More propaganda from the pro-renting cabal

The highly secretive pro-renting cabal that runs the local media have another article out comparing renting to owning with an obvious preference given to renting:

Not only did renting give her more options for places, put an extra $700 a month in her pocket and get her off the hook for repairs, maintenance, property taxes and the day-to-day responsibilities of ownership, it also gave her more options to live her life.

“If I had purchased in Vancouver, my future for the next many years is set (in stone),” said Yee, who is now happily living in a 685-square-foot, two-bedroom laneway house with her partner in her dream neighbourhood of Mount Pleasant for $1,650 a month.

“With renting, I can do whatever I want. It’s so freeing and valuable to me.”

They also paint ownership in a negative light:

Putting all your eggs in one very expensive and non-liquid item over the expense of other assets doesn’t make financial sense, say some experts.

Hannah says unprepared homeowners can end up more stressed and in debt than renters. Studies have also shown homeowners aren’t happier than renters. They have less leisure time and derive more pain than joy from their homes.

Will the media stop at nothing in their portrayal of renting as a superior life choice?

Read the full article here. Thanks to southseacompany for the link. Krystal Yee runs a personal finance blog that can be found at givemebackmyfivebucks.com.

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Local Refugee
Guest
Local Refugee

the next big tourism thing in Vancouver…

“The latest attraction in London is the Kleptocracy Tour, organized by anti-corruption groups. They drive customers through neighborhoods that have become the world’s most expensive square footage, thanks to the flood of dirty money bidding up real estate values.”

http://www.vancouversun.com/touch/story.html?id=11750298

null
Guest
null

Such a tour here would be a hate crime.

Best place on meth
Member
Best place on meth

Such a tour here might be fun, but only if they spiced it up a little.

I would suggest handing out a crate full of Molotov cocktails to all the passengers for the ride through Shaughnessey.

Shut It Down Already
Guest
Shut It Down Already

So jealous, so bitter…

ostritch
Member
ostritch

And so funny. Get a sense of humour.

I\'m With Stupid ^
Guest
I\'m With Stupid ^

Its not humour when he actually thinks that lol.

Westcoastlife
Guest
Westcoastlife

Um, no one actually lives in the houses, they are just abandoned piles of rotting wood, so it might actually improve the neighbourhood – empty lots vs. dilapidated shacks, take your pick.

Yunak
Member
Yunak

It will take a time but this city will inevitably reach the point with no return that will be an ugly one, as long as state does nothing to stop this social destruction. At some point people will have to get “organized” and protect (save) themselves and families in need of basic necessities. One can’t just “kill” the entire city.

“This month, Washington cracked down, as Ottawa should have starting in 2012 when the ruination of Toronto and Vancouver housing costs began. Last year alone, prices jumped 14 per cent and 30 per cent, respectively….Clearly, Canada’s legal, developer, banking and building lobbies are too powerful and making too much money off these activities.”

Most voted comment:

“Nothing will ever happen to these “gangsters” unless the Ordinary Canadians take things into their own hands!”

elvince
Guest
elvince
A question still remains: Why is it such a problem only in Vancouver (and Toronto to a lesser extent)? Why isn’t affordability as bad in Montreal, Ottawa, London, or Calgary (well, we know why in CGY)? Those markets are all under the same banking, developpers, legal and immigration environments. Heck, even in a given market, it doesn’t make sense how prices of SFH have skyrocketed compared to condos. 5 years ago, a nice SFH was the same price as a nice penthouse. Nowaday the SFH is worth at least 2X as much. A lot of condos have been built, but that doesn’t translate to a lot of penthouses, and nice, highest-floor penthouses are as much a display of money as SFH are. Even more so in most cities. I definitely understand that my particular situation (SINK who likes to entertain… Read more »
Confucius
Guest
Confucius

Not sure why, but the larger cities in other countries that had bubbles gained more and did a hockey stick moonshot at the end.

https://econ411w14.lsa.umich.edu/wp-content/uploads/2014/03/japanes-and-us-housing-bubbles.png

Ulsterman
Member

If the major driver of the problem in vancouver is HAM, then it’s no surprise that vancouver is sky rocketing and not say, Calgary. If i were a rich Chinese investor looking to stash away money I’d probably chose Vancouver too. Buy properties here and if you need to live here too it already has all the services you need in a language you already speak. You can still live an almost entirely Chinese lifestyle without the pollution, censorship, and fear of government detention. I’d do the same thing if i was in their shoes.

ostritch
Member
ostritch

The Chinese are in Montreal but less so. I think you have to accept what they think of as the No 1 destination. Language. Culture. Food. Shopping.

ostritch
Member
ostritch
We were in London all summer last year. 1. Saudi money is big. Much much bigger and brasher than Chinese money. By comparison London has almost no visible Chinese billionaires. 2. These people are not just Kleptocrats. They are the larger Saudi Royal family and have the money that comes from selling oil. 3. In many cases, there may not be anything to crack down on. 4. The most desired areas of central London are a ghost town except for Saudi boys driving gold Lambos around in circles (not) checking out girls. It’s very weird. Hyde Park is hundreds of women in abayas (all black head to toe) feeding the birds. 5. Things have been going in this direction since the NINETEEN SEVENTIES. And it hasn’t stopped. 6. In Belgravia, on a street where Prince Charles’ uncle, Lord Mountbatten, used… Read more »
Local Refugee
Guest
Local Refugee

So where do we move, the rest of us?

emmi
Guest
emmi

You hope you and your friends all vote in lots of transit so you can get to your job.

space889
Member
space889

“685-square-foot, two-bedroom laneway house” -> isn’t that used to be the size of a 1 br apartment unit?! Weren’t 700 sq ft 2 br condo units laughed at as tiny weeny downtown apartment for young DINKs with more $$ than brains??

Almost $1700/month to live in someone’s backyard…..and we think this is a good deal??!

elvince
Guest
elvince

For once I agree with you. Canada has like a gazilion of unoccupied quare miles. I wouldn’t live in someone’s backyard for free.

And 685 sqft is really tiny. On the east side of the country, only poor people live in such small spaces. And when i say poor, I mean welfare poor. Vancouver is officially the worst place to live in canada.

franko
Member
franko

Not that I’ve been paying much attention but caught 3 more warnings today about Vancouver housing at unsustainable levels from RBC, National bank, and David Rosenberg… and the day isn’t even half way through. Wonder how long it will take speculators and boomers to get the message that it might be time to cash in when terms like “dangerous” are being bandied about.

ostritch
Member
ostritch

Maybe it would help if they mentioned that the banks here like RBC lend to foreign buyers with only 35% down. That’s all the protection they get. 35%. What I’m not clear on is if the CMHC secure these loans? And if they are sold onwards as CDOs? Now that’s scary.

Yunak
Member
Yunak
Best place on meth
Member
Best place on meth

“Farnworth says the Opposition plans to raise the issue in question period next week. ”

I’m sure the dumb cunt will brush it off with a smirk and some smug comment.

“Political observers say while the news isn’t good for the premier, it’s also far from fatal.
“A little more transparency could be in order in Victoria. But the fact of the matter is this is a popular premier, an effective and competent premier,” said UBC political science professor Max Cameron. ”

Why is everyone that teaches at UBC so stupid? This piece of shit is the 3rd least popular premiere in Canada.

https://postmediaprovince.files.wordpress.com/2016/02/alternatepremier-e1455676971784.jpg

Dr. Strangelove
Guest
Dr. Strangelove

She must be quite popular among “her people” in BC but their status could be of strange kind like students, housewifes, businessmen, parents, investors, turists therefore not necessarily being qualified to participate in opinion polls?

crabman
Guest
crabman

Seriously. That smirking clown couldn’t even win her Point Grey riding.

patriotz
Member
ostritch
Member
ostritch

Link doesn’t work.

Fools
Guest
Fools

Your bears have been fools for trying to have “discussions” on this unaffordable hoisin issue for years. Fools, it is foreign money and in trolled immigration. Get your act together and unite and do something about it.

The days of being politically correct are over. Soon you will be priced out of the Fraser valley. Then what? Openly demand an end to immigration NOW. I let my views be well known in my circle and the view is spreading.

voter
Guest
voter

You’re right, the government doesn’t care what the average person thinks ,they’re just going to keep on selling the country .The only people that can stop it are the natives.

patriotz
Member

” the government doesn’t care what the average person thinks”

Sure they do. They don’t just care what you think. But your views and interests are in the minority.

The average person is a homeowner, right?

paulb
Member

New
415
Sold
163
TI:8079

http://www.paulboenisch.com

Fools
Guest
Fools

And you bears, Garth Turner are enablers of this kind of BS by denying HAM. He is the worst of the assholes. Most likely made a deal with the banks to stop talking about housing crash and HAM. Notice how no establishment attacks him anymore.

Don’t be fools. You got to fight for what you want in this world.

realist
Member
realist

I quote a long-established, well-respected, west side realtor, circa 1989.
“Our governments have sold us out to foreign interests”.
This is just as true today as then, but what they have done is now glaringly obvious.

wwwww
Guest
wwwww

Except that this time, there are a billion people in China. HK had only a few million.

Also, there are still plenty of apologists for foreign interests, including people who don’t own a house. So the government isn’t the only one to blame.

patriotz
Member
Charlie
Guest
Charlie

Condos becoming more affordable? What? Relative to a $1.5 million ‘normal’ or ‘average’ house? So a $600k condo is affordable because a SFH house that, in any other city would be worth $550k at the most, is worth $1.5 million here! What a load of (un)relative BS. Or insanity.

southseacompany
Member
southseacompany

“Housing in Vancouver, Toronto ‘dangerously unaffordable,’ says RBC”, CBC News with video

http://www.cbc.ca/news/business/housing-affordability-rbc-1.3469098

“There’s been a marked erosion of affordability in Vancouver and Toronto, where housing is approaching the “dangerously unaffordable” level, according to Royal Bank economists.”

southseacompany
Member
southseacompany

“Two banks sound alarm bells on Vancouver’s runaway housing market”, BNN video

http://www.bnn.ca/News/2016/2/29/Two-banks-sound-alarm-bells-on-Vancouvers-runaway-housing-market.aspx

“Dear median-income Vancouver household looking to buy real estate in the city where you work and play: It will take you more than six years to save for a five percent down payment on a median-priced home. And once you’ve reached that goal, carrying that median-priced home will consume 81 percent of your gross income.”

“In a word: unaffordable.”

southseacompany
Member
southseacompany

“Smyth: Finance minister De Jong soft-pedals warning on Vancouver real estate”, The Province

http://www.theprovince.com/business/smyth+finance+minister+jong+soft+pedals+warning+vancouver+real+estate/11753069/story.html

“Despite these warnings from Canada’s largest bank, Finance Minister Mike de Jong was more cautious in his language. Have we really entered a “dangerous” new place?

“I’d say it’s unusual,” de Jong replied Monday. “There are implications for people looking to get into the housing market.” Gee, do ya think? His critics see a situation that’s a lot more than “unusual.””

Local Refugee
Guest
Local Refugee

Moron, utter moron…

crabman
Guest
crabman

Tssssufferin’ tsssssuckatasssshhhhh, itssshh jussssth unussshhttual.

Doomcouver
Guest
Doomcouver

I can understand why de Jong is spouting this retoric. Anyone with the ability to set policy that will deflate the bubble knows they’re playing political hot potato with a hand grenade. If the bubble pops on your watch consider your political career over, probably forever. Whoever imposes a successful curb on real estate speculation risks a massive backlash from the ~70% of Canadians that are currently home owners. The impact to an average person’s equity when the bubble pops will be disastrous. This could have been prevented over 10 years ago, but now it is too late to prevent the negative consequence of poor policy decisions across all levels of government.

patriotz
Member

http://www.theglobeandmail.com/news/british-columbia/unconditional-offers-are-new-normal-in-vancouver-real-estate-market/article28962021/

Erica Shalinsky dutifully places her shoes among a pile at the front door before walking into a three-bedroom duplex unit for sale on the edge of Vancouver’s trendy Mount Pleasant neighbourhood that has attracted dozens of young families in the span of two hours.

If Ms. Shalinsky and her fiancé decide to put in an offer – which they’ve already done, unsuccessfully, for two other properties – they’ll have to do something that would seem unthinkable in almost any other market: make a bid with absolutely zero strings attached.

wwwww
Guest
wwwww
Hyper-mega-Bull
Member
Hyper-mega-Bull

spring market is going to be unlike anything anyone has seen before. this market still hasn’t entered the bubble phase. strap on your jet-packs, we are about to take off.

http://3.bp.blogspot.com/-MajjgBQ0iVs/VDtRYMtoU8I/AAAAAAAAK3c/rKa4eQfDzNE/s1600/vlcsnap-2013-12-25-21h03m34s66.png

fosolo1
Member
fosolo1

From the files of Theater of the Absurd :

Vancouver house left to deteriorate now on the market for $7.2 million
A $6.2-million home in the Point Grey neighbourhood of Vancouver that has been left to rot by a Chinese real estate tycoon is now on the market for $7.2 million.

In early February, Postmedia News reported that the home — in the 4100-block West 8th Avenue, purchased for $4.6 million in July 2011 by Huaican Ren and his wife Xuepei Sun — was subject to a City of Vancouver “untidy premises” order.
http://business.financialpost.com/personal-finance/mortgages-real-estate/vancouver-house-left-to-deteriorate-now-on-the-market-for-7-2-million

Diadora
Guest
Diadora

Pure Chinese money laundering. The unfortunate people in Vancouver who needs a roof gets shut out. Crusty and Justin are letting these assholes get away with it.

franko
Member
franko

Don’t count on Crusty and Justy to fix the problem.
Crusty is devious enough to profit from the situation, and sadly, Justy is just too dumb to understand or care.
And vigilantes would never be able to find those assholes.

Diadora
Guest
Diadora

Hope the market crash soon while Crusty is still in office and we can point a finger at her for the bubble. This may be happening very soon cause China is hemorrhaging from the capital flight and economy crashing.

Guy Smiley
Member
Guy Smiley
Guy Smiley
Member
Guy Smiley
Diadora
Guest
Diadora

Just smoke and screen put up by the real estate association. The magnitude will not come out til a full blown crash which should be this summer.

patriotz
Member

Actually in most US markets average price went up during the early part of the crash. It happens because crashes are initiated by a drop off in entry level buyers, so the average goes up even through prices don’t.

Teranet, which doesn’t show this effect because it’s a repeat sales index, has been falling for Calgary for a number of months.

franko
Member
franko

Even Calgary is better than some shithole in China.
It’s just getting some of the overflow of dirty money that Vancouver can’t absorb fast enough now that London and Australia have closed their doors.

Captain
Guest
Captain

“Vancouver can’t absorb fast enough now that London and Australia have closed their doors.”
Lol… this just sounds like analogy when all bordellos in the city are getting closed due to law enforcement but one, where hookers are working almost half-dead 24/7 in order to provide to all remaining drunk sailors…

ostritch
Member
ostritch

London isn’t closed. It’s still very open from the bottom.

squeak
Member
squeak
Canada’s national debt: 84.10% of GDP, the average household had nearly $1.64 in debt for every dollar of disposable income. What is the excuse to bring on that level of debt?? Ahum.. There is this connection with pierre trudeau: stopped the bank of Canada to give loans to institutions in Canada for infra structure/community improvements (making life better for tax paying Canadians) that was interest free. Somehow Trudeau was convinced that those loans were to be taken from other banks that charged interest instead. ( I think he came to realize this was a mistake after he was no longer in power) So here we are. Is there some other kind of benefit to Canada to allow ultra rich foreigners bringing in tonnes of money to park in Canadian real estate, where else is this mega money being parked that… Read more »
realist
Member
realist

I do not pretend to have walked the corridors of power, but Montreal is in some ways a small town. A highly reliable source told me that Pierre Trudeau as PM was so ignorant of finance that he had to have a little tutorial from a senior exec of one of the Big 5 banks on how and why bond prices are inversely correlation with interest rates!

franko
Member
franko

Sadly, such a tutorial would be totally wasted on Justin.

realist
Member
realist

Yes, you’re so right, sad indeed. And I’m not so sure about his cabinet, either. Father Trudeau had many reprehensible characteristics, but stupidity was never suggested to be one of them. Ignorance is another matter…

ostritch
Member
ostritch
Oli
Guest
Oli

http://www.transparency.org.uk/plummet-in-number-of-golden-visas-granted-after-blind-faith-period-ends/

“It appears the music may have finally stopped for one of the world’s largest luxury real estate bubbles: London.
It’s well known that foreign oligarchs love London real estate as a means to launder funds, typically “earned” by soaking their host countries dry via corruption and fraud. This has caused absurd and irrational spikes in high-end residential real estate in the English capital, as well as a flood of new construction
With emerging markets now completely collapsing, the seemingly endless flood of foreign money is drying up, and with it, London real estate.

So has the London real estate bubble popped? Probably.”

http://www.bloomberg.com/news/articles/2016-02-29/luxury-home-prices-in-central-london-fall-most-since-june-2009

So for now that money seems to be pouring into Tor & Van RE

ostritch
Member
ostritch

We have hardly any luxury trophy property compared to London.

david
Guest
david

I don’t see the debate.
Here are the choices:
1) you “beat” all the bottomless-pocketed money launderers in a bidding war, in a bubble that is already past fumes-in-the-stratosphere territory, and accept the real risk of personal bankruptcy if anything were to go the least bit “off” with this sharks’ game….
2) rent, or
3) live elsewhere.

Royce McCutcheon
Member
Royce McCutcheon
I rent and I absolutely agree that, if you plan on living here and you’re entering the market today, it’s the way go over owning. I suspect it is going to be a less viable option with time though. It used to be that rent increases didn’t really track inflation, appearing to grow at the same (low) rates as incomes. Anecdotal evidence – and I believe some data, though I don’t have it at my fingertips – indicate the rate of increase is becoming steeper, at least for smaller units. It’s intuitive that this would occur as ownership costs are prohibitive for more and more young people. This absolutely doesn’t argue for buying a place today in my opinion, given how insane prices remain. But I suspect it may be the beginning of the end for many people in the… Read more »
david
Guest
david

Royce: “…I suspect it is going to be a less viable option with time though…”

What you suspect is that “nothing will go ‘off’ with this sharks’ game”, as I posted, and as far too many people accept as a basic, simple reality.

Vancouver is well and truly doomed, no matter how this all turns out.

Tiger
Guest
Tiger

China to lay off 5-6 million workers

https://www.google.ca/search?q=China+to+lay+off+5-6+million+workers&oq=China+to+lay+off+5-6+million+workers&aqs=chrome..69i57j69i60l2&sourceid=chrome&es_sm=93&ie=UTF-8#q=China+to+lay+off+5-6+million+workers&tbs=qdr:d

Diadora
Guest
Diadora

China is blowing up and that’s why there is a panic to get the money out of china before the yuan became worthless. 1 trillion USD has left China last year and China will have to stop the yuan from collapsing with strict capital control soon. A lot of the escape yuan has gone into Vancouver RE thous blowing it into orbit. As of all bubbles, it will pop and it will be spectacular.

Captain
Guest
Captain

I guess, that’s not that much for Chinese, a couple of streets plus few buildings in da’hood. Their bosses will move over to Vancouver for some quite time I assume.

southseacompany
Member
southseacompany
Interesting comments today from Mark Carney; “The head of the Bank of England explains everything that’s wrong with negative interest rates”, Business Insider http://www.businessinsider.com/bank-of-england-mark-carney-downside-of-negative-interest-rates-2016-2 “He (Mark Carney) warned that the global economy, despite or because of years of QE, ZIRP, and NIRP, is dogged by a “weak global outlook” and “sluggishness of global demand”:” “But these low interest rates have a cost: they’re “bringing forward demand to today from tomorrow.” And “having brought forward demand for years, tomorrow is now yesterday.” “So they front-loaded consumption and a jump in asset prices – the “wealth effect.” What’s left behind is a pile of debt.” “However, the effect of QE on the wealth channel cannot last forever. Monetary neutrality means real asset prices are not boosted indefinitely by such policies; their economic effects must ultimately unwind. “Said differently, unless an improvement in… Read more »
p123
Guest
p123

Like to see it happen but Vancouver is going crazy, this can last for years still.

ostritch
Member
ostritch

As will everything else. Then the central banks are under pressure to print. Again.

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