Saving is hard.

One of the great things about the Vancouver housing market is that we don’t have subprime lending.  All of our loans are rock solid and even if they weren’t guaranteed by the government banks would still be eager to hand out the same mortgages.

And yet..

If there’s one thing Vancouverites know, it’s that saving money is difficult.

So what are you to do as a responsible first time home buyer who is unable to save up the hefty 5% required to get a CMHC insured mortgage?

Don’t worry, at least one bank has your back: Vancity will match half your downpayment savings on a home priced under $500k.

Still that’s not exactly zero down, since the CMHC scrapped that in 2008, but if saving up 2.5% is still too difficult you may have other options.

But remember, unless you have a poor credit rating this still isn’t subprime.

Apparently it’s gotten harder to get the long term zero down mortgage the CMHC made available in the past, but not impossible.

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UBC in crisis mode
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UBC in crisis mode

It seems Van West SFHs are selling well this month.

After a few months on the market, this owner had a 0.56% price reduction:

5530 Chancellor Blvd, Vancouver, BC, MLS# V1055612

http://www.realtylink.org/prop_search/Detail.cfm?MLS=V1055612&REBoards=All&From=MLS

The Real Deal
Guest
The Real Deal
Vancouver isn’t experiencing immigration from Asian, Vancouver is feeling what it’s like to be on the short end of an economic arbitrage. Income tax in Asia is low, and the social safety net is weak. In Canada income tax is high, and the social safety net is strong. If you work in Asia, you can’t retire early because of the risks of having no income. However, if you take the money you made in Asian, you can come to Canada, retire early, and take advantage of the social programs here. Your children, can enjoy fresh air, cheap universities, and free healthcare. Then when it comes time for your children to work, they can do the same thing you did and go back to Asia to make money. Thousands of Chinese-Canadians lured back to Hong Kong by better job prospects than… Read more »
The Real Deal
Guest
The Real Deal

Maybe we can even kick out some ‘immigrants’ who committed fraud during their immigration process.

How China’s ‘crooked consultants’ help the rich enter Canada
http://www.theglobeandmail.com/news/world/how-chinas-crooked-consultants-help-the-rich-enter-canada/article582664/?page=all

Mainland Chinese flaunting residency rules one reason why Canada cancelled millionaire visa: immigration minister
http://sc.mp/jjvn7

OV
Guest
OV

they should start doing surprise immigration checks on canada line.

Richmond credit card ‘factory’ busted

http://vancouver.24hrs.ca/2014/04/08/richmond-credit-card-factory-busted

Police said the factory had links to Asian organized crime.

The student visa Chen used to enter the country initially, Ashton said, had been expired for more than a decade.

Bo Xilai
Member
Bo Xilai

#4, OV…

Who says Greater Vancouver has no manufacturing base?

We have factories… Credit Card Factories…

franko
Member
franko

FTBs are stretched to the very limit, and as a retired builder I just shake my head at the total crap they are buying when it comes to entry level SFDs.

My god, have they never heard of competent inspectors instead of relying on advise from realtors?
A lot of these dumps are mold infested, outdated, or butchered with shoddy reno attempts. It might not be so bad if they just realised that they were teardowns. But hey, they just gotta have those granite fucking countertops. That’s usually the first commitment to the bottomless money pit.
You just can’t make a silk purse from a sows ear.

The goldmine that they think they’re sitting on is sadly just a minefield waiting for rates to go up, as they must. It’s just a matter of time.

lololololololz
Guest
lololololololz

“If there’s one thing Vancouverites know, it’s that saving money is difficult.”

Get real. Canadians are in the top 10% of the world in terms of opportunities and living standards. Vancouverites even more so.

if its really that hard to save up 15K for a 300K condo, it’s time to re-examine your spending habits.

so ya…cry me a river…

OV
Guest
OV

How an alleged Chinese crime boss escaped to Vancouver

Immigration Canada’s attempt to remove a Macau crime godfather, who has been living in Richmond for the past 17 years with his family, will once again shed a spotlight on a dark period for the government agency when corruption and incompetence allowed many Asian criminals to enter Canada.

http://www.theprovince.com/alleged+Chinese+crime+boss+escaped+Vancouver/9700971/story.html

doesn't square
Guest
doesn't square

we can’t all work in the oil industry.. Personally.. my electronics industry job got shipped to Taiwan in 2000… and I’ve never matched my income since..

.. as for savings.. the largest demographic in Vancouver is the Asia Fusion, and as we know, they are notorious Loophole seekers… and big savers…

so, they’ve grabbed our jobs, then turn around and screw us on housing… lovely

crikey
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crikey

@patriotz #248 (from previous thread)247:
>>“A bank loan can’t go on title against stocks or gold or etc.”
>With stocks it certainly can, it’s called a margin account.

In my experience, the securities in a margin account act as collateral for a line of credit that you take out from the brokerage in order to buy more stock (within the framework of the same bank’s accounts/control).

Are the banks happy and willing to extend that margin account line of credit for cash-in-hand that people will go and invest in something the bank has understanding of? (Those are the kinds of loans that the people in the previous thread were talking about).

And if so, is it advisable? Property and stocks can both fluctuate wildly, but property generally doesn’t fluctuate as quickly as stocks can.

crikey
Guest
crikey

the question in previous post should have read:
“Are the banks happy and willing to extend that margin account line of credit for cash-in-hand that people will go and invest in something the bank has NO understanding of?”

@lololololololz
Guest
@lololololololz

condos are the cheapest housing units in Vancouver. so, the people buying them are on the lowest rung of the home purchase ladder. the low income earners.

so, yeah, it is hard for them to save $15k. these people can’t even afford cars and have to ride their bikes, lol.

they also probably have a lot of debt already.

space889
Member
space889

@The Real Deal – Off course we can, just revoke that non-residency things and be like USA where if you are US citizen you are liable to file taxes with IRS and pay any required income tax on your worldwide income regardless of where you reside or if you have any ties to US.

Or simpler method, automatic revocation of Canadian citizen for those over age of 25, be out of the country for 5 consecutive years (or 5 years in 7) and hasn’t file income tax return or had earned income for at least 3 years over that period.

Problem solved…

space889
Member
space889

@crikey – also even if the borrower have say $800K of blue chip dividend stock that’s supposedly safe and even if the bank can put a “lien” on it as collateral, the bank can’t exactly prevent the borrower from rebalancing their portfolio, or sell the safe stocks and buy say junk bonds and Telsa/Twitter/junior mining stocks after they get the loan.

With a house, any sale proceeds go to the bank first, much safer. Security collateral is barely better than unsecured credit line.

space889
Member
space889
@doesn’t square – Hmmm….how does German workers compete against all those low wage third world countries with their high wage and benefits??? Stop complaining….geez…there are people who worked 20+ years in their industry and then suddenly found out they are out of jobs with no prospects of anything better than minimal wage work thanks to robotics, technology or even Python scripts. World don’t stand still for you and if you aren’t constantly improving yourself then you are falling behind, even if you are just standing still. Unless you are lucky and got a government union job where it is protected from progress and pays you $50K for something that can be automated and cost next to nothing. Technology has destroyed more jobs than any other cause – just ask all those payroll clerks, calculators (yes, there used to be a… Read more »
space889
Member
space889

@lololololololz – Condos are not cheap!!! Ok maybe some are but most aren’t. Anything decent (> 500 sq ft) and in a nice or even just a transit friendly location costs way more than $300K. Even tiny 700 sq ft 2 br outside of Van can go for well over $500K.

So no they aren’t cheap.

Also, if you are throwing $$$ away on rent, proving you are an adult, instead of swallowing your pride and live more cheaply at home if you can then no sympathy from me about can’t save money. You can’t have it both way unless you are making way too much $$$….but then you would probably have bought anyways.

RFM
Guest
RFM
Since this is Vancouver Condo Info, here is the Vancouver condo info on the unit we RENT at 750 W 12th Avenue. Purchased by current owner in 2011 for $620,000; 2-bed, 2-bath, 966sf; total paid including PTT, etc: $635,000. Owner occupied for about 2 years, then personal circumstances called for a move; tried to sell and re-coup investment but couldn’t so decided to rent out and wait for the market to improve. Brilliant! We are vacating and the ‘accidental landlords’ are listing it for sale for $639,000. Loss IF sold for this price would be $30,000. I predict it will sell below $600,000, making their total 3-year loss more than $60,000. Pretty high ‘premium’ to own your own home. Chatting with their realtor, she confirmed that most condo resales at this time by anyone who purchased after about 2007 is… Read more »
space889
Member
space889

Vancouver second most resiliant city in the world, after Toronto

http://www.vancouversun.com/news/Video+Vancouver+second+most+resilient+globally/9716674/story.html

Hard to believe….

crabman
Guest
crabman

1006-1288 Marinaside Crescent is for sale and currently rented.

http://www.6717000.com/mls/V1044916-1006-1288-marinaside-cr.html

Let’s do some math:

Rent: $4,350
Tax: $598
Fees: $777
Net: $2,975

Annual cash flow = $35,700

Annual rate of return on current asking price of $2,080,000 = 1.7%

patriotz
Member

@10: “Are the banks happy and willing to extend that margin account line of credit for cash-in-hand that people will go and invest in something the bank has understanding of? ”

I have a margin account and I can take money out any time I want for any reason I want, up to the margin limit of course. Without talking to anyone. The bank doesn’t care what I use it for as they get paid the same interest in any case. What they care about is the security of the loan and if you know how a margin account works they’ve got lots of it.

patriotz
Member

@2: ” But we can prevent foreigners from coming into Canada and doing the same thing.”

How, given that when someone becomes a Canadian citizen they’re not foreigners any more?

patriotz
Member

@13: ” be like USA where if you are US citizen you are liable to file taxes with IRS and pay any required income tax on your worldwide income regardless of where you reside or if you have any ties to US.”

That law, which was intended to catch rich Americans who move offshore, has become a nightmare for thousands of people who have US citizenship but little other connection to the country, the largest group being Canadians.

I don’t think that citizens going non-resident and then returning is that much of a problem anyway, I think non-reporting of offshore income by deemed residents is much bigger.

In the bigger picture the best way of dealing with “tax arbitrage” is by raising more revenue from property and sales taxes. Like many other sensible ideas, it’s hard to sell politically .

CanuckDownUnder
Member
CanuckDownUnder
If you think putting 5% or 2.5% down is reckless, what do you think of a mortgage lender allowing people to borrow 120% of the purchase price of a property? This is an actual product offered by a lender owned by one of the big 4 Australian banks. They’ve been running ads featuring people pissed off by their roommates who don’t have the money to save for a 5% deposit. No problem, just use the equity in a relative’s property as a guarantee for the loan. I guess if they could sucker in people and loan them 100% LVR they may as well up the ante and go 120%. http://www.rams.com.au/resources/frequently-asked-questions/ “How much deposit do I need? A great no deposit home loan is RAMS Fast Track. You can borrow up to 120% of the full purchase price (or valuation if… Read more »
tedeastside
Member
tedeastside

vancouver is the lowest wage city City in North America…
with the highest prices for anything…so saving isnt as easy as in San Francisco or Winnipeg or Atlanta ….

vancouver has the among the lowest living standards in the industrialized world

Deja Vu!
Guest
Deja Vu!

@24 “vancouver has the among the lowest living standards in the industrialized world”

BS!

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