoods.”

    The BBC piece, title ‘Irish GDP growth helped by construction, figures show’ offers this:

    “According to a breakdown of sectors, the data from the Central Statistics Office showed that industry – which includes building and construction – expanded by 2.2% quarter-on-quarter.

    “This certainly suggests that there is a good bit of momentum in the economy and that the consumer is slowly coming back,” said Conall MacCoille, chief economist at Davy Stockbrokers.

    “Construction spending is up 15% on the year, which is an extraordinarily large rate of expansion.” Ireland’s agriculture, forestry and fishing sector declined by 2.9%. Distribution, transport, software and communication increased by 2.1%.

    The overall improvement in Ireland’s economy meant that last weekend it was able to exit the 85bn-euro ($117bn; £71bn) bailout put in place three years ago by the EU, the International Monetary Fund and the European Central Bank.”

    Here is the BBC link:

    http://www.bbc.co.uk/news/business-25448264

    They just can’t or don’t know how to or don’t want to get off the RE merry-go-round.

    Hot debate. What do you think? Thumb up 14 Thumb down 2

    @YVR #40
    “The only difference between a soft landing and a hard landing is a soft landing avoids a recession in the general economy.”

    In theory wouldn’t a soft landing be a very long and drawn out process, as opposed to a quick hard landing?

    Real estate industry people should in fact pray for a hard landing, because it would at least be over quickly and they could start their brainwashing attempts on the general public again before long

    By comparison, a long and drawn out mult-year (decade long?) process will cement more strongly into the public perception the fact that Vancouver real estate is not a good gamble, making it much harder to convince them otherwise later on.

    The real estate industry should be praying for much stricter CMHC controls in the short term, so that the bubble is popped and they can come back quickly to try and start a new one. But the real estate industry is far too short sighted to understand that.

    Hot debate. What do you think? Thumb up 12 Thumb down 3

    @ Jenna,

    I’m just a curious observer of the madness that surrounds me.

    Like or Dislike: Thumb up 6 Thumb down 3

    North Vancouver RCMP have arrested two people accused of misappropriating funds while working at an apartment rental agency.

    https://www.google.ca/search?q=Unique+Real+Estate+Accommodations+Inc.+of+North+Vancouver&oq=Unique+Real+Estate+Accommodations+Inc.+of+North+Vancouver&aqs=chrome..69i57&sourceid=chrome&espv=210&es_sm=122&ie=UTF-8#es_sm=122&espv=210&q=Unique+Real+Estate+Accommodations+Inc.+of+North+Vancouver&tbm=nws

    Like or Dislike: Thumb up 7 Thumb down 2

    Vancouver man receives “random act of kindness” after encounter with homeless man

    http://globalnews.ca/news/1044621/vancouver-man-receives-random-act-of-kindness-after-encounter-with-homeless-man/
    ——————————
    we need more stories like this coming from Vancouver

    Like or Dislike: Thumb up 4 Thumb down 3

    http://www.bbc.co.uk/news/world-europe-25476662
    A Chinese billionaire is feared dead in a helicopter crash that happened as he was surveying his newly-purchased vineyard in south-west France.

    Occupational hazard for those who might be called “Cam”

    Hot debate. What do you think? Thumb up 17 Thumb down 5

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    RealityCheck Says:
    49

    Hidden due to low comment rating. Click here to see.

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    @49

    Do you understand that, even if the BoC leaves rates where they are, mortgage rates are set by the bond market?

    Well-loved. Like or Dislike: Thumb up 25 Thumb down 5

    Son of Ponzi Says:
    51

    #47
    must have been a yellow helicopter.

    Hot debate. What do you think? Thumb up 10 Thumb down 5

    variable rate mortgage Says:
    52

    Hidden due to low comment rating. Click here to see.

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    tedeastside Says:
    53

    soon it’ll be a yellow submarine

    Hot debate. What do you think? Thumb up 14 Thumb down 6

    RealityCheck Says:
    54

    N:

    We are aware. But why would we want a fixed rate now that yields may go up a little from here. Listen, we will go variable as the discounts are getting bigger. 2.4% available easily now.

    Bank of Canada can’t raise rates significantly. They will raise rates by a maximum 50 basis points over the nexr 5 years as token gestures to scare people like the bears on this blog. So maximum 2.9% mortgage over the next 5 years.

    Put your money where your mouth is! I am cause the writing is on the wall.

    Hot debate. What do you think? Thumb up 9 Thumb down 14

    patriotz patriotz Says:
    55

    Vince Cable: interest rates may have to rise to combat housing boom

    Cable is from the Liberal Democrat side of the governing coalition.

    He said the government needed to look again at the help to buy scheme, which involves government backing for mortgages so that buyers do not have to provide such a large deposit saying “it was conceived in very different circumstance”.

    We will see whether the UK government or BoE take heed of this. Or maybe this re-inflated bubble is exactly what they wanted.

    Like or Dislike: Thumb up 2 Thumb down 2

    Someone “just going variable” has the mark of a simplistic explanation, given how well over 50% of the market remains on fixed rate.

    While I’m sure banks understand interest rates better than anyone else on the planet, investors might get a bit skittish if the banks’ books go too variable.

    Hot debate. What do you think? Thumb up 6 Thumb down 4

    @Jesse

    Truth is stranger than fiction, I wonder if the French residents are silently cursing or praising their new neighbours:

    “Over the past four years, dozens of French chateaux have been bought by Chinese investors.”

    Hot debate. What do you think? Thumb up 6 Thumb down 4

    Son of Ponzi Says:
    59

    Arnold Shuchart’s magic numbers:

    http://www.shuchatgroup.com/blog.mobi/richmond-real-estate-market-report-10

    Like or Dislike: Thumb up 1 Thumb down 2

    Son of Ponzi Says:
    60

    # 58
    one thing is for sure, the French will tax the hell out of them, especially If they leave them empty.

    Hot debate. What do you think? Thumb up 12 Thumb down 3

    RC: “Bank of Canada can’t raise rates significantly. They will raise rates by a maximum 50 basis points over the nexr 5 years as token gestures to scare people like the bears on this blog. So maximum 2.9% mortgage over the next 5 years.”

    So you are predicting an economy in recession or bordering on recession for the next 5 years in Canada. Doesn’t sound good for housing to me. Still you must qualify for the posted 5 year fixed rate. So the bonds will dictate who can a mortgage and who can’t. Less people qualifying means lower prices. Credit is tightening and bond rates are headed up. This is all than matters. You seem to forget interest rates headed down and stayed low during the crash in the US and Japan. How did that work out?

    Well-loved. Like or Dislike: Thumb up 25 Thumb down 4

    RBC Global Asset Management’s chief economist Eric Lascelles, formerly chief economist at TD securities estimates that there are currently 65,000 too many condos under construction across of Canada:

    http://media.rbcgam.com/pdf/economic-compass/rbc-gam-economic-compass-tattered-maple-leaf-201312.pdf

    (top of page 4)

    I think it’s safe to say that at bare minimum 10% of those are in metro Vancouver

    Hot debate. What do you think? Thumb up 18 Thumb down 3

    THIS is Brad lamp report (http://new.bradjlamb.ca/2013/12/toronto-real-estate-market-november-201) and my comment to his article

    1) Our banks were in good shape, growth wasn’t overly robust, interest rates and inflation were low, consumers weren’t strapped, and our real estate economy was overall in pretty good shape. We were dragged into this recession by the actions of the U.S. and the megabanks/financial institutions of the world.
    ——————————————————————————————-
    At some point during the crisis in 2009. Three of Canada’s banks — CIBC, BMO, and Scotiabank were completely under water, with government support exceeding the market value of the company, without government supports to fall back on, Canadian banks would have been in serious trouble.
    The Harper government stepped in and used a number of measures to free up money for Canada’s banks during the financial crisis including buying mortgage-backed securities and providing short-term loans.
    One of the most well-known ways in which policymakers helped the banks during the crisis is through a $69-billion CMHC program whereby the housing agency took mortgages off the balance sheets of big Canadian banks. In contrast with other support facilities, all of the funds granted by the CMHC were through selling assets (in this case mortgages) to the housing agency. They were not funds that had to be paid back.
    If harper government haven’t saved the bank and your ass (I mean realestate sector) you be sitting in downtown subway pandhandling for living.
    Why would a good shape bank need that much money for a bailout, I don’t visit hospital emergency just for the fun of it do you?
    Here is the full report read it
    http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2012/04/Big%20Banks%20Big%20Secret.pdf
    2) The reason why we are seeing such a weak recovery is very simple. Our government has too much debt, Canadian corporations are hoarding cash and holding off hiring and all world governments are printing money, keeping inflation very low. Hard hit economies in Europe are still mired in recession and likely won’t turn to growth for a couple for years. All countries have too much debt and can’t stimulate their economies. We also need developed Europe to exit from its recession in 2015.
    Government has so much debt is because of CHMC insuring mortgage for $600 billion, Not because they spend on improving economy by creating well paid jobs .it’s already 2014 Europe with 27 million unemployment, it’s not getting out of the recession at least for a decade.
    3) I expect robust growth during 2015-2020. Consumer spending is going to start to move higher again in Canada by late 2014.Unfortunately for those looking to buy real estate, prices are going to take off again in the near future despite what a few economists and journalists are predicting. Some of these guys are of the belief that prices may fall, maybe collapse. This is just not going to occur.
    —————————————————————————————————————
    Were you even in touch with currently events, last 75 days?
    There were massive layoffs in the 1000′s, People in different sector making good money at least $40,000 to $60,000 a year range have been laid off. Here is the list, this is just the start more are coming in the newyear, this not including what you said about construction
    740 (Heinz)
    800 (Sears)
    275(Loblaw)
    500 (Kellogg)
    800 (EnCana)
    200(Sun Media)
    100 (Blackberry)
    1,000(PotashCorp)
    1000(Bank of Montreal)
    8,000 (Canada Post) YEAH you read it right.
    Now they all have to look for a job. How the heck people are going to find money to spend when they just got laid off?
    Do you spend money when you are working, or try to save money when you are laid off?
    Even if the house price increase who in the right mind will be dump enough buy it without an income to pay for the mortgage Do you think people will buy house when they don’t even have a job?
    I think you know the answer
    4) Construction layoffs in excess of 75,000 jobs will start to occur over the next 6 months to a year due to new condo sales slumping
    ———————————————-
    Holy S*IT did you write that ,let me write that again so I don’t make a mistake ,in the next six months 75,000 jobs will be loses in construction sector. The estimated figure you gave is just in Toronto, image the all country with unemployment already hovering around 7% it will push to 10% when the economy really need growth.
    If there is no construction happening these people are sitting home and reading you blog about your predictions “I haven’t commented recently on the state of Toronto’s real estate economy for several months as I wanted to have some time pass to see whether my predictions continued to be correct or if I was advising readers in the wrong direction. So far, since the early 2000’s, I have been bang on (refer to past newsletters on my blog). Without going into the vast number of comments and predictions I have made over the last 15 years, I will reflect on some of the more important comments I’ve recently made and predict some real estate events going forward”
    So who is going to buying condos not those people, I wish this prediction doesn’t come true?
    5) There are less than half as many new projects per year since 2012 compared to prior to 2012. This ultimately means less construction jobs and soon, less finished product. As a result, 2017 will see a shortage of new completed condominium homes. We are now starting to see the return of the investor, chomping at the bit for opportunities to buy new investment product. There will not be enough product to satisfy this demand. Low-rise new sales are anemic due to a lack of new available lots. This single-family low-rise supply issue will continue to drive home prices to higher and higher prices. Essentially, unless you are wealthy ($200,000+ income per year) you will not be able to buy a low-rise single family home in the city by 2017. A house within minutes of the core area of the city will be $1,000,000+. I expect robust growth during 2015-2020. Consumer spending is going to start to move higher again in Canada by late 2014.Unfortunately for those looking to buy real estate, prices are going to take off again in the near future despite what a few economists and journalists are predicting. Some of these guys are of the belief that prices may fall, maybe collapse. This is just not going to occur.
    ——————————————————————————–
    People in Vancouver are already paying $1 million for SFH for the last three years believe me they are not making $200,000+ income per year. They are buying because of cheap interest rate and willingness by the CHMC who come with 40, 35 & 30 year mortgages. You don’t have 20 % for a down payment don’t worry just pay the Mortgage insurance you are good to go, go and buy the next crackshack. Isn’t it the same rationale used by Fannie Mae and Freddie Mac in USA got them into housing crisis.
    When they start losing jobs so goes the housing, even if they hold onto the job the income will not keep with rising inflation and interest rates. Now imagine with all the layoffs they will be begging their employer not to worry about a salary increase as long as they can hold on to a job so they can pay the mortgage debt that have gotten into. They will spend their life imbedded with the mortgage just like crack head embedded with how to score the next fix.
    Buy a house even it worth millions, it will always go up, even when u don’t have a job to pay for the mortgage. What kind of logic is it?
    6) A recession is coming eventually. It is not on the visible horizon. For Canada to fall into negative growth we will need to see Europe exit their recession and expand into robust growth for several years. We will need the U.S. to do the same. This is perhaps 8-12 years away. We will need both 5 year interest rates and inflation to rise above 7% and 4% respectively. This is a long way off. Until then, like it or not, we will see rising real estate prices and low interest rates.
    Now I am confused you say recession will come, but keep buying houses and get into more debt so Brad Lamp can have job. In the last Recession all over world they are so many jobs that lost will never ever come back, whatever the new job that gets created will not able to bridge that gap.
    Even if the interest rate stays the same, the job growth would not able to match the inflation, in the end just like Greece, USA, Ireland, Spain and Japan combined Canada will have a spectacular crash the world has never seen.
    Around 2006 when I was in Ireland there was so much construction happening just like in Vancouver and Toronto. Everybody thought the house will go up in value there will be no crash. I was thinking this not going to end well because the income didn’t match the house value plus there was no big industry to support the jobs to pay for the housing debt. People were taking so much debt to own a house, it was astonishing just like in Canada. Look how they end up.
    Even if USA lead a recovery Europe is doomed, there are 27 million people without jobs that a lot of jobs that needed to be created which will never happen.Why do all the realestate guys think Canada would be immune from the housing crash, when most of the countries went through in the last 6 years?
    Do you seriously believe that Canada with the population 35 million could be immune from the housing crash when the population of 375 million (USA) people couldn’t prevent a realestate crash with much more resources than us?
    http://business.financialpost.com/2013/07/16/oecd-unemployment-to-remain-high-as-canada-and-the-world-fails-to-shake-financial-crisis/
    7) Economists and so-called real estate experts have been wrongly predicting the impact of the new sales done in 2010 – 20,491 units, 2011 – 28,190 units, 2012 – 17,997 units, and 2013 – 12,200 units (estimated). All of the sales from 2009 and earlier are mostly absorbed. The question is, how will these 4 years of sales be delivered to the real estate economy? Are these homeowners, investors, or speculators? Up to now, we have seen few speculators. The more homeowners and investors, the better the situation. The total sales from 2010-2013 is approximately 77,700 units. Will the buyers who intend to be homeowners and the rental economy absorb these deliveries? The four year average is 19,400 units; however, due to production delays, it is more likely that a 5-6 year horizon will result. That equates to an average of 13,000-15,500 closings over the 5-6 year period from 2014-2018/2019. This is easily managed within our economy as seen by the absorption rates from 2005-2013. Going forward, from 2014-2018, we will likely only see 60,000 new units sold (15,000 per year) as developers have sharply cut back project launches. These sales will be delivered between 2017 and 2021. The Toronto economy needs 30,000 new homes built every year to keep up with demand. 50-60% of this supply has to be condominiums (15,000-18,000 per year). There exists unsold developer inventory of approximately 3000 units per year. This will be easily absorbed by the resale market.
    ————————————————————————————————————-
    RBC Global Asset Management’s chief economist Eric Lassalle’s who used to work as chief economist at TD securities estimates there are currently 65,000 too many condos under construction across of Canadaa.
    You going to say this wrong, there job is to analysis risk working for a bank of all places which TD holds the most Canadian mortgage.
    http://media.rbcgam.com/pdf/economic-compass/rbc-gam-economic-compass-tattered-maple-leaf-201312.pdf
    8) Much has been said about Canadians borrowing too much money. This is bunk. The much talked about “trouble” indicator is when debt exceeds 1.6X income. If a potential buyer earns $125,000 per year, they can qualify easily to borrow $500,000 in mortgage financing with $200,000 in equity. They could buy a home for $500,000 and borrow $350,000. They could also buy a $200,000 investment property and borrow $150,000. The house will cost $2200 per month and the investment property’s rent will more than carry the costs to own it. Let’s assume they have no credit card, educational, or car debt. This buyer then would have $500,000 in debt. Let’s assume they have no credit card, educational, or car debt. Their debt to income level is $500,000/$125,000, or 4.Let’s assume they have no credit card, educational, or car debt. This buyer then would have $500,000 in debt. Let’s assume they have no credit card, educational, or car debt. According to most bean counters at the Ministry of Finance, this buyer has a problem. I refute that
    Not according to many illustrious economists and our Finance Minister. I guess they would rather we put our money in a sock and hope for the best as they conspire to strip away any pretence of old age and retirement benefits. What I see is Canadians starting to wake up and realize they are on their own. Governments are going to tax more and offer less
    ———————————————————————————————————————-
    I couldn’t believe you hate CHMC & Jim Flaherty who practically saved your ass from panhandling for a living at Toronto downtown subway, with all incentive thrown at you, let me see Ottawa has raised the amount of mortgage insurance CMHC can have outstanding from$350-billion to $450-billion and to $600-billion, double the limit in place at the end of 2007.
    which will be covered by taxpayers money when they themselves looking for a handout after they lost the job, this is not going to end well is it?
    Let see who make $125,000 a year in this economy. Canadian population is 36 million, in that working people amount to 18 million minus 2 million who is looking for work so out of 16 million people total income of $125,000 earned are by the 500,000 people what about the rest of the 17.5 million people who want to own a house, they do into debt by buying a house that not a smart move is it?
    How is the buyer being smart and setting them self-up for financial security in the future, when they only accruing debt of epic proportions, when you have said recession is coming, you know for the first 10 years most of the money 70% goes for the interest while the principle get measly 30% so they are not paying down debt they are they paying $20,000 interest for the first 10 years. At least in the USA you can deduct you interest on the mortgage plus most of them are at a fixed rate for the life of the mortgage in Canada you can’t even do that.
    Canadian homeowners with mortgages owe an average of $161,200. That alone represents 82% of all outstanding debt in the country.Candian non-mortgage debt is 29,000.
    http://www.ctvnews.ca/business/canadian-consumer-debt-to-hit-record-28-853-in-2014-transunion-forecast-1.1600091#ixzz2oDgYlML1her
    http://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-012-x/99-012-x2011002-eng.cfm
    Were you smoking crack with Rob Ford when you wrote this article that what it sound to me when I read your report.
    I think everybody should able to own a house, but you don’t have to spend all your life paying for a mortgage, for an insane amount on a median income or juggling two three jobs so you can say house poor. I am talking about people getting $1 million mortgage on 60,000 salary, there is more to life than buying a house this is definitely not the right time and definitely not for a $ 1 million dollars in any market for a SFH that is just freaking insane.

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    Moderators please delete post #6. i will do a neat cut and paste job when the posting get deleted. sorry for the trouble.

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    Actually post #63

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    Son of Ponzi Says:
    66

    Snake,
    Too long, like your handle.

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    tedeastside Says:
    67

    with this weather who wouldn’t wanna live in beautiful Vancouver, it’s like the tropics out here

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    1- BCIT warning of layoffs in 2014

    http://globalnews.ca/news/1034277/bcit-warning-of-layoffs-in-2014/

    2- Why the world’s best and brightest struggle to find jobs in Canada
    Why do skilled immigrants often fare worse here than in the U.S. and U.K.?

    http://www2.macleans.ca/2013/04/24/land-of-misfortune/#

    3 – The Looming Lost Decade

    http://www.project-syndicate.org/commentary/ashoka-mody-calls-for-a-global-fiscal-stimulus-to-prevent-the-global-economy-from-falling-into-a-vicious-cycle-of-deflation–liquidity-traps–and-increasingly-pessimistic-expectations

    4 – Work Life: The Living Wage An idea whose time has come

    http://www.policyalternatives.ca/publications/commentary/work-life-living-wage#sthash.L0OEwjtq.dpuf

    5 – How many Canadians have “middle-class jobs”?

    http://www.broadbentinstitute.ca/en/blog/how-many-canadians-have-middle-class-jobs

    6 – Canada names former banker to head housing agency

    http://www.reuters.com/article/2013/12/20/canada-housing-cmhc-idUSL2N0JZ1DG20131220

    7 – Inside the $11.5million nuclear-proof doomsday bunker that was built to look like an ordinary family home

    http://www.dailymail.co.uk/news/article-2527641/See-inside-11-5M-doomsday-bunker-built-average-family-home.html#ixzz2oGv7pQJr

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    RealityCheck Says:
    69

    Hidden due to low comment rating. Click here to see.

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    RealityCheck Says:
    70

    Hidden due to low comment rating. Click here to see.

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    patriotz patriotz Says:
    71

    @70: “After 4-5 years, watch inflation. Then bond yields will rise but so will everything else.”

    OK, say there’s a 1% jump in the inflation rate in 2017. My salary which has been going up 1% a year goes up 2% that year. Mortgage rates go up 1% that year (e.g. from 4% to 5% on fixed term).

    What happens to the amount of money I can borrow if I want to buy that year? Up, down, or unchanged?

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    blah-blah-blah Says:
    72

    @ 10

    “Renting is not a short position.”

    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 are short real estate as soon as your parents cast you off into the cruel, cold world.

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    Just skimmed a couple recent CMHC reports.

    Monthly housing statistics for November are out and completed unabsorbed units in Metro Vancouver are higher than last month:

    Completed unabsorbed units (Vancouver CMA)

    October 2013:
    Detached: 1599
    Attached: 2575
    Total: 4174

    November 2013:
    Detached: 1506
    Attached: 2705
    Total: 4211

    CMHC also just published it’s 2013 Canadian Housing Observer 2013.

    One chart I thought was interesting was a history of completed but unoccupied housing since 1992 (Canada wide). The long term average looks to be about 4.6-4.7 per 10,000 people and we’re currently at about 5 or maybe slightly over 5 on a national basis.

    However, in Vancouver we currently sit at 17.1 (using most recent CMA population estimates)

    This compares to:
    Toronto: 2.1
    Montreal: 6.5
    Calgary: 5.0
    Ottawa: 6.7
    Edmonton: 10.0

    We should expect a lot more completions in 2014, it wouldn’t be surprising to see that number hit 20 for Vancouver.

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    RealityCheck Says:
    74

    Hidden due to low comment rating. Click here to see.

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    RealityCheck Says:
    75

    Hidden due to low comment rating. Click here to see.

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    The quicker trolls are voted down the quicker they go away.

    Must be sad to have all those carefully worded responses hidden so quickly. How does one go through life that way? I can’t imagine.

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    Realtors analyzing and blaming jobs for the slowdown in real estate.

    grasp.

    straw.

    http://www.news1130.com/2013/12/22/vancouvers-dismal-job-creation-leading-to-economic-slowdown/

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    @N #50

    ” Do you understand that, even if the BoC leaves rates where they are, mortgage rates are set by the bond market? ”

    Sadly, the home buyer crowd does NOT understand.
    The long running bull market in bonds is SO obviously over that even the FED has no control over it, never mind impotent Poloz with his little pop gun.
    The only possible way to attract investors to buy bonds is higher rates, much higher, for a long time to come.

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    Mortgageslave Says:
    79

    “Who borrows more than $400,000?”

    LMFAO!!! Like everybody I know who has bought a house in the past 5 years. This would be around 10 couples. 10% down on a $900K home in East Van. 10% on a 550k home in Pitt Meadows, 5% down on a 630k place in Delta, I can go on and on. You don’t have a clue!

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    Mortgageslave Says:
    80

    Just to remind you that detached homes are $1 Million plus in Vancouver. Do you really think people are buying a starter with 50,000 down and a $950,000 mortgage? With $5000/month payments?

    Yes and yes (pretty close anyways). Ever heard of a Mortgage Helper? Of course payments would be closer to 3k and these are the bright ones that took 40 year ammortizations. These are “investments” don’t you know! Once the Value goes up 20 to 30% they’ll be fine. Looks whats happened over the past 10 years and “past performance always reflect future potential gaines” or something like that. Most people actually believe that though…

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    Mortgageslave Says:
    81

    “Who borrows more than $400,000?”

    Just to add to this brilliant statement I have a single coworker who bought a 2 bedroom condo in Burnaby for “Close to 500k” (his words) with 10 per down. He thinks it’s an investment and he makes 60k. I laugh when people say, we don’t have subprime loans in Canada. You want to know when the crash will take affect? It’s when people renegotiate their mortgage terms in the next 3 to 5 years. “how come you qualified me for a $500k loan 5 years ago? It’s gonna get ugly and it’s inevitable because if 90% of people I know bit off more than they can chew then I doubt the rest of Vancouver is any different.

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    Mortgageslave Says:
    82

    PSsst Softy.. hear that??? Yes, Nothing I know. It’s because the credit tap has been shut off. No more credit debt to facilitate the housing market. Who knew that it was just loose credit standards that made the Houseing Market explode in the first place. Oh wait, that was the same cause as in the US… Doh!

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    RealityCheck Says:
    83

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    RealityCheck Says:
    84

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

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    “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 further ahead financially.

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

    http://gawker.com/new-jersey-realtors-caught-on-camera-having-sex-in-a-cl-1488323799

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    New Listings 80
    Price Changes 25
    Sold Listings 94
    TI:13126

    http://www.paulboenisch.com

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    Son of Ponzi Says:
    89

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

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

    Why? Does it affect the price of Toyotas?

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    “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.

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    @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 of QE. Int rates will be determined by the private sector, and the private sector will be demanding higher bond yields.

    It shouldn’t take a rocket scientist to figure out what substantially higher mortgage payments will do to the housing market…think double.

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    FED up? Hundred years of manipulating the US dollar

    http://rt.com/op-edge/fed-us-dollar-manipulate-049/

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    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.

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    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).

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    RealityCheck Says:
    97

    Hidden due to low comment rating. Click here to see.

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    RealityCheck Says:
    98

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    patriotz patriotz Says:
    99

    @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.

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    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

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    @ 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.

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    Randy Randerson Says:
    102

    @100

    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.

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    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.

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    blah-blah-blah Says:
    104

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    realtorbaby Says:
    105

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    Merry Christmas and happy holidays everyone!!

    New Listings 45
    Price Changes 10
    Sold Listings 129
    TI12996

    http://www.paulboenisch.com

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    mls watch Says:
    108

    @102

    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.

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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 it were possible to calculate the lost money on a sales price due to the condo building not being fully maintained, and added up the amount with each sale, it would become clearer to owners that it really is in their financial best interest to maintain their buildings properly, and a Depreciation Report helps to accomplish this.

    On our Tools section, we offer all sorts of helpful articles for buyer and sellers who want to accomplish their real estate goals while saving money. Please see: http://wellisted.com

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