Friday Free-for-all! Lucky January 8th 2016

You’re about a week into a brand new year, how does it feel?

It feels pretty good.

It’s also the end of another work week and that means it’s time for another Friday Free-for-all! This is our regular end of the week news roundup and open topic discussion thread for the weekend.  Here are a few recent links to kick off the chat:

It’s that time of the year again
The ideal housing economy
China stocks down, prices up?
Taxes might limit house profits
Expect mortgage rate hikes
Lack of market regulation
Money flows like water
Benefits of a weak dollar

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

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[…] Vancouver? –How to gloat gracefully –Define ‘bubble’ –Zero down again please –CAD down the drain […]


From the UK – sounds familiar; “UK house prices to crash as global asset prices unravel “Asset prices around the world are collapsing as the global economy slows and UK housing will not escape””, The Telegraph “Asset prices around the world soared as central bankers embarked on the greatest money printing experiment in history. While much of that money flowed into the stock market, a great deal also found its way into house prices. What we are now witnessing on trading screens around the world is the unwinding of the era of monetary excess, and house prices will not escape the fallout. “The end of easy money began when the US stopped its third quantitative easing programme in October 2014. Without an ever-increasing supply of money the world economy is now slowing sharply.” “The first assets to be impacted… Read more »

Bull! Bull! Bull!

>So much for Trudeau. He is cut from the same cloth. Need a new Poltical party in Canada.

he’s doing what he promised to do. i didn’t vote for him, even though more immigration will benefit my net worth.


With the recent market volatility in China, the government is looking to clampdown heavily on capital flight. The view is that it will be more effective at controlling outflows. We will see, but my view if it does work we will see a marked slowdown in house price appreciation in Vancouver over the next 12 to 18 months.



Shout it out

Is any of DeJongs tennants collect welfare, or, iow, need welfare to pay DeJong? If so I would suggest DeJong is in a conflict of interest. Not that he should be removed from his office, seems to me if a Govt official, whether voted in or not, isnt gaming the system, there must be something wrong with him. I mean, there are Govt Sponsored programs to assist Landlords get hooked up with The Underclass… providing the underclass money that is immediately handed over to the Mortgage pig…. Instead of say, allowing the market to Naturally correct and bring back into equilibrium asset prices sustained by wages The more DeJong and his Mortgage pigs delay the inevitable, the worse it will get…. unless of course the Tyee article is yet another stalling tactic, to give the piggies more Goo Handout options… Read more »


Apparently the Temporary Foreign Worker and IMP Immigrations programs are importing workers at record levels.

So much for Trudeau. He is cut from the same cloth. Need a new Poltical party in Canada.

“People’s Party of Canada”?





Simple answer yes, buy for $700K and immediately flip for $1.4M. Profit ?

Shut It Down Already

So there are only 15 active registered users then?


Poloz’s latest isnt exactly a ringing endorsement for Gambler Immigrant. A dearth of soft skills to navigate the Canadian job market, many will return to India and China to chase their rainbows. If they are wise, they’ll hold onto the first world dream while commandering Revolutionary ranks… integration is a bitch.


From Charles Hugh Smith: “The China Syndrome: The Coming Global Financial Meltdown” “All the phantom wealth piled up in China’s boost phase is now melting down, and the China Syndrome will trigger a meltdown in global phantom assets.” “China has provided marginal demand in everything from iron to oil to machine tools. Now that China’s demand is faltering, global demand is weakening and profits are collapsing because China provided the critical marginal demand that fueled immense profits.” “This decline in marginal demand is crushing commodity-based economies and triggering recessions as profits, sales and wages all decline.” “The tidal wave of cash flooding out of China has provided marginal demand for high-priced real estate in Europe and the U.S. From London flats to Chateaux in France to single family homes in Vancouver B.C. and Southern California, trillions of yuan have… Read more »

Bull! Bull! Bull!

are US rate cuts in the cards? are people realizing that the stock market is a bear?

Bull! Bull! Bull!

Vancouver bucks nationwide downtrend in home starts



What would the property (both units) rent for? Say $3500/month total? That’s a price/rent of 200, not great but acceptable for a live-in owner.

Would I buy? No, I don’t want someone living in the basement.


So here’s a quandary for the board. Would you buy an east van special at 50% off if given the chance? Grandfather of in laws just passed leaving an east van special. Parents tried to sell for 1.6 mil with no serious bites. Realtor told them to drop to 1.4 and it will sell. This house is all original from early 70s so a lot of resources would need to be used to modernize, but the guts are good and can be lived in as is. There is a 1 bedroom 500sq ft legal suite as well. Would you bite at 700k? Or is that still too much?


“Canadian housing starts fall in December as condo construction plummets”, Financial Post

“Housing starts in Canada ended 2015 at a slower pace than expected as the rate of new condominium construction slowed in Toronto.”

“Overall, the pace of urban starts fell in the Prairies, Ontario, and Atlantic Canada, but increased in British Columbia and Quebec.”


“As Housing Prices Soar, Finance Minister Is Well Invested”, The Tyee

“Taking action to reduce housing prices in Vancouver could sap the equity people have built up in real estate, British Columbia Finance Minister Mike de Jong warned last year.”

“The hit from anything the provincial government might do to drop real estate prices in B.C. would be particularly painful for investors like de Jong, who has a personal ownership stake in seven investment properties in Abbotsford, an hour’s drive from Vancouver.”


“Poloz sees lasting policy divergence as U.S. rates rise”,–rates-rise-201526.aspx

“The global economy is reacting to a “seismic shift” that will generate higher incomes in resource-importing countries, while requiring lengthy economic adjustments for exporters, Poloz said in a speech Thursday in Ottawa. In fact, rising U.S. interest rates may actually act as an additional downside risk to the Canadian economy by driving up long-term borrowing costs, he said.”

Bull! Bull! Bull!

let me guess, you all switched to short at the benign of january, right?


Australia bet the house on never-ending Chinese growth. It might not end well

With the Chinese economy beginning to falter, the fear is Australians must now figure out where their economic future lies for the next generation who have been brainwashed into believing that digging up rocks and flipping houses by accumulating a gargantuan mountain of private debt is how a modern western country builds its future. The results will not be pretty.


For boomers, of boomers, by boomers;

“How to gloat gracefully about your B.C. home’s new value”, Globe & Mail

“Young people – like, people under 35 – seem to resent me. They say they work hard, are well-educated, earn decent incomes and yet can’t afford to buy into the Vancouver market.”

“Try this line: “Well, things have sure changed, man.” Ask them if they are really working hard enough. Remind them that in the mid-1980s, interest rates were in the double digits and that, compared with today’s prices, marijuana was expensive. Tell them that you envy their lack of job stability and benefits because of the mobility and freedom that affords them. Be generous; offer to rent them your basement suite for $1,700 a month, providing they can do some work around the house and whatnot.”