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.

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Just me
Guest
Just me
Just me
Guest
Just me

More bearish signs for Vancouver RE. Effects here are usually delayed by a few months. But they are very real.

http://www.dailymail.co.uk/wires/reuters/article-4346288/Crackdown-UnionPay-cards-Hong-Kong-property-purchases.html

southseacompany
Member
southseacompany

“Fat debts, inflated home prices: The warnings grow ever louder”, Globe & Mail

http://www.theglobeandmail.com/report-on-business/top-business-stories/canada-household-debt-housie-prices-hsbc-economy-donald-trump-obamacare/article34413908/

“Putting Canada second only to Australia in a ranking of household debt as a percentage of gross domestic product, global bank HSBC singled out a handful of countries in a quarterly economic report.”

““We believe household debt and real home price gains are unsustainable,” Mr. Watt said, citing, like others, how this is the biggest risk to Canada. The recent increase in longer-term interest rates emphasizes in our view of the vulnerability of the household sector,” he added.”

southseacompany
Member
southseacompany

“Inexpensive credit for speculators is fuelling irrational housing price increases”, CBC

http://www.cbc.ca/news/opinion/nonconforming-mortgage-market-1.4038515

“In the debate about how best to address soaring housing prices in some Canadian cities, the most obvious answer is being ignored. Why? Because it doesn’t serve the interests of those with the loudest voices.”

“Yet despite all the noise about a possible solution, few seem interested in what is always and everywhere the underlying cause of economic bubbles: speculative behaviour fed by inexpensive credit. “

bullwhip29
Guest
bullwhip29

Should untraceable prepaid credit cards be banned from B.C. political contributions?
http://vancouversun.com/news/local-news/should-untraceable-prepaid-credit-cards-be-banned-from-b-c-political-contributions

patriotz
Member

I think it’s a moot issue as long as contributions from anyone, or any entity, from anywhere, of any amount, are legal. Why go to the trouble of making all those transactions from prepaid credit cards when you can just give a lump sum legally in your own name or company’s name and get a tax break while you’re at it.

IF we start restricting who can contribute and how much, yes then banning these things would have to be part of the package.

Sebastien
Member
Sebastien

Surrey booming?:

14091 58a Avenue, Surrey
Dec 29:$3,600,000
Mar 23: $3,200,000
Change: – $400,000 -11%

Oracle
Guest
Oracle
Ok. Let me spell it out for you Einstein’s here. Example: Someone recently arrived fromIndia wants to buy a home in Surrey. He can’t wire the money over because the gov there will massively tax the outflow. So no one sends money over here to buy a house. What people do is the seller accepts the money from the buyer in India (cash), and the transaction takes place here. In the transaction, it states the house was bought of MLS (for smoother mortgage approval purpose) and there was a hefty down payment (even though there was none). So Mr Singh buys a place for $700,000 and puts $300000 down (cash transaction in India) and gets a manageable mortgage for $400,000 where their income would be sufficient for the mortgage amount. With the FBT, people had to get a little more… Read more »
Shut It Down Already
Guest
Shut It Down Already

Yes, if I was a seller I’d definitely accept a deal where I have to take part of the payment in cash in another country I’m sure any realtor and lawyer would agree to that, too.

Clown.

Oracle
Guest
Oracle

Have your parents got PR yet? And declare the assets back home in China. CRA coming for you.

Shut It Down Already
Guest
Shut It Down Already

You spelled “Einsteins” incorrectly.

Oracle
Guest
Oracle

This property would appear as

July 2016 $700,000
March 2017 $400,000

-$300,000 woohooo crash baby crash.

Where’s Oracle that pumper…

Like i said…Good Grief Einsteins. The above example is an extreme but you get the idea…i hope.

Oracle
Guest
Oracle

And to “prove it”, I bet you anything that the buyers and sellers of these deeply discounted properties are of the same nationality (check names)

🙂

Shut It Down Already
Guest
Shut It Down Already

Except you just made that example up. Try finding a real one and post the address and final sale price. You won’t.

Oracle
Guest
Oracle

And idiot I don’t have access to MLS and. Or am I going to pay bc land registry to dig up documents.

Why you so want to help all these money launderers?

Your family in on this? Do tell.

Shut It Down Already
Guest
Shut It Down Already

I’m trying to help you be a better person.

Combat roach
Guest
Combat roach

A bunch of clowns getting creative to solve the housing issue. If it weren’t tragic it would be comic.

“She also points out Mayor Gregor Robertson’s promise to end homelessness in Vancouver by 2015 has failed, but the city’s Kathleen Llewellyn-Thomas insists efforts are still being made to provide safe shelter for anyone needing it.”

http://www.news1130.com/2017/03/23/affordable-housing-vancouver-linked-income/

Newcomer
Member
Newcomer

Trying to put out the fire with a watering can while Clark is using a flamethrower and Trudeau is raining napalm from the sky.

Sebastien
Member
Sebastien

“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. ”

Good idea. Is there any proof that illegal aliens are flooding into Vancouver since Trump’s election? Are we a sanctuary city?

Oracle makes the correlation between immigration (legal and illegal) and real estate prices. Are most immigrants able to buy here? Even if 20 of them pool together to buy a house ?

southseacompany
Member
southseacompany

“Q&A: Josh Gordon, the researcher who blames buyers for rising home prices in Toronto”, Toronto Life

http://torontolife.com/real-estate/qa-joshua-gordon-researcher-blames-buyers-rising-home-prices-toronto/

“Josh Gordon, an assistant professor at Simon Fraser University’s School of Public Policy, spends much of his time researching the Canadian housing market. He doesn’t like what he sees. In a recent policy paper, he argues that Toronto’s rapidly increasing housing prices are being driven not by a lack of available housing, but rather by overwhelming, scorching-hot demand, as buyers race to acquire property before it’s no longer affordable.”

Oracle
Guest
Oracle

YVR, Shut it, Newcomer:

Do your parents have citizenship here? Or are they PR?

Shut It Down Already
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Shut It Down Already

Oracle:

Are you still beating your wife?

Oracle
Guest
Oracle

We don’t do that in Canada.

Shut It Down Already
Guest
Shut It Down Already

Yes or no.

YVR
Guest
YVR

Oracle is the wife. And yes she is still getting beaten.

bullwhip29
Guest
bullwhip29

Chinese fraud suspect loses bid to make evidence public to help refugee claim
http://www.cbc.ca/news/canada/british-columbia/shiyuan-shen-refugee-cbsa-china-torture-richmond-1.4038587

Best place on meth
Guest
Best place on meth

“Chinese fraud suspect”

The word “suspect” is unneccesary.

Newcomer
Member
Newcomer

http://vancouversun.com/news/local-news/foreign-buyers-interest-in-metro-vancouver-housing-levelling-off

“Last month, foreign nationals accounted for about $93 million in residential sales in the region, or a little more than three per cent of both the value and number of all transactions, according to the most recent property transfer tax data. ”

3%. That is all she wrote.

I understand that tinfoilers will claim that the number underreports, but even if it were double, or triple, or four times official numbers, it would not be a dominant driver. Hopefully we can put this one to bed.

YVR
Guest
YVR

“3%. That is all she wrote.”

Foreign investors are irrelevant now. The market is 97% locals. This buyer pool is finite. At some point we run out of local greater fools. The move up buyer is already priced out. Just the last few FTBs being pulled forward with the 2.5% DP scheme left.

Third Eye Blind
Guest
Third Eye Blind

That’s why Larry Beasley is proposing his ” third market” idea – to pull in the last remaining holdouts with tax-payer funded subsidy schemes. His buddy Rennie must be worried that the pool is getting nearly drained.

Newcomer
Member
Newcomer

If the Trump trade crashes, the US slips into a recession interest rates go down, and the provincial government introduces a middle-class housing plan, it could get worse.

YVR
Guest
YVR

If the US slips into recession, Canada goes into recession too. Housing would collapse.

Interest rates go down? You mean after they go up? If they go up enough to make going down relevant the going up part will have already taken out housing.

Newcomer
Member
Newcomer

It’s not that I don’t agree, I’m just looking for all the possibilities. (The whole foreign buyer and immigration hypothesis is nonsense. I’ve looked at that and it offers no answers. It’s just a distraction.) But keep in mind that this bubble started in the early 2000s and has been economically impossible since around 2008, and yet…

You say housing would collapse if the US slipped into a recession. But we has the biggest US crisis since the 70s and prices here went up. Prediction is a mug’s game

patriotz
Member

“But we has the biggest US crisis since the 70s and prices here went up. ”

No, prices went down – 15% in less than a year, a faster decline than seen in the US bust. It was only after the recession ended and rates dropped to near zero that prices started going up again. Next time, we will start with much greater household debt and a much smaller possible rate cut.

Newcomer
Member
Newcomer

Less than a year is the key there. It was a blip.The US was still in the crapper when prices started to rise again here due to a combination of uncalled for government intervention and the belief that Canada’s conservative banking practices made it be most financially stable country in the world. In reality, what was keeping Canada afloat was excess liquidity was flowing into commodities, but Canadians felt optimistic anyway and that’s why prices went up.

YVR
Guest
YVR

In 2008 mortgage rates went from 5% to 2.5% in a few years. That is almost $2100 per month less interest on a $1M mortgage. Mortgage rates rates would need to go to zero today to have the same impact. Not possible. Mortgage rates may even go up with a recession. Plus credit would tighten.

Newcomer
Member
Newcomer

Yeah, I know. Still.

Oracle
Guest
Oracle

You think anyone gonna fall for your BS?

The 3 or whatever percent becomes ‘local’ every few months. More take their place.

Only way to stop this is to reduce immigration by 75%.

Too many tax evaders already in this country earning money overseas. Undeclared property overseas.

When the working class causcasians wake up, look out YVR. Make sure your parents get that citizenship. PR may not cut it.

Specuskeptic
Member

“You think anyone gonna fall for your BS?” You mean like you and your sockpuppet theatre? No. Not falling for your BS Oracle…

Just me
Guest
Just me

Wait a minute, where have I heard that before. Ah, yes….in all housing blogs of thenpast ten years. Webare running out of buyers, demand borrowed from the future, blah blah blah….

It is not locals on credit, just accept it and move on with your life.

Best place on meth
Guest
Best place on meth

Don’t waste your time with the race baiters.

They are not worth it.

Oracle
Guest
Oracle

Admin allows this shitshow to go on. Ban the IP’s of the 3 stooges.

Shut It Down Already
Guest
Shut It Down Already

FML, you have the numbers right there yet you’re still convinced it’s those nasty foreigners?

$93m in a month. That’s it. 93 below average houses. Accept it and move on with your life. Step one should be reading a CMHC report about how indebted Canadians are.

Just me
Guest
Just me

You are hopeless. You choose to dny the truth, even if it stares you right in the fac.
So be it.

Shut It Down Already
Guest
Shut It Down Already

Yes, the truth that I have stats for. Whereas your truth is fabricated because of your prejudices. You dismiss anything that contradicts your opinion without providing evidence in support of your views.

Or do you have firm data which refutes the $93m figure? Let’s see it.

Oracle
Guest
Oracle

This is HAM that is arguing against you. They are the ones making Vancouver unaffordable. Time to audit these 3 stooges families. CRA?

Shut It Down Already
Guest
Shut It Down Already

I remember when the lazy counter argument here was “you must be a realtor!”. Now it’s “you must be Chinese!”

How times have changed.

Bear Vancouverite
Member
Bear Vancouverite

This is good news, now that the reports are showing such small numbers the FOMO effect of foreign money should be lower. We’re also seeing less upwards pressure in general above $1M. Less foreign money? Less fear of foreign money? I’ll take both.

Newcomer
Member
Newcomer

Fewer gifts from aunty Kristy.

Just me
Guest
Just me

This reduced interest is the main reason for the great moderation in the upward trajectory of prices. Part is due to the tax, but most is due to capital controls back in China.
It seems to me that this leveling off actually confirms the critical role that foreign money has been playing in our market. Right now that role has been temporarily contained, and the effects are there for everyone to see.

There has been no dramatic change in the availability of credit (for people in the million plus prices range) and yet the market has slowed down quite a lot. That is, simply, the China effect.

Thanks for showing us more evidence showing us the disproportionate role that mainland China money has played in the market until the Spring of last year!

Shut It Down Already
Guest
Shut It Down Already

High prices themselves impart negative feedback forces. So a levelling off confirms nothing of the sort, except in your mind.

Just me
Guest
Just me

As I said, both timing and magnitude support the view tgat last year’s massive runup in prices was driven by Chinese money. The fact you keep denying it dies not make it less real.

Shut It Down Already
Guest
Shut It Down Already

Correlation is not causation. You’ve provided little evidence of correlation, too, come to think of it. How about multiple data points or maybe a graph instead of innuendo?

Just me
Guest
Just me

I am confused. Read my posts anove. What is it that you find most confusing? Chinese buyers slowly decrease (capital controls) prices stop growing and marginally adjust down. Especially, as expected, at the high end.

If we can keeo the Chinese out of the market a bt onger you will observe further moderation. What is so hard to understand? Credit has not changed in any meaningful way, Chinese money flows have.

Please do not waste other people’s time. And what us your chip on the shoulder? Are you feeling hardly done by because of your Chinese heritage? As I said many times, this us not about race. I would be just as pissed off with Russian millionaire migrants. Stop framing things in terms if race, it is utterly unhelpful.

Shut It Down Already
Guest
Shut It Down Already

The number of pirates since 1800 has dropped whilst champagne consumption has risen. Ergo champagne kills pirates. This is the essence of what you’re saying.

And “Stop framing things in terms of race” you say right after making pathetic assumptions about my supposed heritage? You really are a dumb racist. THAT’s why you’re confused.

Oracle
Guest
Oracle

Vested interest. Yet you keep debating them.

Vancouver Review
Guest
Vancouver Review

Mar 23, 2017 Daily Review Vancouver Real Estate Housing Bubble News https://youtu.be/NRV5uswDt7w

Just me
Guest
Just me

Great as usual. Thanks!
Keep up the good work.

paulb
Member

New
157
Price Change
35
Sold
131

TI: 8171

Need help buying or selling real estate? http://www.clivestevepaul.com

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.”

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).

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.

Screwed
Guest
Screwed

Retarded

Sebastien
Member
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.

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.

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.

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.

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 »
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

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.

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

Sebastien
Member
Sebastien

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

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
Member
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.

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
Member
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

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.

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

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

Best place on meth
Guest
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
Best place on meth

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

Newcomer
Member
Newcomer

Aw, shucks….

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.

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.

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
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Newcomer

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

Combat roach
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Combat roach

Sure…

fomostyle
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fomostyle
Joe Stark
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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.

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.

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.

best place on earth
Guest
best place on earth

are you leaving?

Newcomer
Member
Newcomer

No. How about you?

fomostyle
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fomostyle
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

Best place on meth
Guest
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.

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.

squeak
Member
squeak

Finally somebody who has the guts to speak the truth.

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.

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/

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.

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

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.