Friday Free-for-all!

It’s that time of the week again!

Friday free-for-all time!

This is our regular 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:

How much is Canada overvalued?
More on debt levels
CMHC rates correction risk low
Raise taxes?
Everyone wants to live in… LA?
Poloz: no risk of bubble
Developer is corruption suspect?
What if you could only get 5 mortgages?
Yellens’ zombie economy

So what are you seeing out there?

Post your news links, thoughts and anecdotes here and have an excellent weekend!

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Shlomo
Guest
Shlomo

When people like this Daily Dancer guy are worth millions because they own a house in Kits, it really makes you think!

http://dailydancer.com/

Where did we go wrong?

Polozi Scheme
Guest
Polozi Scheme

English street artist Banksy has lately been painting penises on potholes to draw attention to them so that they will be fixed – and it’s been working.

http://www.huffingtonpost.com/2015/04/27/artist-penis-potholes-wanksy_n_7149810.html

We should paint giant penises on empty derelict houses in Vancouver to draw attention to them so that Mayor Wanting and Christy Clarke will do something about them too. Or any other properties owned by corrupt officials such as the about to be completed Richmond Convention Centre primary investor and Skynet suspect Michael Cheng Muyang Cheng or whatever his latest mandarin or Cantonese name is these days.

via
Guest
via

I think raising property taxes is a very good idea, but agree that people would resist it even if it was for the best. They’d rather pay a million user fees and extra taxes or not have the services available.

But how would an increases fee on non owner occupied property not drive up rents?

StupidityCheck
Guest
StupidityCheck
StupidityCheck
Guest
StupidityCheck

@2: Rents are set by the market. If property taxes go up, they can’t be passed on to tenants any more than a big special assessment can.

Bo Xilai
Member
Bo Xilai

Is Michael Cheng the same as Muyang Cheng?

Only his Parole Officer knows for sure..

(Parody of old Clairol hair-colouring commercial)

kabloona
Member
kabloona

@2 – Polozi Scheme:

That’s not “Banksy”, it’s “Wanksy”….

Whole different kettle o’ fish….

😉

vangrl
Member
vangrl

Go Sky-net!

http://www.theprovince.com/news/Richmond+property+lawsuit+apparent+link+another+name/11018354/story.html

“B.C. Supreme Court filings say that in May 2014 Jian Li Song, a businesswoman living in Kun Ming City, sued Li Wenge and another defendant from Kun Ming for $2.4 million for allegedly refusing to repay a loan that was used to buy property on Barnard Drive in Richmond.”

Best place on meth
Member
Best place on meth

It’s not so hard for the city and province to come up with creative ways to surtax certain properties to put more money in their coffers, other jurisdictions around the world have done it.

They just don’t want to.

I would suggest a luxury tax at point of sale for properties over $1 million and a progressive property tax on homes over $1 million.

Property taxes here are ridiculously low compared to values, resulting in very cheap costs of holding a luxury home in a portfolio of investments for a home that may not even be lived in.

An extra sales tax of at least 20% and an annual property tax of at least 1.5% on anything over a million would be a good start.

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

the media flood gates have opened. have my mandarin lessons been a waste of time? it’s all thanks to that ian young guy.

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

also, who was it that always said HAM is only active on the west side?

elvince
Guest
elvince
@3 and @5:If property taxes go up, either profit margins go down or rents increases. Eventually, in an efficient market, rents would increase. Even if the market is only slightly efficient. It could take years, but either property taxes are paid out of the rents or the owner goes belly up. The renters would end up even however, because he would either save on user fees, receive more services or (if the provincial got involved) save on income taxes. If you suppose that city administration is merely a part of the provincial government (which technically it is in most provinces), then property taxes, income taxes, sales taxes, the price of a bus ticket or a paid highway are just different means to fill the same coffers. Increasing the income from one source and decreasing it from another will merely discourage… Read more »
vangrl
Member
vangrl
“Canada’s immigration ministry has launched a scathing attack on Chinese corruption fugitive Michael Ching Mo Yeung, describing the Vancouver property mogul as a criminal and a fraudster. The extraordinary statement was issued to the South China Morning Post on Thursday, two days after the Post exposed Ching as graft suspect Cheng Muyang, son of disgraced Hebei politician Cheng Weigao, who died in 2010. But Ching has not been convicted of any crimes and is not believed to be the subject of a Canadian criminal investigation. The Post has no evidence of his guilt or innocence. Asked to comment on Ching’s case, and his claims to have been unfairly denied Canadian citizenship, Citizenship and Immigration Canada issued a written statement: “Canadians are generous and welcoming people, but they have no tolerance for criminals and fraudsters abusing our generosity. “Once individuals have… Read more »
Brian Ripley
Guest
Brian Ripley

Wow, credit spreads popped today (eg: JNK:TLT) as the pursuit for a yield continues; the housing ETFs caught a bid with the excitement as well.

For the moment, “Sell in May and Go Away” is not on.

Rick Ackerman’s chart observation that the beginning of another potential housing wreck may have started:

http://www.chpc.biz/history-readings/homebuilders-schmeissed

…. probably has to have the housing sector spend some time retesting the 200 day moving average resistance before we see the trend emerge.

The inflationistas are still in control, and I suspect we will see some strength still in the real estate numbers coming out in Canada next week.

patriotz
Member

@9: “An extra sales tax of at least 20% and an annual property tax of at least 1.5% on anything over a million would be a good start.”

About 20 years ago the NDP proposed a property tax surcharge on “luxury” properties (at that time those valued at >$500K) but backed off in the face of fierce opposition from homeowners. Not so much from the wealthy, whom the NDP doesn’t care much about anyway, but from middle class homeowners who anticipated that their houses would eventually be valued above that threshold. And they were right.

That’s why it didn’t happen then and it’s not going to happen.

I think a penalty tax on empty properties would be more marketable politically, but you are going to have to get the NDP back in power for it to be even considered.

chilled
Member
chilled
patriotz
Member

@13: “But Ching has not been convicted of any crimes and is not believed to be the subject of a Canadian criminal investigation. ”

In other words, Harper and Co. are once again all talk and no action. According to media reports, Ching entered Canada using false identification, which is grounds in itself for the government to begin legal proceedings against him.

Put up or shut up.

While we’re at it, why is BC’s infamous Civil Forfeitures agency leaving this guy’s assets alone?

StupidityCheck
Guest
StupidityCheck

@12: If Vancouver were an “efficient market”, real estate values would be ~50% lower.

elvince
Guest
elvince

@18: Vancouver’s rental market is somewhat an efficent market.

patriotz
Member

@19:

All markets in strict consumables (e.g. rents) are trivially efficient. That doesn’t mean the market in the underlying asset has to be.

Landlords are willing to pay prices for RE that are unrecoverable from rents. This means you can’t expect any other cost to landlords to be passed on to tenants.

vangrl
Member
vangrl

“We had four offers. Two were below asking and two were over. We managed to pit them against each other and squeeze as much as we could out of them. And we got a lot more than that,” Close said. “My guys were thrilled. It put them in a whole new bracket to go shopping on the east side.”

http://www.theglobeandmail.com/life/home-and-garden/real-estate/bidding-war-for-vancouver-home-but-nobody-looked-at-it-to-live-in/article24223818/

Best place on meth
Member
Best place on meth

@21

Hmmmm…..westside sellers now going house hunting on the east side.

Nope, no ripple effect at all.

Now if the province had imposed an extra 20% luxury tax on the amount over $1 million they would have raked in an extra $100K on this sale alone.

Maybe put it towards transit instead of trying to squeeze another nickel out of us every time we buy toilet paper.

Slagathor
Guest
Slagathor
Something smells of Realturd BS in this: ….“It was all investors looking to cash in later on with the land assembly. But they are getting $3,500 rent out of it. So it’s not just a holding property, but it’s a holding property that gets some good economic value out of it.”… Then later: “…My guys were thrilled. It put them in a whole new bracket to go shopping on the east side…..” Well if the original owners were renting it out, there were obviously investors and if the property has such a great potential for a land assembly development, further increasing the value, whey didn’t the original owners just hang on it instead of taking their capital ‘east’ where there isn’t such a huge potential for development? Maybe the real story is the original owners got tapped out subsidizing the… Read more »
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

>Maybe the real story is the original owners got tapped out subsidizing the renters to the tune of about $3500 per month plus taxes and maintenance, and were trolling for suckers and landed a big one.

yeah, property owners in vancouver have really been suffering the last 15 years.

😐

StupidityCheck
Guest
StupidityCheck

Just sold for $65k over asking – a 12 yo, 2 BR condo with no outdoor space for over $1M! This market is batshit crazy!

https://www.locatehomes.ca/bc-real-estate-listings/vancouver/mls-V1116535/3708-1033-Marinaside-Crescent-Vancouver-V6Z3A3?id=261654286

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