Lack of home inspection leads to no surprises

At least it should come as no surprise that buying a home with no inspection leads to numerous nightmare scenarios when you actually inspect the property after purchase.

“Recently, I had one house that was so catastrophic, it needed some $350,000 in repairs. They were not expecting that at all because it was newly renovated. But that only concealed all the issues. It was lipstick on a pig. It needs a new foundation, piping, you name it, it needs to be done,” said Anderson, who has been an inspector for six years and was a builder for 25 before that.

A million bucks doesn’t get you what it used to in east van:

Last October, the 40-year-old and his spouse bid $955,000 on an older home in Hastings-Sunrise. It was listed at $899,000 and “we heard there were five bids. We were in the middle. We expected this and wanted to have a differentiating factor.”

Ahead of taking possession, “we had asked if we could get in to do some measuring for our furniture, but they wouldn’t allow it,” said Girard.

On moving day, they arrived to find “an absolute disaster,” said Girard, who described the home as being “not safe for our one-year-old daughter. That was the biggest problem.”

There were also holes in the wall, exposed electrical lines, flooring that didn’t meet walls, kitchen cabinets sitting unevenly over dirt floors covered in rodent droppings. The house, when they had seen it, had been “staged. They had positioned things to cover up problems. Drywall had been ripped out. There weren’t enough circuit breakers for things like the stove to be powered. We had to MacGyver things to make them work.”

Unsurprisingly, the Home Inspectors Association of BC recommends that you get a home inspection before buying.  Read the full article over at the Financial Post.

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Combat roach
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Combat roach
Ten ways to ease Vancouver’s housing crisis: Readers’ respond From B.Y.: You have been an incredible voice for the many individuals and families negatively affected by the housing crisis in the Vancouver area. It’s the most important issue facing the region. I am a house owner that will be cashing out at some point – but at what cost? My kids (4th generation Vancouver residents) will be leaving the area they grew up in (and the Lower Mainland) to find reasonably priced real estate in an area that is not dominated by wealthy Chinese newcomers. This is exactly the same thing that happened to my wife and I nearly 30 years ago. We sold our Kerrisdale house (in the neighbourhood where I grew up) for the exact same reason to move to South Surrey/White Rock. We’ve made lot of money… Read more »
Best place on meth
Guest
Best place on meth

“the government of Christy Clark should be thoroughly audited”

They spelled “executed” wrong.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

Early data show five per cent of Vancouver home sales went to foreign buyers

http://www.theglobeandmail.com/real-estate/vancouver/bc-government-releases-preliminary-data-on-foreign-home-purchases/article30790277/

A big problem with this discussion is that it rarely makes a distinction between “foreign buyers” and “foreign money”.

According to the article, “foreign buyers” account for only 5% of sales. But even if true, so what? We still have thousands of millionaires legally moving to the city from primarily mainland China every year, who instantly become “local buyers” even though their money is sourced offshore. This has had a huge effect on prices even though the buyers are technically “local”.

So let’s stop talking about “foreign buyers” and instead focus on “foreign money” which is the real problem.

patriotz
Member

“Foreign money” is not the problem, it’s government policies which direct money into RE, whether the money is coming from abroad, or the money is originating (which almost always means borrowed) locally . And I believe the latter is far greater in magnitude than the former.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

But that’s the rub, isn’t it? You “believe” that because there is no reliable data on how much foreign money is coming in to the market. You may be right on the relative influence, I have no idea. But the government is doing nothing but obfuscating the issue by counting up the number of “foreign buyers” and declaring that there is no problem, when instead it should be counting the cash inflows (whether by foreigners or locals). Only then will we actually know the extent of the “foreign” influence on prices.

patriotz
Member

One again, foreign buyers per se aren’t the problem, it’s government policies that promote buying RE at excessive prices, by everyone.

Which buyers do I think are responsible for excessive prices: everyone who buys, no exceptions. And as to who is buying: there’s some stats coming on ownership rate from the census just completed, and I’m predicting that it will show a record high owner occupancy rate in Vancouver CMA.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

Once again, I didn’t say foreign buyers were the problem, I said foreign money.

And for the life I me I can’t understand how you can claim that it isn’t a problem when we have no data on how much of it there is.

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

Someone has the data. They just aren’t sharing it for some reason. To be fair, maybe it’s not easily accessible or not well organized.

ostritch
Member
ostritch

Don’t feed the bear.

patriotz
Member

And once again, I said “Foreign money” is not the problem, it’s government policies which direct money into RE, whether the money is coming from abroad, or the money is originating (which almost always means borrowed) locally .

Ulsterman
Member

But they are the catalyst that emboldens local specuvestors and flippers to keep paying ever-higher prices. So long as their Westside target area keeps climbing into the stratosphere, the bubble keeps inflating and local investors feel infallible.

different this time
Guest
different this time

You are a fool Patriotz. An apologist.

There are 14,000 empty homes in Vancouver.

there are homes being marketed not in BC but directly in China. Check relatylink for condos between 1M to 1.8M. 3-4 are listed by caucasions, 3-4 by by middle eastern realtors 90% by Chinese realtors. Do you think they are trying to sell their product to local tax payers?

open your eyes.

Combat roach
Guest
Combat roach

It will take decades to recover of shit and mess caused by Chinese “investors, tourists, immigrants, parents, students, housewives” or whatever fuck they are. Who the fuck is protecting them and why? They are just fucking destroying this country in the same way like in any other invasive war. All what is left after them is anger, sorrow, misery and wasteland.

HAMster
Guest
HAMster

There is a guy on Youtube that lives in China and he exposes all the different frauds that the Chinese people pull on foreign tourists. He is a white guy so they think he is a tourist and they try to scam him and then he speaks to them in Mandarin and they scurry away. Search for “China scams” on Youtube.

patriotz
Member
Best place on meth
Guest
Best place on meth

The envelopes that come the other way are much fatter.

patriotz
Member

Nope. The payoffs (assumed if not realized) that Christy is giving to BC homeowners through inflated prices exceed the money going to the BC Liberal Party a thousand fold. It’s the homeowners who expect something for nothing who are the real source of corruption.

ostritch
Member
ostritch

Patriotz doesn’t have eyes.

bbbbbbb
Guest
bbbbbbb

Do the BC stats just released take into account, purchases made by locals acting as lacal proxies for foreign money?

bbbbbbb
Guest
bbbbbbb

sorry…..typo….local not lacal

Best place on meth
Guest
Best place on meth

Of course not.

Do you really think Crusty’s gang would dig beyond that first half millemetre of data?

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

That data probably would not even capture the 18 year old student” who purchased the house worth millions and millions in point grey.

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

Neither in the Globe and Mail article nor on CBC radio announcements is it being described how the data was collected or what kind of data it is. No distinction is made between data and interpretation of data. They are trying to sound scientific and objective while at the same time making it hard for the general public to evaluate what they are saying. I hate this. It is not only robbery, and treating the people with disrespect, it is also anti-knowledge, anti-science. It’s just despicable.

HAMster
Guest
HAMster

Most people are not as thoughtful as people reading this type of blog. They will just take those figures at face value without any analysis. The scary thing is the BC Liberals probably fall into that group.

HAMster
Guest
HAMster

I bought a house in 1992 and used the inspection report (based on my realtor’s bad advice) that the previous owners had paid for when they bought the place two years earlier. But that report was useless and didn’t uncover major issues with the house. I was too naive at that time to realize the report was probably a feel good whitewash to sell the house to them. The things we do when we are young and dumb…

ostritch
Member
ostritch

Were you trying to save $200 bucks on a $400,000 purchase? Don’t think that’s called youth.

Loon
Guest

For selling price details, not updated in real time but gives you good sales history >1 year ago.

https://www.propertyinsight.ca

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

v. cool tool

Combat roach
Guest
Combat roach

Good stuff, here is the history of DT 2BR apt in the wooden building. Ridiculous, big drop is inevitable, the question is when…

Sale Date
May 21, 2016
Sale Price
$590,000

Sale Date
May 28, 2001
Sale Price
$203,000

Sale Date
April 14, 1994
Sale Price
$195,000

Sale Date
November 24, 1991
Sale Price
$187,000

Ulsterman
Member

It is odd now to consider that there was once a time in Vancouver when housing was affordable and in the case you shared, the price barely moved in the 10 years from 1991-2001. What on earth did middle class people talk about at dinner parties?

ostritch
Member
ostritch

As I recall it was a bit of government corruption, rock concerts, sports, work and sex.

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

Music,theatre, art, travel, mind expanding experiences of all kinds

patriotz
Member

“What on earth did middle class people talk about at dinner parties?”

How the NDP government was “ruining” BC for the middle class, of course.

dyugle
Guest
dyugle

NDP in power till 2000. Then Liberals took over. Think what four more years will bring!

Best place on meth
Guest
Best place on meth

Why on earth would houses need to be inspected?

They’re not for living in anymore.

Best place on meth
Guest

Here’s my design proposal for the next landmark building that gets put up in downtown Vancouver.

http://product-images.highwire.com/3486672/used-ge-washer-agitator-pn-175d2102-002.jpg

Oracle
Guest
Oracle

China or India would never allow their best areas to be overtaken by foreign nationalities. Being Canadian or getting a PR is for convenience purposes only these days. Allegiance to motherland.

With respect to the data. Foreign National excludes anyone with a residential address in Canada. That includes Foreign students, people here on 10 year visitor visas, Supervisa parents, etc.

Foreign national is people buying RE that have no temporary visa here.

Incredible but people buy it. Now will wait for the racial clashes in 10 years when the Chinese outnumber the Caucasians haha

Best place on meth
Guest
Best place on meth

10 years?

I can be ready to go in 10 minutes.

Sellnoworbepricedin4evah
Guest
Sellnoworbepricedin4evah

Airbnb is messing with the natural order. It’s got to go. Completely non-productive.

https://ca.finance.yahoo.com/news/more-half-vancouver-airbnb-hosts-income-pay-rent-172221367.html

paulb
Member

New
213
Sold
118
TI:8650

http://www.paulboenisch.com

HAMster
Guest
HAMster

Here is an example of sale price drops in the 1990’s
5820 Neville Street Sept 1994 $315,000
5792 Neville Street Sept 1999 $255,000

The same type of house on the same size lot, almost 25% decline in 5 years.
The market declined all through the 1990s with the bottom in around 2000-2001.
This info is from propertyinsight.ca

YVR
Guest
YVR

That was in a time where interest rates were falling. When this bubble implodes mortgage rates have nowhere to go but up.

Lurker
Guest
Lurker

Ummm what? Rates shot up about 2% in the late 90s until the dot-com crash in 2000.

Bag it and tag it
Member
Bag it and tag it

I rented 2 prime (prime lots at least) West Side houses in the mid/late 90’s, and each one was sold while I was living in them. They both sold for approx. 35% discount from their peaks and I have a clear memory of being very upset I didn’t have the money to buy back then. They’ve likely both gone up 500% since then.

Tell what you want about immigration to trudeau.
Guest
Tell what you want about immigration to trudeau.
Bag it and tag it
Member
Bag it and tag it
I sent in my comments: This country needs to slow down immigration and focus on ways to get our existing population to have more kids. The number one reason we are not producing enough children is because housing is not affordable, which is caused by too many foreigners buying houses and leaving them empty. This must stop!! I am second generation Vancouverite and I am disgusted to see the destruction of culture that I’ve witnessed over the past 15 yrs. I am planning to leave not only the city, but also the country as I’m disgusted with the level of greed between those profiting from Real Estate and the governments that are more than happy to accept donations in exchange for turning a blind eye or even adding fuel to the fire. I went from being extremely proud to be… Read more »
Tell what you want about immigration to trudeau.
Guest
Tell what you want about immigration to trudeau.

forward the link

would-be buyerl
Guest
would-be buyerl

This article actually sums up the real problem. Canada’s immigration policies are too easy and cheap. They allow “immigrants” to come here without paying income taxes and participating in our economy or culture. They can come and go as they please. We are just an escape hatch if necessary. We are just a country to hide their money. Canadians are so naive.

http://www.theprovince.com/news/local+news/daphne+bramham+should+foreign+welcome+rolled+until+affordable/12043424/story.html

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

http://www.theglobeandmail.com/news/politics/threatening-lawsuit-chan-demands-apology-from-kenney/article30815873/

“A Vancouver-area journalist lost his column after mocking Mr. Chan and Mr. Wang. Another writer who pilloried Mr. Wang received death threats.”

I hadn’t read about that. Does anyone know who the Vancouver journalist is or which newspaper he was working for?

Best place on meth
Guest
CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

Thanks, Meth.

O Canada. I would think that if the target of this criticism were honest he should have insisted that the reporter be re-hired or at least would have publicly objected to her being fired by the Chinese-Canadian Post editor for her criticism of him, since he is, after all, a politician and should expect criticism and at the same time is a public servant, so should protect people like that journalist. He gets a Globe and Mail attention around this time period and does not do anything like that though he does mention that freedom of the press is Canadian value.

Combat roach
Guest
Combat roach

Corrupted to the bone…

“Critics say British Columbia’s government is bowing to Vancouver’s powerful taxi industry. Kulwant Sahota, president of Yellow Cab Co. and the Vancouver Taxi Association, says Uber will provide unfair competition for cabbies at a time when the cost of living has soared. It’s a message the industry has hammered hard. “The taxi lobby has been very successful,” says Gillen, who adds that industry representatives often attend fundraisers for the ruling Liberal party. ”

http://www.bloomberg.com/news/articles/2016-07-08/vancouver-doesn-t-have-uber-it-boggles-the-mind

Lalalal
Guest
Lalalal

Ubers business model is to set up shop illegally in a city and force deregulation down the troof weak cities.

In BC taxis are regulated by the province so uber is having a hard time.

Deregulation means that uber can charge whatever price they want. They are keeping prices low to gain market share but once they have it they will bleed you idiots dry. And undercut any new competition that attempts to compete.

I kind of wish the whole process would speed up and happen. I’d love to see all these uber shills get what they deserve.

BTW on uber you can rate drivers but drivers can also rate you. Maybe you think you are charming after a few drinks but believe me you aren’t. Have fun walking.

Oracle
Guest
Oracle

I’m sure if the RCMP and CSIS investigated properly, they will find loads of money going into bureaucrat and politicians account overseas.

It’s open corruption now. Local MP’s or their relatives have or are offered 10% stake in companies holding real estate…their position helps in getting rezoning. A win win in a sense.

In BC, if you are not corrupt, you will lose.

Best place on meth
Guest

Lie, cheat and steal.

We are now one with the motherland.

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

Sorry, slightly off topic from the question of home inspections, but with regards to this article in the Globe and Mail, does anyone know which Vancouver journalist lost his column as a result of criticizing and mocking politicians? Scroll down last couple paragraphs to see mention of this.
http://www.theglobeandmail.com/news/national/threatening-lawsuit-chan-demands-apology-from-kenney/article30815873/

Combat roach
Guest
Combat roach

“The series of events led to much controversy in the local community about censorship and civil liberties in Canada’s Chinese-language media.”

BC is informally under Chinese jurisdiction, therefore motherland rules must be enforced. Locals are still under the impression that we are part of Canada.

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

We should protect Canadian journalists regardless of what language they write in. Does this journalist have legal support? Aren’t there any ambulance chasers out there who can read Chinese who would notice a wrong was done to a writer? (Did he/she just lose a column or did the person lose a job over it.) What about PEN? Wouldn’t it have something to say about this?

Again: what newspaper? And why?

BubbleTea
Guest
BubbleTea

Vancouver Real Estate May Already Be Crashing: Stats
http://www.huffingtonpost.ca/2016/07/08/vancouver-real-estate-crash_n_10869538.html
LePoidevin sees signs of one on Vancouver’s affluent west side, where June sales fell by 35.6 per cent year over year. Slowing sales have been blamed on a lack of supply in the past. But supply on the west side is actually up this year, with 12.5 per cent more detached homes listed for sale in June than a year ago.

Humpty
Guest
Humpty

Anti-immigration sentiment is rising in the general public in vancouver. As soon as it is considered ok to make views known without fear of being called a racist, its game over.

Tell everyone that mass immigration will ruin:

1) their pensions
2) healthcare, access to doctors and hospital tests..
3) locals pay taxes to fund astronaut families, etc.

Unfortunately, racists will jump on this. That blame lies on politicians such as Christy and De Jong and their relatives/offspring that have profited from these self serving policies.

And Garth, that guys is right up there with the Christy’s of the world. But his following is ending. Look at the comment boards. people are pissed at him for spewing propaganda.

Humpty
Guest
Humpty

Immigration update for first 6 months of year:

Immigrants: 132,000
Refugees: 15,000
Foreign students: 178,000
“TFW”: 95,000
Supervisa: 20,000
10 year visitor visa: 280,000
plus lifting of visa for Mexicans in a few months.

Time to defend Canada is now.

Rents are skyrocketing.

elvince
Guest
elvince
“On moving day, they arrived to find “an absolute disaster,” said Girard, who described the home as being “not safe for our one-year-old daughter. That was the biggest problem.” There were also holes in the wall, exposed electrical lines, flooring that didn’t meet walls, kitchen cabinets sitting unevenly over dirt floors covered in rodent droppings. The house, when they had seen it, had been “staged. They had positioned things to cover up problems. Drywall had been ripped out. There weren’t enough circuit breakers for things like the stove to be powered. We had to MacGyver things to make them work.”” But Girard, who described himself as a financial planner with some 550 clients, said that when it comes to managing his own affairs, “I’m a risk-taker. I probably wouldn’t have backed out. This was my shot in Vancouver.”” There’s being… Read more »
Dave
Member
I haven’t posted for a while but I can’t believe what’s going on in this City. I’m blown away that the media and politicians act dumbfounded to the solution. Raise interest rates dummies. When Poloz cut rates last year, it pumped more money into real estate. At the time, I said it was a big mistake but I didn’t anticipate it would drive prices up like this. I do now believe we are in a housing bubble. Prices are out of wack and we have seen panic buying this year. The only element I am not sure on is the level of speculation, which should be an element of all bubbles. I’ll do some digging on the stats when I have time. Somebody needs to come up with data on pre-sale flipping, which is where that speculation is going on.… Read more »
StupidityCheck
Guest
StupidityCheck

Mostly agree. But raising rates is not the right solution, tightening lending is. Also, regulating foreign buying and shutting down the QIIP.

Dave
Member

I’m not against those things but raising interest rates are part of it too. It will send an immediate message to the market. If we change lending rules, then people will rush to buy under the current rules, pushing it up even more. If the CMHC changes things, it has to be a surprise.

Foreign buying needs change but that’s going to take a lot of time to do. It won’t happen quickly enough.

If we’re going to push this discussion into the public realm, I think the message needs to be simple. Everybody already gets the foreign buyer aspect and that’s dominating the discussion. But, the quick and easy move is to tighten lending and that’s where the discussion should really be right now.

ostritch
Member
ostritch

No. We just came OUT of a correction. About 18 months ago. Remember? The five years of stagnant (well shallow dipping and popping) prices of condos? So we are only about two years into this bull market or bubble.

Dave
Member

The other stat for bullish camp is sales per population. It’s still low on an historic basis. The lack of developable land is also a very real factor. If you project 10 or 20 years out, we have a very serious problem on that front. I see this first hand BTW. I bet in 20 years you have people protesting about the ALR and blockading farms.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

There are many factors driving prices: interest rates, CMHC, foreign capital, the ALR, etc. But I have come to realize that the ALR will never, ever go for the simple reason that the vast majority of people support it. Personally I’m not sure how I feel about it, but what bothers me is that very few people seem to realize what a massive effect it has had on detached prices, or perhaps they just don’t want to emotionally accept that fact.

Like I’ve said before:
ALR
Population growth
Affordable detached houses
*Choose any 2

Dave
Member

That’s the zeitgeist today, but I think that changes. Eventually people figure it out. I totally agree your choice of three items. In the short and medium run, people are happy to live in denial. But then, a new generation comes along and they see the reality just fine.

People will understand that we have the second largest country in the World and that we’re not likely to go war with Saskatchewan or Manitoba.

The idea that people will accept poverty over potatoes will seem absurd in 20 years.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

I agree that attitudes can change, but the ALR is like a religion to most people. The ironic thing is that some of the most pro-ALR people I’ve talked to are also the most angry about the rise in detached house prices, but they absolutely refuse to listen to reason when I point out the correlation between the two.

Plus there are those who already own a home, and to them the perpetual growth of unearned income is a powerful opiate. I’m pretty sure if more detached house owners were aware of the ALR’s effect on prices, you would actually see an increase in support for it.

Zero Down Forty
Guest
Zero Down Forty

70-80% of home sold in Metro are under $ 1mil. Since not too many people are buying expensive detached homes so there’s not much pressure for developers to build a lot more single family.

Developers like British Pacific, Wesbild, Genstar are sitting on thousands of acres of land designated for single family development. Years of supply and not in the ALR, and yet they are in no rush to supply more than a few units per year. Silver Vally in Maple Ridge was designated for single family growth 15 years ago, but has only built out half it’s 3,600 homes. The market is just not there.

Opening more land wouldn’t change the pace of current SF absorption. Other factors are influencing that.

Dave
Member

Ya, because nobody wants to live in Maple Ridge. Open up Richmond, Delta, Surrey and Langley and watch the demand. Look at the sat photo for Richmond and imagine the possibilities.

British Pacific is moving ahead with development of that land and they are about to do more density, which is good.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

The majority of non-ALR land currently zoned for single family homes is on the side of a mountain in places like West Vancouver and Coquitlam. This type of land is extremely expensive to develop. Most ALR land however is flat and easy to develop, and would be, if it were allowed.

To say that there is no market for detached houses in the city with the most expensive detached houses on the country is, with all due respect, absurd.

Zero Down Forty
Guest
Zero Down Forty

Fact are facts. 70-80% of home sales are for homes less than $ 1mil -mostly multi-family. The fact that this is the most expensive detached market in the country means most cannot afford buy SF- and as the facts show – most are not buying.

Asset bubbles have little to do with supply or demand anyway. This one’s been fuelled by an expanding world money supply and the resultant irrational speculation and expectation of gains. It’s not that homes and other assets have risen in value – it’s that the value of money has fallen – regardless of who’s holding it – be they off-shore Chinese or locals overextending themselves to buy a crappy condo.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

“The fact that this is the most expensive detached market in the country means most cannot afford buy SF- and as the facts show – most are not buying.”

So your argument is that most people aren’t buying because it’s too expensive – therefore there is no demand?

That reminds me of something Yogi Berra once said: “Nobody goes to that restaurant any more. It’s too crowded.”

Dave
Member

Even if you don’t agree with me that raising rates is the ultimate solution, it’s at least something that we can actually do IMMEDIATELY and something that will have a very real effect in short period of time.

Debate causes and solutions other than that by all means, but nobody should disagree that higher rates can resolve price appreciation and cool the market.

All financial bubbles end because the money and liquidity dry up.

So very clearly interest rates are Step 1.

Afterwards, we can talk about foreign ownership, vacant houses and greater density.

Combat roach
Guest
Combat roach

Gutless worms can’t make such decision. They are clueless and scared at the same time.

Sellnoworbepricedin4evah
Guest
Sellnoworbepricedin4evah

No way they are raising rates. The bond market might do it for them though.

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[…] –What did people talk about before the bubble? –Supply up, sales down? –Raise interest rates –Precise data from a tiny sample –ok fine, give me $100k less –speculation tax = market collapse? – […]

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