Its that time of the week again!
Let’s do this open topic discussion thread for the weekend.
-well add links when we need shelter from the sun 🙂
So what are you seeing out there? Post your news links thoughts and anecdotes here and have an excellent weekend!
[…] ‘concerned’ about bubble -Rent VS. Buy in Canada -How well managed is the CMHC? -Canada not immune to a crash? […]
@48 “That extra money will move from wall street to main street.” LOL good one. Main street is up to its eyeballs in debt. Wall street holds the debt. There will be no “extra money”. It evaporates when RE prices tank.
@49 “I thought gold & RE do well in inflation?” Not when inflation leads to higher bond/interest rates.
http://www.bloomberg.com/news/2014-07-14/secret-path-revealed-for-chinese-billions-overseas.html
Last paragraph dedicated to Vancouver.
I thought gold & RE do well in inflation? Also isn’t gold mining companies one of the only industries Van has?
Partial agreement with you Oracle…. The world is awash in sovereign debt and the only way through that is a wave of defaults or several years of very high inflation. And assets might be a good thing to own if that inflation comes, but it won’t be positive residential RE prices. Staples. Art. Gold maybe. Giant wheels of parmesan cheese for sure. But not houses, because the cities will be awash in foreclosures when that happens.
SFD homes will set you back $10 Million in La Jolla suburb of San Diego.
When the bond buying ends, nothing will happen. There is a $4 Trillion dollar Fed balance sheet. That extra money will move from wall street to main street. The policies will increase the velocity of that money and cause inflation.
The smart money is buying assets because they know the only way out of this mess is inflation to wipe away debts.
@#39. But, there will be less money ‘awashing’ in the world come October;
“Fed Sets October End Date For Monthly Asset Purchases”
@39 Here is what $482K Canadian gets you in a prime Dubai marina location. (1380 sq ft condo at $350 sq ft)
http://www.primelocation.com/overseas/details/33806333
Or in Vancouver you can get 650 sq ft for around the same price ($729 sq ft) for something not as nice in a B downtown location:
@42 “I could replace the word ‘Dubai’ with San Diego.” San Diego is up 10.9% over the past year and still well below where it was in 2005 9 years ago. Today you can get a 30 year locked in rate of 3.5% where in 2005 you would be at 6%. Lets see where San Diego prices are when the 30 year mortgage rate goes back to 6%. The median home price in San Diego is currently $470K which doesn’t sound too bad considering you can actually lock in the interest rate for the duration of the mortgage. In Vancouver you pay way more and the rate resets in 5 years. http://www.zillow.com/san-diego-ca/home-values/ In Dubai you can get 1500 sq ft of luxury living space for $1M which is well below where they were at in 2008 and probably half below… Read more »
@42:
Well I could respond with something like this:
http://www.zillow.com/homedetails/3859-Camino-Lindo-San-Diego-CA-92122/16846930_zpid/
Do I think it’s too expensive? Yes, but an $1815/month mortgage is still manageable for a lot of people, and you can lock in today’s rates for the whole amortization of the mortgage.
Needless to say San Diego prices are a good deal less than Vancouver today or their own peak in 2005. But you can’t ski and go sailing the same day. 🙂
I could replace the word ‘Dubai’ with San Diego.
Then how you going to respond patriot?
@39: “Dubai property prices rise 39% year over year!”
From the bottom of a very deep bust.
“Maybe the working man does not matter to property prices anymore.”
The “working man” in Dubai is a Pakistani, Filipino, etc. and certainly doesn’t matter to property prices. The citizens are the upper class.
“The world is awash in money and its buying stocks and real estate.”
Which was also happening in 2000, 2005, etc.
the worlds awash in money…LOL buy looking at vancouver’s sea of ‘For Lease’ i would think otherwise
Dubai property prices rise 39% year over year!
That is not a typo.
Maybe the working man does not matter to property prices anymore. Something to ponder.
The world is awash in money and its buying stocks and real estate.
@#37 Ulsterman; “In working class neighbourhoods little homes can be picked up for 1.5-2 times family income. 3-4 times family income buy a very nice place in a middle class neighbourhood.”
Sounds like an unattainable utopian dream.
@kabloona My parents live in Northern Ireland, home to the UK’s biggest boom-to-bust housing market, so I’ve seen how a good ole bust can play out. NI had very low PE ratio housing prices due to the terrorism issues. Half the population worked (still does) for the government and made decent wages. Houses cost 2-3 times incomes. The boom comes and prices skyrocket out of reach of average incomes. Tiny row houses (700sqft – yes, people raise families in houses this small) went from 20k to 100k – that’s a BOOM! When i returned for family visits chattering society had become insufferable. It was all chat about house flips, can’t find a good tradesman, buy-to-let mortgages, renos, new paradigms, and never-ending flip-this-house TV shows. Then came the bust. Prices fell 50-70% depending on the area. My old school mate worked… Read more »
just because someone has money doesn’t mean they are going to drive a flashy car. clearly you don’t know many rich people, let alone wealthy chinese.
land rovers, BMWs, lexus, acura are all popular with people with money coming out of their ass. not everyone wants to be a car jacking/kidnapping target. especially asians.
The future of vancouver employment:
River Rock Casino Career Fair
River Rock Casino Resort Wants You To Be A Part Of Our Team!
Positions available include:
Food & Beverage positions (Server, Bartender, Busperson, Host/Hostess)
Cooks
Dishwasher
Room Attendant
Bellman
Storekeeper/Receiver
Card Dealer In Training/Incoming Professional
Re: Very rich Vancouver home owner. I really have a hard time believing you that wealthy Chinese would buy a house east of main. I ride down dumfries every work day. I may believe you when I see lambo’s,porsche cayan turbos and Bentleys parked in the driveway. But real wealth in that nabourhood with streets lined with Toyota corrolas and Chevy cavillers would look kind of out of place. I call b.s.
(5912 Chancellor Boulevard, Vancouver, BC, V6T 0A1)
Is very cheap for wealthy Chinese.
3085 Dumfries street vancouver sold for 1.3 million to wealthy Chinese from China.
My banker friends in China say shit gonna hit the fan very soon, worldwide financial crash will be epic, ww3 will be a result, was USD soar and Canadian RE sink
Anybody knows how much the following is sold for? Lease hold property, on a busy traffic corner and may be worth $1.8 million?
5912 Chancellor Boulevard, Vancouver, BC, V6T 0A1
University (UBC)
$2,298,000
Man I feel like a loser if this market doesnt dump soon. Looking like a moron to my family and my wife. The property we once wanted is now 30% higher than the price in 2010. So whats going to derail the market? Its has to be a devastating event which likely wipes out employment and the whole economy. I dont want that, I need a job lol.
