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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elvince
Guest
elvince
@UBC in crisis mode #22: A 100$/month raise is nice, but still only 4.5%. It’s better than inflation for sure, but still nowhere near the historical earning growth of the S&P500 companies. Student housing is a double-edged sword. They usually pay a slightly higher monthly rent, but they create other problems. Vacancy rate during the summer, place trashed, leaving without paying the last month, etc… In the best possible scenario, you’re gonna have to clean the place and find new tenant once per 3 years, and have to replace appliances every 10 years. In the worst case, you’ll get some pennyless assh*le who’ll trash the place and the appliances because you’re getting him evicted for not paying last month’s rent. If you’re renting the unit for 2200$, you can lose a few months of rent just for one bad guy.… Read more »
elvince
Guest
elvince

@patriotz: Most people in RE investing refer to cap rate as gross revenue/price. It doesn’t really make sense to me either, as it more or less compares to P/S in stocks instead of P/E, and it doesn’t really indicate how much profit is generated from the allocated capital. My best hypothesis as to why this is so common is the lack of financial knowledge of amateur landlords, who see just see an x dollar check every month and they believe it goes in their pocket.

It’s not easy to explain to someone who believes that “tenants are paying my mortgage” that a check made to his name isn’t 100% his to spend. Quite often, those people deride those paltry dividend.

patriotz
Member

Single mom with six-figure salary should be affluent, yet she’s anything but

A British Columbia management consultant we’ll call Patricia, 53, has two children and a six-figure annual take home income. She ought to be affluent, but feels far from it. She has a net worth of $525,443 including a heavily mortgaged rental property that generates a paltry return, a house, two cars and a fishing boat. It’s not a lot to show for three decades of work.

Natcho
Guest
Natcho

“She says she is not good with money and she is right.”

elvince
Guest
elvince

She’s allegedly a management consultant. If she offered her services, I think I’d tell her to start with managing her own money better.

Wtf needs a fishing boat in 2015 anyway?

Zero Down Forty
Guest
Zero Down Forty

The BoC needs you to buy fishing boats to help keep the economy afloat during the recession. They made money cheap to help you out. Buy a few condos while you’re at it.

Thanks for doing your bit, 53 year old single mom!

Ulsterman
Member

From Vangrl’s Bye Bye 1st Shaughnessy G&M story:

“I’m just a lowly realtor. I don’t make that much money. But let’s say it’s a plumber on the east side that barely has enough sustenance for his family of five or six. His property taxes will go up to reimburse all those people living in Shaughnessy.”

Sorry to be blunt here, but FUCK YOU you greedy, grasping, disingenuous used-house salesman. You and your partner just sold $100m of real estate in the past 18 months and you have the audacity to claim you don’t make that much money!

This makes my blood boil.

Tiger
Guest
Tiger

condo price do go up these al least in my neighbourhood, here are two examples

1) http://evaluebc.bcassessment.ca/Property.aspx

17/Jan/2013 $370,000

24/Jun/2014 $485,000

2) same building

09/Apr/2013 $263,000 http://evaluebc.bcassessment.ca/Property.aspx

28/Aug/2015 $370,000 http://remax-advantagebc.com/officelistings.html/photos-51154008

Brian Chen
Guest
Brian Chen

I would not be investing into condos. There are not that many condo developments that I like in Vancouver. The ones in downtown have some potential . The ones in UBC don’t have land rights, it is a 99 year lease that you are buying. I am a big SFH bull but believe that condos have been driven up by the lowered interest rates. There is certainly no lack of supply of condos. The cap rates on condos may be better but if you are looking at Cap rates, then I wouldn’t buy any vancouver real estate. I think we buy real estate because of the limited supply of single family homes and the great demand for them.

History
Guest
History

A few tweeks to the Condo market and Bam! They are ideal housing for an aging demographic. SFH only work if you are planning a family. They are over rated and overbought.

West Van Realtor
Guest
West Van Realtor

Ball park

70 % of West Van sales are through Chinese Realtors.
Impossible to guess how many are HAM buys.
However every day there is 2-3 $4-6 Million sales.
So either they are making huge amounts of money here and paying their taxes or …..

GreenSalad
Guest
GreenSalad

In Bizarro Vancouver, 25,000 households declare less income than they spend on housing alone

According to Statistics Canada data from the 2011 National Household Survey that was mapped by von Bergmann, there are 24,960 households in the City of Vancouver where the amount spent on shelter (mortgage, rent, utilities, property tax and strata/condo fees) exceeds 100 per cent of their declared household income. Think about that: these households claim to earn less than they spend on accommodation alone.

http://www.scmp.com/comment/blogs/article/1851003/bizarro-vancouver-25000-households-declare-less-income-they-spend

Ban
Guest
Ban

So Peter Saito doesn’t make make much money? Well if he wants to state that ban him from selling to get a taste of no money. I wouldn’t let him sell my wheelbarrow. On another note more and more sfh sales are coming in at below asking a strong trend I’ve noticed

paulb
Member
Active Member

New Listings 132
Price Changes 51
Sold Listings 100
TI:12076

For weekly sales info and/or daily new listing updates on a specific neighbourhood/city of your interest in Greater Van, email me and I will customize a weekly update for you.

mls watch
Guest
mls watch
@20 What I hear more and more from people in the 50-65 yr age group, especially long term Vancouver residents, is about leaving Vancouver and live comfortably on the money they will make by selling their Vancouver SFH. For some, freedom 50 is now in reach. The only reason why they wait is that they make a killing every year due to appreciation. Most talk about moving out because Vancouver is not what it used to be: too busy, too stressful, no sense of community. They certainly do not believe that the party will continue for ever. They are looking around for an escape plan while they are trying to time the market. A similar phenomenon is happening in Europe. Retirees have smaller pensions than they used to. So they sell their home and move to Portugal or Morocco to… Read more »
YLTNboomerang
Member

Anyone skilled enough for a DNS attack on these a$$wipes? http://peterandvivian.com

Canada does not need this trash.

YLTNboomerang
Member

For those not following, the above is the Mr. Saito A$$hole that wants to raze the character homes to maximize profit for his wealthy clients and their new dirty money.

Fung Sway
Guest
Fung Sway

Look at Peters Saito website. .this guy is full of himself bad fung sway Peter shame shame on you.

Polozi Scheme
Guest
Polozi Scheme

Now is finally our chance to be heard and have the foreign money laundering stopped. Get vocal VCI.

Polozi Scheme
Guest
Polozi Scheme

Everyone knows its happening at this point – the realtors, the lawyers, the politicians, the owners and the renters. The squeaky wheel gets the grease.

Shut It Down Already
Guest
Shut It Down Already

GreenSalad, it’s possible to be wealthy yet have a low income. “Wealth” is a measure of the past, whilst “income” is a moment-in-time statement about the present.

Understand this and you too might be one of those 25,000 one day….

Not sure why this needs explaining so many times.

patriotz
Member

@36: “there are 24,960 households in the City of Vancouver where the amount spent on shelter (mortgage, rent, utilities, property tax and strata/condo fees) exceeds 100 per cent of their declared household income.”

How many student households in CoV?

I have already noted the data quality issues with the NHS.

Oracle
Guest
Oracle

I don’t get it anymore.

Oracle
Guest
Oracle

I don’t get it anymore. Why would you guys want to buy in Van West , Richmond , etc anymore? Not British enough for me. So I don’t care what prices do there.

Oracle
Guest
Oracle

Canada has become a country of economic convenience. Sold out by politicians and an uneducated public.