Friday Free-for-all! Happy Weekend!

It’s the end of another work week and that means it’s time for our regular Friday Free-for-all!

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

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

Balancing Retirement & mortgage
27% don’t count mortgage as debt
Vancouver closet for rent
Longest interest rate pause
Higher tax for empty houses?
Millionaire visa for only 50 people?
Dipping under a million on the coast

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

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West Coast Woman
Guest
West Coast Woman

Even though our mainstream Canadian media and federal, provincial and municipal politicians don’t want to acknowledge the effect that foreign money has had on the Vancouver real estate market, word is still getting out.

There was an interesting little piece on the PBS show “In Close” on Thursday night entitled “Seattle’s Housing Pinch”, which also looked at Vancouver’s housing market and how it’s been affected by the influx of money from Asia. It appears that the HAM that Westside Realtor says are scarce here, are now looking and buying south of the border.

For those interested: This show will air again on PBS on Saturday evening at 6:30 pm (Channel 27 Shaw; Channel 139 Telus).

patriotz
Member

@1:

The mainstream media have of course been full of stories about foreigners buying Vancouver RE. As there apparently aren’t enough real foreigners to report on, we’ve even had stories featuring fake foreigners.

What we haven’t seen much of is hard data.

If you want some facts, here’s one: nobody has to buy in the first place, and renting in Vancouver is a lot cheaper than buying. So objectively, nobody is to blame for the sale price of any property except the buyer.

StupidityCheck
Guest
StupidityCheck

Patriotz, saying that “nobody has to buy” is like saying nobody has to travel or go out to dinner. Sure, you don’t need to do those things, but most people want to. Likewise, most people want to own their home. You can stay there as long as you want, make improvements, have pets, provide some stability for your kids, get to know your neighbours, build equity, etc.

Unless you could find someone willing to lease a home indefinitely and compensate you for any value you add, it’s just not the same.

And ultimately, most people buy a home more for emotional reasons than financial ones. If that wasn’t the case, we would never have bubbles.

RFM
Guest
RFM
First, Canadians piling on the debt . . . and now, losing their jobs . . . Reuters reports that Canada’s job market cooled off in November, shedding 10,700 positions after two consecutive months of big gains, and the unemployment rate edged up to 6.6 percent from 6.5 percent in October, Statistics Canada said on Friday. Analysts had expected an increase of 5,000 jobs after 43,100 were created in October and 74,100 in September. The labor participation rate, which is of particular interest to the Bank of Canada, stayed at 66.0 percent, the lowest since November 2001. The central bank, which has kept interest rates at near-record lows for more than four years to stimulate the economy, had said on Wednesday that the labor market still showed significant slack. The job figures contrasted with a string of recent data indicating… Read more »
Royce McCutcheon
Member
Royce McCutcheon
To #3: While it exists in many parts of North America, the deep need to own a home doesn’t exist in some other parts of the developed world – and people can establish deep roots while renting in some of these locations. I’m not saying that I expect the culture here to dramatically change near-term, but I would say that the massive disparity in costs – which can be made understandable to someone with even average math ability – could change thinking long-term (assuming we don’t see a correction, of course). Certainly, within the last few years, there has been much more mainstream discussion around rent-vs.-own calculations, and there are a lot of stories out there about young people/families electing to either rent or relocate to places where owning costs less, instead of owning at any cost at their current… Read more »
patriotz
Member

@3: “Patriotz, saying that “nobody has to buy” is like saying nobody has to travel or go out to dinner”

Wrong.

It’s like saying nobody has to buy a vacation condo, or buy a restaurant.

Get it now?

space889
Guest
space889

@StupidityCheck – And Patriotz himself bought after his landlord kicked him out to the curb….and he is still preaching that no one has to be buy, rent is better in Vancouver, etc, etc, etc….

Sounds like hypocrisy to me…or at least a big case of egotism.

I guess the guy never really can separate real time from highly artificially constructed world that most economic theory lives in.

space889
Guest
space889

@Patriotz – I don’t get it? Are you saying the need to travel or going out to restaurant is much more valid than buying a vacation condo or restaurant? Even more valid than buying a primary residence?

Seriously, if no one needs to buy a primary residence which is generally considered to be a basic need/neccessity? I think things like eating out or vacation ranks a lot lower than food, shelter, and clothing.

StupidityCheck is totally right on his point and you are just grasping at air now. Not even straws anymore.

StupidityCheck
Guest
StupidityCheck

Patriotz , dismissing my point by saying I’m “wrong” and “don’t get it” is pretty condescending and arrogant, don’t you think?

My wife and I were renting a fantastic place on the water with great views and a big outdoor space. But then our landlord decided to sell and we weren’t willing to pay the ridiculous price they were asking, so we had to move. That is just one example of why renting sucks compared to owning IMO. And remind us why you bought again?

taylor192
Member

StupidityCheck, you don’t get it.

You respond to “you don’t have to buy” with “but what if you really really want to”? That is the same kinda crap my 13yo step daughter pulls for things she doesn’t need, yet really really wants. I speak in a condescending tone to her too.

As for renovating a rental to increase its value… why? Just move into a nicer rental, that’s one of the benefits of renting.

Mister Obvious
Guest
Mister Obvious
If the following is true, You… Bought a SFH in Vancouver three decades ago Paid that home off then sold recently reaping a huge tax free windfall Invested that money in a balanced portfolio averaging 6% annually Have grown up kids who have successfully launched themselves No longer need empty rooms to accommodate relatives that visit once every two years No longer need a garage to run power tools and do woodworking Perhaps no longer even need a car Are ready to leave home maintenance behind forever Wish to continue enjoying the urban lifestyle to which you are accustomed Aren’t getting any younger Then yes… You are far better off financially by renting in our fair city and enjoying the reluctant subsidy provided by the current crop of property owners. That is provided, of course, that you`re willing to pay… Read more »
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

> It appears that the HAM that Westside Realtor says are scarce here, are now looking and buying south of the border.

i’ve been saying that for a long time.

Bull! Bull! Bull! Says:
March 26th, 2014 at 1:14 pm 41
>The recently rebuffed investment class immigrant applicants who have already bought in to Vancouver real estate aren’t necessarily in any rush to list their properties for sale. After all, what would they do with the money?

buy a house in the USA

Bull! Bull! Bull! Says:
March 26th, 2014 at 4:40 pm 57
@Best place on meth

this confirms what my sources tell me and the article that VMD translated for us.

they are going to the USA because it is easier for them to go.

http://vancouvercondo.info/2014/03/should-you-just-move-to-an-island.html#comment-224709

VanRant
Member
VanRant

@12 Bull! x 3
Agreed. At Peace Arch crossing, it seems half of the vehicles are high-end with a ham behind the wheel. They sure like going down to the states.

@ patriotz #2
Guest
@ patriotz #2

There is all kinds of hard data to see.

“Canada’s population of 20- to 44-year-olds grew by 1.1 percent in 2013, the fastest pace seen in almost 20 years and 75 percent higher than the rate seen in the U.S.”
http://www.bnn.ca/News/2014/11/19/Canada-may-actually-need-MORE-housing-CIBC.aspx

Shut It Down Already
Guest
Shut It Down Already

Nobody has to short HCG.TO, either. But people here still did. That worked out well.

dresch
Guest
dresch

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ostritch
Member
ostritch

People from the developed world aren’t moving here. They’re coming from countries with 80-90% homeownership rates. Nothing makes immigrants feel safer than real estate. No stock market can ever compare.

Mortgage rates in the US lowest in years:
http://www.socketsite.com/archives/2014/12/mortgage-rates-back-4-percent-lowest-since-mid-2013.html

And that’s in the country where the US Fed is “poised” right? Yeah right.

paulb
Member
Active Member

New Listings 106
Price Changes 34
Sold Listings 76
TI:12987

For weekly sales and/or listings updates on a specific neighbourhood/city of your interest, email me and I will customize a weekly update for you. http://www.paulboenisch.com

ostritch
Member
ostritch

Can’t help noticing that this week’s listing of sold properties on the westside seems to be higher than usual. Everything going for close to asking and the occasional deal where the buyer gets 100K knocked off a million dollar property. But that’s one out of maybe 40 sales.

Westside Realtor
Guest
Westside Realtor

I am seeing some sales in the mkt after seller has done multiple price reductions and then was very accommodating to the buyer.

Make no mistake, the westside continues to WEAKEN.

Sales at lower prices does not change that.

We have entered into a new sellers reality on the west side.

My prediction is that it continues to worsen.

WSR

West Coast Woman
Guest
West Coast Woman

And here’s an interesting article by Ian Young, SCMP, about Canada’s new program for potential Immigrant Investors:

http://www.scmp.com/comment/blogs/article/1655307/slim-pickings-chinas-immigration-industry-canadas-new-investor

It seems we won’t be seeing massive immigration to Vancouver again through the new program like we saw from the former IIP.

West Coast Woman
Guest
West Coast Woman

Here’s another article in the SCMP about the new IIP:

http://www.scmp.com/print/news/china/article/1654749/canadas-new-millionaire-migration-scheme-will-only-take-50-applicants

Re the old IIP, the article states:

“The scheme has also been criticised for having had an outsized impact on the city of Vancouver and its sky-high real estate market.”

Eastsidehomeowner
Guest
Eastsidehomeowner

Patriotz and Westcoast Woman are critiquing mainstreammedia based on information provided by Westside Realtor the pseudonym for an internet avatar made up by a disgruntled renter. Okay you guys, good luck with that.

Lurker
Guest
Lurker

I’m torn. Obviously some folks here are all doom and gloom but I’m not seeing things moving overly quickly. With rates looking to rise next year it might be best to try and squeeze a good price out now and lock in. Hard to tell however as the market isn’t softening. What do you figure this place should be worth: http://www.realtor.ca/propertyDetails.aspx?PropertyId=14935530

tedeastside
Member
tedeastside

vancouver is the theft capital of North America, you’ll never live in a place with more thievery than vancouver,
if you left your bag on a seat at McDonald’s and went to order something,
how long would it take to get stolen , my guess is 10-20 seconds

my cars were broken into almost monthly in Vancouver, 6 years in Los Angeles that never happened, Vancouver is a scourge on the world

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