Friday Free-for-all! Luxury Credit.

You made it to the end of another work week, and that means it’s time to do our regular Friday Free-for-all post here at VCI.

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

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

Price changes and credit (graph)
Why so many doomers?
High prices raise debt levels
Perspective on foreign buyer levels
3rd try for Versace in Vancouver

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

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Son of Ponzi
Guest
Son of Ponzi

Been to an open house in the London/Steveston area in Richmond this weekend.
The asking price was 20% above assessment.
Asked the realtor, and he said most listings in the area are way above assessments.
Says most are Caucasian buyers who are moving here from other Asian dominated parts of Richmond, and they are willing to pay a premium.

Westside Realtor
Guest
Westside Realtor

Hi Dave,

I agree with you, and as well as your post in Seattle.

Will weakness in HAM heavy markers leech out to other areas? Only time will tell. Thus far, it has not been the case.

My GUESS is that it shall, once (if?) the market changes I see in my neck not the woods deepen, but that is also a question that time shall provide an answer for.

I would bet big time that it does, but that does not constitute a guarantee. Our mortgage providers are hinting at higher rates this fall (for the umpteenth time :-), if we do see higher rates obviously the impact would be pervasive.

Lots of ifs…in the meantime we are even more strongly encouraging our sellers to price aggressively.

Dave
Member

Westside, the market seems strong to me in other parts of the market (East Vancouver, Burnaby, North Vancouver). I have looked at around 10 to 15 houses in those areas in June, July and August about half of those sold since that time. Houses are moving. No doubt the immigration changes are going to affect the HAM markets. Will that carry over to other markets? I’m not seeing it.

Devore
Member
Devore

“At this morning’s sales meeting, one of my colleagues’ suggested that the muted buyer demand could be a function of the hot weather. ”

It’s always too cold or too hot to sell houses. Unless of course sales are fine, then it apparently doesn’t matter what the weather is like, because everyone wants to live here.

Son of Ponzi
Guest
Son of Ponzi
Dave
Member

Patriotz 127, I have walked parts of the District, yes. I am far from being an expert in Seattle real estate, however, I disagree that area is a comparable to Point Grey. I do agree that our comparables are more expensive than Seattle top to bottom.

I think Seattle is a great City and it has a lot in common with Vancouver. It’s too bad our real estate situation didn’t look more like theirs.

Westside Realtor
Guest
Westside Realtor

At this morning’s sales meeting, one of my colleagues’ suggested that the muted buyer demand could be a function of the hot weather.

Too funny. It’s the changes to the iip, and the RE melt in China and the fundamentally unsupported high prices.or…it could be the hot weather.

In time, all markers must contend with the basic laws if supply and demand and prices as a clearing mechanism. Out sellers are starting to get the message, thankfully
Better to be out with a gain than linger in pain.

Aggregator
Guest
Aggregator

#125 From Huffington Post Article:

"The goal is to buy a condo or luxury goods with funds from a trust managed by a shell company in Grand Cayman, owned by another trust in Guernsey with an account in Luxembourg managed by a Swiss banker who doesn't know who the owner is."

Remember what I said about EHouse China buying, selling, flipping and managing Canadian real estate? Well if one follows the paper trail from their annual report, they'll find this shell company has a parent company with an office in Toronto:

The business address of Kylin Offshore Master Fund Ltd. is c/o Citco (Canada) Inc., 2 Bloor Street, Suite 2700, Toronto, Ontario M4W 1A8, Canada

And where is the Master Fund located? The same place where Canadian banks go do all their dirty work: Caymen Islands.

patriotz
Member

@125: “Australia got smart years ago, and requires foreign buyers of real estate or companies to fully disclose their identities and obtain permission from the federal government. In Canada, there are no restrictions or disclosure requirements”

That is nonsense, as anyone who has bought a house or works in conveying purchases can tell you. I mean the identity part.

patriotz
Member

@126:

My mistake, that is not the $470K property as you can see from the listing.

This is the $470K property:

http://www.zillow.com/homedetails/5749-35th-Ave-NE-Seattle-WA-98105/49104375_zpid/

Have you actually walked around the Udistrict? I have.

Dave
Member

Patriotz 121, does Highway 1 run through Point Grey? Or more particularly, through the backyard of any property in Point Grey? If you look at the commercial streets near that listing, you can see the area is also not like anything in Point Grey.

I think the closest comparable would be a property in East Vancouver that borders Highway 1. That property would probably go for $800,000 though. If you had an open house at $475,000, the line up would stop traffic on Highway 1 for days.

VanRant
Member
VanRant

From today’s Huffington Post on Chinese Money Launder:

“Canada must stop being naïve and aiding and abetting such crimes.

Australia got smart years ago, and requires foreign buyers of real estate or companies to fully disclose their identities and obtain permission from the federal government. In Canada, there are no restrictions or disclosure requirements with the result that Toronto and Vancouver housing costs have been driven up artificially due to frenzied buying by anonymous foreigners. This is why Toronto has 130 high-rise residential projects or as many as New York City with dramatically more people and immigrant arrivals.

The China crackdown has just started and will reach into Canada and other “host” countries.”

bobwestsiderealtor
Guest
bobwestsiderealtor

Think about how much money you guys have wasted being bearish. And think about how much money you will forego in the future as you hang on to the belief that you are smarter than the market:

http://www.thereformedbroker.com/2014/08/10/the-guys-who-get-you-out-will-never-get-you-back-in/

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

@nufio

you have been priced out forever. hope you have better luck in seattle. i think HAM is coming to the USA, which is why their market is improving.

Ford Prefect
Guest
Ford Prefect

#120 : ” I will also pay 25% of what i pay in car insurance. F*ck ICBC.”

Actually private insurance companies do not provide insurance – they collect premiums. The stories are legion of bad faith cases where coverage should be a slam dunk but the insurance company has other ideas. I know from personal experience.

ICBC may be expensive in your eyes, although I view its premiums as reasonable, but at least it pays promptly, again something I know from experience.

patriotz
Member

@120:

The federally insured mortgage limit for metro Seattle is $506,000.

Here’s what $470K gets you (or could have got your friends) in the Udistrict. I would say it’s a clone of West Point Grey, except it hasn’t been destroyed by monster houses:

http://www.zillow.com/homedetails/5317-7th-Ave-NE-Seattle-WA-98105/48830987_zpid/

nufio
Guest
nufio

I am getting out of vancouver. The insanity continues though not for long i hope. 3 people i know bought condos in the 400-500K range in the last 6 months with a house hold income of < 100K. 2 of them got laid off in the last month. This cannot end well for them. These people are late twenties early thirties.
I am moving down to Seattle where prices seem to be bubbling up again but I intend to buy. I get a 30% raise doing the same job and another 15% less in income tax. I will also pay 25% of what i pay in car insurance. F*ck ICBC. The math is forcing me to move. I like vancouver but not THAT much.

World Wide Wet
Guest
World Wide Wet

federal liberal party? lol. they used immigration as a recruiting tool for their party. they would have never have made the IIP reforms because it may potentially risk votes.

patriotz
Member

@116: “Apple generates that revenue worldwide in sales of Apple products. It is not sales revenue in Silicon Valley alone.”

No fooling. Revenues given for any company are worldwide, including those Vancouver tech worldbeaters.

Apples to, well, crabapples I guess.

Insanity
Guest
Insanity

@114 “So how many people here are going to split the vote between the Greens, NDP, and Libs for the next federal election?”

I plan on splitting my vote equally between all of those parties. Do you know where I can get a vote splitter?

Insanity
Guest
Insanity

@109 “Uh, just one company in Silicon Valley – Apple – generates revenues of 174 billion dollars a year.”

Apple generates that revenue worldwide in sales of Apple products. It is not sales revenue in Silicon Valley alone. Vancouver would be part of that worldwide revenue.

Insanity
Guest
Insanity

@109 “Plenty livable once you get past that real estate pricing matter…”

Yup, but that is pretty easy to do. Just rent.

Oracle
Guest
Oracle

So how many people here are going to split the vote between the Greens, NDP, and Libs for the next federal election?

How many think the Greens actually work for the Con’s?

kabloona
Member
kabloona

@108 – Yes, this “story” is hilarious to anyone with a functioning brain yet it was presented as “fact” on the nightly news here in Canada…

😉

More evidence of the Kenney/Harper propaganda machine at full boil….

southseacompany
Member
southseacompany

No new jobs, but it’s all good because homeowners are getting richer; “Rise in asset values pushes up Canadians’ wealth”

http://www.theglobeandmail.com/report-on-business/rise-in-asset-values-push-up-canadians-wealth/article19983236/

“Canadians saw their net worth climb by nearly 8 per cent last year as real estate and investment values soared, pushing average household wealth levels to a new high and offering a clear indication that many Canadians have put the recent recession far behind them.”