Vancouver renters help pay homeowner taxes

If you own a small run down million dollar house in Vancouver, let’s take a moment to thank the renters who help pay for some vital services, like the new first time buyer loans and the homeowner grant, the cap of which has just been raised to 1.6 million.

“This is a remarkably lousy policy,” said Thomas Davidoff, head of the University of British Columbia’s Centre for Urban Economics and Real Estate. “You’re going to take money from people who don’t own homes and give it to people who own homes. That seems to be a step exactly in the wrong direction if the dominant issue is affordability.”

Read the full article over at Bloomberg.

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[…] –BC Gov to spend $1.2 billion on homeowner assistance? –BC Housing supply hits highest level in decades –Detached avg sales price down 22% year over year. –Prices to drop 8.5% in 2017 –Or 50 to 80% drop from peak? –Downgrade of CIBC, Genworth & Home Capital – […]

AtomicFrog
Guest
AtomicFrog
Here are few issues that could move the housing supply demand needle in 2017: On the supply side: 1. If the BC NDP wins the election in May, they are unfriendly to business and rich people. So, a lot of local companies will move their headquarters to other cities, resulting in job losses for local ppl. With most ppl locking their mortgage into record low rates, the only way to force owner to sell a house is a life changing event such as loss of employment (and cannot find sth comparable), or divorce. The NDP may even hike the 15% foreign buyer tax just to please their supporters (the #donthaveamillion group), further suppressing the Chinese foreign money from entering the housing market in Metro Van. 2. Lots of condo that are currently under construction; they are set to hit the… Read more »
Donald T
Guest
Donald T

are you ndp? you seem to know them more than they know themselves.

bullwhip29
Guest
bullwhip29

Vancouver Park Board rejects motion to shut down community warming centres
http://www.cbc.ca/news/canada/british-columbia/vancouver-park-board-rejects-motion-to-shut-down-community-warming-centres-1.3933887

>>> time for the nimbyists to plant some more evidence…

Shut It Down Already
Guest
Shut It Down Already

You think all the needles across the entire city, specifically those discovered in areas frequented by children, are planted? You’re delusional if so.

It’s unfortunately the case that many users don’t give a shit – either about themselves or who else they might harm.

The city and the province have absolutely failed to address this crisis despite pouring billions of dollars into it.

bullwhip29
Guest
bullwhip29

B.C. government assistance to homeowners could balloon to $1.2 billion in 2017
http://www.metronews.ca/news/vancouver/2017/01/13/bcs-focus-on-homeownership-benefits-comes-with-a-cost.html

No Money Down
Member
No Money Down

Zolo Stats for Vancouver Detached Y/Y
Average Sale Price -22%
Number of Sales -65%
Number of Active Listings + 44%

https://www.zolo.ca/vancouver-real-estate/trends

Oracle
Guest
Oracle

http://www.cbc.ca/beta/news/politics/renter-housing-benefit-1.3933577

If Trudeau goes through with this, it should be an income based program. Not a wealth based one as most programs are not.

Benefit directly to the renter. Landlords will be outed. Will have to declare income.

southseacompany
Member
southseacompany

“Federal Reserve Shows Greater Unity on Path for Interest Rates”, Wall Street Journal

http://www.wsj.com/articles/federal-reserve-shows-greater-unity-on-path-for-interest-rates-1484266801

“Federal Reserve Chairwoman Janet Yellen is starting the year leading a central bank largely unified in expectations of a gradual series of interest-rate increases, though they aren’t hinting when they are likely to move next.”

southseacompany
Member
southseacompany

“Canada’s Job Market Is Booming…If You’re 55 Or Older”, Better Dwelling

https://betterdwelling.com/canadas-job-market-booming-youre-55-older/

“The employment in the 55+ segment grew more than any other single segment to 3.11 million – an increase of around 2.83% year over year. This category also brought with it 105k more jobs, or roughly 49% of all growth.”

patriotz
Member

Well that’s putting a nice spin on it. How about a headline that tells the real story:

“An increasing number of boomers cannot afford to retire”.

Shut It Down Already
Guest
Shut It Down Already

Retiring at 55?

Just me
Guest
Just me

Ever wonder why there has been a slowdown in Vancouver since last April? Here is the answer, simple and compelling.

https://www.bloomberg.com/news/articles/2017-01-13/pboc-said-to-step-up-yuan-curbs-with-banks-told-to-balance-flow-ixv9p5oq

The tightening started last winter and has become stricter every month since. Canadians would welcome the money with open arms, of course. All self righteous and judgemental, but happy to cash in…

YVR
Guest
YVR

Wow, the directive given yesterday took effect 10 month ago?

The directions, given verbally on Wednesday, require the lenders to show at the end of every month that the amount of outgoing yuan matches the sum that comes in

Oh wait I guess not. Those months had the largest outflow in history.

The equivalent of a net $309 billion left China via yuan payments in the 11 months through November, set for the biggest annual outflow in data going back to 2010.

Just me
Guest
Just me

Just to be clear, the largest recorded outflows of money from China were in January and February 2016.
Check you numbers

Just me
Guest
Just me

(1) Yesterday was the last step in a long sequenc of tightening measur s. So, no, yesterday was just the icing on the cake. It started much earlier.
(2) Do you perhaps know what last November outflows would have been if no curbs were n place. Ever thought thy could be twice as large?

Deny if you want. After all many people hav been denying Chinese influenc for the best of the past decade.

Newcomer
Member
Newcomer

It’s not just a case of random denial. The numbers don’t work.The actual numbers are the opposite of your argument. The more money left China, the lower Vancouver prices went.

Shut It Down Already
Guest
Shut It Down Already

Meanwhile Canadians mortgage debt increased as did the home ownership rate.

Just me
Guest
Just me

You are delusional. I was like you a few years ago. Then I finally accepted the truth.
You will get there one day.

Newcomer
Member
Newcomer

It seems to me like you are talking about a leap of faith in the same manner as a religious conversion. I would rather have my financial opinions be fluid and based on data. If you have data to support a specific argument, I would like to see it. But if you are suggesting that we ignore the data and blindly accept an argument as a faith proposition, I think you are selling to the wrong crowd. That is no more appealing than “real estate always goes up.”

Oracle
Guest
Oracle

Right. LMAO.

If they put it in real estate, they can be outed. So laying low for a while. But $$ still illegally leaving China and the people doing it are by definition called “crooks”.

But you already know all this so this post was directed at others here and not you.

Oh NO
Guest
Oh NO

Quick way to lose half million or more….

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMjZCSw==

What were they thinking????

bullwhip29
Guest
bullwhip29

this will be torn down and replaced with the standard cookie cutter fare maxed out for rental income + laneway house

Oh NO
Guest
Oh NO
Confucius
Guest
Confucius

Yeah but it’s “Totally livable”.

No Money Down
Member
No Money Down

And current sales/listings are commonly 15% below the July 1 assessed value…

Oh NO
Guest
Oh NO

That Special could very well only bring 1.2 later this year….. bye bye 1 mill

Bubble
Guest
Bubble

Who said foreign money is gone? Van West today’s sales:
1. 4028 W 16TH AVENUE, Dunbar, listed $2,099,000,49 days
2. 4085 W 14TH AVENUE, Point Grey, listed $5,488,000,7 days
3. 4410 W 2ND AVENUE, Point Grey, listed $5,180,000,50 days

No Money Down
Member
No Money Down

How do you know it was foreign money?

vangrl
Member
vangrl

“Only 2 detached sales this month in West Vancouver. China’s ban on capital outflows for real estate working?”

Steve Saretsky, Realtor

hmmm

vangrl
Member
vangrl

wait….. one is West Van and other Van West

Bag it and tag it
Member
Bag it and tag it

what did they sell for?

vangrl
Member
vangrl

4028 W 16th – sold for $109K under last list, and $208K under original list
4085 W14th – sold for $428K under
4410 W 2nd – sold for $180K under last list, and $388K under original asking price

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
Newcomer
Member
Newcomer

A couple dozen more of these and it will feel like a bust.

Bear Vancouverite
Member
Bear Vancouverite

I wonder if the real estate deals handled by this firm are on hold now, or have fallen through and the inventory is back on sale, or if they will suddenly come back on sale in the near future.

bullwhip29
Guest
bullwhip29

HAM to buy this entire 19th century “canadiana” village in Quebec?
http://globalnews.ca/news/3178577/quebec-historic-village-for-sale/

paulb
Member

New
125
Price Change
14
Sold
30

TI:6734

http://www.clivestevepaul.com

Oracle
Guest
Oracle

BPOM got some good posts with actual data here. Keep up the good work even though we are at odds most of the time.

southseacompany
Member
southseacompany

“‘Greater Vancouver House Prices to Fall 8.5% in 2017′” Boomberg with video

https://www.bloomberg.com/news/videos/2017-01-12/-greater-vancouver-house-prices-to-fall-8-5-in-2017

“‘Greater Vancouver House Prices to Fall 8.5% in 2017’Phil Soper, President & CEO, Royal LePage joins Danielle Bochove to discuss his outlook for Canada’s housing market this year.”

Combat roach
Guest
Combat roach

This could be said for Vancouver too…

Tillerson says China should be barred from South China Sea islands

https://www.yahoo.com/news/trump-secretary-state-nominee-china-denied-access-south-002043309.html

Newcomer
Member
Newcomer

I didn’t realize Vancouver was accessing the sea islands.

Combat roach
Guest
Combat roach

You got it, it doesn’t. This is rather China accessing Vancouver by acquiring the land, rising the flags, forcing Chinese signage, celebrating Mao, etc…

http://m.scmp.com/news/world/united-states-canada/article/2017766/vancouver-fans-mao-zedong-gather-sing-his-praises

Newcomer
Member
Newcomer

Yeah, I got the first time. I was just trying to be funny.

Oracle
Guest
Oracle

Can you please post relevant stuff rather than retorting everyone?

Newcomer
Member
Newcomer

Yes, I will do that, when you buy a condo.

What are you waiting for? People want to know.

You explain many things to us. Can you explain why you don’t buy a condo in Surrey right now?

Oracle
Guest
Oracle

Admin: now doesn’t this call for an IP ban??

bullwhip29
Guest
bullwhip29
best place on earth
Guest
best place on earth

here we go again, the fear-mongering crowd is out in full force from hibernation.

Specuskeptic
Member

Love how various vested groups are engaging in some CYA. http://www.cbc.ca/news/canada/british-columbia/royal-lepage-report-q4-2016-1.3932424

As the math teacher says, “show your work”. How (other than rectally) was that 8.5% derived?

patriotz
Member

It’s what I call “predicting the past”. Just project the last few months over the next year. Since RE cycles move so slowly you’ll be right about 90% of the time.

Superfly
Guest
Superfly

Also known as Aftcasting.

Abdul Lahazi
Guest
Abdul Lahazi

http://www.news1130.com/2017/01/12/generation-x-exodus-survey-finds-want-sell-home-leave/

“Potentially losing 40 per cent of the management age population in the city of Vancouver could have serious implications for the future of Vancouver’s economy,” warns Chris Fair, president of Resonance Consultancy.

Vancouver: no families, no children, no workers, no hope.

Yunak
Member
Yunak

All those, in the meantime accumulated, housewives, homemakers and officials can take a crash course and quickly become managers. They already know business quite well and language isn’t a big deal anyway…

Newcomer
Member
Newcomer

Have no fear, falling populations are great for correcting house prices.

Yunak
Member
Yunak

Condo King Bob Rennie’s abdication as chief Liberal fundraiser raises questions

https://www.biv.com/article/2017/1/condo-king-bob-rennies-abdication-chief-liberal-fu/

bullwhip29
Guest
bullwhip29

being done for optics reasons only. no doubt he’ll remain involved in a big way. first time buyer loan program has his fingerprints all over it

Bag it and tag it
Member
Bag it and tag it

yup…all optics. Once in bed always in bed

ostritch
Member
ostritch

Not really. Krusty is just doing what the dogs are baying for. Cut off the top end, help the kids into the low end.

bullwhip29
Guest
bullwhip29
Higher mortgage rates? They’re already here, and they hurt Rob Carrick The Globe and Mail Published Thursday, Jan. 12, 2017 12:21PM EST Last updated Thursday, Jan. 12, 2017 12:21PM EST http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/higher-mortgage-rates-theyre-already-here-and-they-hurt/article33595514 We’re starting to get a picture of what mortgage rate increases do to household budgets. If you’re buying an average-priced home in Vancouver, the increase in five-year fixed-rate mortgage costs over the past two months could add up to something like an extra $1,824 a year; in Toronto, you’re looking at $1,584. In a small market like Saint John, the extra cost would be close to $350. The biggest question in housing today is what will happen when mortgage rates rise from the historic lows they’ve been at in recent years. We saw the very beginning of this in the final months of 2016 and the results are significant.… Read more »
bullwhip29
Guest
bullwhip29
Combat roach
Guest
Combat roach

This is correct and as many times pointed out. If can’t be stopped immigration from China should be significantly reduced until Canada gets its housing shit together.

“Should the Chinese or immigrants be blamed for our housing crisis? Why not? Many of the expensive properties are purchased by people with Chinese surnames. “

Newcomer
Member
Newcomer
You didn’t read it, did you? Can’t you recognize the sarcasm is the sentences that you quoted? Even the stuff you cite in support of your theories shows your theories to be without merit. From the article: “Statistics Canada data show that, from 2011 to 2015, the housing start in B.C. was 140,721 units. For a family of 2, these units could house over 280,000 people. For a family of 3, it could house over 420,000. That is 2.5 times more than the total immigrants and in-migrants landed. Studies indicate that in the 90s, the average family size of immigrants was from 3.2 to 4, depending on the period they arrived. Thus, immigrants and in-migrants did not contribute to the shortage of housing stock; they are contributors to the economic growth during that period. …. For those who want to… Read more »
Oracle
Guest
Oracle

Those numbers don’t include the more than 1 million temps (and growing) in Canada at any given time.

Newcomer
Member
Newcomer

True, those damned temps are buying everything. And can you blame them? Who wants to pick fruit or work in Tim Hortons when you could buy a condo in Vancouver and let the money take care of itself.

Oracle
Guest
Oracle

Where’s your upvotes? Hahaha. Outed.

Oracle
Guest
Oracle

And that’s why the Statscan head resigned. He couldn’t stand the data manipulation.

Shut It Down Already
Guest
Shut It Down Already

Please, don’t baffle Combat Roach with logic and reason.