Happy New Year! Friday Free-for-all 2016!

Huh, will you look at that… Looks like another year has come and gone.

Here in Vancouver we wrapped up the the year with super-low inventory of 6993 and likely some happy realtors. For comparison 2014 ended with a total inventory of 11,242.

For those of you looking for larger friendly family condos at affordable prices there’s some good news, this one starts at right around $1000 per square foot.

Prices like those might not be helping Canadians with their first priority, which is apparently paying down debt.

So who’s buying and who’s leaving?

One thing you can count on in the new year, Ted will never move. That guy loves this city.

Happy New Year to all of you!

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bird
Guest
bird

Happy New Year!

Here’s to new chances, new choices and new adventures!

patriotz
Member

Prices like those might not be helping Canadians with their first priority, which is apparently paying down debt.

Actually high RE prices help homeowners who really want to get out of debt to do so, since they are able to sell and come out debt free.

It’s falling RE prices that lock homeowners into debt.

As for those who are debtors but not homeowners, RE prices have no effect on their ability to pay down their debts.

Anyway reducing debt is one of those New Years resolutions that people like to talk about but really don’t want to do anything about.

Burnaby Bear
Guest
Burnaby Bear

Happy New Year to all!

No buying for this bear…but will be looking for a new house to rent as I am not happy with my current location.

No debt to pay down, so that is not a concern.

Still looking for used convertible (my birthday gift to myself) – will pay cash!

wreckonomics
Member

The ‘leaving’ link leads to an article about Trudeaus weird response to the Vancouver affordability issue that’s an interesting read. I guess it goes to show that no matter what party, you won’t find a politician willing to address the affordability question at its most basic level.

wreckonomics
Member

Oh, and Happy New Year!

Helicopters full of cash for everyone!

VanRant
Guest
VanRant

2016 maybe the year the debt and housing bubbles in China burst and take Vancouver with it.

“China is only becoming more indebted, even as its economy slows down. By 2014, China’s total debt reached $28 trillion, according to McKinsey & Co. That is roughly half the world’s entire debt.”

http://www.businessinsider.com/asian-debt-and-gdp-stats-2015-10

squeak
Member
squeak

#4: So, it appears that housing is not considered to be a concern by those “in power”, but a major concern by young Canadians.
Personally I don’t believe in being cramped up in a micro test tube in the sky, that is not healthy for mind or body, especially when weather in Vancouver stunts outdoor activities larger part of a year.

What a dis/mis connect!

So, I guess the youngsters (even those 10yo at this time) should plan out to get out of BC, that is if they want a future or at least a 1/2 decent life.

Let’s call a spade a spade: You are not included in the equation.

UBC in crisis mode
Guest
UBC in crisis mode

The craziness won’t end this year.

Most of the neighbors’ assessed values jumped by a million in 2015:

http://evaluebc.bcassessment.ca/

Ulsterman
Member
@8 UBC in crisis mode I’m sure you’re correct. My N Burnaby rental was assessed at $1,000,000 in 2013, $1,216,000 in 2014, and now i discovered the 2015 assessment was … $1,469,100. Although paying sub 2k for this house has felt good, I must certainly concede utter defeat on the buy or not-to-buy front. Even a catastrophe-level 40% crash would still leave this house unaffordable and only bring it back to 2010-11 levels. I checked out my friends’ houses and whether they live in Port Moody, N Van, or Vancouver, they’ve all seen 15-20% increases since last year. Those home owning “fools” who regularly suggested “just buy any house you can, cos it will always go up in the Lower Mainland” are not looking so foolish several years on. This comment my incur the wrath of the perma bears, but… Read more »
patriotz
Member

@9:

They’re not right until they realize those profits.

Oracle
Guest
Oracle

Rising Assessments have nothing to do with sporty taxes.

understand a mill rate and then you know. if everyone’s assessment doubles, then taxes stay the same!!

Oracle
Guest
Oracle

property taxes* Damn autocorrect

angie
Guest
angie
angie
Guest
angie
A Chinese national flag flutters outside the headquarters of the People’s Bank of China, the Chinese central bank, in Beijing, April 3, 2014. REUTERS/Petar Kujundzic A Chinese national flag flutters outside the headquarters of the People’s Bank of China, the Chinese central bank, in Beijing, April 3, 2014. REUTERS/PETAR KUJUNDZIC China’s central bank has suspended at least three foreign banks from conducting some foreign exchange business until the end of March, three sources who had seen the suspension notices told Reuters on Wednesday. Included among the suspended services are liquidation of spot positions for clients and some other activities related to cross-border, onshore and offshore businesses, the sources said. The sources, speaking on condition that the banks were not named, said the notices sent to the affected foreign banks by the People’s Bank of China (PBOC) gave no reason for… Read more »
bestplaceonearth
Guest
bestplaceonearth

“They’re not right until they realize those profits.”

talking like an armchair paid-shill economist. tell your employer, you are tired of repeating the same thing all the time. i bet you sleep-talk these sentences too.

Hçistory
Guest
Hçistory
What a fantastic start to the new year the ChinaStory via Wulfenstraat “The Chinese economy is grinding to a halt. You all know this. Yet, instead of holding back growth to sustainable levels, the CCP is determined to maintain the “New Normal” of a 7.0 growth rate, as Xi himself has promised in order to double 2010 gross domestic product and per-capita income by 2020. As such, China’s fixed capital investment to reach this goal is topping $5 trillion a year, as much as North America and Europe combined. No kidding! “Based on the unsustainability of such mismanagement of the economy, capital outflows have now reached a record $113 billion in November alone. In maintaining these unrealistic growth rates and employment levels, all in the face of global tightening, the CCP hopes to export its excess output at cut-rate prices,… Read more »
MarKoz
Member
@#9 Ulsterman I feel your pain. When I moved into my rental on the West side of 45th and Main (barely), it had sold for about $425K 3 months before. That would have been within my budget but it was a new marriage after over a decade of being single (for both of us) so we thought we would wait until the next year. Also, the place was a tear-down. “Set the controls for the heart of the sun”. (Look it up – Pink Floyd). In 2005 prices launched, and though they have stuttered, they have never looked back. There used to be so many intelligent arguments on this site about the unsustainability of the prices in Van. All, apparently wrong. Now replaced with internet yelling. One day this disaster of a market will blow up, but, too late for… Read more »
Piklishi
Guest
Piklishi

@17, …however the interest rates back then we’re 5% to 6%, @400k. Now the rates are 3 times less at 2% but that house is most likely 1.2m now 3 times more.

The lower the rates the higher the prices. The bigger the mortgages. The bigger the suitcase with cash.

No Money Down
Member
No Money Down

China Investment Corp retreats from Canada after mining, energy investments sour

“After a string of bad investments, China Investment Corp. (CIC) has shut down its Toronto office and is opening a new one in New York, part of a quiet retreat from Canadian natural resources by China’s state-controlled entities.

Beginning in 2010, CIC made four strategic investments in the oilsands worth about $1.9 billion in total (plus another $1.7 billion in Teck Resources).

All Canadian positions became big money losers. In some cases CIC is now the largest shareholder after others bailed. The move to New York may signal CIC will cut its Canadian holdings.

http://business.financialpost.com/news/energy/china-investment-corp-retreats-from-canada-after-mining-energy-investments-sour?__lsa=0cf4-6162

No Money Down
Member
No Money Down

A billion here, a billion there. Soon you’re talking real money…

Ulsterman
Member

Patriotz: They’re not right until they realize those profits.

Technically of course you are correct. BUT, just imagine you bought my SFH in Burnaby in 1999 for 299k and now look at your assessment and see $1,469,100. Being the smart guy you are, you realise that few homes on good, well-situated lots like mine sell for assessment. You are fairly confident it will sell for 100-200k over asking to a builder. There are 2-3 holes in the ground on every block in my neighbourhood.

Now tell me the owner of this house “right until they realize those profits.” I’d be feeling pretty f’ing well off if that was me. Of course i could lose some of that equity in a correction, but let’s be serious, even a 30% correction would leave him being “right.”

Ulsterman
Member

MarKoz Says:”One day this disaster of a market will blow up, but, too late for me.”

That sums it up. After 10 years of miscalling this market I’m getting dangerously close to it being too late for me too. When a 25 year mortgage starts running into intended retirement – fortunately i have a gov pension (no hate mail please) so have a fairly (i hope) date to quit. I’m now examining other areas to live because prices here will never come down enough to make buying affordable.

YLTNboomerang
Member

@21

No, that guy probably has looked at his assessment each year and thought, wow, I make $60K a year, good thing I invested in RE as I’m rich! He then goes and buys a BMW…on his HELOC, then books a fancy vacation, on HELOC, then pays off his monthly credit card balance over and over again, on HELOC, then his 1.4M house has a 900K mortgage and all of a sudden that 40% correction doesn’t look so good. Considering he has little to no RRSP and no savings as everything got plowed into the mortgage a walk away is viable. Take enough of these together and 40% turns into 50% or higher. I agree 30% Canada wide is the extreme but I bet much more for YVR.

gah
Guest
gah

It’s not like people haven’t done well out of this. I’m acquaintances with a couple that both work in the service industry, they got some help from their parents and bought a dump in East Van back in 2008, and to afford it they rented out their basement and garage and still could barely make it. I thought they were crazy; I asked them what would happen if interest rates went up – “that would be really tough”. This year they sold their place and moved to Victoria and don’t have a mortgage anymore.

patriotz
Member

@21: “BUT, just imagine you bought my SFH in Burnaby in 1999 for 299k”

Buying at the right price – ownership cost about the same as renting and soon less – means being right from the start.

That’s entirely different from unrealized gains for someone who bought at a bubble price. Someone who buts at a bubble price can only come ahead by selling at a higher price.

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