House-poor Canadians

Southseacompany pointed out this article.  Seems like the more valuable our real estate gets the more house-poor Canadians become.

“Campbell says that many, like Edgerton and Camus, are surviving now, but the big question is what happens if there’s an unplanned setback — from a job loss to a rise in interest rates.”

“”If the housing market goes down and those individuals have to sell, we’re going to see a lot of houses on the market, which will further reduce the house market in general,”

‘Canada has among the highest home ownership rates in the world; owning a home is one of the ultimate Canadian dreams. And it’s perhaps why so many people choose to live house poor rather than sell their home.”

Read the full article at the CBC.

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tis to laugh
Guest
tis to laugh

How Vancouver sees itself versus how it really is.

http://i.imgur.com/fzqpjUf.jpg

Westside Realtor
Guest
Westside Realtor

The whole thing is a tinderbox set to blow.

WSR

Gnomes of Zurich
Guest
Gnomes of Zurich

Tinderbox, indeed.
While the bond market
And the lady banker
Are slowly raising the temperature.
Mr & Mrs House Poor Canadian
Sit oblivious

Don Lapre
Member
Don Lapre

Don’t worry, CMHC will only insure 50% of new mortgages….but will still backstop 90% of the “private” mortgage insurers!!

http://business.financialpost.com/personal-finance/mortgages-real-estate/cmhc-goes-from-insuring-90-of-new-mortgages-to-only-50-and-thats-as-low-as-it-plans-to-go

We Totally Don't Need the Data Though
Guest
We Totally Don't Need the Data Though

http://www.scmp.com/comment/blogs/article/1811079/vancouvers-condo-king-calling-shots-citys-affordability-strategy

Choice quotes:

Describing racism as “a huge undercurrent” to the entire foreign money discussion, Rennie said a speculation tax would represent a “measurable metric, so the racism can calm down and people can see that it [affordability] is being dealt with”.

“I’m not the gatekeeper of the world. But I want to be the thought leader on this topic”.

“Yet we’re all paying attention to these girls, they’re holding up banners, and wanting affordability to be a party game. And it is a really serious issue,”

The real problem, said Rennie, was not foreign money, but supply, “and at the rally you don’t see anyone fighting for supply”.

TLDR: Rich white guy is deeply concerned that everyone that disagrees with him is racist

Royce McCutcheon
Member
Royce McCutcheon

@5: Ugh. I might not agree about the magnitude of foreign investment that some people put forward for this region, but suggesting that the issue is supply is asinine.

would-be buyer
Guest
would-be buyer
Rennie is correct regarding supply. There is not enough affordable housing for families in Vancouver. There are only so many SFHs to go around. Demand is obviously outstripping supply for SFH. Rennie is wrong that building more condos (mostly 1 br) will impact affordability for families. Ms. Xia is correct in stating that we don’t need any more “bachelor pads” being built in Vancouver. Building condos has done nothing for affordability, except to remove more SFH from the housing stock to build more 1 br condos. This has kept condo prices down, but most families can’t live in 650 sq ft. I would also guess that most of these 1 br condos are being bought by investors. The effect of all the 1 br condo building is that it has pushed SFH prices through the roof as they become more… Read more »
vangrl
Member
vangrl

#7

Take out a percentage of the buyers (Foreign), and all of a sudden you don’t need as much supply.

Less demand = more supply

Shut It Down Already
Guest
Shut It Down Already

How about taking out all the buyers who can’t even scrape a 10% or even 20% down payment together?

vangrl
Member
vangrl

How about Shut ‘ing the fuck up?

vangrl
Member
vangrl

#7

I agree that we need more multi-family housing, and triplexes and multiplexes would be great. It would be awesome to get 4 friends together on something like that.

In the video Rennie talked about 3 bedroom townhouses, but they were 1000 s.ft and $800,000.

With maintenance fees etc.. included that’s $3600 a month at 2.59% mortgage rate.

Pretty steep for 1000 s.f, considering most pay around $1500 rent for close to 700 s.f

Shut It Down Already
Guest
Shut It Down Already

5, if you think that prices are overheated then every buyer by definition is a speculator. Yes, even the locals. You’ve never heard anybody say that real estate always goes up?

To call him a rich white guy is also naive. He’s a salesman. Hence everything he says is nothing to do with his status or place of birth – it’s about selling stuff to people.

Yunak
Guest
Yunak

Rennie is correct regarding supply.

Right, but supply of locusts who happen to have a shitload of money that has to be laundered or taken out from China.

ostritch
Member
ostritch
You could build Hong Kong, right here in Vancouver. Tower after tower and not just on main arteries as he is suggesting. You could knock down every house and low-rise. And, if you look to Hong Kong as the example, you wouldn’t satisfy Mainland demand. That’s why they have tried and failed to curb Mainland buying. I’m afraid something racist has to be done. It’s called no more money from China. And good luck with that as it routs its way through Africa, then. Or Europe. There is nothing to do but to try to force every apartment built to be rented out, keeping some of Vancouver affordable to those who live here. I guess, in the end, to be service workers to the rich. How the F did we let this happen? Oh yeah. PC-blinders. And look how easily… Read more »
paulb
Member
Active Member

Our MLX has been down for the better part of the day. This is what we have so far:

New Listings 74
Price Changes 20
Sold Listings 91
TI:13416

http://www.paulboenisch.com

The Man
Guest
The Man

Re;#10

vangrl is no vanldy

vangrl
Member
vangrl

#16

ya sorry bout that, but I swear SIDA just lurks around till I post and then slams me. Gets annoying. Lost my temper

Taking out anyone with less than a 20% down payment would effect 1st time buyers the most, and I think we kind of need them, more than we need empty houses anyway.

http://www.vancouversun.com/Friday+somewhere+else/11090983/story.html

Shlomo
Guest
Shlomo

Rennie has drawn the ire of some of the Redditors who lurk in /r/vancouver

http://www.reddit.com/r/vancouver/comments/37lhaw/is_vancouvers_condo_king_calling_the_shots_in_the/

And those guys are a miserable, gnarly, pessimistic, bitter, cynical bunch. Sort of like the people here 🙂

Comments like this make my day 🙂

http://www.reddit.com/r/vancouver/comments/37lhaw/is_vancouvers_condo_king_calling_the_shots_in_the/crnvw3z

vangrl
Member
vangrl

“Those unintended consequences were paramount in her thinking. “We want to make sure that whatever measure we’re able to take is one that’s fair and is one that respects the fact that people who have invested in their homes — many of whom will already have large mortgages — don’t see the government take away some of their equity. They’ve worked for that equity. They’ve paid for that equity — in many cases they’ve mortgaged against the equity.”

Read more: http://www.vancouversun.com/business/affordability/Vaughn+Palmer+Premier+responds+with+caution+problem+unaffordable+housing/11091305/story.html#ixzz3bUWmq12f

flosser
Guest
flosser
#14 Condos have been going up in the past decade and it hasn’t helped affordability a bit. Only traffic has increased. Canada Line skytrain is useless in the morning. You can spot 7-10 condo cranes all the time so they keep going up. They’re not built for living or for families, they are poker chips for pre-sales, quick flippers and get quick rich investments. Olympic village was too small, badly built and too expensive for the size. MC2 condos (ads say they’re homes) are crap. They have _two full_ bathrooms in 950 sq ft. Why would you want two full bathrooms with bathtub in such a small space instead of more room ? Where are the condos designed for families ? Rennie is a used car salesman, he doesn’t care a bit about affordability and is just trying to get… Read more »
flosser
Guest
flosser

Good reddit comment:

The Rennie plan seems to be.
1) Boomers sell their homes to a developer who tears down the home, builds a new one and sells it overseas investors.
2) Boomers give money to their kids so they can purchase an overpriced Condo.
3) The Boomers themselves then need to buy a condo.
4) Success, one brand new home sitting empty and two condos sold.
permalinkparent

————————-

1) a) Overseas investor purchases house then sits on it until it is either purchased by the next overseas investor at a conveniently marked up price, or it is bought up as part of a parcel of lots to be torn down to build the condos for parts 2) and 3)

robogarth
Guest
robogarth

guess bsness slow for Nate … er … witness robo-advertorcomment …

#5 – 27-05-2015
Hi Garth!

Very much appreciate your work, thank you very much.

Question: your opinion on ‘robo-investors’ such as Wealthsimple, WealthBar, ShareOwner, Nest Wealth, Smart Money Investments and Invisor?

They seem like an ideal solution for people who are just starting to build, and need relatively simple solutions, while keeping fees low, no?

Thanks again!

Nate

Not sure. If you have less than $100,000 then the formula for a balanced portfolio has been clearly spelled out here and elsewhere, so why not self-invest? Above that you can find a fee-based, sell-you-nothing, no-commission, real-person advisor to help with investing, tax strategies and relationship advice (!) for just 1%, tax-deductible. Seems reasonable when you’re paying not much less for a bunch of robo code. — Garth

Shlomo
Guest
Shlomo

#19

Translation: Most Canadians are the dumbest motherfuckers you’ll ever meet and the few among you who’re smart are going to be paying for the excesses of these financial troglodytes for a looooong time to come.

hamInTrouble
Guest
hamInTrouble

but .. but … I thougt HAM was coming for superior healthcare and education and for being the bestest place on earth …

PS. is saying superior racist ?

http://blogs.wsj.com/chinarealtime/2015/05/27/chinas-global-hunt-for-fugitives-what-beijing-needs-to-get-right/

” Most of these fugitives are believed to live in English-speaking Western countries, with the U.S. and Canada the most popular destinations. Neither country has an extradition treaty with China, ”

” As for Canada, extradition requests from China are also often ignored “

Royce McCutcheon
Member
Royce McCutcheon

@23: Regardless of who holds the levers of power at the municipal, provincial, or federal level when the cheque comes due, I do ultimately believe that those people may pander to those caught in the hurt with sympathetic words and tiny token measures. But I also believe that these people will know that they will cripple the economy by bailing out real estate speculation to any meaningful degree, wasting MORE money and driving away the handful of bright people who avoided the mess but didn’t leave.

Then again, it’s probably a good idea to not underestimate stupid.

I often joke with my spouse that we’ll ride out this time nicely having avoided debt, saved and lived well, and maintained our flexibility… only to have the post-bubble economic rot make this a terrible, depressing place we wouldn’t want to call home.

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