Should banks take on more risk?

There’s an article over at the CBC on the CMHC and CEO Evan Siddall.

Mr. Siddall is of the opinion that the CMHC should not be privatized as it acted as a ‘shock absorber’ during the last correction, but does think the banks should take on a share of the risk for insured mortgages.

“That ultimately will be a decision for government to make and we’re in the process of looking at different options that will take a few years to evaluate, but the idea is that people should have skin in the game,”

“In the insured mortgage businesses, the banks offload all that risk to the government through CMHC, The government’s interested in taking a reduced role in the housing market … so we’ll look at different ways to share risks with lenders.

What do you think, should the CMHC force banks to take on more responsibility for the insured loans they hand out or would the banks just use that as an excuse to charge more?

Read the full article here.

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Oracle
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Oracle

Got to hand it to the Admin on this blog.

They allowed the Westside Moron to totally degrade this blog. No credibility left.

Wonder when Paul B will be yanked off here by the BCREA.

This blog will not survive till the new year with kids like Westside.

And Westside, I have an accepted offer on a North Delta home. Cue the jealousy 3,2,1…… Hahaha

Weird Blog
Guest
Weird Blog

This Blog is weird.

Any real info here?

Ooo
Guest
Ooo

http://youtu.be/0eMNeMOTwdg

San Fran tour guide rants against china town

Westside Realtor
Guest
Westside Realtor

Sorry shut it down, was not intended as a personal attack.

Shut It Down Already
Guest
Shut It Down Already

“but I doubt you could afford my product.”

Ah, your trademark personal attacks in lieu of substance. I’m not a speculator, so can’t answer your question I’m afraid.

Son of Ponzi
Guest
Son of Ponzi

85, mostly paulb – you know, the actual realtor who hangs out here, posts verifiable market data, and is quite willing to revel his identity – as opposed to the idiot you keep up-voting just because he has a feeling that the “goose is cooked” or whatever crap he’s spouting today.
——–
I have a lot of respect for Paulb for sticking with this blog.
But keep in mind, he has to answer to his masters at the Real Estate Board.
If he veers off the official line, he risks suspension of his license.

Westside Realtor
Guest
Westside Realtor
Okay, shut it down, Let’s say you are a speculator right now – what would you be buying? I am telling you that the upward price pressure in the mkt I serve/focus on simply is not there the way it has been in years past. I have personally been surprised at how long this market has been on fire. I started to wonder if it would ever correct meaningfully (which is a silly thing to think as overheated markers always correct). I started hearing from smart people that this market can “only go up” for all the reasons we all know (HAM, low rates, everyone wants to live here, we are running out of land, etc), which of course hammers home the point that this market has benefited from the perception that this is a one way bet. Anyways, all… Read more »
Shut It Down Already
Guest
Shut It Down Already

85, mostly paulb – you know, the actual realtor who hangs out here, posts verifiable market data, and is quite willing to revel his identity – as opposed to the idiot you keep up-voting just because he has a feeling that the “goose is cooked” or whatever crap he’s spouting today.

Son of Ponzi
Guest
Son of Ponzi

#83
The raw figures were fine.
———————
Depends on who’s mining the raw data.

Westside Realtor
Guest
Westside Realtor

Vangirl,

That will become an increasingly common story jn the coming months and years, across the entire lower mainland.

Bank in it.

Shut It Down Already
Guest
Shut It Down Already

Ponzi, I said “half-decent statistical analysis” not “half-decent statistics”. The raw figures were fine. But there was actually discussion of trends and current market conditions – not just the same nonsense about immigration, China, and baseless assertions of imminent decline day in day out.

vangrl
Member
vangrl
an apartment in my old building was just listed. It’s exactly the same as the one I sold 4.5 years ago (ground floor, big patio, exact lay-out & s.f), and it’s listed for $55,000 LESS than what I sold my place for. My place was nicer, it was fully reno’d and had a better outlook, and sunnier patio. I’d say if both places had been listed at the same time there might have been a $40,000 max difference in asking price. It may sell for over asking, but if it doesn’t then the apartment market in KiIts has done absolutely nothing in 5 years. There is definitely a bit of surprise with some of the residents on the asking price, some are feeling it’s too low, so it may be that they are looking for a bidding war? but do… Read more »
Lou
Guest
Lou

I over heard that HSBC was asking some Chinese account holders to close their accounts early this year. Hope that’s a good sign of slowing HAM.

Fake Realtor
Guest
Fake Realtor

@74 “Fake Realtor are you really a Fake Realtor?”

Of course. I fly around in a yellow helicopter. Those are reserved exclusively for Fake Realtors. Westside Realtor often helicopter pools with me to save on fuel. It is not easy being a fake realtor these days. Most people don’t realize this but fake realtors don’t make the big bucks.

Westside Realtor
Guest
Westside Realtor

Here is something most of us can agree upon:

This market is currently a Big Fat Gasbag.

At least we have that in common.

Ford Prefect
Guest
Ford Prefect

It seems somebody in the Comox Valley is running a guerilla campaign designed to assist in the bursting of the real estate bubble. Posted today on Comox Valley CL, real estate for sale. It reads in full:

“**** WHY buy when you can RENT ??? *** (Comox)
0BR apartment available now

Turn on the news and check what is happening in the world !!!!

Canadian housing is finally crumbling, don’t be fooled by the realtors.

Why buy when you can ……….. RENT RENT RENT !!!!”

I like the 0BR apartment available.

Son of Ponzi
Guest
Son of Ponzi

O.K. Let me get this straight.
If West Side Realtor is a fake, then Fake Realtor must be a real Realtor.
Philosophy 101.

Westside Realtor
Guest
Westside Realtor

Haha,

Yes, we work in cubicles next to one another!

Yes, I have been in the biz well over a decade, I have a commerce degree and am a fan of warren buffet.

I am currently renting after selling my last property three years ago, which may be coloring my views.

The market is headed LOWER. Fact.

Fake Realtor
Guest
Fake Realtor

@71 “So, Westside Realtor…Are you a realtor on the Westside or NOT?”

I can verify we work in the same office.

Son of Ponzi
Guest
Son of Ponzi

Fake Realtor are you really a Fake Realtor?

Fake Realtor
Guest
Fake Realtor

Further to the above, if true, HAM would in fact be paying massive taxes on on these transactions. PPT alone on a $2 million house flip (2 sales) is $80,000. Add in income taxes paid on RE commissions and you can add in another $20K in taxes. If the house is new add in GST on the first purchase and taxes almost double again. If they are in fact doing this I thank them for paying so much in taxes all the while losing money on flipping houses.

Fake Realtor
Guest
Fake Realtor
It is funny how on one hand people claim HAM are buying all the Westside properties but on the other hand HAM are selling them all and paying no taxes on capital gains. Which is it? Are they buying, let it sit vacant, then selling and then buying again? Where is the capital gain on that? I am not sure if you are aware but to pay capital gains taxes you need to make a net gain. If you were to factor in holding costs and transactions costs on the above there would be a net loss on buying and selling westside homes over the past 4 years. The peak was over 2 years ago and after factoring in the PPT, RE commissions, property tax and holding costs you would be in the red selling today unless you bought pre… Read more »
Boombust
Guest
Boombust

So, Westside Realtor…

Are you a realtor on the Westside or NOT?

‘splain.