Debt addicts face painful withdrawal

Canadians love debt that gets sunk into ever rising property prices and banks and other lenders have been happy to provide.  As long as rates only go down this is a pretty good situation, but what if rates were to go the other way one day?

Financial companies have been more-than-willing lenders. But there are several reasons why Canadians have been such enthusiastic borrowers.

Last week, new figures showed that consumer lending now totals more than $2 trillion, a new record. As we reported last week, for every dollar of Canadians’ disposable income, they owe almost $1.67.

From the point of view of Canadians, money has never been so cheap. But the rising cost of housing, especially in the country’s biggest cities, has also drawn people into taking on more debt.

But increasingly, there are signs the cycle of falling interest rates is coming to an end. Last week U.S. central banker Janet Yellen raised rates again, the second time in three months. This time, when she promises more rate increases to come, people seem to believe her.

Meanwhile, banks in Toronto’s overheated market warn of a bubble.

Already there are signs that the cost of consumer lending is on the rise. And small changes in rates make a big difference to consumers.

An RBC customer in Manitoba reports that the bank has just hiked the rate on his unsecured line of credit from 1.5 per cent above prime to 2.25 above. That 0.75 per cent increase will raise his borrowing costs by hundreds of dollars a year.

Rising rates are potentially good for banks and lenders who will see fatter margins, but Canadian with record high debt loads may see some difficulties if rates begin to rise.

Read the full article over at the CBC.

Sort by:   newest | oldest | most voted
Hyper-mega-Bull
Member
Hyper-mega-Bull

VCI Admin, it’s disappointing that you didn’t include my market commentary. i think everyone can benefit greatly from having the info i provided featured.

FOMO
Guest
FOMO

Why not just post it now HMB?

Hyper-mega-Bull
Member
Hyper-mega-Bull

good idea. here is my market commentary:

http://stream1.gifsoup.com/view1/4726524/rocket-launch-o.gif

Newcomer
Member
Newcomer

That was kind of funny the first four or five times that you did it.

Best place on meth
Guest
Active Member
Best place on meth

I would subtract 4 or 5 from that total.

Sebastien
Guest
Sebastien

Here it’s not the percentage that makes me curious but the fact that the price drop is within a week:

314 621 E 6th Avenue, Vancouver
Mar 14:$888,000
Mar 21: $699,000
Change: – $189,000 -21%

Sebastien
Guest
Sebastien

The neighborhood is awesome for DINKs like myself.

Newcomer
Member
Newcomer

Nearby comp? Moment of clarity? Hysterical laughter at open house?

Shut It Down Already
Guest
Shut It Down Already

They could have at least removed the clutter before taking photos. That kitchen….

Combat roach
Guest
Combat roach

It requires further 65% drop to even qualify for any consideration given all attributes of that particular place.

Newcomer
Member
Newcomer

At a glance, it would rent for 2K and there is 350 in monthly strata, so 350K would be justifiable at current interest rates.

Funkeymonkey
Member
Funkeymonkey

I don’t think that would even rent for 2k. If it does utility’s will be included.
https://vancouver.craigslist.ca/van/apa/6051658211.html

Funkeymonkey
Member
Funkeymonkey

Does it come with the Jesus cross painted the same color as the wall?
Wow some boomer parent is going to fork over a DP for this? Probably yes.

FOMO
Guest
FOMO

Love the suck up first list price. 888888888888888888.

Total millenial design for sure. $700k and no in suite laundry…

Shut It Down Already
Guest
Shut It Down Already

Sucking up to 10% of buyers?

kabloona
Member
kabloona

Didn’t price it correctly the first time….. should’ve been: $888,888.88

Oracle
Guest
Oracle

Overseas transaction. Atvprice listed close to list. When are you guys ever going to learn??

Funkeymonkey
Member
Funkeymonkey

Your nuts! I still think your paid by the RE industry. (not very much though because you don’t own anything)

Buynow or Getlaidnever
Guest
Buynow or Getlaidnever

Vancouver lawyers sue BC Liberals for using taxpayers’ money to enhance party image
http://globalnews.ca/news/3322233/vancouver-lawyers-sue-b-c-liberals-for-using-taxpayers-money-to-enhance-party-image/

BC Government Advertising Lawsuit https://www.gofundme.com/bc-government-advertising-lawsuit

MarKoz
Member
Active Member

I already contributed. She has no shame. Even Gordon Campbell had the decency (can “Gordon Campbell” and “decency” be used in the same sentence?) to pull provincially sponsored ads in the months before an election.

Just me
Guest
Just me

Chinese Buyers Want to “Quit” Forest City

http://www.propertyguru.com.my/property-news/2017/3/148913/chinese-buyers-want-to-quit-forest-city

After being lured into buying a property in the Forest City project in Johor, many Chinese buyers are now unable to make the necessary payments for their units after the central government restricted capital outflows, reported the South China Morning Post.

“We understand all further instalments need to be paid abroad. But this is not allowed due to the foreign exchange controls from the Chinese government,” said another buyer, Vicky Wu from Guangzhou. “If we do so, we will be put on the government’s black list.”

Wu and Zhang joined WeChat group “to quit Forest City and get refunds” that was created by Leo Wang from Hunan two weeks ago, with the aim of getting back their down payments in Forest City. It has at least 40 members.

Best place on meth
Guest
Active Member
Best place on meth

“We thought it was a good and affordable deal to invest in overseas property, without thinking of the possible risks, and even signing the agreements in English even though we don’t know the language,” shared Wang.”

I don’t know if it’s even possible to cure locusts of the mental illness that makes them obsessed with buying real estate in other countries, but this certainly won’t hurt the effort.

I sincerely hope Wang and all the others are financially ruined and their lives are completely destroyed by this experience.

Reasonfirst
Guest
Reasonfirst

http://www.scmp.com/news/china/policies-politics/article/2080433/how-chinas-overseas-property-dream-turned-nightmare

This quote is a classic:

“Besides, the Forest City project is very famous among Chinese as you can see its advertisement everywhere in China.”

Sheep waiting to be fleeced.

Hyper-mega-Bull
Member
Hyper-mega-Bull
Newcomer
Member
Newcomer

40 million for figuring out how wrong the deplorables on this blog are.
http://business.financialpost.com/news/liberals-double-amount-of-money-aimed-at-cracking-down-on-tax-cheats

O..
Guest
O..

Looks like the Trudeau Libs are just about as corrupt as Christys.

Nothing for housing…so BOOM will continue. BUY BUY BUY before ChinaOne’s cousins do.

Almost 1 Billion for via rail?? WTF?

and $300 million for TFW! WTF?

Newcomer
Member
Newcomer

Nothing for housing apart from the 11 billion in spending on housing including 40 million on research into how foreign investors are impacting prices. (I’d rather see 11 billion less insurance issued by the CMHC. Also, they could split the 40 million among the regular readers of this blog, and we’d be happy to produce a report.)

specuskeptic
Member

If I recall, ChinaOne is/was one of your sockpuppets – an imaginary friend, if you will. So I will imagine the imaginary driving up our market. There. Done. *rolls eyes…

Oracle
Guest
Oracle

So, what’s your point?

I can be whoever I want to be.

And you can be a SJW.

specuskeptic
Member

The point is that you lie. Sockpuppets are an effort to deceive. You can’t have it both ways. If you want to be taken seriously, stop the shenanigans. You want to be an “Oracle” but your behaviour here is of a petulant child.

Side note: The Oracle of Delphi was stoned on volcanic fumes and spewed utter nonsense much of the time. You should stick with that handle.

paulb
Member
Trusted Member

New
177
Price Change
34
Sold
158

TI:8180

http://www.clivestevepaul.com

Sebastien
Guest
Sebastien

It seems that the inventory is sticky. What will happen when the real estate “mating season” will be over?

goofus ottawais
Guest
goofus ottawais

Canadians, are they debt addicts? perhaps. But more correctly, they are immigrant addicts. Think about it. An endless supply of fresh debt slaves and cheap labour.

Combat roach
Guest
Combat roach

An endless thirst for the western lifestyle and keep up with the Joneses?

Newcomer
Member
Newcomer

That has been the case since 28 men settled down in a place they pumped as “Quebec City” in 1608 and wrote back home asking more to come. It’s what we do. Better get used to it.

Oracle
Guest
Oracle

They were Colonizers. Not immigrants.

Get your facts straight. It’s not what ‘we’ do. It’s what Corps do.

Vancouver Review
Guest
Vancouver Review

Mar 22, 2017 Daily Review Vancouver Real Estate Housing Bubble News
https://youtu.be/D9TSr80zgUY

Combat roach
Guest
Combat roach

Very good point, someone should also explain the same to the BC government.

“Canada is not China. Canada is not a dictatorship. The prime minister is not the supreme emperor,” …

http://m.huffpost.com/ca/entry/15547002

history
Guest
history

http://worthwhile.typepad.com/worthwhile_canadian_initi/2017/03/we-are-adding-less-to-housing-supply.html

this article is incomplete, because it doesnt deal with Supply, as in Supply of humans, ie, the politics of immigration. I bet these academics make over 100 Gs a year. They could all be fired and we wouldnt miss them, except Thats Deflationary, so you know that aint gonna happen.

Shut It Down Already
Guest
Shut It Down Already

You do know what “per capita” means?

Newcomer
Member
Newcomer

Don’t be such an academic.

history
Guest
history

yeah, it’s your hand you put in my pocket, fresh off the plane, getting your free slice of Canadian per capita, meanwhile the boneyard at my work fills up with broken down crap from your asian factory.

Shut It Down Already
Guest
Shut It Down Already

Whilst you sound like Oracle’s stoned uncle I’m happy to compare tax returns if you’re truly confident it’s not actually your hand in my pocket.

bullwhip29
Guest
bullwhip29
history
Guest
history

the Mafiosa has been depicted as being jealous of post Bretton Woods banks, fractional reserve lending…. modern Canadian big six took Crime Family to an art form, and push the limits ever higher. Admire the plunge in Bankruptcy, the correlated spike in Insolvency, and how the bought off media keeps this new Slavrery art from the publics critique. Even seeding forums like VCI with their Soros, FIRE fighters

Sebastien
Guest
Sebastien

Things are in fact getting better, this is the worst I found today:

4108 Yale Street, Burnaby
Oct 28:$1,568,000
Mar 22: $1,298,000
Change: – $270,000 -17%

Oracle
Guest
Oracle

Good grief.

Still not getting it are you?

Oracle
Guest
Oracle

So typical of bears. 5 years behind the truth cause of their SJW tendencies.

Burnaby
Guest
Burnaby

Burnaby has been hit hard since last summer. Lots of price decreases and nothing much in detached is selling.

Oracle
Guest
Oracle

Looks like Trudeau is working for his rich friends.

No capital gains tax increase but huge CPP premium and EI premium increases. Also. Racket creep. Poor working people getting shafted.

Why not tax capital gains at 100% now when they have the chance to? They can’t do it before the next election.

The corps are playing the workers.

Hyper-mega-Bull
Member
Hyper-mega-Bull

and his tax cheat crackdown is targeting laborers and waitresses.

Newcomer
Member
Newcomer

I don’t think so. All the new money is earmarked for large corporations. It’s odd that you didn’t take the time to read about the budget, considering how interested you are in these matters.

Bear Vancouverite
Member
Bear Vancouverite
“Looks like Trudeau is working for his rich friends. … The corps are playing the workers.” What are the specific CPP and EI changes that you are talking about? I just took a look at this: http://www.canadianbusiness.com/economy/7-changes-to-business-taxes-in-canadas-2017-federal-budget/ Which states that EI will go up to $1.69 per $100 insurable earnings, which is still below the 2016 number of $1.88. So EI is still lower than before the last Budget. It also states that the Libs are looking at studying 3 methods of corporate owner tax strategies: – The sprinkling of income amongst family members via dividends and capital gains – The benefits of holding a passive investment portfolio inside a private corporation – The converting of salary or dividend income into capital gains Keep in mind also that businesses have to pay both their own share of CPP and EI,… Read more »
Hyper-mega-Bull
Member
Hyper-mega-Bull

lol, canadians are so toothless and naive. you don’t stand a chance. get on the winning side and learn mandarin today.

Richmond house-hotel a top listing in Canada
House booked over $90,000 in 12 months, between City of Richmond inspections

The fact it has continued to operate in an apparently illegal manner, despite three inspections by city officials, is, in part, why the city is looking to strengthen existing bylaws surrounding such operations.

http://www.richmond-news.com/news/richmond-house-hotel-a-top-listing-in-canada-1.12487609

bullwhip29
Guest
bullwhip29

just as a refresher (if one really needs it) this goes all the way to the top of the food chain. vancouver is without a doubt morphing into Hong Kong of the west. property owners will continue to make windfall gains on real estate but residents will witness a corresponding decline in the quality of life in very short order far beyond what has already occurred. we will soon reach a critical tipping point (if we haven’t already done so) as many locals decide once and for all if they will stick it out and put more cash in the bank OR cut the cord and leave en mass to saner pastures where life is not solely about hustling real estate 24/7

http://www.theglobeandmail.com/real-estate/vancouver/no-deterrent-for-prolific-illegal-hotels-inrichmond/article33356860/

Combat roach
Guest
Combat roach

This is a cheap attempt to blame Chinese as a force behind all that shit. Everyone knows those are Norwegians running the racket under false names.

Combat roach
Guest
Combat roach

And btw… those Norwegians, they don’t give a shit about local laws and regulations and they will do what they please because they can because they are protected and because they don’t speak English. Also, this is a foreign country to them so who cares. They came here to take advantage of everything and leave a ruin.

squeak
Member
squeak

Finally somebody who has the guts to speak the truth.

Best place on meth
Guest
Active Member
Best place on meth

It’s a shame that the vermin have no respect for our laws but I have to give them credit for the special cultural touches they add to to their illegal hotels to make their guests feel at home.

“A relative who came to Vancouver to visit used one of these places. They got into the house and inside there was mouldy trash fermenting on the floor and there was dirt everywhere”

Ahh, it’s just like being back in the motherland.

fomostyle
Guest
fomostyle
fomostyle
Guest
fomostyle
Newcomer
Member
Newcomer

Idiots. It was government intervention that caused this mess. Now he wants more. If he looks at his own data he will see the solution right there. If the middle class starts to leave, prices will go down. The problem will be permanently solved. But if they get involved legislating and funding to maintain the status quo, then prices can stay high for longer.

best place on earth
Guest
best place on earth

are you leaving?

Newcomer
Member
Newcomer

No. How about you?

Just me
Guest
Just me

Are you serious? You really think that population control is the best way forward? This means that Vancouver would become a resort for millionaires: a small set of people who produce income mostly elsewhere. Or do you think there is some alternative outcome consistent with only “gentle” densification of the West side?
Sometimes i have to wonder whether you believe what you write.

Joe Stark
Guest
Joe Stark

Just another government help-to-buy scheme to draw more people into homeownership and keep propping up prices – subsidized by the tax-payer.

Newcomer
Member
Newcomer

Precisely. And this is the second time that we have heard this sort of thing in the past week. This could truly crippling for the city if it gets traction.

southseacompany
Member
southseacompany

“Housing bubble ‘of epic proportions’ helps explain Liberals’ budget”, BNN video

http://www.bnn.ca/rosenberg-housing-bubble-of-epic-proportions-helps-explain-liberals-budget-1.704273

“Gluskin Sheff Chief Economist David Rosenberg believes the government has left itself with a good amount of “fiscal flexibility” to manage potential shocks that could be on the horizon.”

““We have to understand here that Ottawa is dealing with three major possible negative exogenous shocks,” he said. “We have a housing bubble in one-third of the country of epic proportions; a lot of uncertainty over the oil price; and then of course the rising prospect that we see a border adjustment tax in the U.S.””

Newcomer
Member
Newcomer

Since when is a housing bubble exogenous?

Combat roach
Guest
Combat roach
Perhaps from a decade ago or something in that range. Despite the actions and protestations of the central-planners, Chinese home prices have now risen year-over-year for the sixth month in a row and June (at +6.8%) is the fastest rate since January 2011. As Reuters reports, the incessant rise in property prices across 70 major cities hides the real bubbles in Beijing (+12.9% year-over-year) and Shanghai (+11.9%) which, as we noted in detail previously, reflects the apparently unstoppable exogenous hot money (credit) flows that the rest-of-the-world’s-central-bankers are pumping into the markets. As The Telegraph warned before, “the problems in China’s banking system are more severe than those which kick-started the global crash in 2008. “We believe that the domestic Chinese banking system is a mess, with an enormous amount of bad loans, or loans waiting to go bad. The problems… Read more »
Newcomer
Member
Newcomer

You are conflating two separate things. Go back and read your sources again, focusing on the question of causation.

Combat roach
Guest
Combat roach

Sure…

Just me
Guest
Just me

Renters Now Rule Half of U.S. Cities. The American Dream increasingly involves a lease, not a mortgage.

https://www.bloomberg.com/news/articles/2017-03-23/renters-now-rule-half-of-u-s-cities

Fifty-two of the 100 largest U.S. cities were majority-renter in 2015, according to U.S. Census Bureau data compiled for Bloomberg by real estate brokerage Redfin. Twenty-one of those cities have shifted to renter-domination since 2009. These include such hot housing markets as Denver and San Diego and lukewarm locales, such as Detroit and Baltimore, better known for vacant homes than residential development.

Just me
Guest
Just me

The subtleties of soft power: China is spending billions to make the world love it.
Can money buy that sort of thing?

http://www.economist.com/news/china/21719508-can-money-buy-sort-thing-china-spending-billions-make-world-love-it

Combat roach
Guest
Combat roach

Idiots, a newer approach to a totalitarian nationalist ideology and practice where gigantic billboards replace monuments of the most beloved communists.

Best place on meth
Guest
Active Member
Best place on meth

China can spend trillions and the world will still hate them.

It’s because they’re assholes.

Newcomer
Member
Newcomer

It’s always surprising how assholes never consider simply changing their behavior.

Best place on meth
Guest
Active Member
Best place on meth

As you were writing that you must have been thinking how incredibly clever you are.

Newcomer
Member
Newcomer

Aw, shucks….

Oracle
Guest
Oracle

As expected the media trying to pump up the Greens. To split the vote and help the Christys win.

Don’t fall for it and spread the word.

Just me
Guest
Just me

“China puts the brakes on overseas spending. There is a sensitivity in Beijing that the flood of out bound investment could create an anti-China backlash if not properly managed. The total amount of outbound investment from China has risen by 15 times over the past decade.”

http://www.theaustralian.com.au/business/china-puts-the-brakes-on-overseas-spending/news-story/0088e4d79f89b1a941c7b4ddcd858cac?nk=b3ea0ebf20263bb3ad69498434db122d-1490301553

China is planning to introduce new regulations to control outbound investment in a bid to stem capital outflow and limit money spent on speculative projects.
China’s top economic agencies, the Ministry of Commerce and its National Development and Reform Commission, are leading the work in drafting the legislation, according to Chinese media reports this week.

Sebastien
Guest
Sebastien

I have questions related to Oracle’s theory related to overseas transactions and prices drops:

Is there documentation on the phenomenon? Arrests? News articles?

Have any realtors made any statements on this?

A big chunk sellers are greedy boomers who want to cash in and leave town. What’s the incentive for them to do such a transaction?

Let’s say this happens when the seller and the buyer are both from Asia. What happens when one of them bails out from the sale? Would be hard to sue in such a case. Wouldn’t it be too risky?

Unless the oversea transaction is purely in cash, wire transfers would leave an electronic trail. How come China and India haven’t started an investigation on this? Wiring $100,000’s for no reason would raise eyebrows.

bullwhip29
Guest
bullwhip29
these sorts of fishy double-ended deals were New Coast’s speciality. i suspect the firm itself was acting as principal in a number of cases and using a select inventory of properties to launder money back and forth. if anyone can cite a legit reason why a single property seemingly changed hands 3, 4, 5x at higher and higher prices within just a number of months then i am all ears. no doubt that there was way more going on than advertised and the whole story very conveniently went away within weeks. shortly afterwards, our madam of shadow flipping went on to bigger and better things at OFSI. it remains to be seen if spinoff co’s like metro edge and nu stream were established as a work around to the new real estate regs that were recently introduced and that all… Read more »
Sebastien
Guest
Sebastien

Why are they putting for sale signs and doing open houses then? If I were doing these kind of deals, I would keep a low profile.

bullwhip29
Guest
bullwhip29

not every transaction is questionable. no definitive way to prove if specific sales are rigged with arms length buyer/seller and unspecified cash payment made under the table. honestly, the signs don’t mean anything. wasnt it wendy yang @ new coast that was caught using phony sale signs on properties she wasn’t even the agent for? as far as i know that whole cast of characters is still out and about doing business as usual at their new firms and likely continuing on with the same shenanigans conveniently disguised in a different color of wrapping paper

Bear Vancouverite
Member
Bear Vancouverite
I’m not able to offer proof of whether this is happening or not. But bullwhip29’s comment is off topic to what you are wondering about. The price drops that Oracle is claiming are overseas transactions only occurred in the past ~6-8 months, while the New Coast issues were from before that. If you think about foreign buyers you have to think there is a wide spectrum of such buyers. Some need to get cash out of China, some already have cash out of China, some want to make as much money as possible, others might just want to hedge against keeping everything in China. 1) If the theory about getting money out of China is true, it makes no sense to make $500k of the deal take place in China, you want to get as much of the money out… Read more »
Bear Vancouverite
Member
Bear Vancouverite

To add to my post, any speculation on this is moot, and even if Oracle is completely right the point is moot. He is trying to sow fear and doubt, but his theory should sow confidence the market will continue to trend downwards.

Prices are set by comparables and every sale sets the trend around it. If foreign sellers owned 20% of Vancouver SFH and sold 10% of it at vastly lower prices due to overseas transactions we’ll still see a downtrend in prices and that will influence the overall market.

If it’s true that these overseas transactions are happening, IMO they help drive down sentiment and sentiment drives market direction.

Sebastien
Guest
Sebastien

Very good point. On the long run, the buyers would be shooting themselves in the foot by doing overseas transactions because the “official” value of their houses would go down.

Bear Vancouverite
Member
Bear Vancouverite

Exactly, if you owned 5 houses on the same block, and you sold one at $1M below market value, you risk giving future buyers leverage to negotiate the value of your 4 other houses or you may be forced to look for more such deals overseas deals too, which greatly lowers your pool of buyers.

If you amplify this effect with a large enough number of deals the effect gets stronger and stronger. If such transactions were happening alot, then I do like the sweet irony of sneaky tax evaders helping to crash the market :). Too bad IMO such transactions are rare, if they even occur at all.

Bear Vancouverite
Member
Bear Vancouverite

The other advantage to us locals for this type of deal is that now a part of the value of that sale is locked up in China. This reduces “trickle down”. The Seller now has $500k less CAD to finance his next purchase, and if he was a foreign buyer to begin with, and only had 40% downpayment, he likely has very little cash indeed from the sale

eg $2.5M selling for $2M CAD, $500k overseas, after fees he keeps maybe $1.9M, his original purchase at $2M with $800k CAD means he’s left with just $800k CAD. His entire profit margin is in China where capital controls now make it harder for him to get out.

bullwhip29
Guest
bullwhip29

who says the $500k in cash has to be in china in the first place? it could very well be locked up in a private anonymous safety deposit box right here in richmond

Bear Vancouverite
Member
Bear Vancouverite

That’s not what Oracle is arguing. He’s arguing that the prices are dropping in those cases because a large part of the transaction takes place overseas (eg China). You’re talking about a totally different issue, and frankly I think both are unlikely to be very common.

And even in your case of cash right here in Canada it still doesn’t solve the problem that the recorded sale prices will still be going down. If 10 houses sell for $1M below market value and you’re in line to buy the 11th, are you willing to pay $1M more than all the other sales?

bullwhip29
Guest
bullwhip29

the undisclosed part of the transaction doesnt neccesarily have to be overseas and it most definitely wouldnt be sitting in plain site at a mainstream bank either. imho sales of this sort would be conducted among friends with no outside bidders allowed. at the end of the day foreigners want their money out of the country. once it is here, the mandate would be to minimize costs whenever possible, which would include the dodging of the FBT and capital gains tax.

patriotz
Member

“which would include the dodging of the FBT and capital gains tax.”

As someone has already pointed out, these don’t correlate. Recording an artificially low sale price exposes the buyer to increased capital gains later. It does benefit the seller unless it’s a PR in which case they have no incentive to do a fake price.. There isn’t a meeting of interests between buyer and seller.

Sebastien
Guest
Sebastien

Then the seller would have $500k in cash. It would raise eyebrows for him to show at a bank and make a deposit.

bullwhip29
Guest
bullwhip29

double ended deals can be done above or below market, makes no difference to the agent. the new coasts of the world just have to be more careful about it and make more an effort to make deals at least appear non arms length

bullwhip29
Guest
bullwhip29

edit: arms length

Shut It Down Already
Guest
Shut It Down Already

Should be easy to find a counter-example to prove that Oracle is delusional. Just do a title search on one of these supposed dodgy deals after it’s closed and observe that the buyer was a local, not a foreigner or numbered company.

These places have huge price drops because they’re overpriced shit holes with greedy owners. Nothing more complicated than that is needed to explain it.

Newcomer
Member
Newcomer

I can’t believe the amount of digital ink spilled over Oracle’s conspiracy theories. Next we’ll be debating if hundreds of thousands of migrant workers from Mexico are driving up the prices by living 12 to a room in False Creek.

Hyper-mega-Bull
Member
Hyper-mega-Bull

>Is there documentation on the phenomenon? Arrests? News articles?

it’ll be a decade at least before naive canadians catch on.

i think it’s a safe bet that it’s happening because of the following things we already know:

1. chinese are master scammers
2. they won’t rat each other out to the laowai
3. they are organized. for them scamming is a business. they can operate like this because they know no one will go to the laowai.

southseacompany
Member
southseacompany

“Canada looks to provinces to cool hot housing market”, Nasdaq

http://www.nasdaq.com/article/canada-looks-to-provinces-to-cool-hot-housing-market-20170323-00999

“Prime Minister Justin Trudeau said a federal solution to a local problem was not the best way to address concerns about high housing prices in response to criticism Wednesday’s budget had not done anything to help cool high home prices.”

Screwed
Guest
Screwed

Retarded

Just me
Guest
Just me

Basically, he said: it is your own problem. Vote for politicians who are willing to solve it.
The one level of government that would have the largest impact is clearly the Provincial government.
Is Christy Clark ever going to push for legislation that seriously reduces home prices? I doubt it. Vote with your wallet, get rid of the BC Libs.

patriotz
Member

Note that in Ontario, which is what really matters, all political parties are pretending that the biggest issue is electricity rates and won’t even acknowledge a problem with RE prices. Why should the Feds stick their necks out now when the provincial parties won’t? There may be a bust under way in 2019 for all they know.

YVR
Guest
YVR

“Why should the Feds stick their necks out now when the provincial parties won’t? ”

Well, maybe because the federal government is responsible for CMHC, immigration, capital gains taxation, CRA, the banks, the bulk of fiscal policy and the BoC. Sure the provinces can take measures to mitigate some the of the stuff the federal government does but ultimately this is a federal responsibility.

Newcomer
Member
Newcomer

Translation = This is the only thing holding up the economy at a national level, and we are going to hope it keeps going for another three years.

YVR
Guest
YVR

Translation = This is the only thing holding up the economy at a national level, and we are going to hope it keeps going for another three years.

Bingo! Every government that gets elected and inherits a bubble has the same choice. Kick the can down the road past the next election or collapse the market, have no chance of getting any of your agenda done, not getting elected again and have a poor legacy. Exactly why the BC NDP will kick the can down the road in BC if elected (or at least try).

wpDiscuz