Are home buyers foolish?

Seems a rather odd question to ask, after all homebuyers have seen a sharp rise in equity over the last several years.

But a sharp correction in the US seems to have split young buyers on the option of buying.

Some see it as a good investment, but there are apparently increasing numbers of young Americans who view property as an anchor limiting mobility rather than a sensible investment.

When Kimberly walked up to the front door of a beautiful, 7,500 square foot colonial, anchored in a terrific cul-de-sac in northern Baltimore County, she said to herself: “All my life I thought this was what I wanted. But as beautiful as this property is, I see nothing but a money pit and a trap.”

The 32-year old congressional aide who was arriving at the house for a charity event chose to satisfy her curiosity by exploring the grand rooms and perfect fixtures, only to finally decide, “Yeah, not only would I never buy an individual house, I’d be shocked if my friends would as well.”

Read the full article over at CNBC.

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crabman
Guest
crabman

Typical emotion-based investment analysis. If that woman lived in Vancouver (or it were 2005 in D.C.) she and her friends would be dying to buy.

southseacompany
Member
southseacompany

CBC: “How the housing market has cooled in most of Canada”

http://www.cbc.ca/news/business/how-the-housing-market-has-cooled-in-most-of-canada-1.2707753

“”I think the low interest rates have become a curse, not a blessing for the economy because it’s encouraging people to pay even higher prices for housing relative to their income,” David Madani said. “And when interest rates start to creep back up, affordability will become an even greater problem.””

“When that happens, Madani said there will be a much larger decline in home sales, and when prices begin to drop nationally, prospective home buyers, seeing prices edging down, will postpone or delay their purchasing decision.”

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

holly shit. for how many years have you people been harping about rates? half your mortgage would have been paid off by now.

Renter-Saver.
Guest
Renter-Saver.

@#3 Actually, most of my mortgage is paid off. It’s just that it’s still sitting in the bank, albeit in mild investments. But, that means I won’t be paying $320k in interested payments on $500k I now don’t have to borrow, didn’t have to pay $40k in condo fees over the last 8 years, did paid $120 in rent over that time, but still a net savings of $240.

Meanwhile, the average price of a Vancouver condo is still the same as it was in spring of 2008.

Why buy?

Reality Check
Guest
Reality Check

Mainlanders don’t want their skin to get dark.

Darker skin means working peasants. Lighter skin means status.

@Reality Check
Guest
@Reality Check

Mainlanders?

I’ve lived in Richmond for 30 years, and the non-Mainlanders are the ones I’ve seen walking around with umbrellas on clear days, full face sun shields, etc.

The Mainlanders I know are very outdoor oriented. They go camping, fishing, and hunting. Put their kids in sports.

Joe Mainlander
Guest
Joe Mainlander

Round these here parts, all the folks who don’t live on ‘The Island’ are ‘Mainlanders’.

At least add a descriptive qualifier ie. “Mainland Chinese”.

I don’t care where folks come from, but I’d hate to see our local idioms and nomenclature lost. We’re all Lower Mainlanders here. And here is where were at, not there.

northwig
Guest
northwig

i’d like to welcome Jupiter ingress Leo, as of 3:31am PST

@Reality Check
Guest
@Reality Check

The only gun store in Richmond was opened by mainlanders because of the growing market in Richmond due to mainland immigration.

http://westcoasthunting.ca/

Mainlander hunters and fishers don’t pay much attention to rules, licenses, quotas etc. I predict that this will come to the surface and become another source of tensions.

For example, I know of one man who bought millions of dollars worth of rugged land in the north shore, which he uses as his personal hunting ground disregarding regulations.

VanRant
Member
VanRant

“China widens anti-corruption drive to officials with family abroad” Reuters
Wonder how many are living in West Van.

T
Guest
T

haha. Mainlanders hunting? I haven’t met any asians (not just mainlanders) that hunt, unless they’ve been westernized.

Now the thing about quotas and poaching. That’s been done with, I remember back in the 90’s I would go down to White Rock or Amberside with my folks and we’d have no problems hitting our dollar bill male quotas. Now when I go back with my kids, we get nothing.

It wasn’t Mainlanders that cleared out those locations, it was mostly Filipinos. I have nothing against them, but that is what I observed every time I went.

@T
Guest
@T

That’s because most of the Asians you’ve met have been from HK, Singapore, Taiwan.

Don’t forget, Mao forced educated urban people into rural re-education camps. Despite being horrible experiences people tried to make the best of their situation. They gained an appreciation of rural life through exposure.

Contrast that with North America, where educated, urban people look at rural lifestyles and values with disdain and ridicule.

franko
Member
franko

” Haven’t met any Asians that hunt ”

Big market in aphrodisiacs from animal parts.

Melba
Guest
Melba

….I know of one man who bought millions of dollars worth of rugged land in the north shore….

So, in other words, he bought a lot?

tedeastside
Member
tedeastside

this lady should know that the Washington DC, Baltimore area is not the best place one earth like vancouver, you cant ski, sail and snowshoe in the same day…..and what kind of career opportunity does DC, Baltimore have…not lululemon and 1-800 got junk like world class vancouver

patriotz
Member

@12:

That’s pretty funny, given that the Chinese economy is based on the exploitation of migrant workers from rural areas who don’t have any rights compared to the official residents in the cities they work in.

space889
Member
space889
Aggregator
Guest
Aggregator

Ha. I think I got banned from GT’s blog. He didn’t seem to like postings (with evidence) about how Canadian banks are illegally wiring money from China. I think that may have made him nervous for some reason. Makes you wonder why he denies HAM. I know he reads this blog.

Girlbear
Guest
Girlbear
patriotz
Member

@18: “He didn’t seem to like postings (with evidence) about how Canadian banks are illegally wiring money from China. ”

The Canadian banks aren’t doing anything illegal. It’s the responsibility of the Chinese banks to observe Chinese law when sending money out of the country.

Keep in mind that in China “legal” and “illegal” don’t correspond to “you can do it” and “you can’t do it”.

LL
Guest
LL

Re: Chinese money flowing illegally from China through Canadian banks – don’t stop it, tax the shit out of it.

Re: Curbing foreign ownership of Canadian real estate – don’t curb it, tax the shit out of it.

It’s time for real Canadians to be opportunistic for a change. All the livestock are here now enjoying the free ride, it’s time to harvest and reap the rewards now.

Gord
Guest
Gord

You have to admit, this blast from the past is humorous!

Great Canadian real estate crash of 2013
The housing bubble has burst, and few will emerge unscathed
http://www.macleans.ca/economy/business/crash-and-burn/

Today’s numbers:
http://www.theglobeandmail.com/report-on-business/economy/housing/vancouver-and-toronto-property-prices-start-to-percolate-again/article19628229/

“Two pockets of the Canadian housing market that were all but left for dead are now seeing prices gain momentum in a major way,” Kavcic writes.
“In Vancouver, which endured a mild correction from mid-2012 through 2013, prices are up 5.2 per cent year over year. Toronto condo prices are now up 4.4 per cent year over year, the strongest clip in 2.5 years”

Zero Down Forty
Guest
Zero Down Forty

@#18 The company I work for has clients in China… and US, Australia, elsewhere. How do you think we get paid? They wire money to my firm’s bank account. There is nothing illegal about that. I would think that millions get wired everyday in and out of Canada form around the world.

Aggregator, if some Chinese guy want’s to wire you a poop-load of cash because you did work for him, or because he thinks your brilliant, or because he likes the cut of your jib, guess what, it’s not illegal here in Canada. As long as you declare it as income. And since it’s sent to a Canadian bank, it’s on record.

Whether the Chinese govt will let him send it or not has nothing to do with Canadian law.

Aggregator
Guest
Aggregator
#23 We're not talking about commercial wire transfers. We're talking about foreigners buying homes with money that is laundered or smuggled out of China and Canadian banks facilitating these transactions. Not to mention, if they're assisting in these types of transactions to skirt the rules, then you can forget about them even doing background checks. Getting Money Out Of China. That’s Illegal. The bottom line here is quite simple. If you are a foreign company making money legally in China and paying your taxes, getting money out of China is not so tough. But if you want to skirt the rules, be prepared to get yourself a really good criminal lawyer. What happened with the Bank of China wasn't a single event. Everybody knows hot money somehow is skirting the rules to buy real estate abroad. The problem this time… Read more »
George
Guest
George
@ Aggregator THANK YOU! You got banned from Garth’s blog–wear it as a badge of honour. You are my favourite internet commenter of all. Not everyone has the time and ability to do what you do. You are doing a very valued public service. Please keep it coming. Regarding the legality/illegality of transferring money out of China, the post of Zero Down Forty and Patriotz are just ridiculous. They are caught up in semantics and technicalities and can’t see the forest for the trees. Even if it is legal, that doesn’t make it morally right! Look at the effect it is having on our society, our city, our environment. Almost entire generations priced out of their communities, people forced to commute to work from distant suburbs, people forced to put of having kids or never having kids, social tension between… Read more »
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