TGIF! Beauty weather in Van. Where’s Tedeastside?

I cut and pasted my own comment from the previous post:

“The Federal government has the power to end this bubble (obviously, since it created it). NOW is the time to make it an issue.”

Hahaha! The Federal reserve has the power to end asset bubbles by raising rates to a more normal level. This will start happening in September. The Canadian Federal Government will eventually have no choice but to raise rates as well. The UK will follow. It’s about the Bond market.

The high end HAM and other foreign investment purchases will continue, but hell the high end has always been out of reach to most locals.

Cheers.

To further my comment above,

When interest rates rise, is when I believe we will see more transparency in the real estate world, meaning more call for a Canadian version of Zillow.

As well with falling property taxes the Government will then take more serious consideration to the notion of taxing foreign investment, to make up for their losses.

Cheers.

Our local MLA David Eby has been raising Vancouver housing issues.
What are your local MPs are doing?

Because of vote splitting, you may have the same government after the fall election.

FOMC Preview: No Rate Hike

http://www.calculatedriskblog.com/2015/06/fomc-preview-no-rate-hike.html

“Is that an elephant?”

Data is like that, they look different to different interests.

I was looking at the USD earlier this week and noticed that the CAD is “almost” at the 2009 low relative to the USD and we have not yet had any major correction in equities or real estate in Canada. Perhaps a retest of the 2002 CAD low is possible.

Chart Mashup: http://www.chpc.biz/history-readings/black-loon

The Calgary market looks to be responding to the continuing commodity price erosion, and Calgary/Edmonton real estate did turn down a year earlier (2007) than the Vancouver/Toronto markets (2008) in the last major correction.

Credit spreads are widening now and they were also a feature along with the strengthening US dollar that lead up to the 2000 and the 2008 crash.

@Patriotz

“Falling RE prices don’t mean falling property taxes. However they do mean falling PTT and sales/income taxes from the RE industry.”

Noted, but:

“Vancouverites typically pay $3.68 per year in taxes for every $1,000 of assessed home value. Compare that to residents of Regina, who pay $13.69 for every $1,000 of home value.

But the tax rate is just part of the story; ultimately what you pay depends on your home’s assessed value.”

When Vancouver home values decline, in the higher interest rate environment, and the Government raises the property tax rate to make up the difference, there will be a lot of pissed off homeowners. This could certainly be an election issue.

Cheers.

….Government raises the property tax rate to make up the difference,..

Why would they raise the tax rate? Make up the difference in what? If Values drop across the board, they just raise the mil rate so homeowners end up paying the same tax as before, i.e. they don’t end up paying more.

This is how property tax works in Vancouver: Taxes don’t go up and down with property value, the government decides how much it wants to spend each year and then divides that up between all properties.

So the only way that property assessments affect your tax bill is if your property value goes up or down in relation to all other properties.

If your house value drops by 50% but all your neighbours stay the same your tax bill will go down. If your house value drops by 50% and all of your neighbours homes do to then your tax bill will stay the same.

We need another round of mtg rate decreases to spur sales/panic fueled buying.

What are we going to do in the absence of that?

Oh ya, begin the long reversion to mean process.

We’ll be the next Calgary.

WSR
Ps. Toronto condo overhang is huge!

Can someone explain to the non-vancouverite wtf that yoga thig is about? Or just post a link.

During my noon walk around Convention Center, this is what I heard a tour guide telling a big group of tourists:
In Vancouver we are pretty laid back. You can smoke pot in a pipe and blow it in a baby’s face. Ok, the baby part maybe a bit extreme but we are really laid back. But there are two NO NO in Vancouver. One is going the wrong way on the Stanley Park bike path…. And secnod is never ever distrub anyone doing yoga. We are crazy about yoga here. These are the only no nos in Vancouvers.

Ok, I just read about that yoga day thing.

Sorry BC, but your premier is a complete buffoon. Don’t worry, every province (and the feds too) have those once in a while. The important thing is to kick them out asap.

oh, I see others beat me to the usual explanation of how Vancouver property taxes work.

but I’m sure it won’t be long before this common misconception is raised again.

we should construct a FAQ with this info, and other common misconceptions/misunderstandings.. that we can just point people to every time.

for issues where there is any disagreement (“will property prices go down if interest rates o up?”) we could even present explanations for both sides of the arguments.

the quicker and easier newcomers can understand all truths/arguments, the better prepared they can be to assess whether or not people like Christy Clark and Gregory Robertson are acting in everybody’s best interest, or just being deceitful.

Yoga fest during a summer solstice makes for an intrigue. You gotta be careful with this kinda stuff these days, could cause an earthquake, and CC’s astrologers would be under the gun if this happened. So it is wise they don’t do a public yoga.