Welcome to zombie town

Vangrl posted a link to an article over at the Globe and Mail this weekend about the growing number of new and empty homes in Vancouver.

Ms. Cullen and others said their once-ordinary street has an eerie feel. Large new homes loom darkly over their smaller, lived-in ones. Gardens and big trees have been mowed down. There are fewer parked cars, she said, and it is too quiet.

“There is a slight feeling that it’s almost unsafe, too – like if I suddenly run into trouble in the street, whose house would I knock on?” Ms. Cullen said.

Read the full article here.

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patriotz
Member

@vangrl: “And 18 per cent of the 172 homes purchased were not mortgaged by banks.”

172 houses in an area that has always been for the elite.

I know you have a thing for the West Side. I know that offshore money is dominant in this area. But this is not a relevant issue for the ordinary person.

What is relevant is government policies that result in inflated prices across metro Vancouver and across Canada. Fix these policies and you will fix the problem for everyone, and go a long way toward fixing the problem in the West Side too. But these policies won’t be fixed as long as most voters think it’s in their interest for them not to be fixed.

tedeastside
Member
tedeastside

ordinary people were buying houses on the West side as recently as the late 1990’s

Softy
Guest
Softy

“172 houses in an area that has always been for the elite.”

That is a huge fallacy. That was only true of shaughnessey.

“this is not a relevant issue for the ordinary person.”

More bunk. The $2,000,000 east vancouver house is that price only because the equivalent house in kerrisdale is now $4,500,000.

If HAM ended, dropping the price of the kerrisdale house to $2,000,00 would the east van house still cost $2,000,000?

In a market all prices are relative.

patriotz
Member

@3: “The $2,000,000 east vancouver house is that price only because the equivalent house in kerrisdale is now $4,500,000.”

It has the $2mil price because someone was willing and able to pay $2mil for it. Take away the factors that make someone willing and able to pay $2mil, and it will have to sell for less, regardless of what a house in Kerrisdale sells for.

right-or-wrong
Guest
right-or-wrong

Another log on the fire from the ever responsible Bank of Canada

http://ca.reuters.com/article/businessNews/idCAKCN0SR1C420151102

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
Egg Hunt
Guest
Egg Hunt

#91Vangrl The Province article
>Canada does not collect data on foreign ownership

Yes, it does. At least on sellers.
On MLS purchase / sale contract, on top of the first page, you must state if you are resident of Canada or not.

Upon sale of real estate properties, CRA holds 25% of capital gains till all dues.

As David Eby did, land title record shows lots of information and they are public (for small per use fees, or by year), plus identical information are available through Real Estate board.

Foreign ownership and capital gain evasion problems, it is Federal gov’t who needs to act with help of municipal and provincial governments.

Egg Hunt
Guest
Egg Hunt

amending my post.
> Upon sale of real estate properties, CRA holds 25% of capital gains till all dues are cleared.

> #6 Bullwhip29
Yes, Mainland Chinese cash deal is a myth.
By culture, they tend to stretch their money as much as possible,
don’t mind risks, but look for higher return.

For instance, if you have $5MM on hand, you don’t buy $4.5M house + transaction cost all cash, but instead, buy $2.5M with 50% financing X 3. Canadian banks will wait for them with red carpet.
This behaviour further escalates hot market.

Also, the capital often come from highly leverage business / investment back in their country, or borrowed, and of course stolen.

Egg Hunt
Guest
Egg Hunt

Btw, I talked to our old neighbour in Kits yesterday, she said trick or treating was much less than usual.
My East side friend said same thing.
Probably because it was weekend, so more went for home party?

But we at Dunbar, only one, our friend in Kits and East Side (near Main + 18th) were about 100 they said.
(normally 200+)

southseacompany
Member
southseacompany

“Here’s Evidence Canadians Are On A Debt-Fueled Spending Spree”, Huffington Post

http://www.huffingtonpost.ca/2015/11/02/consumer-spending-canada-moneris_n_8435586.html

“It’s all been made possible by years of low interest rates, which went even lower this year as the Bank of Canada twice cut its key lending rate, amid an economic slowdown in Western Canada due to the collapse in oil prices.”

“And a growing number of experts say that the amount of debt Canadians have taken on is rapidly reaching its limit, and that will have consequences for those parts of the economy that depend most on interest rates, such as housing.”

southseacompany
Member
southseacompany

“Apocalypse now: has the next giant financial crash already begun?”, The Guardian

http://www.theguardian.com/commentisfree/2015/nov/01/financial-armageddon-crash-warning-signs

“This summer, the Bank for International Settlements (BIS) pointed out that certain major economies were seeing a sharp rise in debt-to-GDP ratios”

“The underlying cause of this debt glut is the $12tn of free or cheap money created by central banks since 2009, combined with near-zero interest rates. When the real price of money is close to zero, people borrow and worry about the consequences later.”

southseacompany
Member
southseacompany

“Overvaluation in Canada’s housing market”, Global News video

https://ca.screen.yahoo.com/overvaluation-canada-housing-market-144150022.html

“Financial expert Preet Banerjee breaks down a new study by CMHC over the overvaluation of Canada’s housing markets.”

southseacompany
Member
southseacompany

“Why markets shouldn’t be ruling out a Bank of Canada rate cut next year”

http://business.financialpost.com/investing/trading-desk/markets-shouldnt-be-ruling-out-a-bank-of-canada-rate-cut-next-year

“The Bank of Canada might still be forced to cut its benchmark interest rate this year despite the election of a pro-stimulus government in Ottawa, says Capital Economics”

“David Madani, Canada economist for Capital Economics, said even with the cuts and the upcoming billions in stimulus spending by the new government, the Canadian economy will potentially need another shot in the arm.”

Shut It Down Already
Guest
Shut It Down Already

Softy, don’t be naive. Patriotz is spot on. You’re too busy trying to find a group of people to blame who dont look like you.

Blame every single buyer who has overpaid (because they’re greedy and expect to make a fortune) and the government for pouring gasoline on the fire. Do you know somebody who has bought recently? Because they’re what the problem looks like.

vangrl
Member
vangrl

#1

Are you being serous Patriotz?

What area did you live in when you lived in Vancouver?

And how are you not grasping the trickle affect? or that if it’s 70% in one area, it may very well be 30% in the surrounding areas?

VMD
Member
Royal Bank scraps size limit on newcomer mortgages to keep up with Chinese demand The Royal Bank of Canada scrapped an internal limit on mortgage loan size for immigrants in the spring to tap into surging demand for financing on multi-million dollar houses by newcomers to Vancouver. Wealthy buyers, mostly from China, are fueling a booming mortgage business in Vancouver, where the median price for a detached home on the desirable west side jumped 31 per cent to $2.87 million in the last two years. RBC, Canada’s largest bank, removed its $1.25 million cap on loans to borrowers with no local credit history in May, said Christine Shisler, the bank’s Director of Multicultural Markets, who works with an immigrant clientele. “We’re seeing a lot of affluent newcomers looking to buy high-purchase price homes,” she said. “Now we can actually service… Read more »
vangrl
Member
vangrl

#1

I have a “thing” for the West Side because I grew up here, all my friends live here (or did) as did their families that I’ve known for decades.

Trust me when I tell you that we were not all “elite”, definitely not struggling, and probably earning a bit more than maybe families from the East Side. But these areas, possibly excluding Shaughnessy, were never classified as “elite”

vangrl
Member
vangrl

West Vancouver was Elite!

Zero Down Forty
Guest
Zero Down Forty

West side SF sales last year totalled 1,765, out of 45k in all of Metro – 3.8% of all sales.
70% of 3.8% = 2.6% of all Metro sales.
That’s hardly going to cause a wave that would have doubled Metro prices in the last 15 years.
Considering that prices in all Canadian metros doubled to tripled in that time.

http://www.vancouver-westside-real-estate.com/vancouver-westside.asp

I’m sure you could find another neighbourhood where 1,700 homes were mostly sold to caucasians. What would that prove? The same thing…nothing.

See how deceitful these articles are by not showing the relative size of the sample they are looking at.

Just more RE hype. But now before you get priced out by hordes. And timely placed diversion, now that even the CMHC is calling a cheap money debt driven bubble.

david
Guest
david

Pay wall article just posted on N. Post website:

“In 6 month period, 70% of buyers on Vancouver’s west side were mainland Chinese”
——————-

In other news, Garth Turner’s head just imploded.

elvince
Guest
elvince

@vangirl: Just out of curiosity, when you grew up in the westside, did your parent own or rent?

I ask, because it seems to me like people who grew up there stand to either inherit a house on the west side(divided among the number of childrens), or the proceeds from the sale of a house on the west side. If the parents owned, of course. If they rented, then that’s another story.

Natcho
Guest
Natcho

I have to jump back to this excerpt from the article crikey posted this weekend:

“Montreal mortgage broker Walid Hammami once turned down a client because the copy of his Canada Revenue Agency notice of assessment looked too good. “The quality of the paper this thing was printed on was so classy,” he says. “It’s impossible the government would have the means to do that for every person.”

I have no doubt we have plenty of mortgage fraud in Canada, but come on! doesn’t everyone print out their own NOA records from the CRA website for purposes like this? whats paper quality have to do with it?

Madashell
Guest
Madashell

From Today’s Province: Vancouver real estate is a Mainland Chinese buyers’ market, study says

Groundbreaking study shows 70 per cent of detached homes sold in a six-month period on Vancouver’s west side went to Mainland Chinese buyers; many of them housewives or students with little income.

There you go Crissy and Justin, do something about it!

crikey
Guest
crikey
So much for the “b b b but there’s no data!1!1” mantra from those that would also deny that the sky is blue, water is wet. Garth Turner and Patriotz, I’m looking at you. Excerpt from Globe&Mail: “New study: Vancouver’s housing market fuelled by Chinese buyers” “A new study that puts data behind the widely held but difficult-to-prove assumption that off-shore money is driving Vancouver’s superheated housing market has concluded the vast majority of houses on the city’s affluent west side have been bought by new immigrants from China, many of whom don’t earn their living here. The data were obtained by David Eby, the NDP MLA for Vancouver-Point Grey. He turned the data over to Andy Yan, a University of British Columbia adjunct planning professor and analyst. The resulting study looks at transactions in three neighbourhoods on Vancouver’s west… Read more »
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