Hey Slackers! It’s Friday Free-for-all time!

Hey, look at that, it’s the end of another work week!

And that means it’s time for another Friday Free-f0r-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:

money laundering in RE
Poloz, king of the economy
Ready for another rate cut?
Calm down!
Keep market buoyant
the 30% pay cut
Bubbles and balloons
The bullish point of view

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

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VanRant
Member
VanRant

Anastasia Lin(Miss World Canada 2015 ): a Falun Gong practitioner seeking the Miss World crown – in China

http://www.theguardian.com/world/2015/aug/27/anastasia-lin-miss-world-canada-falun-gong-practitioner-china-persecution

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

is jackson hole going to save the stock portfolios of easy money bubble chasing sheeple?

short term yes. long term… we’ll see!

Natcho
Guest
Natcho

If I bought a condo in Vancouver 10 years ago would I be rich now?

Interesting
Guest
Interesting

Hey BBB made 10% on Disney this week. Bought Monday sold today. That is real cash in the bank on one of the world’s best companies.

Comments?

space889
Guest
space889

@Madashell – maybe you should read up and research on what Falug Gong is first? Probably a worse orgnization than Scientology.

space889
Guest
space889

As for money laundering probe…good luck…

Bring in money from another country to buy RE is not considered money laundering as long as the money is declared and paperwork get filled out. The money probably isn’t even taxable. And no, CRA/Fintrac isn’t going to be verifying if the money is made legally or not in China, no jurisdiction and frankly they don’t care.

What the probe is more likely to catch is local drug deals and gangs more than Chinese students/investor immigrants.

My god so many of you are so freaking dumb.

vangrl
Member
vangrl

#3

A friend of mine bought a condo in Yaletown 4 years ago, she wasn’t digging the area (too noisy, not a great community feel), so she decided to move back to the West end.

Guess how much she made on her Yaletown Condo?

Bought $420, sold for $415 = loss of over $20,000 with Realtor fees.

Bought into an older building in the West End that she’s going to gut and reno. Bought the older condo for 5% under-asking.

Interesting that when she was telling a bunch of us this story, so many were shocked & thought that Condos had gone up soooooo much over the last few years.

Prodigal Son
Guest
Prodigal Son
I just spent the summer in Europe and got back a few days ago, and I have to say, people in Vancouver are really shitty people. Canadians are not polite, at least not here. They are rude, always in a rush, and completely inconsiderate of others. The only lack of manners I saw on my trip that matches Vancouver is in German driving, but there it’s a small percentage of VERY aggressive drivers as opposed to our high percentage of aggressive drivers and super-high percentage of incompetent drivers. I never realized how stressful this city had become. Everyone just looks out for themselves and screw the rest of the world. I think it’s partly the slew of recent Chinese immigrants (don’t call me racist, I’m culturalist, Hong Kong Chinese, and basically any Chinese person born out of mainland China knows… Read more »
Bear.Market.Trap
Guest
Bear.Market.Trap
The Investor Revolt Arrives. “There’s little question that the collapse of the financial universe in 2008 dealt a dramatic blow to retail’s confidence in US capital markets. Taxpayers were forced to foot the bill for a Wall Street bailout just as CNBC ensured that mom and pop could watch their retirements disappear in real time on the same channel that had, for the better part of a year, been telling them that everything was fine.” — KEEP CALM! buy more stawcks. “To the extent that the Fed-driven, six-year rally restored some semblance of trust between retail investors and Wall Street, it was wiped away for good on Monday when, in a harrowing day of flash-crashing mayhem, the perils of broken, manipulated markets were laid bare for all to see and to add insult to injury, the ETF pricing model blew… Read more »
elvince
Guest
elvince

@Natcho #3: If it was an investment condo, you’d be underwater. If it was to live in it, then you’d just have a partially-paid condo to live in it.

I’m not sure exactly how much rents have grown in the last 5 years, but since condo prices have gone pretty much nowhere, if rent have grown even half of inflation, it’s a relatively better time to buy today than 5 years ago. And when I say “better”, I really mean “less bad”.

mls watch
Guest
mls watch

When the Vancouver boomers start to panic about the price of their home going down, and sell their SFH, where will they go? Vancouver Island? Gulf Islands? US? Developing countries? What is your guess?

realist
Member
realist

As Edmund Burke said: The only thing necessary for the triumph of evil is for good men to do nothing.

With regard to RE-related money laundering, we appear to do something but effectively do nothing by inventing a complex legal and regulatory framework that diffuses and obscures responsibility, and is difficult to enforce. It is absurd to charge the foxes with overseeing the chicken coup in expectation of good result for the coop or its chickens. Et voilà! We have West Pt Grey, West Van, etc.

I should add that foxes are not evil, just trying to survive, knowing full well that the fox down the road will do the job if they don’t.

patriotz
Member

@10: “If it was an investment condo, you’d be underwater. If it was to live in it, then you’d just have a partially-paid condo to live in it.”

The investor would actually be ahead of the owner-occupier because the former would be able to write off the losses and the latter wouldn’t.

Natcho
Guest
Natcho

@8 Prodigal Son: At least you returned during a nice time of year. I came back from Europe in November a few years back and felt the same. Was like coming home to a muddy backwater filled with rude people and ugly buildings. That experience could have something to do with why I no longer live in Vancouver.

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

@3

why would anyone buy a condo?

Natcho
Guest
Natcho

@15 isn’t a condo supposed to be the first rung on the property ladder, the guaranteed road to riches?

Softy
Guest
Softy

“why would anyone buy a condo?”

Condos are pie in the sky.

UBC in crisis mode
Guest
UBC in crisis mode

I think I will get 5% return for this condo at UBC:

http://www.realtylink.org/prop_search/Detail.cfm?areatitle=&ARPK=&ComID=&agentid=&MLS=V1133165&rowc=2&rowp=1&BCD=GV&imdp=9&RSPP=5&AIDL=21&SRTB=P_Price&ERTA=False&MNAGE=0&MXAGE=200&MNBT=0&MNBD=0&PTYTID=1&MNPRC=550000&MXPRC=600000&SCTP=RS

For $550,000 purchase price, 25% down (mortgage rate 2.04%).

Rental income $2200 per month. Condo fee and property tax listed there.

elvince
Guest
elvince
@UBC in crisis mode: That’s a 4.8% cap rate. Unless you’re very lucky (no vacancy ever, no special assessment, no bad tenant, nothing bad ever happens) or rents grow a lot, you’re gonna be underwater. 4.8% is a very low return rate for capital considering the risks. But just looking at the pictures, I doubt you could rent this for 2200/month. It’s quite ugly and everything looks cheap in there. Anyone paying more than 400k for this condo is very bad at allocating capital imho. That’s only 6.6%. If you want to invest in RE absolutely, you can get a lot of REIT with much, MUCH higher AFFOs/price than 6.6% today. Heck, many have higher distribution rate than that. Get a mix of RioCan, DreamOffice, Boardwalk, DreamGlobal and Cominar, and you can easily get 7-8% distribution without ever having to… Read more »
Ulsterman
Member

MLS Watch: When the Vancouver boomers start to panic about the price of their home going down, and sell their SFH, where will they go?

As of now of course there has been no evidence that boomers’ houses have fallen in price or are about to. If they did fall i bet it would take a really significant drop to cause boomers to panic sell. SFH’s have been a winning bet for decades and most boomers would probably assume that any correction will soon reverse.

patriotz
Member

@19: “That’s a 4.8% cap rate.”

Cap rate is the net (of property expenses) rental yield. You’ve given the gross rental yield.

Cap rate would be under 4%, depending on maintenance expenses, which would be fairly high if you rent to students I think. And that’s not taking into account any time not rented or at reduced rent in the summer.

UBC in crisis mode
Guest
UBC in crisis mode

@19
Thanks for the advice, elvince.

The unit will be cleaned up (it is NOT furnished), and $2200 is average rental at UBC. It could go up to $100 per year in the next 10 years.

Oh, there are 5200 students on UBC housing waiting list to get on campus housing.

patriotz
Member

@20:

There’s no evidence that owner-occupiers sell just because prices are going down.

But investors do.

realist
Member
realist
from Charles Hugh Smith’s blog “Of Two Minds”: Who Will Be the Bagholders This Time Around? http://preview.tinyurl.com/qgtf4ov “Once global assets roll over for good, it’s important to recall that somebody owns these assets all the way down. These owners are called bagholders, as in “left holding the bag.” Those running the rigged casino have to select the bagholders in advance, lest some fat-cat cronies inadvertently get stuck with losses. In China, authorities picked who would be holding the bag when Chinese stocks cratered 40%: yup, the poor banana vendors, retirees, housewives and other newly minted punters who borrowed on margin to play the rigged casino. Corrupt Chinese officials, oil oligarchs and everyone else who overpaid for flats in London, Manhattan, Vancouver, Sydney, etc. will be left holding the bag when to-the-moon prices fall to Earth… …Leveraging up to buy risk-on… Read more »
vangrl
Member
vangrl

Bye Bye 1st Shaughnessy

FU Vancouver. I can’t believe they may allow this to happen all for “prestige” reasons.

http://www.theglobeandmail.com/life/home-and-garden/real-estate/shaughnessy-heritage-homes-moratorium-debate-gets-heated/article26144887/

wpDiscuz