Global RE frothy again

After housing markets slumped around the globe governments and central banks did what they could to reinflate them, driving down the cost of debt.

Well it worked.

The US market is down a bit from their precrash highs, but Canada is sailing high.  What’s the endgame?

With global monetary conditions so loose, governments are using regulatory tools to cool overheated housing markets. In Canada, for example, the maximum term of the riskiest mortgages has been lowered from 40 to 25 years. Regulators in both Hong Kong and Singapore have repeatedly raised stamp duties and tightened lending restrictions. The measures seem finally to be working, especially in Singapore, where prices are now falling.

So as potential home buyer on planet earth, what’s your next move? Do you go with low interest rates forever as a way to keep prices up, or do you stand back and wait for a price correction?

As an aside its interesting to note one nation whose market isn’t doing so well is Japan, where they’ve had rock bottom interest rates for a really long time.

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Jeannie

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mac

More posts now than in a long time. More bear action.

mac

Things are actually picking up around here?

Bob the builder

Wow! I’ve never seen so many turd posts in one session. Sign of something, or just another slow day at the Reaturd office?

mac

Ya. Banned. I want an IP ban. And I won’t stop until I get it.

Oh Grow Op!

@ foreclosure monitor: on that list, there’s a vancouver foreclosure case that is Scotia Mortgage Co vs Bank of Montreal.

https://eservice.ag.gov.bc.ca/cso/viewNewCaseReport.do (page 13)

Any idea what that’s about? Do banks foreclose from other banks?

Reasonfirst

Mac – do you seriously think your line of arguments (and I use the term loosely) will get you anywhere?

mac

Now we’ll get some traction. Crusty’s paymasters are speaking to her.

mac

That’s odd. Why would China care? It’s not like there are any Chinese citizens enrolled in schools here. Haw haw. Keep paying your taxes bears.

cris

how low can CAD go? Anyone loading up ?

Harry Wang

B.C. school shutdown has China ‘concerned’
Parents of fee-paying Chinese pupils want end to teachers’ strike

http://www.vancouversun.com/business/school+shutdown+China+concerned/10193719/story.html

mac

Girlbear,

Don’t flatter yourself. You’re not in the elite group of Canadian wealth. Garth only tells you that to get you to invest money with him. The wealthy Canadians aren’t renting in Kits or Richmond or wherever it is you live. They own multiple assets including land, mines, farms, real estate and stocks. And they own these around the world. They don’t pay taxes here. Just you do. They get their Canadian passports at discount rates.

mac

When’s the Walmart and Chucky Cheese move into your hood? It sounds glamourous. Like a highway pitt stop.

mac

Wait a second?! The park that’s turning into Tent City? Haw. Haw. The one on 7th? Too funny.

mac

Boomerang, You owned a penthouse in Yaletown. Don’t make me laugh.

Girlbear: Thanks Mom.

@nus. How are ya babe?!

Bull! Bull! Bull!

but you are closer to downtown. so maybe you are a step above marpole.

Bull! Bull! Bull!

if you lived in marpole you could walk everywhere too. and the parks wouldn’t have nearly as much dog shit.

YLTNboomerang

Wow Mac, angry much? Read much either? I “used” to live at crossroads but moved to a townhouse across from a park as I needed more space but stayed in the area as it is the most convenient of any area I have ever lived in. BTW, I used to own a 2047 sqft waterfront townhouse in yaletown and it was a pain as I was driving to stores all the time. Now I walk to everything – for groceries you have stores serving all income levels with no frills, save on and whole foods all within 3 blocks. There is a Canadian tire, London drugs, Home Depot, winners, home sense, liquor store, petsmart (opening) and plenty of restaurants. The OV is built on an industrial waste site, has a non functioning heating system powered by $hit, a layout that… Read more »

patriotz

@116: This reads like a commercial, but the web page says “CTV News”: Under the plan, 15 per cent of a tenant’s monthly rent goes into a credit account. That money can then be used in the future for a down payment on a new Bosa home purchase, to a maximum of three per cent of the home’s value. For a one bedroom suite that rents for about $1645 dollars a month, that means $240 would go into a special credit account. Over the year, that adds up to about $2,900. Over five years a tenant would save $15,000 that could be put toward the purchase of a brand new Bosa condo. Renters have up to 24 months after terminating their rental lease to spend the credit on a new Bosa or Blue Sky Properties home This sounds like the… Read more »

patriotz

@84: “the income taxon the $2300 rental income is a huge biatch even after expense deductions.”

Income = revenue – expenses. That $2300 is revenue. Your rental income is going to be negative assuming you’ve borrowed the money to buy the condo.

You do pay property taxes anyway of course.

tedeastside

the worlds awash in money…but vancouver isnt….look at the tidal wave of ‘for lease’ signs across that whole city and province…..

not quit an indicator a well off city….

Los Angeles is a wealthy city

Houston is wealthy city……….vancouver is a pitiful backwater small town

Girlbear

Give it up. The Shangri-la residences are above a grocery store. That’s not slumming it living. It’s merely city living.

Mac. Some of your points are valIid, but you are coming off as crazed and foaming at the mouth.

Oracle. No doubt there is more money in the system. Mostly concentrated in the top 10%, of which quite a few posters here are part of.

Now play nice.

@mac

“Crossroads is the home of a CrossDressing Homeless Dude on roller skates”

Ahh so that is your wife. No wonder you pay double the rent everyone else does.

Oracle

The world is awash in money.

7 day all inclusives in Mexico for December have passed the $4200 per couple price point.

Used to be around $3000 a few years ago.

And you bears still think its about you. Get your heads out of the sand for god sakes. That $4 Trillion printed by the FED…where do you think that is?