Eliminating Affordability

Good news real-estate investors!

Metro Vancouver housing affordability is nearing the worst ever seen in Canada.

That’s according to RBCs housing affordability index:

The index, which captures the proportion of pre-tax household income needed to service the costs of owning a home, rose the most for B.C. among all provinces.

The measures increased by 2.1 percentage points to 71.4 per cent for bungalows, and by 0.4 percentage points to 33.3 per cent for condos.

“Poor housing affordability at the provincial level, particularly in the single-detached home segment, is a reflection of the extreme situation in Vancouver,” said Craig Wright, senior vice-president and chief economist, RBC.

This can only make our real estate more desirable as sales continue at a brisk pace.  Read the full article here.

Sort by:   newest | oldest | most voted
Oracle
Guest
Oracle

Even Garth Turber has changed his down and now says buy RE that has ‘dirt”.

SFD homes will keep going up in Vancouver. They detached from incomes a long time ago. Buy if you can afford.

If rates rise, your house will be scooped up by someone who can. At least 50,000 people moving here every year.

Talks also underway to set up a second cruise ship terminal at one of the port facilities just east of the current one.

Oracle
Guest
Oracle

Just saw the Vancouver airport expansions plans. Massive expansion coming. Huge new terminal, new super runway , new skytrain station, etc. new bridges to sea island from west drive/arbutus.

Tolls to use sea island bridges.

The stakeholders are planning for a massive influx of wealthy people from Asia.

The renters here will have no say. Downvote all you want but it’s true.

New mega mall coming to Tsawassen, huge port expansion and a dwindling supply of sfd homes.

If you want to live here, buy at the next correction. I sure am.

Son of Ponzi
Guest
Son of Ponzi

How to solve the affordability/homeless crisis.
Simple. Use the prisoner exchange method.
For every Chinese immigrant, we send them one homeless person.

Westside Realtor
Guest
Westside Realtor

I strongly disagree Oracle.

Massive downside risk. And I think much of it gets realized.

The bigger the bubble, the bigger the bang.

And this is a big mofo debt driven bubble.

Pain, directly ahead.

WSR

Oracle
Guest
Oracle

WSR:

It’s not a debt driven bubble for detached homes. It’s driven by immigration and foreign money. The stakeholders are not getting rid of that anytime soon. Some illegal things in this world are ‘legal’.

Mortgageslave
Member
Mortgageslave

@Oracle

Buying to chase past gains or to worry about missing out on Future gains never ends well. To buy at an all time high price with an economy on the brink of Recession (or is in a a technical recession) would be a very bad move. The foreign money is dried up, the government is going after Real Estate and investigating all transactions for money laundering. This is the end of the dirty money in Vancouver. China’s economy is slowing down considerably. I can smell the desperation is Oracles post, don’t take financial advise from broke Realtors like Oracle. I mean if he had any financial sense, why would he be on here begging people to buy. Quite sad..

sloow
Guest
sloow

One of the articles from today talks about “housing prices are nearing 1990 Toronto affordability levels”. I wasn’t around then – but here is an interesting older blog post about the condo situation in the 90s. Sounds familiar in a lot of ways.

http://www.torontocondobubble.com/2013/02/toronto-housing-bubble-in-1980s.html

Softy
Guest
Softy

Not only are immigrants coming with multi-millions of dollars, even the non-millionaire immigrants beat locals in the competition for real estate because they have different values and different lifestyle expectations.

Here is one example. A relative builds houses for a living. He just sold a house to a Chinese couple and their 15 year old son. They intend that the three of them will live in one room and they will rent out every other room in the house. Even the living room and dining room will be rented out to boarders. They expect a nice profit every month after paying their mortgage.

I have been to open houses in Richmond where even the entry-way was being used as a bedroom.

realist
Member
realist
from previous thread, re-posted: @83 Kabloona @87 patriotz “Oz’ “restrictions” on foreign ownership are a complete sham. Foreigners can buy any new property or any existing property provided they tear it down and build a new one.” Agreed — Oz’s “restrictions” on foreign ownership are a gift to developers catering to off-shore money, dressed up as helping the locals attempting to enter the property market. As in, buying little people’s votes while shovelling money to their big donors – Good onya, mate! & nifty politics if you can get away with it. However, one positive about Oz’s approach is that their ineffectual regulations do not expose taxpayers as direct subsidizers and ultimate bagholders of their housing speculation to the same extent as in Canada, via CHMC. I predict that any “solution” to Canada’s housing affordability problem proferred by our present… Read more »
realist
Member
realist

@6 Mortgageslave Says:
“This is the end of the dirty money in Vancouver.”

That would be one very tall order, and almost certainly beyond the abilities of our present legal system, irrespective of the particular political party in charge, even were it sincere and serious about it.

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

>RBC estimates about 80 per cent of the pre-tax median household income is needed to carry a mortgage in Vancouver

http://www.cbc.ca/news/business/toronto-vancouver-housing-affordability-deteriorates-to-risky-levels-rbc-1.3209786

remember how when stories come out about how little income richmond reports on the census patriotz is always saying that the data is invalid because it’s a self reported survey? lmao.

well if vancouverites are paying 80% of their income PRE-TAX for their mortgage how are home owners even eating? how are they even paying their tax bill? how can you explain this other than with undeclared foreign or local income?

i pay my chinese barber in cash that she puts in a lockbox and i don’t get a receipt. this is not unusual.

vancouver is an asian city. asian norms prevail.

Westside Realtor
Guest
Westside Realtor

Westside liquidation on the horizon.

Chinese need cash to pay the loan sharks back home.

Blood in the water.

WSR

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

@8

this woman was staying in one such house. i know about this house. the owners don’t even live there. which is convenient for them because they don’t have to deal with the mess they create on this street.

Woman’s body found, son charged with murder

The son of a woman who went missing from Richmond in June has been charged with first-degree murder, police announced Friday.
Forty-seven-year-old Lianjie Guo and her husband were visiting their 25-year-old son Yuan Xi Tang, when she disappeared on June 7. Her family reported her missing the next day.

Police investigated the suspicious disappearance and deemed it a homicide in July.

Guo’s badly decomposed body was found in a suitcase on Harwood Island off the Sunshine Coast on July 29, police said. The remains were found by visiting boaters who immediately called Powell River RCMP.

http://bc.ctvnews.ca/woman-s-body-found-son-charged-with-murder-1.947082

Brian Chen
Guest
Brian Chen

Why is this a surprise? We have a supply (sfh) that has hit its cap and a demand base that gets bigger every year. As long as you have wealth migration you will always have this. Not to mention that as another poster correctly points out, immigrants tend to have values different than locals. It is not just the chinese, my east indian neighbours all live in brand new places in Vancouver, but they have two suites downstairs to rent out, plus their 3 brothers and their families all live in one house. So our old income to price ratios are completely bust.

realist
Member
realist

Housing unaffordability? So many contributing causes. Here’s but one:

“Too rich to rent” – definition: an RE specu-vestor having insufficient incentive to become a landlord, thereby keeping a residence in “virgin”, never-occupied condition. As the sun now sets before 8:00pm, evening walks beckon the curious, who will readily appreciate just how many Vancouver apartments/townhouses/houses are dark dark dark, night after night after week after month after year. Ask your local dog-walker!

VanRant
Member
VanRant

All bubbles burst, first China, later Australia?
http://www.smh.com.au/comment/all-bubbles-burst-first-china-later-australia-20150826-gj8dpe.html

Now change the word Australia to “Canada”

Oracle
Guest
Oracle

Good for you who disagree with me.
I’m of the camp that SFD are not going down in Vancouver.

Good luck.

Westside Realtor
Guest
Westside Realtor

Oracle, you stated earlier that you would buy in the next correction. Now, a couple of hours later you indicate prices are not going down.

Which is it?

Interest rates will not stay low forever. RE is going to get creamed.

Oracle, I bet you are still holding your Nortel shares, waiting for the ‘correction’ to end and for the shares to resume back to new record highs.

Fundamentals will reassert. Just because the masses are tripping over one another to buy does not mean the dream won’t turn into a NIGHTMARE.

It’s going to crash, hard.

JMHO

WSR

bestplaceonearth
Guest
bestplaceonearth

Hey WSR aka Romeo Jordan,

haters will hate! FAKE!

Westside Realtor
Guest
Westside Realtor

BPoE,

Nope. Our team just received two more mandates to liquidate (that word was used by the selling client) their holdings. This client also is of the view that we should try to sell quickly and be very reasonable with the buyers, as he thinks the $ flow is starting to reverse from China.

If he is right, it’s hammer time.

WSR

bullwhip29
Guest
bullwhip29
@ #2 a lot a big, pie in the sky plans never see the light of day (isnt that right, christy?). municipalities, prov’s and the feds are short on cash now. opening the door to more foreign hot money and giving them carte blanche to do whatever the eff they want wont fix this either. public sentiment has changed considerably in recent months/yrs as evidenced by the results of the transit plebiscite and how many have completely turned their backs on harper and the conservatives (among other things). much of the pre olympic binging (and outright looting) that took place (incl hosting the games themselves) would likely never pass the sniff test now. for that matter, neither would another banker/RE investor/reckless speculator bailout like we saw in 2009. if the Cdn economy does indeed fall into deep recession or worse… Read more »
bullwhip29
Guest
bullwhip29

you know things are worse than advertised when the msm sugar coats the situation and throws around new sophisticated sounding catch phrases to soothe everyone’s nerves. so we’re in a “recession”, but not one that conforms to the traditional definition in terms of severity and duration (as if they somehow have an effective enough crystal ball to quantify this)

http://business.financialpost.com/news/economy/canadas-technical-recession-will-be-short-lived-making-rate-cut-unlikely-economists-say

bobwestsiderealtor
Guest
bobwestsiderealtor

Patriotz likes to look at the puck in his own net rather than where it is going next.

realist
Member
realist
Another view on how China’s stock market losses will affect NAm RE, courtesy of Yahoo Finance (& don’t miss the key “unless and until” clause in the 2nd last paragraph!): “China’s investors find safe haven in American real estate” http://finance.yahoo.com/news/china-s-investors-find-safe-haven-in-american-real-estate-171923676.html# “The sudden collapse in the Shanghai Composite (000001.SS) and the devaluation of the yuan in the past month have led some to worry that it could cause trouble for the U.S. real estate. But those who follow the market closely see potential capital flows from the turmoil in China to the relative safety of American property. “There’s a fear that Chinese buyers, who have been such a market-maker in parts of the United States, may pull back,” said economist Jim Costello of Real Capital Analytics. “Those fears are a little unfounded.” Worldwide in the last 12 months, Chinese investors bought… Read more »
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

China explosion: City of Shandong rocked as huge blast rips through chemical factory

http://www.mirror.co.uk/news/world-news/china-explosion-city-shandong-rocked-6357544

i’d get out of that country as fast as my money would let me.

wpDiscuz