Friday Free-for-all! Outta-here edition.

Hey! You made it to the end of another beautiful work-week!

Welcome to another Friday Free-for-all, 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:

FOR SALE: City Hall
Going?
Going.
Gone.
Is that an elephant?
Bogus Analysis
Dichotomy
Who wants data?
BC majority now expects drop?

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

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Marco
Guest
Marco

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.

Marco
Guest
Marco

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.

UBC in crisis mode
Guest
UBC in crisis mode

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.

patriotz
Member

@2:

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

Home prices scale new heights, but Calgary suffers record tumble
Well that’s the end of those stories telling us Calgary RE is immune to the oil bust.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
VanRant
Member
VanRant

Oh-oh, here it comes…
“Burst of the bond bubble could leave the biggest mess of all.”
“I would give a 40 per cent chance it bursts this year, 40 per cent next year and 20 per cent in 2017, as the US Fed raises interest rates and global monetary policy tightens,” he says.”
“The market has swollen to a head-spinning US$76 trillion in that time, and any fallout could blow up other assets as well, with shares and property right in the firing line.”
http://www.thenational.ae/business/personal-finance/burst-of-the-bond-bubble-could-leave-the-biggest-mess-of-all

Brian Ripley
Guest
Brian Ripley

“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.

Marco
Guest
Marco

@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.

Slagathor
Guest
Slagathor

….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.

vangrl
Member
vangrl

“Premier Christy Clark says she will not be taking part in the yoga on the bridge event on June 21st.”

Death threats?

vangrl
Member
vangrl

ah this just out….breaking news

LuLu lemon has pulled out

TrueStory
Guest
TrueStory

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.

Westside Realtor
Guest
Westside Realtor

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!

vangrl
Member
vangrl

and YYoga has just pulled out

Leaving AltaGas as the only Yoga Sponsor?

VanRant
Member
VanRant

Mass yoga session on Vancouver’s Burrard Bridge cancelled after backlash.

Looks like I will be watching the grass grow….again

elvince
Guest
elvince

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

space889
Guest
space889

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.

elvince
Guest
elvince

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.

crikey
Guest
crikey
re: previous thread Marco #43 said,‘ the high end has always been out of reach to most locals.’ The problem is that the foreign money is increasing the proportion of properties that can only be afforded by much greater than average income. And, the effect is perculating out to other markets. e.g. Local sellers in West Van get much more than normal for their properties, and buy elsewhere (like Victoria), beating out local bidders there and raising price norms there, which perculates forward elsewhere. Meanwhile banks are happy to lend other buyers more money to try and compete.In other words, this is far far worse than just the ‘high end’ being unafordable to average people. When most properties in the city are ‘high end’ for the average family, that is no longer ‘high end’ —- that is the norm. #46… Read more »
crikey
Guest
crikey

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.

VanRant
Member
VanRant

What happened to this???

“For over 20 years, legislation of the province of British Columbia required a statement of citizenship from the new owner in every real estate transaction registered in B.C.”
Ian C.B. Smith, Retired director of land titles for the Province of B.C.

https://twitter.com/ianjamesyoung70?original_referer=http%3A%2F%2Fgreaterfoolvancouver.blogspot.com%2F&profile_id=471426839&tw_i=603443240809803776&tw_p=embeddedtimeline&tw_w=278078079472115712

patriotz
Member

Is it ‘mad’ to buy a house and take on a mortgage at 79?

Apart from her condo, valued at $565,000, the bulk of her wealth (her savings as well as her late husband’s) is in a registered retirement income fund. To cover the cost of the new house, estimated at $750,000, she would borrow about $250,000.

Pretty clear from the article this is suburban metro Vancouver.

paulb
Member
Active Member

New Listings 194
Price Changes 49
Sold Listings 205
TI:13289

For weekly sales intel and/or new listings updates on a specific neighbourhood/city of your interest in the REBGV, email me and I will customize a weekly update for you. Stay on top of the market. http://www.paulboenisch.com

face-the-facts
Guest
face-the-facts
Garth’s latest piece of wisdom is that he had to delete a lot of comments coz they were saying rates would never rise or we should kick out the Chinese or borrowing was ok. My response. Coz he would never publish it : 1) censoring is a good thing is it Garth? Just because they don’t agree with your opinions? 2) How long have you been saying the US is booming and interest rates will rise and therefore our rates will rise and therefore RE will dump. How long? Meanwhile the fed hasn’t raised rates yet. And our rates went DOWN much to your shock. 3) No one says kick out the Chinese. We are saying stop allowing off-shore untaxed, often stolen money to have access to our RE. How is wanting to own ‘entitled’ and yet off-shore folks flying… Read more »
history
Guest
history

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.

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