Evangelists for buying

Many Franks pointed out this article in the Globe and Mail and then pulled out a whole bunch of gems.

“Here’s a hilarious litany of Vancouver real estate orthodoxy straight from the punch bowl:”

…the city renowned in popular mythology as a place with such astronomical house prices that its young will be forced to live in basement suites forever…“

That’s right, buy or basement suites forever, your choice.

…There’s definitely sacrifices. I budgeted. I didn’t eat out. Some could say I missed some life experiences. But if you have that [home ownership] as your goal, anything is possible…”

It’s amazing whats possible if you just skip life experiences.

…the proliferation of condos and townhouses here gives them a lower-priced product to choose from compared with other cities that are dominated by houses…

Not only a magical city, but also one of the only ones around that has condos and townhouses!

…siblings or friends will buy an apartment together until they’ve built up enough equity to sell and take their proceeds…

Because what could go wrong with that?

…they’ve decided they’re going to buy in, no matter what…

NO MATTER WHAT!!

…buying became an emotional decision about moving to a new life phase. “This was the first step of being an adult,” said Mr. Richard…

Emotional decisions are an important first step of being an adult.

…some young homeowners have become slightly evangelical about the need for others to realize it’s possible if they stop being so clueless about money…

All it takes is a little knowledge.

“They don’t know anyone who owns, they don’t understand money, they just don’t think it’s possible. I keep telling them: “It’s a conspiracy to keep you as renters. Then you can pay someone else’s mortgage.’”

As Many Franks says “Amazing how much paydirt you can pack into a single article.”

 

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Zero Down Forty
Guest
Zero Down Forty

““They don’t know anyone who owns, they don’t understand money, they just don’t think it’s possible. I keep telling them: “It’s a conspiracy to keep you as renters. Then you can pay someone else’s mortgage.”, Eesmyal Santos-Brault

When you look at a man who wears a felt hat and a dandy scarf, you’re looking at a man who knows how to make a smart investment.

http://recollective.ca/team/

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

>That’s right, buy or basement suites forever, your choice.

i know right? it’s as if the globe thinks people still have a choice, lol.

taylor192
Member

Since 2001 home ownership rate has increased:
15-24yo: 16% to 24%
25-34yo: 47% to 52%
35-44yo: 67% to 69%
45-54yo: 74% to 75%
55-64yo: 77% (no change)
65-74yo: 75% to 76%
75yo+: 66% to 71%

I would love to have a further breakdown of the 15-24 and 25-34 group to see what they are buying. I suspect a lot of 1-bdrm condos, which will have an impact on family formation. Those who bought in late will need 5yrs of mortgage payments just to break even selling.

The 75yo+ group is also interesting. We have been fed the myth of the “poor senior” when more and more are sitting on high value assets. It is time we asset test retirement benefits (OAS).

Westside Realtor
Guest
Westside Realtor

Might as well get the locals to buy, HAM is dead and gone and those in the know know it.

Slagathor
Guest
Slagathor

….…siblings or friends will buy an apartment together until they’ve built up enough equity to sell and take their proceeds…….

I guess this is a good idea, after all, if the losses are split over several people, everyone comes out ahead, er, less behind. Of course, they could split rent too and truly come out ahead, but let’s not tarnish the fable with logic.

West Coast Woman
Guest
West Coast Woman
Frances Bula wrote this article. Sometimes I wonder who she’s trying to assist – the local real estate industry (and their greatest public benefactors, the Vision City Council) or the public? Just in case you missed it, here is my last post on the previous thread: Interesting article on page A32 in last Friday’s Courier (October 17, 2014) entitled “‘Buildable’ costs expose disconnect in condo market”: “The Vancouver highrise condo market is becoming increasingly disconnected from the local economy and from local buyers,” Schliewinsky said “In the past year, the new high-rise condo market has shifted so much away from its historical basis that it really can’t be considered as a ‘Vancouver’ housing market anymore. . . “Based in interviews with sales staff in theses projects, 60 per cent are targeting investors and 70 per cent are targeting “immigrant” buyers,’… Read more »
Lower Mainland goes full retard
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Lower Mainland goes full retard

A professionally produced Surrey election video posted to youtube by a fake “Safe Surrey” account contains subliminal messages.

http://lmnews.ca/sub-surrey-election.html

paulb
Member
Trusted Member

New Listings 218
Price Changes 119
Sold Listings 159
TI:15360

http://www.paulboenisch.com

Joe Mainlander
Guest
Joe Mainlander
Toronto Star: “Real risk to housing market is ‘constrained liquidity’” “Canadians have so much tied up in real estate, they have little cushion left over, says president of CMHC” http://www.thestar.com/business/real_estate/2014/10/20/real_risk_to_housing_market_is_constrained_liquidity.html “With some 48 per cent of Canadians’ net worth now tied up in real estate, and some of it overvalued in key markets, homeowners could find themselves in a real financial bind if “external risks,” such as deflation now hitting parts of Europe, were to lead to job losses here, says Evan Siddall, present of the CMHC.” “Just hours before Siddall’s speech, Moody’s Investor Service also raised concerns about household debt that has continued to rise, right along with house prices.” “Some housing bears and economists, most notably Benjamin Tal, deputy chief economist at CIBC World Markets, have raised concerns that CMHC is “flying blind” because it’s lacking critical information… Read more »
Joe Mainlander
Guest
Joe Mainlander
Global: “Bloated debt loads, high home prices risks to Canada’s economy” http://globalnews.ca/news/1624512/bloated-debt-loads-high-home-prices-risks-to-canadas-economy/ ““The wealth effect stemming from the real estate market now appears to be the main driving force behind robust consumer spending,” the ratings agency said in a new note on Monday. Moody’s said home prices in the country’s 11 largest centres accelerated year-on-year in September, aided by rock-bottom interest rates, creating “lofty housing valuations” or prices.” “Scenario A or B; A likely scenario Moody’s says is for borrowing rates to gradually rise over the medium term, or “normalize” in the “coming years,” something that could chill consumer spending as borrowing becomes more costly. Rising rates would suck momentum out of home buying and real estate prices, and the wealth effect now powering consumer confidence would dissipate. “Alternatively, the housing market may correct in response to a macroeconomic shock,”… Read more »
Westside Realtor
Guest
Westside Realtor

China growing at 7.3%…so, where is the HAM?

Folks, it just don’t compute.

Upper end of the market is sagging.

patriotz
Member

@6: “`Based in interviews with sales staff in theses projects, 60 per cent are targeting investors and 70 per cent are targeting “immigrant” buyers,’ Schliewinsky said.”

Nice way to give form people’s impressions of who the buyers are without saying or even knowing who the buyers are.

“[Frank Schliewinsky, principal of Strategics Marketing, publishes the industry newsletter, “Vancouver Condo Report”.]”

Well this guy is obviously a real pro.

http://vancouvercondoreport.ca/AboutUs.aspx

Loon
Guest
Loon

Ahhhhh the ‘impression’ of due diligence, the hallmark of all crown corporations.

CMHC admits data gap in foreign ownership info:

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/2014/10/20/cmhc-admits-data-gap-in-foreign-ownership-of-canadian-real-estate&pubdate=2014-10-21

NOM NOM NOM
Guest
NOM NOM NOM

@#1 Zero Down Forty….

Hats off to you on that post. I damn near spit my coffee over my screen when I saw that picture.

Thanks for keeping my blood pressure up!

crikey
Guest
crikey
Evangelists indeed! Which leads to the best argument yet that property related taxes should be lowered or disappear entirely — Vancouver real estate has all the hallmarks of a religion! (and religious buildings are largely tax exempt) The Vancouver real estate cult leaders have been praying for lowered taxes for ages, maybe they can pitch it better this way. After all, much like with a cult/religion, Vancouver real estate… – depends on followers putting aside logic and relying on blind faith – preaches miracles that never happened (think MAC marketing and co.) – depends on followers believing they are the ‘chosen’ (city), different from all the others – leads many followers to ultimate (economic) ruin Think of the marketing possibilities! Bob Rennie could even sell his own Church of Vancouver Real Estate magic underwear – you know, for followers to… Read more »
kabloona
Member
kabloona
“CMHC head says banks should share risk on home mortgages” Evan Siddall says CMHC was a ‘shock absorber’ in the financial crisis and should not be privatized CBC News Posted: Oct 21, 2014 3:05 PM ET Last Updated: Oct 21, 2014 3:31 PM ET http://www.cbc.ca/news/business/cmhc-head-says-banks-should-share-risk-on-home-mortgages-1.2807765 “Canada’s banks should share more of the risk on home mortgages and the Canada Housing and Mortgage Corp. is looking into new formulas to make that happen, according to the head of the federal housing agency. Evan Siddall, who became president and CEO of CMHC in December 2013, said the prospect of privatizing the agency is not on the table, but the government has expressed interest in reducing its role in the housing market. That may mean creating new formulas to shift part of the risk for insured mortgages to the banks. ‘In the insured… Read more »
UBC in crisis mode
Guest
UBC in crisis mode
Very few price reduction in Vancouver lately, not sure why: 6168 COLLINGWOOD PL, Vancouver, BC V6N 1V1 RARE OPPORTUNITY, SOUTH FACING BIG LOT OVER 15,100sq.ft. Sits on high side of street. Only 7 years old charming character home in priva… House – 3,488Sqft. – 4Beds – 5.0Baths $400,000 (8.2%) June 28, 2014 RE/MAX Select Properties $4,480,000 # 1501 1221 BIDWELL ST, Vancouver, BC V6G 0B1 STUNNING NORTH WEST OCEAN & MOUNTAIN VIEWS at the BRAND NEW ALEXANDRA in English Bay. Nothing new in the area in years! LUXURY, Contemp… Condo/Apt – 800Sqft. – 2Beds – 2.0Baths $67,000 (5.8%) July 24, 2014 RE/MAX Masters Realty $1,098,000 205 W 15TH AV, Vancouver, BC V5Y 1Y1 NEW 1/2 DUPLEX IN ONE OF THE CITY’S BEST RATED NEIGHBOURHOODS.THIS FRONT UNIT SITS ON A CORNER LOT FACING SOUTH. THE INTERIOR IS BRIGHT… Duplex – 1,836Sqft.… Read more »
patriotz
Member

@16: “That may mean creating new formulas to shift part of the risk for insured mortgages to the banks.”

Which would mean a bigger spread between government bond rates and mortgage rates. “Interest rates will stay low” crowd, take note.

Note going to happen before the next election though.

CrashComing
Guest
CrashComing

Word on “the street” is that E.Van is now seeing softness on teardown/developwr lot new sales given some of the difficulty developers are having in pushing product out the end of the sales funnel.

Tough times are now being felt in a number of large cross sections of the market.

Oh yeah, downtown condo pre and late stage sales are sluggish too, and secondary pricing is headed lower.

Look for lower prices as we round out 2014 and my money is on year over year negative prices early jn the year.

Softy
Guest
Softy

Yesterday a post about “feelings” got voted up. Today it is a post about “word on the street”. Where is the evidence?

Boombust
Guest
Boombust

Softly,

Do you “feel” that they could be wrong?

If so, why?

BWilson
Guest
BWilson

Softy, you want some hard evidence of the market not necessarily being that strong:

4425 Keith Road West Van.. starter home in Caulfeild. Definitely livable.

Assessed $1.407 million
Initial list: $1.295 million
Reduced price: $1.199 million
Sold price: $1.200 million

DOM: 32

Realtor sign: “Sold OVER ASKING!”

Obviously every market is unique, but entry level detached in West Van is far from hot this year.

crabman
Guest
crabman

I’m with Softy, there is no evidence as far as I can see of a slowdown. Just look at the latest inventory graph:

http://vancouverpeak.com/attachment.php?aid=993

And in the area I follow (Yaletown) MOI is still around 5.

The only clown that keeps posting about weakness in the market is Westside non-realtor a.k.a. CrashComing a.k.a. Romeo Jordan.

ham
Guest
ham

No post yet by Paul B. He must be very busy closing out deals!!

Shut It Down Already
Guest
Shut It Down Already

#22, it’s not like 32 days on the market is an indication of weakness either. If I’d had been twice that’s, then maybe. But it’s just a single data point, and not necessarily representative of the wider market.

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