FFFA! Debt! RRSP! Cars!

It’s that time of the week again – Friday 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:

Canada’s skidding economy
Fear of the Looney
Blanket on head for driving
Debt ridden young flee BC
Inventory back to 2005
Debt monster killing RRSPs
Canadians take on longer auto loans
Comox Valley: Rent too damn high

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

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paulb
Member
Active Member

New Listings 207
Price Changes 55
Sold Listings 87
TI:12499

http://www.paulboenisch.com

Funkeymonkey
Member
Funkeymonkey

The comox landlord sounds like a genus!

ILoveCharts
Guest
ILoveCharts

I’m a bear but I think the Comox landlord is actually doing fine.

Each month, he is putting $40 as an investment into a condo and his tenants are putting in a few hundred into his condo for him (I have no idea if he bought the place last year or twenty years ago.)

There are subtleties (the lost opportunity of his downpayment, the risk of the house losing value, etc.) but this is not a dramatic case in either direction.

southseacompany
Member
southseacompany

Canada’s real estate making headlines in Time Magazine:

“Canada Has Its Own Housing Bubble—And It’s About to Burst” Jan 17, Time.

http://business.time.com/2014/01/17/canada-has-its-own-housing-bubble-and-its-about-to-burst/

First paragraph:

“Ever since the real estate bubble burst in the United States in 2007, observers have pointed to Canada as an example of a well-regulated financial system that has avoided many of the regulatory mistakes that helped lead to an American crash. But Canadians weren’t able to perch on their high horse for very long, as a bubble of their own has been inflating for the past couple years. And now many analysts are watching for that bubble to burst, and soon.”

Dave
Member

Southsea, there has been an article like that every week for the last five years. You can find an article that the stock market is about to crash in some paper every day. There is always a market for fear.

condo_day_ftw
Guest
condo_day_ftw

There have been articles questioning the soundness of the Canadian housing market for the past 5 years, and rightly so. However without a doubt the amount of negative international attention directed at our housing market has picked up significantly in the past 6 months.

Crabs In A Bucket
Guest
Crabs In A Bucket

vancouver is defined by it’s colonial mentality.

Dean B.
Guest
Dean B.

We are 12,000 listings less than 3 weeks into 2014. Does this mean we will be at 24,000 In less than 6 weeks? If so, this is going to be a crazy crash.

UBC in crisis mode
Guest
UBC in crisis mode
Vancouver housing: it is DIFFERENT here: From Hurun Report (about China’s super rich): In recent years,purchasing holiday homes has become very popular. 60% of high net worth individuals are interested in purchasing a holiday home, representing a 5% increase from last year. Yunnan has entered the top 6 for the first time ever as an increasingly popular location in which to buy such homes. Sanya, however, remains the preferred location, especially among the super-rich. Nearly 40% of high net worth individuals are planning to use private jets on a regular basis, with half of those opting to time share. The number of high net worth individuals who have emigrated, or are planning to do so, rose from 60% to 64%, accounting for 1 in 3 super-rich. The United States is still the destination of choice, while the number of individuals… Read more »
YLTNboomerang
Member

This seller is delusional, I actually feel for the Realtor who is never going to get a sale. Prices in general in this area (Edgemont) are delusional however this one is out to lunch not just compared to Price/Rent but just comparing to other houses for sale in the area:

Delusional:
http://beta.realtor.ca/PropertyDetails.aspx?PropertyId=13982687

Here is what $100K less gets you just down the road:
http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13461833

patriotz
Member

@31: “Southsea, there has been an article like that every week for the last five years.”

The Canadian RE market (coast to coast) actually was crashing 5 years ago.

ILoveCharts
Guest
ILoveCharts

If I am going to get downvoted for my comment on the Comox Condo, does anyone care to explain to me how he is in a bad situation?

At $40/month, he will invest $12,000 over 25 years (plus his downpayment,) and will end up owning 100% of a condo unit.

patriotz
Member

@38:

Condos depreciate down to zero because they have negligible land value. That is of course, without substantial future renovations which you are not accounting for.

ILoveCharts
Guest
ILoveCharts

@patriotz, this is Comox so he is almost certainly talking about a three or four story building. I don’t think that the land value is completely negligible.
Besides, lots of 20 – 30 year old condos in Vancouver are still selling for significant $$.

I think there are three categories:
Landlords win: Renters are paying all of your costs(interest, tax, etc.) and all of your principal and giving you additional cash flow at the end of the month.

Renters win: Renters aren’t even covering costs (interest, tax, strata.) Landlord has to pay all of the principal and some of the costs.

Fair: Renters pay all of the costs and some of the principal. Landlord has to pitch in for some of the remaining principal each month.

jesse
Member

“At $40/month, he will invest $12,000 over 25 years”

You mean he pays $40/month and eventually will own the whole condo outright? That kinda seems to be the wrong direction. Typically investments pay you, not the other way round.

Juuuuuuuust sayin’!

patriotz
Member

@40: “this is Comox … I don’t think that the land value is completely negligible”

This is Comox… I think that the land value is completely negligible.

Melba
Guest
Melba

….I’m a bear but I think the Comox landlord is actually doing fine…..

I have large sum of money to invest and would like to realize some significant ongoing losses. Would you be kind enough to provide me with some advice?

Melba
Guest
Melba

…..“Canada Has Its Own Housing Bubble—And It’s About to Burst” Jan 17, Time…..

And they’re referring to Canada in general! When Vancouver bursts, the detritus is going to land in the prairies.

TTFN suckers!

Melba
Guest
Melba

……It is worth noting that of the 64%, only 15% are looking to give up their Chinese nationality, with the majority looking to a permanent residency overseas.

Emigration Destination
1 United States
2 Europe
3 Canada
4 Australia
5 Singapore
6 Hong Kong

So, there’s a whack of rich Chinese that want permanent residency overseas in Hong Kong? Riiiiiight! I’m so pissed off at Canada I’m considering moving offshore to Vancouver Island. Why can’t we get smarter rich people wanting to move here? 🙂

Yunak
Guest
Yunak
Son of Ponzi
Guest
Son of Ponzi

#46
what’s wrong with expecting immigrants to have some basic English skills.

Son of Ponzi
Guest
Son of Ponzi

167 open houses in Maple Ridge !!!
And it’s not even spring.
Sellers are tired of 2 hours commute and no prospect of Skytrain to

Son of Ponzi
Guest
Son of Ponzi

Another ESL challenged Realtor in Ditchmond.
MLS listing V1042386
________________
First time homebuyer alert!! Nicely kept and renovated 2-storey townhome in Woodwards!! This unit functions practical layout with three bedrooms and one bathroom on above and kitchen, living room, dining room and powder room on main. Right beside reputable Steveston-London Secondary School and bus stops. Few mins drive to malls and community centre. Quiet but not far!! Strata fees even include annual city utilities!! This is where you wanna raise your children. Searching no more. Call now for your private showing!!!

Son of Ponzi
Guest
Son of Ponzi

How can Realtors with limited English get a License?
Another example:
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Astoria, locate near Blundell and Heather St. Quiet inside unit with 9′ high ceilings on main floor. 3 bedrooms up and 2 bathrooms. Well managed complex with a spacious playground for kids. Spacious tandem parking where owner has built in big shelves to keep stuff. Well keeping by original owner. Walking distance to Garden city shopping mall. Debeck elementary and Palmer secondary. A pleasure to show. All measurements are approximately. Buyer to verify if important.