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
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 purposes. They’re even required to submit a flight plan of the drone’s path through the homes. …seems perfectly practicable… “Right now the buzz is awesome,” Jordan said. Just don’t get your finger caught in it. True to form, the MSM… Read more »
Many Franks
Member
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 year. BMO said 43 per cent of those surveyed planned to contribute, down from 50 per cent in 2013. …and that’s the numbers of people *intending* to contribute, which is not to be confused with the number of people who… Read more »
Dave
Member

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 till at least 120 and hopefully 150.

Turkey
Guest
Turkey

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 health care will evolve, I’d recommend focusing on economics instead of science fiction.

RealityCheck
Guest
RealityCheck

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

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

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

Dave
Member

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 technology.

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.

Dave
Member
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 to provide people with the absolute best medicine and technology. If your life plan is based on government fixing all your problems, you might be in for a bit of a shock when it doesn’t turn out that way. My… Read more »
Son of Ponzi
Guest
Son of Ponzi

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

….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

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

RealityCheck
Guest
RealityCheck

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.

Funkeymonkey
Member
Funkeymonkey

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

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

@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:
“My name is Ozymandias, king of kings:
Look on my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.

–Shelley

franko
Member
franko

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

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

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

Franko:

Foreigners will buy on dips.

Learn from experience.

Barb Rennie SS
Member
Barb Rennie SS

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

@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

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
Yunak
Guest
Yunak

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

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