It’s another Friday, and that means its time for another Friday free-for-all.
This is our regular end of the week news round up and open topic discussion thread for the week end.
-links to come later
So what are you seeing out there? Post your news links and anecdotes here and have an excellent weekend!
“US Investors Shorting Vancouver housing”
http://www.calgaryherald.com/business/News/11162797/story.html?ref=yfp
Interesting. That’s putting your money where your mouth is.
@vangrl – right vangrl, that will show those overstretched homeowers who will then hurrily drop their asking price by 3/4 so you can swoop in with a smirk on your face and become what you always wanted to be, a Van West homeower.
You are a pathetic human being. Dreams of profiting not by your own strength and hard work or even luck, but at the misfortunes of others and feeling good about it.
“profiting not by your own strength and hard work or even luck, but at the misfortunes of others and feeling good about it.”
Sounds a lot like some current homeowners. Blind luck that they bought when they did ( and the prices were low to allow it) and running around smug as shit at how brilliant they are. Not to mention how many people are putting themselves into financial suicide by biting off $1 million mortgages to buy. I’m sure they don’t lose sleep over that either.
Knife cuts both ways…
“Rather I think bank will simply extend the loan at longer amortizatino. So, say someone is 7 years into a 25 years mortgage and interest rate went up and they can’t afford the payments. Rather than foreclose, banks will likely simply take out a new 25yrs or 30yrs mortgage on the remaining mortgage principle. That’s a far better outcome for the bank and foreclosing.”
If the banks were on the hook for the mortgage I would tend to agree with you. But we both know banks are anything but altruistic. With CMHC holding the bag I don’t see them going out of their way to help.
Further to that point, and I’m pulling this number straight out of my ass, I would bet that a good 25% of homeowners have pulled a shit tonne of “equity” out of their homes to fuel a lifestyle they couldn’t afford otherwise. Banks will not be patient because not only is the mortgage in trouble so are the HELOCs, and let’s not forget that in the CMHC’s infinite wisdom they were insuring HELOCs
Someone at the Vancouver Observer jumps into trying to analyze the Vancouver Market based on a small rent-vs-own survey comparing Vancouver to Seattle.
OPINION: Number-crunching reveals Vancouver is in a real estate bubble
“Sounds a lot like some current homeowners. Blind luck that they bought when they did ( and the prices were low to allow it) and running around smug as shit at how brilliant they are. Not to mention how many people are putting themselves into financial suicide by biting off $1 million mortgages to buy. I’m sure they don’t lose sleep over that either.”
they are brilliant all right. you had the same chance years ago…and you blew it. instead, you keep complaining about your misfortune on this blog. 5 years from now, you will be posting the same thing.
@8
So someone who is of the age of say 25 now, it’s their fault for not buying at age 16 when they had the chance? It’s assholes like you that make me puke.
1689 ALLISON RD, University, Vancouver West, $5,780,000.00
Asking so much for a lot.
Total Value $4,571,000 (Assessed as of July 1st, 2014)
http://www.realtylink.org/prop_search/Detail.cfm?MLS=V1130673&REBoards=All&From=MLS
@5:
Banks will be happy to refinance to a new 25 year term provided it qualifies for CMHC insurance (meets equity and debt service requirements). Which the borrower has to pay a new insurance fee for.
If not, they will be unable to refinance and will have no choice but to foreclose if the borrower can’t meet payments.
“It’s assholes like you that make me puke.”
i do have ass#$%^. don’t you know you have one too?
why don’t you tell the readers how many long years have you been posting nonsense on this blog!
Good points.
Our housing bubble makes no sense.
What do you think the odds are of a 10% price decline over the next year, to start?
WSR
@DaMann – But the “stupid lucky smug” homeowners don’t go around wishing for economic disaster that will be indiscriminate in its victims. Whether you agree or disagree with their attitude/believes, at the end of the day their message is more on the positive of “hey join the bandwagon and you too can be rich or whathever”.
That’s different from those bears who actively hope for economic disaster and market crashes and ruining of a lo of people’s life just so they can buy a house on what they think is fair valued and a right that have been denied to them. And I find it amazing that they also believe they can escape any such major economic collapse unscathed.
@patriotz – Assuming the gov’t don’t change the rules to prevent mass foreclosure. If everyone acted rationally and logically then bubbles wouldn’t exist. Just as people and gov’t and institutions act irrationally on the way up, they are equal likely or even more to act irrationally on the way down. Especially gov’t facing elections.
@Brian Ripley – Does that number includes all the TFW, foreign students, tourists with 6 months+ visa, and off course rich immigrants coming from Que, Manitoba, etc??
@Brian Ripley – Also forgot to mention, is your housing starts net of demolitions as well?
Could the slowing in sales spur a surge in new listings?
Is that Space dude a bit unstable?
bears with pea-size brain like to see rubbish like this one
“Could the slowing in sales spur a surge in new listings?”
Romeo jordan? how is your little box in the sky in north van?
@15 Space
Not sure I agree. It’s pretty safe to assume that most people simply can’t buy in Vancouver anymore, and I’m not talking about houses, anything. So homeowners wishing for constant appreciation are basically saying fuck you to most people not being able to buy. If the market crashes what do people really lose? Simply don’t sell until the next cycle up. People keep saying it’s all demand for people wanting to live here and it’s not all about foreign money and speculation, so then home owners don’t really lose. If people lose their houses in a crash due to high interest rates, well, it’s pretty damn hard to feel sorry for anyone who buys a place because they can only afford it at 2.5% interest rates. That’s just dumb.
@15: “hey join the bandwagon and you too can be rich or whathever”.
You have unwittingly given the pitch for a Ponzi scheme. Yes you can get on the bandwagon and get off rich, as long as someone else is willing to get on. You can’t get rich by staying on, rather it costs you to say on.