FFFA! Economy, Moving, Morale & Helicopters!

It’s that time of the week again!

Its Friday Free-for-all time!

This is when we do 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:

City employees low on morale
Canada Bubble about to burst?
Too late for warnings?
Harpers investment advice
Interprovincial migration by age
You need $2.3 million to retire
One persons move away experience
Advertorial brings back helicopter meme

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

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Egg Hunt
Guest
Egg Hunt

#139

Very true.

Talking about Bike lanes, I am always wondering who that bike lines are for?
My answer is for Kits elite, who commute from Kits to their fancy downtown office with shiny bike racks.
Kits points bike lanes, Point Grey lanes, West 8th, etc.
There are plenty of bus transit available 24/7 near those streets.
#22, #2, #4, # 7, #44, #32.
Why NOT using public bus services to be green?

Those bike lanes are NOT for the person who lives at Fraser + East 67th commuting to Metrotown retails shops.

Something is not fair in this city.

George
Guest
George
@ jesse #127 Jesse said: “chooses to work outside of Vancouver the relative costs of housing and transportation are going to be less.” I agree and that is precisely why I **choose** to not work in Vancouver, but at a suburban location closer to where I can afford to live. Going forward, it’s increasingly not going to make much sense for many people to **choose** to work in Vancouver. We already have something like 75% of the population of Metro Vancouver living in municipalities other than the City of Vancouver. That percentage is only going to increase as the suburbs are growing much faster than COV and that is partly because high housing costs in Vancouver are pushing people to the suburbs. Now we are seeing the costs of commuting increasing. The zone system for transit punishes commuters from the… Read more »
patriotz
Member

@124: “have been to a few of the open houses in the Wall Centre. I know I am just imagining this but all the agents I’ve met have all been Asian and all are selling condos from people who bought pre-sale who are not living in Canada.”

Why don’t they just sell to another offshore buyer rather than trying to sell to you?

Aren’t you implying that the offshore buyers are moving from the buy side to the sell side?

tedeastside
Member
tedeastside

people pay a fortune to live in vancouver cuz of the outdoor activity opportunities….even though Atlanta has better outdoor activity than Vancouver, vancity`s climate LOL!!!

Absinthe
Member
Absinthe
Also on rental rates: Average Metro household income, 2011 – $63K. Meaning median housing affordability is about $1750, all in (heat/electricity included). Half of the population would be best served paying less than $1750. I think there’s a bit of a disconnect. But I don’t think people move as easily as you suggest, Jesse. I know that people stick it out and hope for better year by year until the credit runs dry and the hole is too big. We’re not in that situation, but for sure it would be economically smarter to leave. But the cost is hard to balance. Economically, the job network in-city is a good reason to stay, as is our extended family. I’m a small business owner and it was years of dues paying that I’d have to redo or move on. Even still, we’ve… Read more »
Absinthe
Member
Absinthe

@Jesse – BC residents have the highest non-mortgage debt around; indirect evidence of some cost-of-living strain, I think. Of course some will be HELOC … but I have more exposure to renters, and indebtedness is intense on the renter side, too.

heimlich maneuver
Guest
heimlich maneuver

….Just got back from big white near kelowna. Desperate condo builders selling off units for60% less than original prices. Even at that they don’t make sense as rentals. Ouch
Some in receivership. And no t much snow this year. Quiet…..

Also true for Whistler. You know, ‘Whistler’ – that place north of Squamish that used to be a ski resort. LOL

Gab
Guest
Gab
#129 Renter If you talking about less than 600 Sq ft 1BR Wall Centre it maybe the Wall Centre the north east corner of Burrard + Nelson (1088 Nelson?), Wall Centre what I referred to is 1050 Burrard, just in front of St Paul Hospital entrance. I found 1050 Burrard more solid, spacious (1BR is over 600 sq. ft, 2BR likely around 1,000), a bit dated (almost 20 years old), but well maitained strata. 1088 Nelson one, as far as I know, there was (is?) controvercial special assessment – due to the glass windows defect – and myself stayed in lower hotel units several times, structure is far from solid. 1050 Burrard 1BR strats fee is less than $300, 2BR around $450? still fine with swimming pool (shared with hotel), room service with fees, no significant special assessment since it… Read more »
condo_day_ftw
Guest
condo_day_ftw

I know the details of two friends who rent in new buildings near the Olympic Village.
One pays $1900 for a spacious (by recent standards) 2BR.
One pays $1350 for a 1BR (which I have not yet been invited to and can not comment on how large or nice it is.)

Renter
Guest
Renter

Inventory gonna hit record high this June mark my words, storms brewing

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

#129

I agree those rents are not what is happening out there. Who is paying $1750 for a small 1 bd rm?

A 550 sq ft loft in the Spot on Seymour is $1450 MAX. I know of two being rented for $1300. Its a 15 yr+ old building in a great location.

Renter
Guest
Renter

@ mac, I live in the wall center, 567 sq ft one bed ans den and parking stall & band giant locker $1450 a month, there were many like this when I moved in, silly landlord bought to flip, but will loose $ so they rent and loose money # monthly, death by a thousand paper cuts, and by the way I feel very sorry for the poor owners, as this building is a piece of crap

jesse
Member

” Since you lost that house, your next move would be to bid in a slightly lesser valued home with $2.4M”

And so on down the line. The question is, have rents been rising in lock-step with rising prices, or is it mostly prices that have risen? I’m sure HAM has an effect because it exists, but I’m somewhat suspect of its “velocity” throughout the region.

jesse
Member
“If by region-wide you mean the rest of BC” No the “region” is GVRD, ie broadly the census metropolitan area, much of which has no observable “HAM” “Do you have the data to support that rents are actually high region-wide? Is family housing unattainable or unaffordable region-wide? It’d be nice to comapare.” CMHC rental data can be found on their website, which includes a reasonably detailed look at rents of purpose-built rental units in the regional Vancouver area. Other surveys of “amateur” rents have been conducted, I think you can find some data on the metro vancouver website if you’re interested. “Family” housing is available at lower values, both prices and rents, further away from the core; adding in transportation and commuting time costs is a consideration if one’s job is tied to the City, but not all jobs are… Read more »
paulb
Member

New Listings 307
Price Changes 83
Sold Listings 90
TI:13170

http://www.paulboenisch.com

Son of Ponzi
Guest
Son of Ponzi

We were told, that 2013 was a better year for sales than 2012.
Well, I just got a pamphlet from Austin Kay and Anita Chan, Top Realtors in Richmond.
They sold 102 in 2013 vs. 106 in 2012.
Both years are well below 2011 (171), 2010 (164), 2009 (166).

mac
Member
mac
Aleksy, That’s good. Deals are out there for sure if you’re willing to compromise new or size or light. As for the OV — on the sales and not rental side — have been to a few of the open houses in the Wall Centre. I know I am just imagining this but all the agents I’ve met have all been Asian and all are selling condos from people who bought pre-sale who are not living in Canada. Obviously, it would be too curious if these owners were Asian too, so let’s say, we don’t know who bought all these units only that the agent complains that they are losing money. Not too much money, mind, but the cost of agent’s fees. That kind of irritates me because I would like to see these “eeenvestors” (as they are reverentially referred… Read more »
Son of Ponzi
Guest
Son of Ponzi

“Enterpreneur” is an Entrepreneur who entered from Asia.
It’s a new class of business immigrants, who get their Citizenship once they’ve been accepted at a fancy Country Club.

Yunak
Guest
Yunak

6 out of ten were applicants with Asian names.
All cited “Enterpreneur” as their occupation.

It is quite surprising that those bastards even know how to spell that word.

Son of Ponzi
Guest
Son of Ponzi

A Bloomberg report on business friendly climate ranks Canada 2nd behind HongKong.
Probably looked only at Vancouver

patriotz
Member

@118: “bare in mind, your rental income is 100% taxable.”

What income?

Aleksey
Guest
Aleksey

@mac
Regarding the apartment I’m renting. ~30 years old concrete building, 850 sq. ft., updated kitchen and washroom. Landlord is very good and responsive. When I had a problem with dishwasher he just bought a new one. I know that a newer building across the street would charge 1800 for the same size apartment, but I don’t care because I really like the one we rent. I can save $300 every month by living in 30 years old building instead of 10 years old. That works for me.

Gab
Guest
Gab
#115 mac Thanks Mac If you talk about 2,000 sq ft rental, assume it is within City of Vancouver, real estate value is about $1MM and up, correct? Based on above assumption, in my opinion, $3K~$5K per month is very cheap. $1MM even if you get for cash, your opportunity cost is easily $40~$50K / year. Propery taxes $6~$8K, house insurance, lets’ say $1,200? Not to mention if you have 50% downpayment ($500K cash outright), you borrow $500K, your mortgage is about $1,600/ month, oppotunity cost is $20K / year. Landload is clearly subsidizing tenants in this case. (you’ve got to have about $10K / month to make it profitable, unless you are just hoping for capital gains, only true by the time of sale) On the other hand, The Hudson, you can possibly get 1BR for $350K, if you… Read more »
gordholio
Member

#112: “rat-like people”? I seriously laughed out loud at that.

So who do we blame now? HAM? RAT (Random Asshats & Troglodytes)?

Whoever it is, they’re financial masochists to buy into this pig now.

Many Franks
Member
Active Member
Today’s dose of obvious courtesy of Doug Alexander. TD’s Clark Sees Canada’s Economy Trailing U.S. as Debt Increases “Canada could well undergrow the United States for the next three or four years, which means we’re going to have lower interest rates for longer,” Clark, 66, said today in an interview at the bank’s Toronto headquarters. “There’s a risk that people are going to keep borrowing.” Canada’s economy, once the envy of developed countries following the global recession, is struggling to gain momentum as households deal with record debts. Low interest rates have pushed the nation’s ratio of debt to disposable income to a record 163.7 percent in the third quarter, according to Statistics Canada. “We’ve learned around the world that when you make the consumer indebted like that, their ability to withstand shocks is dramatically less,” Clark said. “So the… Read more »