Rising home prices keep Canadians from starting families.

Bull! Bull! Bull! pointed out this article in the Vancouver Sun.

The ratesupermarket.ca survey of 1,700 Canadians found 52.8 per cent of Canadians overall cannot afford to start or expand their families, with 46.4 per cent of millennials sayings their existing debt was making it impossible, even before considering a mortgage.

Benjamin Tal, deputy chief economist with Canadian Imperial Bank of Commerce, thinks there’s no question household formation is being impacted by prices. “Common sense tells you it makes sense. We have an affordability crisis in large parts of the country. In these types of cases, people either stay in the basement (of their parents) but they definitely don’t buy a house. We know in the United States for sure this happened.”

Infrastructure in cities has not kept pace with density, as evidenced by some Toronto condominium developments posting signs warnings parents that their children might not be able to get into local schools because of overcrowding.

As Bull! Bull! Bull! points out, that’s not really a big deal because Vancouver isn’t a family town anyways:

that’s ok. young ppl can live in condos, ride bikes, instagram their breakfast, experiment with facial hair, smoke lots of pot and generally act like they never moved out of residence. (showers are optional). they’ll be happier anyways.

Read the full article here.

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tedeastside
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tedeastside

Vancouver Sun lashes out at the non-believer heathen’s who dont declare their undying love for the best place on earth ..
apparently Vancouver is amazing because of all the walking trails and bike paths ….hilarious!!!!! they talk about the seawall as if its the second coming of Christ ..
and even admitted Vancouver has a weak economy!!!!

http://www.vancouversun.com/touch/opinion/editorials/editorial+simply+deserve+city/10292278/story.html

tedeastside
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tedeastside
custom writing
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An intriguing discussion is worth comment. There’s no doubt that that
you should write more on this topic, it may not be a taboo matter but generally people do not discuss these
topics. To the next! Cheers!!

realist
Member
realist

@26 Shut It Down Already
“I don’t understand how Canadian banks manage to maintain ~20% APR rates on their credit cards in the current low interest environment”

Noteworthy and questionable, isn’t it? Could it be that Canadian chartered banks are one of the western world’s most successful cartels?

@23 space889 “people seem to get hang up on some technicalities, and believes banks can only make loans instead buying preferred for some reason.”

Canadian chartered banks’ equity is not a “technicality”. It is a fundamental and closely regulated requirement of their operations. They maintain equity because it is a regulatory necessity of their being allowed to take deposits and make loans. In contrast, some big non-bank corporations since 2009 have engaged in massive buybacks of their own stock with cheap debt.

Shut It Down Already
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Shut It Down Already

Inventory this time last year was 14K

Oracle
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Oracle

Here is the cause of the bull market.

http://www.bloomberg.com/news/articles/2015-11-20/china-cracks-64-billion-underground-bank-moving-money-abroad

The working class will become the poor of the city (even if you have a million dollar detached that you live in).

Oracle
Guest
Oracle

Wow.

The inventory.

This may be the biggest bull market ever in YVR.

Lots of liar loans being originated.

Shut It Down Already
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Shut It Down Already

I don’t understand how Canadian banks manage to maintain ~20% APR rates on their credit cards in the current low interest environment – even for those with solid credit scores. In other countries market forces have driven them down well below 10%, even for non-introductory rates.

paulb
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http://www.paulboenisch.com

pricedoutfornow
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pricedoutfornow

I rent. I have a family. I live in Vancouver. Rent is alright, more than I’d like, but isn’t everything? (prob 30% of our gross family income, maybe less). You have to be a smart renter, screen your landlord properly, make sure they aren’t one who will tear down and build in 6 months.Prefer ones who don’t have a mortgage (ie property’s been in the family for decades). You’ll be alright.

space889
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space889

@patriotz – well if the preferred is paying 5% and a 5yr bond is paying 3.5%, all else equal, you would still buy the preferred since the rate is higher, preferential tax treatment or not.

Oracle
Guest
Oracle

Housing out of reach in Vancouver and Toronto just affects those locals who never bought in years ago.

Immigrants are either rich or poor usually.

The rich love it because it gives them a place to hide their money overseas, while declaring no income, and being subsidized by the taxpayer.

The poor immigrants live it because at least they will have food on the table.

The locals who bought years ago love it because they feel weather than heir neighbours.

patriotz
Member

@17: “And why aren’t institutional investors pretty much just buy up all these 5% yield preferred?”

Because most of them can’t get the dividend tax credit (they are non-taxable like CPP, pension funds, charities) and the DTC is a major part of the return on preferreds.

There are mutual funds that hold preferreds for which individual unitholders can get the DTC.

patriotz
Member

@12: “That’s why we need the Syrians. They all have 5 children, all ready made.”

Stuff like this always makes me want to find out the facts:

https://www.google.ca/search?client=ubuntu&channel=fs&q=syria+birth+rate&ie=utf-8&oe=utf-8&gfe_rd=cr&ei=EFdOVtnwJ4PB8gfbjJLoAQ

Note the rate in 2012 is given as 3/woman. This is one of the lowest in the Arab world, not surprising since Syria is one of the most secular Arab countries. Also note the stories that the rate has now dropped in half, not uncommon in countries that are seeing this kind of turmoil.

space889
Guest
space889

@BBB – well bears will tell you that asking rent is not the same as market rent, and you just need to bargain hard and twist the landlord’s balls to get amazing rental deals at far lower costs than home ownership.

space889
Guest
space889

@realist – well talk to the bears like Vangrl who seems to have found the magic formula of easy no work portfolios that can return 8% to 10%/yr easily.

I’m merely pointing out the scheme of borrowing money at low rates to invest in blue chip preferred isn’t a foolproof no loss strategy for some very obvious reason, and people seem to get hang up on some technicalities, and believes banks can only make loans instead buying preferred for some reason.

space889
Guest
space889
@elvince – well, the money in chequing account are usually the float for day to day cash uses, banks don’t really lend that out for term loans. But that’s not the main point in my example. Anyways, I was using bank in a simplified example since most people consider their preferred to be super safe blue chip that wouldn’t loss money in a borrow to invest scheme. I know banks lever up using loans, bonds, etc. But again, if the preferred shares are no loss propositions and dividends are tax advantage, then why would any rational people buy bank bonds at a lower fully taxable interest rate? And why aren’t institutional investors pretty much just buy up all these 5% yield preferred? It’s not like the institutional inestors lack the money, or leaving them to the retail investors out of… Read more »
Best place on meth
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Best place on meth

I’ve just been informed by a reliable source that you do not actually need to own real estate to start a family.

You can actually do it while renting.

Sounds crazy but I’m just putting it out there anyway.

Bull! Bull! Bull!
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Bull! Bull! Bull!

@14

with COCs priced out rents are about to skyrocket.

ostritch
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ostritch

Europe falters. The US is running scared. Demagogues abound. But the sale of the city of Vancouver to the world’s wealthy carries on unabated. Inventory as listed on this blog is the lowest I’ve ever seen it.

Bull! Bull! Bull!
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Bull! Bull! Bull!

Rent starts at $1,300 for a one-bedroom in “affordable” south Vancouver housing project

http://www.straight.com/news/581836/rent-starts-1300-one-bedroom-affordable-south-vancouver-housing-project

Son of Ponzi
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Son of Ponzi

Rising house prices keeping Canadians from starting families.
That’s why we need the Syrians.
They all have 5 children, all ready made.

bird
Guest
bird

@9 are you in a position where you can go into business on your own? That’s how I made the break – switched my office hours to contracts I could do remotely and then was able to live anywhere. Made leaving Vancouver easier since I didn’t need to find an office job first.

realist
Member
realist

@6 space889

Show me a “can’t lose” investment, and I’ll be your friend for life.

But show me an investment where leverage doesn’t operate in both directions, and I’ll start a religion around you.

Many have already gone over to the RE religion, because RE has been cleverly gamed on many fronts to suspend the facts of economic life above. And when the leverage goes in reverse, you can look forward to it coming to your balance sheet, dear Canadian taxpayer!

Funkeymonkey
Member
Funkeymonkey

I am young. I look for jobs outside this city every day. I love my job. but will move because of cost of housing here. I make over a 100k per year and live debt free because I rent.