FFFA! Rate, Drop, Evaluate, Condos

It’s that time of the week again!

Time for another Friday Free-for-all.

This is our regular end of the week news roundup and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Poloz: long term rates headed up
Evaluate my condo deal
Condo Market Report
Vancouver housing drop song
10 reasons the gold bugs lost their shirts

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

Sort by:   newest | oldest | most voted
Many Franks
Member
2 years 5 months ago
Looks like the Macnab bros’ “get drunk in a limo, buy a condo” stunt was so successful that they’ve ditched it and are now trying unmanned drones. “We kind of wanted to showcase the properties like Hollywood-style trailers. We just wanted to make them as cool as our properties are that we’re trying to sell,” Jordan said. Finally, someone to give the Michael Bay treatment to drizzle on windows. The Macnabs are able to fly the drones inside the rooms of homes and condos, but must obtain a special permit from Transport Canada every time they use it for commercial… Read more »
Many Franks
Member
2 years 5 months ago
And on the heels of a lot of “Canadians ready to pay down their debts” triumphalism: Fewer Canadians planning RRSP contributions this year: bank polls Fewer Canadians are planning to put money into a Registered Retirement Saving Plan this year simply because they can’t afford it, say surveys by two big banks. Both Scotiabank (TSX:BNS) and Bank of Montreal (TSX:BMO) say many Canadians have other expenses, such as car payments and paying down debt, that are preventing them from making a contribution. Scotiabank found that 31 per cent planned to contribute to their RRSP, down from 39 per cent last… Read more »
Dave
Member
2 years 5 months ago
I think our ideas of retirement are going to change due to new longevity technologies that are on the way. I think many of us are going to live far beyond what the actuaries are predicting. The whole concept of Freedom 55 will seem absurd by the end of the next decade. I think a lot of people won’t even retire, they will just work less in their retirement years. The other way to avoid that is to keep ahead of the curve and save, build your wealth early and let it grow. That’s my plan because I’m staying around… Read more »
Turkey
Guest
Turkey
2 years 5 months ago
I think our ideas of retirement are going to change due to new longevity technologies that are on the way. You and Ray Kurzweil, huh? A couple of years ago, I was on the ferry to Bowen Island for a sailboat race. All of the skippers were aging boomers, and every table I passed hosted a conversation about who’s got cancer, dealing with arthritis, or the finer points of browbeating your doctor into approving knee surgery. This is what aging looks like now. It’s impressive. It’s also unutterably expensive, and it’s breaking the health-care system. If you’re curious about how… Read more »
RealityCheck
Guest
RealityCheck
2 years 5 months ago

Dollar approaching 90 cents. Hope you prepared for the massive inflation heading your way. Oh the gov will say there there is no inflation lol.
Food about to skyrocket. Along with gasoline and most all other imports.

Gov’s solution will be to bring in more immigrants….keeping up housing prices.

RealityCheck
Guest
RealityCheck
2 years 5 months ago

Oh TedEastSide:

The people of Sunny Santa Monica are looking at an average detached house in Vancouver see a sale. With the C$ down, houses here just became $100,000 cheaper in a matter of months!

You going to buy soon?

Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

#4
bang on!
All this longevity comes at a price tag that will ruin the economy.

Dave
Member
2 years 5 months ago
Turkey, I think the older boomers will miss new technologies for the most-part. The healthy younger ones might catch it on time. I think Kurzweil is too optimistic on his timelines and I think change is generally more gradual and slow. A doubling of lifespan doesn’t strike me as a crazy concept either biologically or technologically. The only question in my mind is when. Getting beyond a doubling is where I think the debate enters into science fiction. That’s not to say those things won’t happen, I just don’t think anybody really knows how far we can push biology and… Read more »
Dave
Member
2 years 5 months ago
Ponzi, the whole idea that government should provide everything to everybody is insane. The existing systems will have to change. CPP can’t last as it currently is. We’ll have to keep bumping up the age that people get benefits. Public sector pensions will have to change. Retiring with a gold plated pension at 55 is no longer reasonable. It made sense 50 years ago, but not with the current demographic trends. And finally, health care is going to have to change. I think we are going to be faced with some tough decisions going forward. The government won’t be able… Read more »
Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

Dave,
This reminds of the yogurt commercial way back.
The 100 year old Russian ladies claiming they owed their longevity to eating that specific brand of yogurt.
Turned out they all lied about their ages.

Melba
Guest
Melba
2 years 5 months ago

….The 100 year old Russian ladies claiming they owed their longevity to eating that specific brand of yogurt. Turned out they all lied about their ages…..

And the yogurt.

Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

# 11
good point.
Just like the Realtors, whose pictures on their business cards are at least 20 years younger.

RealityCheck
Guest
RealityCheck
2 years 5 months ago

dave:

Simple solution.

Bases personal tax on wealth and not income. The uneducated masses who are the bottom 80% are too blind to see this.

In our extended families, the richest people are the ones with the lowest working incomes. Furthermore, they all qualify for baby bonuses, pharmacare, etc. Yet they live in the biggest houses and drive the nicest cars.

Too blind i tell you.

Funky monkey
Guest
Funky monkey
2 years 5 months ago

Realitycheck I don’t think most people in Santa Monica have ever heard of Vancouver. 23 degree high in Santa Monica today hi of 28 on Tuesday.
I bet the people down there are wishing they are spending the winter in Vancouver.
Oh and do an mls search I was down there a few years ago and home prices where the same or less than Vancouver.

BWilson
Guest
BWilson
2 years 5 months ago

So the headline on the Vancouver Sun website says that Canada lost jobs but BC added jobs in December.

But full time jobs were -10,300 for the month in BC and part time was +23,100 so that’s a pretty hollow gain. Tough to buy real estate on a part time job isn’t it?

All the while, starts perked up in December and are now closing in on 19,000 on a trailing 12 month basis.

From econ 101, when supply goes up and demand goes down what happens to prices?

Turkey
Guest
Turkey
2 years 5 months ago
@Dave, If it doesn’t look like I will make it beyond 120, then I will bury all my gold to find in the next life. I met a traveller from an antique land Who said: Two vast and trunkless legs of stone Stand in the desert. Near them, on the sand, Half sunk, a shattered visage lies, whose frown, And wrinkled lip, and sneer of cold command, Tell that its sculptor well those passions read Which yet survive, stamped on these lifeless things, The hand that mocked them and the heart that fed: And on the pedestal these words appear:… Read more »
franko
Member
franko
2 years 5 months ago

Ouch!

Canadian real estate has taken a 10% haircut over the last 10 months just from the drop in the C$, while holders of US equities have gained at least 10%.

All indications are that the C$ will continue to sink. That will likely put more pressure on nervous foreign holders of Can RE to sell, especially with higher rates looming.

Snake
Guest
Snake
2 years 5 months ago

Statistics Canada says 45,900 jobs lost in December, unemployment rate rises

http://www.cbc.ca/news/business/canada-loses-nearly-46-000-jobs-in-december-1.2491374

RealityCheck
Guest
RealityCheck
2 years 5 months ago

Biggest one day drop in 5 year bond yields in years.

Now at 1.76%

Expect 2.99% mortgages very soon again.

Keep down voting me and avoiding reality in the meantime.

RealityCheck
Guest
RealityCheck
2 years 5 months ago

Franko:

Foreigners will buy on dips.

Learn from experience.

Barb Rennie SS
Member
Barb Rennie SS
2 years 5 months ago

To 2.79% 5 yr. NEVER AGAIN (previous post)

“Asians like free. Hilarious and true. Stating a simple fact does not make one racist”

Caucasians like to bitch instead of working harder. Stating a simple fact does not make one racist”

franko
Member
franko
2 years 5 months ago

@20

Don’t normally respond to “dips” but here goes:

” Foreigners will buy on dips ”

-Even “dips would not be dumb enough to buy with the sinking C$.
-We just had the worst Can jobs report possible.
-Higher rates are a certainty.
-Demographics continue to deteriorate.
-Affordability remains at insane levels.
-Despite the recent buying panic by pre-approved borrowers to beat the rate hike, prices haven’t budged.
-Those rocket scientists who borrowed from the future will create a big gap in demand come spring.

Could the situation possibly be any worse?

Brian Ripley
Guest
Brian Ripley
2 years 5 months ago

re #19 Reality Check’s “Expect 2.99% mortgages very soon again.”

Why not? There is a precedent. Check out the 30 year chart of the Japanese 10yr Yield which has a mean of just over 3%:
http://www.chpc.biz/2/post/2014/01/fed-stress-index.html

As software “consumes the world” and apps replace labour, we are going to need long term low cost money to start building new social policy infrastructure like efficient buildings, transportaion etc. I live in a 10 year old Vancouver building that uses electric crappy baseboard “toasters” as a heat source. There is a lot of stuff to fix in Canada.

Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

Who are the job seekers in Canada?
(for a clearer photo, tab the little icon on the bottom right)

http://www.theglobeandmail.com/report-on-business/economy/jobs/who-hired-who-fired-canadas-labour-market-ends-year-with-a-whimper/article16278774/

Yunak
Guest
Yunak
2 years 5 months ago

Here we go again with helicopters and RE. Arabs and Iranians will like it.

http://bc.ctvnews.ca/drones-getting-buzz-in-vancouver-s-real-estate-market-1.1632914

RealityCheck
Guest
RealityCheck
2 years 5 months ago

Franko, you are an eternal pessimist. That is how you see the world.

FYI, Rates attached to the bond yield went down the most in 2 years today. How are you so blind not to see that?….and you say rates are going up like every other moron said over the last 4 years…

Rates aren’t going anywhere. Canada and the housing market can’t afford that. Instead we will let the C $ sink.

By the way, do you own your own home? Or are we just basement swelling armchair economists?

RealityCheck
Guest
RealityCheck
2 years 5 months ago

And in response to your racist comment directed towards me, I say Fuck you!

space889
Member
space889
2 years 5 months ago

I have to go with Dave on this one about longevity. John Mauldin’s latest Thoughts from Frontline letter just happens to cover quite a bit about the revolution in biotech and potentially increasing longetivity – read the Age of Transformation part. It’s pretty amazing, though if it does come to pass, our society will likely segregate into a world like Justin Timberlake’s Time Out.

https://www.mauldineconomics.com/frontlinethoughts/forecast-2014-the-human-transformation-revolution

Burt
Guest
Burt
2 years 5 months ago
Canada is about to get punished by the US recovery. The media pundits called us prudent for avoiding the 08 crisis, the reality of the situation is that we managed to put it on pause as our debt continued to pile on. The problems with “booms” in todays economy is that they are credit fuelled, unfortunately basic arithmetic states that credit growth cannot continue indefinitely. The US took its lumps, painful ones, but they delevarged and are ready to enjoy another bout of credited fuelled growth. Canada on the other hand has managed to pile on record high mortgage debt,… Read more »
Dave
Member
2 years 5 months ago
space889, I sometimes think we forget to see the forest through the trees. We have guys like jesse giving out financial planning advice, but how often do we consider game changers like an increase in longevity? I don’t think our government is, nor any public sector retirement plan. I certainly don’t think most people are anticipating this. And maybe a lot of people won’t go down the longevity path by choice. I think life planning decisions need to take those things into account, unless you’re on the lead bullet retirement plan. Housing is a big part of financial planning of… Read more »
taylor192
Member
2 years 5 months ago

Can we finally IP ban RealityCheck for this comment in #27?

I don’t see the value he adds to this site as his posts are consistently voted into neverland. It is time to tell him to find a bull RE site.

Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

Dave and space,
Just don’t think it’s gonna happen.
Old diseases are making a comeback. There’ll will be pandemic of Alheimer’s and other cognitive related diseases.
Can’t beat Mother Nature. Enjoy life while you’re still healthy.

/dev/null
Member
/dev/null
2 years 5 months ago
Around here I try to keep quiet and read because RE isn’t my expertise (which I why I’m here). But as someone with some knowledge around biology I have to say that, in my opinion, adding the next 40 years to life expectancy (i.e. from 80 to 120) is going to be a much harder nut to crack than the last 40 (40->80). We can’t do it well in simple organisms yet, so progress in humans seems to be far down the road. I’m happy to be proven wrong, though. To me it seems unreasonable (if not financially irresponsible) for… Read more »
/dev/null
Member
/dev/null
2 years 5 months ago
On topic: Stuck: Why Americans Stopped Moving to the Richest States http://m.theatlantic.com/business/archive/2014/01/stuck-why-americans-stopped-moving-to-the-richest-states/282969/ Americans aren’t simply moving to the states with the lowest unemployment (Oregon, Tennessee, and North Carolina all have jobless rates above the national average). More importantly, we aren’t moving to states with the best records for low-income families getting ahead. In fact, we’re often fleeing the best places for a upwardly mobile middle class. According to Harvard’s Equality of Opportunity Project, the states with the most upwardly mobile cities include Pennsylvania (with five of the top 12 cities), New York and New Jersey (Albany, Newark, and New York… Read more »
tedeastside
Member
tedeastside
2 years 5 months ago

99% of people in Los Angeles have never heard of vancouver BC,
not that an American would ever move to Vancouver anyway

UBC in crisis mode
Guest
UBC in crisis mode
2 years 5 months ago

Talking about jobs (non existed in Vancouver), Canada’s only high tech company CGI is famous now:

http://www.nytimes.com/2014/01/11/us/us-parts-ways-with-contractor-for-troubled-health-website.html?partner=rss&emc=rss&smid=tw-nytimes

Dave
Member
2 years 5 months ago

/dev/null, that’s the inherent problem with ‘black swans’. They are pretty hard to plan and make contingencies for. Damned if you do and damned if you don’t.

We shall see about this one. Here’s hoping I don’t have to bury my pot of gold next to Ozymandius. I want to live a long time because I like me.

franko
Member
franko
2 years 5 months ago
@RealityCheck #25 ” By the way, do you own your home? or are we just basement swelling armchair economists? ” I feel kind of silly responding to a troll twice in one day, but just to set you straight: I’m a retired builder, probably three times older than you (yup, believe it or not, not every poster on this site is under 30). I was buying investment properties when you were probably stealing hubcaps or bringing apples to your teacher. Yes, I own my own home, but I have sold several investment properties over the last 6 years with the… Read more »
Turkey
Guest
Turkey
2 years 5 months ago

@Dave,

I want to live a long time because I like me.

I’ll drink to that!

George
Guest
George
2 years 5 months ago
I am doubtful that baby boomers are going to be the generation that extends average life expectacy beyond 100. A baby boomer I know told me he expects just the opposite–baby boomers will have shorter life expectancies than their parents’ generation (who live to about 80) and are going to really start dieing off once they hit their 70s. He said this is because a lot of baby boomers have decades of hard living under their belts–they’ve inbibed more on booze and drugs than the generations before them. Many baby boomers in their 50s are still trying to live as… Read more »
patriotz
Member
2 years 5 months ago

@33: “adding the next 40 years to life expectancy (i.e. from 80 to 120) is going to be a much harder nut to crack than the last 40 (40->80)”

Almost all the increase in life expectancy from 40 to 80 years has been the result of virtually eliminating mortality in children and young adults, due to vaccination, maternal and neonatal care, and industrial safety. Not having a world war lately has also helped. We really haven’t gained much ground at actually extending the natural life span.

Randy Randerson
Guest
Randy Randerson
2 years 5 months ago

http://www.cbc.ca/news/business/canada-loses-nearly-46-000-jobs-in-december-1.2491374

Looks like our Canadian economy, led by our great leader Harper, is going down the crapper faster than we can say “This time it’s different!” No matter how low the mortgage rate is, if you don’t have a job, it makes no difference.

Best place on meth
Guest
Best place on meth
2 years 5 months ago

@Dave

“My retirement plan will assume that I am completely independent and not reliant on others.”

Sure Dave, completely independent.

Except for all those people and companies you’ll rely on to supply you with your food, electricity, gas, communications, durable goods and clothing.

Unless you’re planning on living off the grid, farming, fishing and making your pants out of hemp.

If you are then good on you.

Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

Further to the life expectancy discussion.
If you’re ancestors kicked the bucket early, you’re likely to do so, too.
The Japanese are a good example.

tedeastside
Member
tedeastside
2 years 5 months ago

do all these new immigrants to Canada see pictures of California/Florida and then kick themselves

Dave
Member
2 years 5 months ago

BPOM….. ya.

paulb
Member
2 years 5 months ago

New Listings 208
Price Changes 55
Sold Listings 47
TI:11953

http://www.paulboenisch.com

Johnny-boy
Guest
Johnny-boy
2 years 5 months ago

Psoted this on the wrong day

I heard something CRAZY today. My wife says a friend, who is trying to sell her apartment, was asked by the Realtor to consider INCREASING the price by 30K. The borrower will get a larger mortgage and then the seller pays back the buyer the $30 k on the side which the buyer will use for closing costs and to pay the mortgage for a year and a half. I would not have believed it if the source was not 100% sound.

Aggregator
Guest
Aggregator
2 years 5 months ago
Seems like CMHC has an interest to improve the quality of life in other countries rather then here in Canada. CMHC in China Working with community organizations, the private sector and all levels of government in Canada, the Canada Mortgage and Housing Corporation has been assisting China in providing innovative solutions to high-rise building developments and construction standards. It's a project that has improved quality of life, safety standards, and environmental practices for millions of Chinese citizens... Three weeks of production, and five months in the market later, CMHC has been overwhelmed with contact requests due to the success of… Read more »
Son of Ponzi
Guest
Son of Ponzi
2 years 5 months ago

Johnny Boy,
You should write a book.
Tips like this could make you a billionaire.

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