Have we seen this movie before? Canada surpasses US bubble peak

Even outside of ridiculous vancouver, this nation is real estate crazy. In many key metrics Canada has surpassed the US housing bubble at its peak.

As David Rosenberg, the chief economist at Gluskin Sheff told BNN Thursday, “This bubble is on par with what we had in the States back in ’05, ’06, ’07. We have to actually take a look at the situation. The housing market here is in a classic price bubble. If you don’t acknowledge that, you have your head in the sand.”

Read the full article over at Macleans.

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[…] The NDP is promising to implement a $400 rental grant if elected.  This grant would be applicable to all rentals and would have the side effect of pretty much putting an end to rental income tax evasion. […]

patriotz
Member

Donald Trump: China ‘not a currency manipulator’

Donald Trump has said his administration will not label China a currency manipulator, rowing back on a campaign promise.

The US president also left open the possibility of re-nominating Janet Yellen as the head of the Federal Reserve, despite having criticised her… But in Wednesday’s interview he said he now liked “a low-interest rate policy” and “respects” the Fed chair.

Shut It Down Already
Guest
Shut It Down Already

At least GWB never boasted about how smart he thought he was.

bullwhip29
Guest
bullwhip29

Rich Coleman says Liberals would offer rental suite incentives for homeowners
http://www.cbc.ca/news/canada/british-columbia/housing-rental-coleman-1.4068773

Combat roach
Guest
Combat roach

Those liberal idiots are very sick. This proposal sounds like thoroughly planned social engineering project to convert current order into neo-caste system with the flavour of “functional society”.

Sebastien
Member
Sebastien
Oracle
Guest
Oracle

Liberal shill. So vote for corruption?

Sebastien
Member
Sebastien

No. I vote Green for my conscience.

Oracle
Guest
Oracle

Fine.

Your conscious should also tell you Greens aren’t going to form the next government and if you vote Green in a swing riding, you are helping Christy.

And in turn destroy the environment. How’s that for conscious.

Sebastien
Member
Sebastien

You haven’t read the articles, right?

patriotz
Member

“You haven’t read the articles, right?”

Right, because I have better things to do than read right wing US blogs. So why do you, when they are opposed to pretty much everything the US and Canadian Green Parties stand for?

https://en.wikipedia.org/wiki/RedState

Shut It Down Already
Guest
Shut It Down Already

How ironic. This is becoming a right wing blog.

Oracle
Guest
Oracle

*autocorrect the c word.

Just me
Guest
Just me

If you are still contemplating to vote for the BC Libs, read this. It will literally turn your stomach.

http://vancouversun.com/news/local-news/i-wanted-to-kill-myself-chinese-investor-testifies-his-family-destroyed-in-alleged-b-c-immigration-investment-scam

Chinese investor Jiang Yicheng sobbed violently while telling a B.C. Securities Commission panel that his family has been ruined by disastrous financial losses in a fraud allegedly perpetrated by prominent B.C. immigration businessman Paul Oei.

Jiang is one of about nine Chinese investors scheduled to testify in the three-week Securities Commission hearing for Oei, who is a prominent figure among ultra-wealthy Chinese immigrants in Vancouver, and also a big donor to the B.C. Liberals.

Jiang’s testimony Wednesday asserted details about “black market” bank transfers that his investor group allegedly sent from China and into the legal trust of Richmond politician and lawyer Joe Peschisolido.

Best place on meth
Guest
Best place on meth

Another blow to Corrupt Christy.

Sadly, 25% of BC voters are such idiots that the’ll vote Liberal even if she’s photographed hanging out with Hells Angels, Kim Jong Un or Hillary Clinton.

Fomo
Guest
Fomo

Also. The boomers want their house prices to go higher. So yes. They will vote for Libs. Everyone knows it’s corrupt now. But they really don’t care. It’s all about their mostly only asset. (I have actually had friends parents say this to me)

Combat roach
Guest
Combat roach

Right, corruption is not only contagious but seductive. It works at all levels.

Fomo
Guest
Fomo

We only take non Canadians. Is this legal?

https://vancouver.craigslist.ca/pml/roo/6048076214.html

patriotz
Member

Yes, because they are only renting out a room, not a self-contained unit.

What I find interesting is that a “professional couple” including a school teacher needs to rent out a room in their condo to make ends meet.

Best place on meth
Guest
Best place on meth

Vote Compass test: who do you align with in the BC election?

https://votecompass.cbc.ca/bc/home

Sebastien
Member
Sebastien

82% Green!

Best place on meth
Guest
Best place on meth

Teranet stats for March:

Vancouver +0.85%

Toronto +1.8%

Canada +0.9%

http://www.housepriceindex.ca/default.aspx

Best place on meth
Guest
Best place on meth

8K 4evah!

paulb
Member

New
187
Price Change
37
Sold
184

TI:8117

https://www.instagram.com/clivestevepaul/

Sebastien
Member
Sebastien

3350 Hazel Avenue, Coquitlam
Oct 18:$2,150,000
Apr 11: $1,749,000
Change: – 401,000 -19%

Oracle
Guest
Oracle

Hopefully the NDP proposals catch these tax cheats. Right Sebastien?

Shut It Down Already
Guest
Shut It Down Already

Somebody had a vested interest in denying legitimate price reductions!

Sebastien
Member
Sebastien

Vote Green to be sure.

bullwhip29
Guest
bullwhip29

Chak Au dismisses ‘sleazy’ partisan attack ads
http://www.richmond-news.com/election-2017/chak-au-dismisses-sleazy-partisan-attack-ads-1.15081273

“…said he suspects well-organized BC Liberal supporters are behind the ridiculous print and radio ads that attack him for hypocrisy”

Oracle
Guest
Oracle

For those voting anti corruption and anti money laundering,

Go help out at local NDP office in SWING RIDINGS.

Need to get people registered to vote.

Sebastien
Member
Sebastien

The NDP is already kneeling and bowing their heads with the platform they came out with.

DaMann
Member
DaMann

HAHA. Crusty is such a cow and completely out to lunch. She doesn’t even know how bad she sounds anymore and how corrupt and hypocritical she is.

“Clark criticized the NDP’s proposal, saying a renter’s credit would line the pockets of wealthy tenants living in penthouses downtown”

OMG, really? So giving a home owner with a house worth $1.6 million a $575 home owners grant is ok, but giving a renter $400 ( who doesn’t have a $1.6 million asset) is giving to the wealthy? This woman has lost the plot. People really want more of this?

just for the record I think the renters grant is a dumb idea but it’s a hell of a lot more “sane” than giving millionaires $575 grants. Please, for the love of God, vote these corrupt crooks out of office.

bullwhip29
Guest
bullwhip29

it’s a numbers game…how many of the hundreds of 1000s of landlords cheat on their taxes? and how many of those would cringe at the thought of their tenants submitting tax forms with their detailed info on it?

Oracle
Guest
Oracle

Here here.

A disturbing trend of late is children of HAM defending Christy.

That’s why I always ask whether their parents are PR because then their views are obviously biased.

Shut It Down Already
Guest
Shut It Down Already

Oracle, why do you pretend to be from India?

Oracle
Guest
Oracle

Go NDP! Stop the Greens.

Then corrupt Liberals stopped.

Shut It Down Already
Guest
Shut It Down Already

Oracle, why do you pretend to be from India?

Just me
Guest
Just me

Yes, what she said today is actually insulting. It is OK to give free money to millionaires (postpone taxes indefinitely, give tax exemption on already low property taxes). But $400 per year to renters (the vast majority of whom are certainly not millionaires) is a waste of public funds.
The meaning: public funds should only go to her rich constituents. Everyone else: you lose!
If you vote for her you are either stupid or corrupt.

Shut It Down Already
Guest
Shut It Down Already

Giving everybody who rents $400 will merely result in rents increasing by $400.

patriotz
Member

“Giving everybody who rents $400 will merely result in rents increasing by $400”

No it won’t. Hint: if everyone’s salary went up by $400 annually, would rents go up by $400 annually? Why or why not?

Screwed
Guest
Screwed

She is already giving away first home buyers funds to sellers pockets

Shut It Down Already
Guest
Shut It Down Already

Absolutely she is.

Oracle
Guest
Oracle

lol. No comment.

Just me
Guest
Just me

Fine, if it means that we landlords will now have to regularize their rental income.
I think the $400 is not the point.
By the way, what is your view of Josh Gordon’s piece? A rabid racist?

Shut It Down Already
Guest
Shut It Down Already

Like you, he ignores the fact that the majority of the market by far is driven by locals. Why focus so intently on the 10%?

patriotz
Member

That fact is irrelevant to his argument, which is that people who don’t pay income taxes in Canada but buy houses are freeloading off those who do pay income taxes. And that’s the answer to your “why”.

Combat roach
Guest
Combat roach

Sure, locals with the foreign money in their hands. Chase the shit by tracing the money.

Shut It Down Already
Guest
Shut It Down Already

I think the total dollar value of all outstanding mortgages nationwide tells a story – wouldn’t you agree? I mean, if you’re truly interested in following the money.

Bear Vancouverite
Member
Bear Vancouverite

One thing to keep in mind is that foreign buyers are getting mortgages from our local banks, so the outstanding mortgage amount doesn’t tell the whole story.

I have heard from first hand sources where banks have loaned $1M, $2M and maybe even $3M to buyers with foreign sources of cash who pony up enough down payment.

Just me
Guest
Just me

You probably have night sweats about racial discrimination. For you it all boils down, eventually, to that. The real world is quite a bit more complex.

bullwhip29
Guest
bullwhip29

The ethicist’s case for taxing foreign home buyers
JOSH GORDON
Special to The Globe and Mail
Published Wednesday, Apr. 12, 2017 4:53PM EDT
Last updated Wednesday, Apr. 12, 2017 4:53PM EDT
http://www.theglobeandmail.com/report-on-business/rob-commentary/the-ethicists-case-for-taxing-foreign-home-buyers/article34690709

bullwhip29
Guest
bullwhip29
FULL TEXT: Foreign capital is playing an important role in the real estate markets of Toronto and Vancouver, and has for some time. As political leaders debate its impact and possible policy measures to alleviate its attendant issues, it is important to think clearly about the ethics of foreign ownership. Predictably, those who want to stymie or avoid policy action in this area have alluded to “xenophobia” to deter critics. Even some well-intentioned people have given credence to these claims. Yet curtailing or taxing foreign ownership is not xenophobic, especially if policy is properly designed. Xenophobia is the irrational or unjustified fear of foreigners. Concerns about the impact of foreign ownership are about flows of money, not people, and they are certainly justified in Toronto and Vancouver. Foreign ownership raises two main ethical problems. First, those who buy based on… Read more »
Best place on meth
Guest
Best place on meth

“we see nothing ethically problematic about charging foreign students more in tuition at Canadian universities. Residential property is no different.”

Well, that’s a pretty blunt and accurate statement.

Just me
Guest
Just me

This is a great piece. I could not have written it any better.
I have been saying for a long time that this is about money, not race or nationality. I have been attacked by many, but I remain convinced that my argument is correct.
It is nice that Josh Gordon agrees in full. I take comfort in this, as it shows the arguments have validity (despite the attacks of many posters here).
I should also add that the policy discussed in the article is eerily similar to the one suggested by David Eby and the NDP (and to some extent by the Green party).
The only ones who keep opposing such policies are the BC Libs. And we know full well why (hint: it has nothing to do with race, and everything to do with money!)
Thanks Josh Gordon!

Oracle
Guest
Oracle

So NDP will bring this madness to an end. MSM scared now so pulling out all the stops.

1) Sauder plan will get tax money out of astronaut families
2) Renters tax credit of $400 will out landlords evading taxes and put renters on even footing with homeowners who get the home grant.
3) Close FBT loopholes via trusts and companies
4) Province wide FBT

Sebastien
Member
Sebastien

Very weak, Very milk toast!…

Even with a majority, they’ll do maybe one of these policies…

patriotz
Member

I find this pretty funny, given that the NDP’s detractors usually accuse it of planning to levy even more taxes than it has promised. The party has made a lot of expensive promises and will need to pay for them, so you can bet they’re going to tax people who don’t vote for them anyway.

Sebastien
Member
Sebastien

Deficit Spending is easier for them.

Oracle
Guest
Oracle

So keep voting Liberals?

Sebastien
Member
Sebastien

Vote Green!

Oracle
Guest
Oracle

Expect YVR, Shut It, Sanstesian, Newcomer to come to the aid of their HAM forefathers.

Sebastien
Member
Sebastien

8s:
4620 Joyce Street, Vancouver
Feb 3:$1,888,888
Apr 11: $1,188,888
Change: – 700,000 -37%

patriotz
Member

Assessed value is $1,176,200, so they are still asking over the Jul 1, 2016 market value, never mind today’s.

Fomo
Guest
Fomo

Thank you. The first price was just to test out the waters and hope.

Oracle
Guest
Oracle

Why you keep trying to deceive? This site is not visited by many so you’re not going to sway the general population…

This transaction to sell this house will occur within the next several weeks and $$$ will change hands overseas.

You’ve posted dozens of examples over the last month and you haven’t told us which ones sold and for how much…how convenient. Only people against HAM and advocating HAM money laundering would advocate for this. Canada and BC needs those taxes. You should be outraged unless you put Canada second.

Curious…Are your parents PR?

Sebastien
Member
Sebastien

No they aren’t.

Oracle
Guest
Oracle

correction above *..people for HAM money Laundering…

Dave
Member

The gas station downtown on West Georgia sold for $75 Million! That’s $5,000 per ft2 of land. Is that the peak?

YVR
Guest
YVR

It is not about the sq ft of land but the buildable sq ft. They will probably allow a tall building on this land.

Combat roach
Guest
Combat roach

Probably not, Chevron at Davie and Burrard could go higher. It wouldn’t be surprising, amok is still running strong in Vancouver.

Dave
Member
Combat roach
Guest
Combat roach
bullwhip29
Guest
bullwhip29

NDP government would implement a $400 annual renter’s grant and close a loophole on fixed-term leases
http://vancouversun.com/news/local-news/b-c-election-2017-ndp-leader-horgan-pledges-400-annual-renters-grant-if-elected

Abdul Lahazi
Guest
Abdul Lahazi

This is CC’s response:
Liberal Leader Christy Clark criticized the proposal, saying “the grant would line the pockets of wealthy renters who live in penthouses in downtown Vancouver.”
Good grief what a clown she is.

Bear Vancouverite
Member
Bear Vancouverite

HAHAH now we’ve seen in all.

Christy Clark doesn’t want to line the pockets of “wealthy renters” while she hands out sub prime loans, defers property taxes, and increases PTT exemption thresholds for landlords and owners. What ever are the poor, downtrodden masses of homeowners to do if the hordes of wealthy renters are handed $400 a year?

bullwhip29
Guest
bullwhip29

ha ha…thought you were making this up…but no…lol

doesnt matter, i suspect there are a lot of landlords out there who are NOT declaring the income. not a chance in hades they will vote for such measures and open themselves up to possible poking and prodding by authorities, cra etc. i wonder if the libs do indeed have a mole inside ndp headquarters and it was this individual who proposed this idea and got horgan to take the bait.

sorry, it looks like election is already over…

patriotz
Member

” not a chance in hades they will vote for such measures ”

The landlords wouldn’t vote for the NDP in the first place, so why shouldn’t the NDP do something for their own voters?

Oracle
Guest
Oracle

Another bull comes out of the woodwork?

Just me
Guest
Just me

She has no decency.
Yes, those 150 penthouse renters will get back $400 rebate on their $15,000/month rent. Big deal.
Meanwhile, those 300,000 renters who live in the real world will get back $400 on their $3,000/month rent. In which universe is this not a good policy?

It is great, reason enough for me to vote them.

bullwhip29
Guest
bullwhip29

doing back of napkin calculation, this rebate would likely not even offset allowable rent increase permitted by RTA and how many of those 300,000 landlords are NOT being truthful at tax time? put another way, how many of these landlords will bite their tongues/plug their noses and vote for krusty…again

Just me
Guest
Just me

Actually, the $400 is annual. So no big deal for any renters in vancouver, it is pocket money. However, it is still good to the extent it uncovers the black market rental income.

patriotz
Member

This would be available to all renters regardless of income. As it would require the renter to report their landlord on their income tax return, it would put an end to rental income evasion by landlords. It would probably pay for itself.

Best place on meth
Guest
Best place on meth

“it would require the renter to report their landlord on their income tax return”

This is the bigger issue.

The $400 to a renter is chump change but outing all the landlords not reporting their income is priceless.

FOMO
Guest
FOMO

What about the large amount of renters that are International Students? They do not report taxes. This will cause further discrimination for landlords to only take in International students – which is already largely in play.

patriotz
Member

Haven’t you got it backward? A landlord who rents to an international student doesn’t have to worry about having his rental income reported to CRA.

FOMO
Guest
FOMO

That’s what I meant. This will further encourage rentals to International only as most landlords do no want their info to end up on a renters tax return.

Bear Vancouverite
Member
Bear Vancouverite

Why does this really matter though. The students are here already and they must live somewhere. How can you “take away” even more rental inventory than is already taken away?

Meh
Guest
Meh

Or the landlord paying the renter $500 to not report it?

YVR
Guest
YVR

“Or the landlord paying the renter $500 to not report it?”

Yes sure. Take the $500 then report anyway or refile in a year after you leave.

bullwhip29
Guest
bullwhip29

Sunshine Coast-based realtor named one of Canada’s top-performing real estate agents
http://www.thelocalweekly.ca/local-realtor-named-top-performer/

Diadora
Guest
Diadora

David Eby: 2% property tax on property owners who don’t pay income tax in Canada.
Now this is something to get really excited about, make these millionaire housewives pay their share of taxes! Go Eby!

YVR
Guest
YVR

The tax only lasts 5 years max and then you are exempt. Anyone living here for 3 years already would pay the tax for 2 years max and then be exempt. Total tax paid in this case would be 4% of house value. Not going to make a difference. Anyone already here for 5 years is exempt from the start.

Bear Vancouverite
Member
Bear Vancouverite

I think we both know the tax will make a pretty big difference, especially in combination with the Foreign Buyer Tax, empty homes tax, rental credit (which can be used to track down undeclared rental income), and various other tweaks happening.

As far as I’m concerned everything that slows things down had better be done, and Christy is doing much less than what the NDP have proposed.

Combat roach
Guest
Combat roach

What if they (housewives/owners) get a part time “job” in a nail salon or massage spa and claim “some” income?

Bear Vancouverite
Member
Bear Vancouverite
I believe the bill is this one: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/40th-parliament/5th-session/bills/first-reading/m209-1 The relevant part that should interest you is this: Any homeowner who is liable for income tax in excess of the amount of the Housing Affordability Levy is exempt from the Levy. If your house is $3M and the tax owed is $60k, your T4 tax amount must be above $60k to be exempt from this additional property tax. This is actual income tax, not the taxable income. Basically the total Levy you pay is 2% of assessed value minus the actual T4 household tax. You can use declared rental income to offset part of the Levy, which is a good way to get some of the unreported rental income taxed (either the rental income is taxed or the property is taxed). It’s a pretty sweet bill that will help address housing… Read more »
Just me
Guest
Just me

It is good, intelligent policy. And it will not have unintended consequences for locals (in fact, for locals the only consequences are positive, unless you are trying to sell to rich Chinese millionaires).

Bear Vancouverite
Member
Bear Vancouverite

I think its well documented that not 100% of owner locals would be unhappy with a correction. Many have children or family moving away and others are tired of empty neighbourhoods and missing neighbours.

Bear Vancouverite
Member
Bear Vancouverite

Finally, a house listed below recent actual sales value.

1237 E 64th Avenue

Originally listed: $1.549M ~ March 4th
Now Dropped to : $1.349M
2016 Assessed: $1,435,000
2015 Assessed: $1,091,000

Last sold Sep 16 2016: $1.45M

So list price is 7% below last sold price and assessed value.

And before Oracle rants about overseas money exchanges and someone else asks me how many hours it took to cherry pick this, this is the very first listing I looked at this morning out of all the price drops on myrealtycheck.ca, It was pure chance that it happened to fit what I was looking to find over the past few months: lower than assessed and lower than recent 2016 sold price.

FOMO
Guest
FOMO

^ Follow Mortimer on Twitter. He posts tons of them

Bear Vancouverite
Member
Bear Vancouverite

Mortimer is too noisy, 80% of his posts are price increases or decreases above assessed. I’m looking only for price decreases to below assessed and sold.

Bear Vancouverite
Member
Bear Vancouverite

Within a few KM of that particular listing are 3 more listings in similar price range, 2 of which are listed below Assessed and one at just above:

1210 E 63rd Avenue $1,398,000 2700 sqft
1308 E 61st Avenue $1,299,000 2502 sqft
1311 E 61st Avenue $1,199,000 1668 sqft

None of those appear to have any listing price decreases as far as I can tell, 2 are Vancouver Specials. 1210 E 63rd has been sitting since Jan 19th.

To give a bit of longer term context, BC assessment says 1210 E63rd priced at $1.39M was last sold in 2014 for $917k so there’s quite a ways to go to just roll back to 2014 prices when many of us thought prices were still overpricd.

Combat roach
Guest
Combat roach
bullwhip29
Guest
bullwhip29
Hyper-mega-Bull
Member
Hyper-mega-Bull

David Rosenberg emerges from its burrow, sees its shadow and retreats back into its den for telling 3 more years of high real estate prices.

southseacompany
Member
southseacompany

“THE BANK OF CANADA BUBBLE.”, Financial Post
https://www.pressreader.com/canada/national-post-latest-edition/20170412/282192240849810

“Canada is not alone in facing a housing-price policy panic. There are housing bubbles expanding all over the global economy. A Google search produced links to alarming reports of double-digit house-price rises on multiple continents. Shanghai is in a bubble. So is Sweden, the main cities in Australia, and Hong Kong. London is about to burst (but hasn’t yet) and San Francisco is in the midst of another bubble — along with Amsterdam.”

“What a coincidence! Not likely. All these manifestations of soaring housing prices have one thing in common: central banks that maintain historically low interest rates to stimulate economic activity.”