What’s plan B for the economy?

BC really hasn’t done so bad for itself by digging stuff up from the ground and selling it to other countries, but as prices change in that market it can leave our economy somewhat wanting.

For example:

This week, we discovered just how far the B.C. government was prepared to cave in order to assuage proponents like Petronas. It effectively cut the royalty tax it first talked about in half.

Now ‘free money’ is still free money, but anytime your income is cut in half its a bit of a downer.

So whats plan B to diversify the BC economy?  Gary Mason says there is no plan B and Patriotz says ‘what about real estate‘? But isn’t the RE market a bit played out at this point?

Most middle class RE purchases in Vancouver have gained less than a GIC over the last four years, and there’s the risk that high home prices chase away more productive industries.

So how does BC grow its economy in the future? If resources take a dive, what our best hope as a province to compete on a national and global scale?

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Fildena canada
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Fildena canada

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forex trend
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forex trend

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Xyz
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Xyz

sorry to burst bubbles out there, Telus is no longer just a phone company, in fact that income stream is shrinking in comparison to its other areas.. Mainly technology… Which mean it absolutely earns top spot on that list.

patriotz
Member

@82: “IIRC Patz said his rent/buy multiple was just north of 200”

Just south of 200, as per my original post.

“and he expected the price to drop, but wasn’t worried due to the low rate he locked in”

Paid cash, as noted in the same thread.

“And the fact that he has no intention of selling in the near future.”

Correct.

“He’s resigned to paying a highish premium for family stability”

There was no premium for buying, as noted in the same thread.

“as he had just lost his current rental.”

Correct.

“Keep in mind, property taxes in Ottawa are close to 2%”

Nope, close to 1%, as per the numbers from my original post.

patriotz
Member

@84: “Sounds very hypocritical to me.”

You and everyone else on this board would jump at the chance to buy a detached house in metro Vancouver at a price/rent of under 200 with no suite income.

So who’s the hypocrite?

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

@82

and what’s different now versus 5 years ago. what variable in patritoz’s equation changed which resulted in him moving from a renter to buyer. that’s the question all of his upvoters should be asking themselves.

here’s ottawa’s real estate graph.

http://hometeamottawa.files.wordpress.com/2013/03/page-0.jpg

>Keep in mind, property taxes in Ottawa are close to 2%, which does a lot to keep their fluctuations in check. Compare that to 1/2% in BPOE and see if you can figure the rest out on your own.

it’s not clear what you’re trying to say here. i suspect that you don’t understand how property tax works in vancouver.

space889
Guest
space889

@82 – Patriotz has also repeatedly and harshly criticized, if not ostricized, those argue that sometimes you have to buy regardless of valuations due to reasons like family, kid’s school catchement, tired of moving around, etc, etc, etc.

And yet now that he is buying, all those reasons are ok?

Sounds very hypocritical to me.

crabman
Guest
crabman

@BBB, to answer your questions:

When will the bubble burst? I have no idea.

Where will prices end up? Don’t know. The only thing I know is that buying at current prices makes no sense. Renting is much cheaper, and there are better opportunities for investing elsewhere.

Is something other than CMHC responsible for Vancouver prices? Yes, HAM.

@BBB
Guest
@BBB

@BBB

IIRC Patz said his rent/buy multiple was just north of 200, and he expected the price to drop, but wasn’t worried due to the low rate he locked in, and the fact that he has no intention of selling in the near future. He’s resigned to paying a highish premium for family stability, as he had just lost his current rental.

You don’t pay much attention for someone that spends her day trolling this blog.

Keep in mind, property taxes in Ottawa are close to 2%, which does a lot to keep their fluctuations in check. Compare that to 1/2% in BPOE and see if you can figure the rest out on your own.

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

what is one to make of patriotz’s cryptic response? the only conclusion i can draw is that openness and transparency aren’t his friends.

crabman, i’m still waiting for your responses.

what’s more important guys, the false dichotomy of bull vs bear and scoring points off of one another or the actual truth?

Son of Ponzi
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Son of Ponzi

Facebooks’s Sugarmountain is learning Mandarin.
He knows which way the wind is blowing.

southseacompany
Member
southseacompany

“Jitters over oil, stocks, home prices rattle Canadian consumers” Global News

http://globalnews.ca/news/1639884/jitters-over-oil-stocks-home-prices-rattle-canadian-consumers/

“Falling oil prices coupled with headlines warning of impending doom for everything from stocks to home prices are rattling consumer confidence.”

southseacompany
Member
southseacompany

“Calgary and Edmonton top two real estate markets in Canada”, Calgary Herald

http://www.calgaryherald.com/business/Calgary+Edmonton+real+estate+markets+Canada/10331286/story.html

” A new report released Tuesday by PwC and the Urban Land Institute says Calgary and Edmonton are the top two real estate markets in Canada.”

Newcomer
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Newcomer
Salisbury Hill
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Salisbury Hill

http://javed22.blogspot.ca/2014/10/uk-house-prices-in-biggest-monthly-fall.html?m=1

House prices in England and Wales fell by 0.2% in September – the biggest monthly fall in nearly a year, according to the Land Registry. Annual house price inflation also fell, from 8.4% in August, to 7.2% in September. That is the first time since May 2013 that the yearly rate has gone down, the Land Registry said. The largest monthly fall was in Yorkshire and Humberside, where prices declined by 2.2%. The average house price is now £177,299, well short of the peak of £181,324 in November 2007

patriotz
Member

@72: “are you saying that vancouver real estate prices are consistent with historical norms and not out of the ordinary?”

I’m saying that Vancouver prices relative to other Canadian cities are consistent with historical norms. Vancouver is always more expensive, bubble or no bubble.

“and when the bubble pops it will pop in vancouver just as it will in ottawa”

I have previously commented on where I think the bubble in Ottawa is. Your homework assignment is to find this.

Boombust
Guest
Boombust

Nincompoops?

Son of Ponzi
Guest
Son of Ponzi

#69

The whole point is that serious investors know that this kind of project is a bad investment, and that putting Trump’s name on it is to get the rubes to buy.
———-
Rubes?
Only Jesse would use an obscure word like this.

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

>The civic religion, which is RE. Vancouver has been that way for over a century.

are you saying that vancouver real estate prices are consistent with historical norms and not out of the ordinary?

patriotz, we both know that the CMHC had the same effect on real estate in ottawa as they did in vancouver, right?

and when the bubble pops it will pop in vancouver just as it will in ottawa. correct?

paulb
Member

New Listings 190
Price Changes 90
Sold Listings 196
TI:15099

http://www.paulboenisch.com

patriotz
Member

@67: “it seems as if there is something other than a national housing policy that is causing vancouver prices to be so ridiculous.”

The civic religion, which is RE. Vancouver has been that way for over a century.

patriotz
Member

@38: “I get (Trump is) popular with the amateur real estate investors but serious investors and rich people?”

The whole point is that serious investors know that this kind of project is a bad investment, and that putting Trump’s name on it is to get the rubes to buy.

Marco
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Marco

@59 Tedeastside

BC bud annual revenue estimated at 6 billion. That’s half of what Telus makes. Haven’t been able to find any stats on the number of people BC bud Corp employs yet, ha.

Cheers.

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

@crabman

wait crabman, i’m confused. doesn’t the CMHC offer financing in ottawa?

it seems as if there is something other than a national housing policy that is causing vancouver prices to be so ridiculous. any idea what that could be?

also, you haven’t answered my previous question.

crabman
Guest
crabman

@Troll! Troll! Troll!

As has been pointed out to you already (and I’m sure we’ll need to do it several more times), he bought in Ottawa, not Vancouver.

IIRC, his price-to-rent ratio was around 20, as opposed to 51.