FFFA! Condo, Debt, Declines, Panic, Spending

It’s the end of another beautiful work week and if you’ve been here before you know what that means:

Friday Free-for-all time!

This is our traditional end of the week news round-up and open topic discussion thread for the weekend.

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

Burnaby new condo sales get tough
Debt ridden couple want it all
Housing market hints at declines
Is it ok to panic?
Consumer spending plunges
Are Canadians spent?
Local realtor anecdotes
Blame the CMHC?
Dollar-a-day mortgage deal
Video archive of the Bubble
How much profit?

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

Sort by:   newest | oldest | most voted
Why
Guest
Why

Why does space889 gets down voted no matter what he/she says?

Polozi Scheme
Guest
Polozi Scheme

Because space889 is a RE pumper. I do appreciate his input though. Anecdotal but friend just had a 2.4 million offer which he accepted for a Douglas Park Van Special which will be torn down. Guess who is buying? Mainlander of course. According to Patriotz the provincial govt Liberals are the one to blame/target. This BS must change. I know Christy Clarke’s 16th and Cambie address for a front door campaign if you wish. Let me know. I used to know Gregor’s Douglas Park address too but he sold and moved to west of Macdonald and Point Grey conveniently just before he rammed through the bike lane/road closure there. I’m sure Chip “Ayn Rand” Wilson (Lululemon) who’s monstrosity is down there too “chipped off” to Gregor on that as well.

Van_Coffee
Guest
Van_Coffee
Polozi – It’s frustrating for sure. I think it’s disgusting that we have allowed this to happen to Vancouver. I have no problem with Mainlanders moving here, but when you come here, come to work and contribute. This is not what is happening. I ham happy to see that the “Mainlanders” (AKA: non tax-paying immigrants) are now ivading West Van – many of the “younger” prominent residents in West Van (late 50’s) are escapees of the original Taiwanese / HK invasion which occurred in the west side 20 years ago. The problem is now in their back yard. Again, I know many that are just happy to sell in West Van to Mainlanders, but at least the issue will gain more visibility with the decision makers in the city. The problem with the West Side, is that vast swaths of… Read more »
off-the-radar
Guest
off-the-radar

Good Australian blog article on their massive housing bubble with thoughtful comments noting offshore money problem.

http://www.macrobusiness.com.au/2015/03/australia-one-worst-housing-bubbles-ever/

Born in Vancouver
Guest
Born in Vancouver

@ 2

Your Douglas Park friend is probably the same person who bought a tear down on a 33 ft lot in the Main/Fraser area around 25th avenue for almost $1,500,000, no inspection, no subjects. When they build, I hope they invest in good sump pump. There is an underground creek there. Numerous bids and any under the asking price wouldn’t be looked at. Fear this is now the new benchmark for the area and any family from that same neighbourhood who bought years ago and is interested in newer house on a larger lot can’t compete with that west side $$. They need to look east towards Trout Lake and displace those people. Thank you federal government, BC liberals and Gregor. You piss me off.

space889
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space889
Brian Ripley
Guest
Brian Ripley

I was curious to see how we Canadians have let Alberta’s resource management end up looking like Nigeria’s (very little trickle down economics), so I picked out the data from Greg Poelzer’s Macdonald-Laurier Institute’s February 2015 Publication Paper “What Crisis? – Global lessons from Norway for managing energy-based economies.” and mashed up a chart.

http://www.chpc.biz/history-readings/ripped-off

I also extracted the text of the main comparisons between Alberta/Canada and Norway’s approach to energy resource management from the January 2013 Canadian Centre for Policy paper “The Petro-Path Not Taken by Bruce Campbell.

Meanwhile we are waging war and bombing sovereign states.

I think Canadians need to insist on a new social contract. We are being ripped off.

bullwhip29
Guest
bullwhip29
RE: Debt ridden couple want it all Practically everyone i know is in this exact predicament. Many of the monthly costs outlined in this article are understated by a wide margin. ie. utilities, prop taxes, insurance etc. Given the info provided, this couple will need to buy or lease a new car (or perhaps 2 if kids are added to the equation) in the not too distant future. It is also doubtful all the stars will align perfectly and allow this couple to actually save the req’d d.p. within 3 yrs. If the market continues to trend upwards, there is no way they’ll be able to buy their dream home for that sort of price. On the flip side, if we do experience some turbulance in the housing mkt over the coming yrs, they may wind up severely underwater and… Read more »
space889
Guest
space889
@Polozi Scheme – You mean I call out the BS from racist pigs like BPOM and Yunak, etc, and don’t always say what’s popular with the hardcore bears on this blog? People here want to blame the chinese for everything and think all chinese immigrants are scums. But the truth is very simply that like all races, you have the scums and you have the hardworking people. The hardworking people are generally invisible, working hard trying to make a living here, complaining about the high cost of housing and various social issues like everyone else (check westca.com housing forum to see). The scums or trust fund spoiled brats are what you see cuz some of them like to show off. There are some that wants to stay under the radar for obvious reasons. The ratio of scums to hardworking honest… Read more »
space889
Guest
space889
@Polozi Scheme – Btw, I’m no RE pumper. I have stated several times and you can check my posts from the past, I used to be a bear but admit I’ve been wrong, completely utterly wrong on Vancouver RE. So now I’m agnostic, I can see RE crash spectacularly or rise to even more unbelievable heights. I basically have no strong opinion on where the housing is going to go either way. However, I do believe that outside of big interest rate rise or massive increase in unemployment, housing collapse is unlikely. And I do like to call out bears who year after year after year calls this is IT, it is the start of the collapse only to be wrong again. When you have to been wrong for 8 years and running, even when you are right, people think… Read more »
space889
Guest
space889

@Born in Vancouver – wait what?? we have underground creek??? How does that work? Did the city built like a tunnel/sewage type pipe around the creek and pave over it? is it a salmon spawning creek??

space889
Guest
space889
@Brian Ripley – The way Stephen Harper is going, Canada is going to end up in the top 3 priority on a lot of the terrorist list. US can get away with the BS it is doing around the world cuz they are the only world power and there is not much anyone can do about it. It is the biggest bully in the school with a real hard punch, and no one can stand up to it even everyone band together. Canada is like a whimpy little kid who wanted to act big and decided to be the bully’s sidekick. The only problem is we are skinny and whimpy, and no one worries about giving us a good beating if they think the big bully (US) will not care and realistically US don’t care. What we are doing in… Read more »
space889
Guest
space889
@bullwhip29 – Almost everyone I know who bought or plans to buy believe in at least 3 of the below: 1 – They will not lose their job or if they do, they can easily find similar paying job very quickly 2 – Interest rate is not going to rise 3 – Housing price will not fall more than 15% in any kind of extremely unlikely scenario, cuz you know, GFC didn’t affect Canada one bit cuz we are just so superior to US/UK/EU 4 – House price will keep going up cuz: take your pick: Asian money, everyone wants to leave it, popuplation is going up while land and housing supply is not, etc 5 – If I do end up getting into any kind of trouble, I can always just quickly sell the house or at worst rent… Read more »
Bull! Bull! Bull!
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Bull! Bull! Bull!

>Why does space889 gets down voted no matter what he/she says?

really? lol.

bullwhip29
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bullwhip29
@ #13 the point of that article was to illustrate that this couple can’t have it all (even if pts #1,2 and 4 remain valid) as they currently do not have enough saved up right now to close the gap between what they have and what they want in just a few short yrs. only way the dream home scenario is plausible is if family gifts them a pile of cash for a much larger d.p. than what was discussed (as income will take big hit when on mat leave) and they can sell present home without taking a loss. given your observations about typical ppl(which are by and large correct) it would also seem counter intuitive for this model couple to make radical, but necessary changes to their lifestyle in order to make the math work. at the end… Read more »
Yunak
Guest
Yunak

From yesterday’s post…

@
Yunak:
66 Yet another fuckup… I was hoping that Whistler slopes would be speared of bad and dangerous skiers.
Son of Ponzi:
#66 yeah, and can you imagine the constant yapping and chatter in the line-ups to the lifts.

and here it comes…

“Skiing has replaced golf as the new obsession for wealthy Chinese.

http://www.wsj.com/articles/skiing-is-the-latest-obsession-for-chinas-wealthy-1427357462

Well… those drives to Revelstoke and Kicking Horse will be long but worthwhile… oust continues…

Bear Vancouverite
Guest
Bear Vancouverite
@Patriotz – I read something you wrote earlier this month that has me thinking and I was hoping you can clarify. This isn’t an attack or insinuation of anything. From what I understood (could be wrong), you wrote in response to vangrl that because Vancouver’s population has grown it is natural that the West Side prices are higher and in general Vancouver will be more expensive as prices are pushed out. I think it had to do with the fact that the same % of higher wealth/earning population means a larger population of higher wealth/earning families. Could you expand on that a bit? Should we expect values in multiples of income to deviate from the historical mean from here on out? What should be a reasonable multiple of average household income for a Westside and Eastside house? Could you hazard… Read more »
Oracle
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Oracle

First, I don’t think RE pampers come to this site or any fringe site. They don’t. Anyone that appears so is trying to get others out of groupthink. If you still think that RE pumpers come to this site, you are either lacking IQ or are delusional.

Second, this city will become Asian because you elected the governments following these polices.

condoconundrum
Guest
condoconundrum

http://www.cbc.ca/news/canada/british-columbia/vancouver-house-sells-for-567k-over-listed-price-1.3012604

nice to see the media still working hard to pump this market. At this rate That prediction of the average house price by 2030 will be $2mil will come sooner than expected. Who pays this kind of money for such a place. (The furnishings look nice though)

southseacompany
Member
southseacompany

“Why Canada’s economy is headed off the cliff” PBS Newshour

http://www.pbs.org/newshour/making-sense/why-canadas-economy-may-be-headed-off-the-cliff/

“When we think of economic crisis, we think Greece. And maybe, closer to home, the collapse of Lehman Brothers or Florida’s overleveraged housing market. But rarely do our neighbors to the north come immediately to mind.”

“Just back from Canada, Vikram Mansharamani argues that they should. Mansharamani, a lecturer in the Program on Ethics, Politics & Economics at Yale University and a senior fellow at the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School, is concerned about rising home prices and falling oil prices. “

southseacompany
Member
southseacompany

Meanwhile: “TD chief plays down concerns over Canada’s housing market”, BNN

http://www.bnn.ca/News/2015/3/27/TD-chief-plays-down-concerns-over-Canadas-housing-market.aspx

flaneur
Guest
flaneur

There is a report in the Toronto Sun yesterday on “Zynga must face suit alleging fraud tied to IPO”. Supposedly, it is the same Zynga whose CEO recently sold his PG mansion for $52M.

Vancitybuzz, Vancouver Sun, and Financial Post stated that the buyer is the owner of Chunghwa Investments (Canada) Ltd, while media in Asia introduced him as the Chairman of Nanjing Dingye Investment Group. However, one source quoted that he is “an executive of Chunghwa Investment (Canada) Co., the investment arm of the largest telecom company in Taiwan”. If true, the plot thickens.

Corrupt in Canada
Guest
Corrupt in Canada

@19

Dam those foreign investors for driving up our house prices.
Wont they leave anything for us born and bred Vancouverites anymore??

Shut It Down Already
Guest
Shut It Down Already

How does the seller identify the nationality of the person buying their house?

space889
Guest
space889
@bullwhip29 – That article has quite a few questions marks or errors. Their condo is 100% mortgage so there is no equity to extract. It is also on a 35 year amortization schedule but the article also says the interest rate is 2.xx% for the amortization period which I find unbelievable. On the monthly budget shown, it said they are saving just over $2K/month but then elsewhere in the article, it says that money is really paying off wedding debt. So again, details are messed up here. Given they are both professional, I wouldn’t be surprised if they manage to extract $$$$ from both sets of parents. Looks like this trend is making its way across the Pacific in force. However, they are currently making over $9K/month net after tax, and they don’t have a kid, so if they really… Read more »
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