Bank of Canada attacks housing market

The most recent interest rate hike from the Bank of Canada is seen as an attack on the Canadian housing market in this article. Provincial governments are trying to walk a fine line of supporting housing markets in their current state without prices shooting up or collapsing over the next year.

Given the enormous price gains in recent years, the market remains hyper-inflated, and the four-month downturn into a bear market hasn’t even brought prices back to the year-ago level, with the average price for all types of housing up 3%, and the condo price up 21.4% year-over-year.

To cool a similarly nutty housing bubble in Vancouver, the government of British Columbia had passed a year ago similar legislation with a 15% nonresident foreign speculator tax. But worried about an outright implosion of the bubble, it has since been subsidizing with taxpayer money down-payments aimed at first-time buyers and condos, which has inflated the condo bubble and condo speculation to new heights.

Politicians – they’re desperately dependent on extracting property taxes from homeowners – don’t want the world’s most majestic housing bubble to implode. They just want it to remain stable so that taxes can be extracted from willing homeowners that have gotten rich off years of house-price inflation. But for now, the Ontario government is letting the market ride.

Read the full article over at Business Insider.

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bullwhip29
Guest
bullwhip29

B.C. Premier John Horgan to table first throne speech
http://bc.ctvnews.ca/b-c-premier-john-horgan-to-table-first-throne-speech-1.3584216

>>> let’s start with the renter’s rebate and make it retroactive to Jan 1/17

Oracle
Guest
Oracle

Many landlords have said they would increase rents if they are outed from their cash businesses.

And there are many excuses to evict and retent at much higher prices in a zero vacancy market. Especially when landlords have Government on their side.

bullwhip29
Guest
bullwhip29

don’t get me wrong, I am not in total disagreement with what you are saying, but imho one of the easiest ways to deal with the housing mess is for CRA to go after those that have been raking in gobs of undeclared tax free income and capital gains for years and years. what ultimately happens with the RTA and other housing related matters can and will likely drag on indefinitely.

KickThemOut
Member
KickThemOut

Just like with stolen goods & house sale proceeds withholding for capital gain tax, government should make renters responsible for any landlord tax evasions by not reporting rental income.

Oracle
Guest
Oracle

But they’ve been instructed not to do so. I personally know many people who just smile when you tel them that cap gains payable on 2nd homes. Just too many loopholes purposely built in. Plus purposely no registry and purposely no oversight.

Simple Solution
Member
Simple Solution

The EASIEST thing to fix, yet they refuse to. Says it all….

CRA only really concerned about some cab driver or waitress not declaring tips.

Would be hard to make this shit up….

Abdul Lahazi
Guest
Abdul Lahazi

Kill off the Libs. welfare FB down payment plan.
This is what David Eby said about it last year:
“We really think the government should be looking at protecting the interests of first-time homebuyers so they don’t have to take on so much debt to get into the housing market because they are already swimming in debt,” he said. “It’s bizarre to me they are going the other way and the only explanation I can think of is they want to reward their donors.”

Doomcouver
Guest
Doomcouver

If the NDP don’t kill off the first time homebuyer teaser loan, then you can be sure they’ll likely turn their backs on all the promises about housing they made pre-election. All we’ll get is big fat taxpayer handouts to property developers for low income housing. I knew it was a long shot voting for the NDP to fix the housing disaster, but at least on paper they were way better than the Liberals. What we really need is 30% FBT province-wide, and some tough anti-flipping/anti-speculation taxes put in.

bullwhip29
Guest
bullwhip29

while the first timer loan was conceived to keep the RE cartel and a certain segment of voters happy pre election, it was the hot money which was allowed to play fast and loose that propelled things to where they currently are. if the NDP are even remotely serious about tackling this issue then they have to start from the top. imho the first timer loan unfortunately has to stay for now, perhaps tweeked later on (maybe pegged to HPI somehow???) until some of this other $hit is sorted out.

Screwed
Guest
Screwed

It will dye anyway with OSFI introduction.

Owen
Member
Owen

…? Insured mortgages are already stress-tested.

Oracle
Guest
Oracle

Until when? Study the situation?

LMAO

They’ve only had years in opposition to devise a plan. Plus they’ve already said what they were going to do.

The extreme backtracking means they lied or someone just padded their overseas bank accounts past full.

Burnabonian
Guest
Burnabonian

+1

YVR
Guest
YVR

“but at least on paper they were way better than the Liberals.”

Not really. The NDP are known to lie during election campaigns so you should have known what they are promising was unlikely to happen. Why do you think they were out for 4 terms straight? When people said remember the 90s this is the stuff they were talking about. Google “fudge it budget” to learn about their prior election campaign lies.

KickThemOut
Member
KickThemOut

Fudge it Budge is still more honest than Liberal’s balance budgets that basically doubled provincial debt and increased taxes on everyone that’s not part of the 1%.

KickThemOut
Member
KickThemOut

30% First time Byer Tax? Way too low! Should make it 100%, throw in a 10% graduated up to 25% property transfer tax payable by seller and buyer alike, that should do the job.

YVR
Guest
YVR

“This is what David Eby said about it last year:”

Yes but David Eby is not the housing minister so all that stuff he said the NDP will do on housing does not count now.

KickThemOut
Member
KickThemOut

Right, because as NDP housing critic, he was only sprouting about his views, not the official NDP party view.

YVR
Guest
YVR

As usual space cadet misses the sarcasm.

Oracle
Guest
Oracle

Today is the day; 4 months after the election. If nothing today, you really think anything gonna happen in February next year?

All it would take for a start is for them to:

1) Expand FBT to 20%, Province wide, to presales and with no ‘work permit’ exemptions for anyone.

2) Say they going to Introduce 2% tax from Jan 1st. On all foreign owned homes and all 2nd homes owned by locals.

That would fix the market. But looks like NDP are the developers if you dig deep.

My bet is only thing announced today is the 114,000 housing units. Can anyone say fast ferries 2? Over priced contracts to be awarded ….pay to play.

bullwhip29
Guest
bullwhip29

my gut tells me you are probably right, but this thing is a ticking time bomb that must be addressed at some point. $10M for ave detached in vanc west, multi-million dollar townhomes and $1M+ 400-500 sqft condos isn’t a sustainable solution. gr vanc would essentially become an investment ghost town like we see in china where there are no locals, no business activity, no recreation etc.

oncebittwiceshy
Guest
oncebittwiceshy
Gee, I don’t know bullwhip, prices are dropping, sfd sales volume are down, interest rates are going up and OSFI is introducing their market killer this fall and your gut tells you that Oracle is right. How about the possibility that the NDP idiots aren’t so stupid and they can actually see the same things as most intelligent people. Why get your hands dirty when the Feds are going to do the job for you. http://vancitycondoguide.com/vancouver-detached-volume-down-36-year-to-date/ ” For January 01- August 31, 2016 the average sales price of a detached home in Vancouver was $2,864,520.00. Comparing the same time frame this year, the average sales price was $2,607,377.00. That’s a 9% drop. The median sales price dropped even further, from $2,339,000 to $1,980,000, a 15% decline.” http://www.myrealtycheck.ca/ Vancouver Aug. Average Change: -2.51% Up:96 Down:223 Overall $ Change: -45613859.00 Average Change… Read more »
YVR
Guest
YVR

How about the possibility that the NDP idiots aren’t so stupid and they can actually see the same things as most intelligent people.

Most intelligent people realize what is happening right now is going to be a disaster. Prices for condos have gone up at least 10% since the NDP were elected and may go up another 10% by the end of October at the current frenzy. The more people who get sucked in, including the FTB program the more damage and exposure the BC government has. This is either incompetence, blatant pumping of the bubble or both.

Best place on meth
Member
Best place on meth

“may go up another 10% by the end of October”?

That would be increases of 5% and 5%. No chance of anything even close to that.

Since May the monthly increases have been 3.1%, 2.9%, 2.7%, 1.7%.

Even the condo frenzy is fizzling out.

ostritch
Member
ostritch

So what if this market fluctuates. When it gets low enough the Chinese will be back.

ostritch
Member
ostritch

This segment of the market, I should say. 2 years to 18 months ago I was looking to buy a westside SFH under 2M. Only a handful were priced that way and all sold over ask. Today there are none priced under 2 M. Not seeing this decline in prices.

Shut It Down Already
Guest
Shut It Down Already

It’s not possible you could fund such a purchase without being a foreign criminal, right morons?

Burnabonian
Guest
Burnabonian

Don’t worry: it is self-addressing.

If you don’t believe that, I have some dotcom stocks and tulip bulbs for sale CHEAP

YVR
Guest
YVR

My bet is only thing announced today is the 114,000 housing units. Can anyone say fast ferries 2? Over priced contracts to be awarded ….pay to play.”

Plus that adds more demand on the current land supply, construction resources, municipal resources and developers resources. Only so many multi-family units can be built in a 10 year time frame and this will just take away from market housing supply and shift resources to government housing all paid for by the working tax payer with only low income and the poor people getting to access it. Vancouver will be a town of very rich and very poor. No middle class. Under the NDP if you want housing you may as well quit your job now. Your chances are better.

KickThemOut
Member
KickThemOut

NDP believes in the power of believe. They think just because they said so and with enough pretending, housing units and social utopia will simply appear magically out of thin air. Unlike the Red Queen who can only convince herself of 3 impossible things before breakfast, NDP can convince themselves of unlimited number of impossible things before breakfast. Just like all the bears here who believes they aren’t morons because it’s all Chinese fault.

Simple Solution
Member
Simple Solution

2% tax was announced!!! On anyone making (or shall I say DECLARING) income of over 150K a year…

2000 modular homes for the homeless for 291M. There is Z E R O chance this doesnt go over budget.

Not that I expected any promises to be kept but can anyone point out the ones that were?

BUT WAIT! It will all be fixed in February……

YVR
Guest
YVR

Variable-rate mortgages account for about 30% of all mortgages in Canada. So these rates ticked up after the July hike; they will after this hike; and if there’s another hike later this year, they’ll tick up again. A 0.75 percentage points increase in the interest rate on a C$800,000 mortgage would raise the annual interest costs by C$6,000.

Probably most of those who have the variable rate mortgages are the people who are on the edge of making their payments. I wonder how those living pay cheque to pay cheque will come up with the extra $500 per month? Lock in at a higher 5 year rate and it cost them more than $500 per month. Stay variable then it may be be $1000 extra per month by the end of next year.

KickThemOut
Member
KickThemOut

Cheap asses – http://www.zerohedge.com/news/2017-09-11/1000-iphone-too-expensive-middle-class-chinese-buyers

But then why buy the real thing when they can get a knock-off for much cheaper. After all, that’s what Chinese are famous for, cheap fakes. And who buys cheap fakes? Obviously not the bears & those that share their pretend Euro-ancestry.

Best place on meth
Member
Best place on meth

What happened to their lust for status symbols to compensate for their low self esteem?

Space? You’re the expert on this.

Combat roach
Guest
Combat roach

The Bank of Canada’s overnight target rate will rise a quarter percentage point to 1.25 per cent at the Oct. 25 meeting, which would be the highest level since 2008, the median of seven estimates in the monthly poll showed. The August survey had rates reaching that level in April 2018.

http://business.financialpost.com/news/economy/quick-hike-shows-data-speak-louder-than-words-canada-eco-watch

ostritch
Member
ostritch

Let the cross border shoppong begin.

Westsider
Guest
Westsider

Checked your line-of -credit rate lately??It’s really creeping up. If you are living on you LOC, things are getting nastier.

Best place on meth
Member
Best place on meth

I just checked mine and it says 8.7%.

People are actually paying these rates?

Lost...but not leased
Guest
Lost...but not leased
The entire issue is a lost cause… The metrics used to be that price a SFH was approx 3X’s annual family income. Since the 1970’s we have been subjected to inflationary voodoo economics. All the subsequent models are doomed to fail. The low interest rates were simply a gimmick to keep the masses happy moreso to compete with HAM. Greater Fool losers were guaranteed….like musical chairs. Problem is the longer they delayed the interest rates rise, the number of greater fools rise. . SFH vs Condos? $64,000 question is strata units ..the ghost city factor. When SHTF, how many strata owner will be bailing, depreciating prices , viability of strata councils?? Strata fees?..seems to be a smugness on condo purchasers re prices vs SFH. .SFH may take a hit but different variables in play…much more downside re: strata when SHTF.
KickThemOut
Member
KickThemOut

Count on the government to help you out? hahahahahahahha….if it is Canadian government, forget about it
http://globalnews.ca/news/3734135/canadians-left-stranded-by-hurricane-irma-blast-ottawa-for-not-doing-enough-to-help/

btw, how many of you feel comfortable putting your live in a doctor trained at University of Caribbean?

Dave
Member

More than a dentist practicing in the basement of somebody’s house in Vancouver.

KickThemOut
Member
KickThemOut

But the dentist isn’t licensed, while someone graduated from Univ of Caribbean can actually be licensed to practice in Canada and you will never know about it, and have little recourse.

Best place on meth
Member
Best place on meth

Some irate, stranded Canadian on the news was screaming about how every other country was able evacuate their citizens, even dirt poor Venezuela.

What’s the problem? This is exactly how I would expect a drama teacher to respond to a real crisis.

kabloona
Member
kabloona

Yeah, why am I suddenly responsible for evacuating somebody getting a fake Medical degree from a dodgy College in the Caribbean….?

Somebody tell these losers their “degree” isn’t worth anything up here….

😉

KickThemOut
Member
KickThemOut

Meanwhile Trudeau knows where the real priority lies! Gender equality chapter in NAFTA! Gotta make sure everything is split 50/50 since apparently he believes females aren’t smart & hard working enough to get parity with men in the 21st century. Oh, we love Saudi Arabia! So much so we will never mention anything about gender equality with them.

http://www.ctvnews.ca/politics/trudeau-targets-tories-in-gender-equality-remarks-saying-they-don-t-get-it-1.3584595

KickThemOut
Member
KickThemOut

Sellout wanting to import Chinese phone with stolen technology and copycat design? Where is the American pride?

https://www.theverge.com/2017/9/11/16284280/xiaomi-mi-mix-2-full-screen-phone-review

Just me
Guest
Just me

When are the new OSFI becoming applicable? Here is what I found on the OSFI site:

http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/b20_dft_nr.aspx

“OSFI is inviting feedback through written submissions from interested stakeholders and the wider public before finalizing Guideline B-20. Comments should be submitted to OSFI by email at B.20@osfi-bsif.gc.ca by August 17, 2017. Following a review of the submissions, OSFI will finalize the guideline and set an effective date for later in 2017. ”

Presumably, feedback is all done. They must be reviewing it. How long does such a review take? One month? Two months? Does anybody know?

oncebittwiceshy
Guest
oncebittwiceshy

http://www.osfi-bsif.gc.ca/eng/docs/b20_dft_nr.pdf

“Following a review of the submissions, OSFI will finalize the guideline and set an effective date for later in 2017”

Just me
Guest
Just me

When? It is not clear when one might expect them to finally go ahead with this. I am very worried they might again tweak it to reduce its effectiveness. Chatter is aplenty, but nobody seems to touch the housing sector when it comes to the crunch.

As for the NDP’s budget update: saying I am disappointed is an understatement. I don’t give a damn about the Port Mann bridge or the pipelines. I need money laundering, speculation and tax evasion to be reined in. So far, they are coming way short. And they did increase my taxes.

Oracle
Guest
Oracle

It’s 100% certainty that it will be watered down.

Haven’t you learned from the past?

oncebittwiceshy
Guest
oncebittwiceshy
Oracle, you’re speaking as if the OSFI regulations are being put in place to slow down the housing market. OSFI doesn’t give a damn about the housing market until it affects the financial system (banks). In other words, during this huge “monopoly money” inspired bubble, the banks had the wonderful CMHC safety net. However, as household indebtedness went off the charts OSFI stepped in because of possible risk. Hence, there first legislation insisting on a qualifying test for CMHC et al insured mortgages. Well, guess what, the bright light realtors, brokers, subprime lenders and mommy and daddy figured a way around their previous legislation (insured mortgages) and that meant that the banking system was exposed to unnecessary risk. The Toronto “correction” simply highlights OSFI’s further need for this legislation. They don’t care about your house or your future. They care… Read more »
1, 2, Pee
Guest
1, 2, Pee

Wiser words have never been spoken.

YVR
Guest
YVR

“So far, they are coming way short. And they did increase my taxes.”

Yup and that 2% tax increase you got was supposed to pay for the $10 per day daycare which has been absent from the NDP plans. Just another NDP lie. You got what you voted for. Don’t worry HAM thanks you for your vote. HAM will enjoy more free benefits while you pay the bill.

Just me
Guest
Just me

On this one you are correct: my first thought is that my taxes went up, but my “unemployed” neighbor driving her luxury SUV will not pay a cent more on her million dollar home. She wins (and with her, the many thousand of mainland Chinese expatriates who declare zero taxes).

Are politicians so evil to condone this and pretend it is not happening? Why should I subsidize millionaires with my tax dollars?

I am furious. eBay is a clown, andHorgan is even worse. Clowns!

Combat roach
Guest
Combat roach

They all suck up to those leaches for either reason. That’s how it works when crocked lowlifes have to coexist.

Dave
Member

Our tax system is very unfair to working people. Our taxes have all gone up Provincially and Federally. It’s gross that so many people in this City pay almost no taxes yet live in multi-million dollar mansions on the West side and get the advantages of health care, education and infrastructure.

You try to get ahead in this City and the government just keeps making it harder and harder. I predict that will continue until people figure out that we need to slow immigration and the flow of foreign money into our real estate market.

bullwhip29
Guest
bullwhip29

and all the rats let out a collective sigh of relief…no renters rebate

Oracle
Guest
Oracle

Hahahahahaha…..LMAO and any at being played at the same time.

Nothing about housing in Budget.

Kicked the can to February WHEN they will kick it down the road further.

Merry Xmas.

Unbelievable? Maybe not…Im sure they are set for life.

Lost...but not leased
Guest
Lost...but not leased
LETS BE BLUNT…..nothing they can do about affordable housing. absolutely F -all…its over Referring back to the late 1970’s /early 1980’s “boom” and before HAM….Richmond had several co-ops built during the MURB program. Since then…a few token high rise projects ……heavily subsidized rents.. Local Gov’t accept cash towards affordable housing in lieu of actual rentals. However..here is a beauty. In one development,. Richmond is allowing a higher density to assist affordable housing IF the developers incorporates a rental suite in each of the 60 townhouse units. Each unit would be approx. 1800 sq. ft..suite approx. 600 sq. ft…. total cost over a $1 million. WTF…Who in their right mind would pay such a premium for a townhouse with a suite included…plus all the problems that 60+ tenants in suites would create in such a dense strata. People in townhouses want… Read more »
history
Guest
history

I agree, Fixed Housing is gone

Vroooom, vroooom…

YVR
Guest
YVR

Whoregan gets on his knees again for another $500 per plate fundraiser.

now that he’s premier, NDP leader John Horgan is attending a $500-a-plate fundraiser scheduled for Sept. 22.

http://globalnews.ca/news/3734222/b-c-premier-to-attend-fundraising-event-promises-legislation-is-coming/

Lost...but not leased
Guest
Lost...but not leased

Old Horgan appears to be a bit nervous and unsettled,..oui?

Perhaps he wants to top up the NDP war chest for an early election call?????…..cuz Andrew Weaver is perhaps threatening a non confidence vote because_______?…..AND before the NDP legislates limits on political donations.

history
Guest
history

He’s vulnerable to deceit, that’s for sure. Any media clown can parade a convicted criminal in front of him, get a handshake and photo.

Just me
Guest
Just me

Horgan is scraping the bottom of the dignity barrel.
Get off your knees, man. You are embarrassing.

paulb
Member
Active Member

New
444
Price Change
81
Sold
154
TI:9810

http://www.clivestevepaul.com

Yikes
Guest
Yikes

444 triple death detach condo townhouse

Just me
Guest
Just me

Love the symbolism. May 444 augur well for the mainland China millionaires who make Vancouver their homes.

Oracle
Guest
Oracle

Even Weaver said ‘that is exactly what i wanter to see in the budget”.

He was very happy that no $400 renters credit as it would have outed landlords accepting cash.

I think my original theory was correct in that all parties have been infiltrated by RE interests. They just play musical chairs and the sheep think they have a choice.

Abby homes are approaching $1 million. All under the NDP. At least the Liberals were known to be corrupt. These guys are liars.

Best place on meth
Member
Best place on meth

“These guys are liars.”

The irony of that comment.

Oracle
Guest
Oracle

How you feeling about the NDP action on housing? Focus your anger on that and not me.

Best place on meth
Member
Best place on meth

You’re absolutely right. The NDP have had 2 months to fix housing and they haven’t fixed a damn thing.

Let’s toss them and bring back Krusty!

DaMann
Member
Active Member
DaMann
Meth, face it the NDP lied about housing and do not want to rock the boat. The quote above about the Greens being the ones pushing for housing initiatives says it all. Again, as I have said before, they can cancel tolls, cancel a $4billion dollar bridge project, raise ICBC rates, yet did not cancel the First time home buyer down payment program? The RE industry basically told them not to, that’s the only reason I can think of because it’s a no brainer that policy has to go and one that they essentially campaigned on ( Eby was very vocal about it). So without any housing action I have to disgustingly say this, I would rather have the Liberals back. The only plus to NDP is better education funding, everything else is geared to the very lower incomes. They… Read more »
kabloona
Member
kabloona
Meanwhile, Richmond City Council is cracking down….. err, maybe not. 😉 “Richmond city council passes policy encouraging 50% English on commercial signs” http://www.cbc.ca/news/canada/british-columbia/richmond-commercial-signs-english-50-sept-11-1.4284713 Richmond’s city council has decided the current approach to dealing with English on commercial signs will be formalized into a written policy. After months of debate, councillors unanimously voted to adopt a policy that encourages signs to be at least 50 per cent English. It means the city will continue to have no bylaws regulating language on signs. The city says a bylaw is not necessary, because “the educational approach to encouraging the use of 50 percent English on signs regulated by the City of Richmond has been 100 percent effective for all business signs,” according to a staff report. “I truly think we’re on the right track as far as this policy goes,” said Coun. Derek… Read more »
Abdul Lahazi
Guest
Abdul Lahazi

The gutless wonders can’t stand up to the onslaught.

Oracle
Guest
Oracle

English going to rapidly disappear due to the millions with 10 yr visas. They don’t speak English.

Combat roach
Guest
Combat roach

At least 50 per cent English… WTF! it should be 100% English and to forget about all other shit for once and all. Richmond isn’t Guangzhou or whatever they would like it to be.

Oracle
Guest
Oracle

Wait 10-15 years. Mandarin only signs in Richmond.

YVR
Guest
YVR

Will the “Mandarin only” signs be in English?

KickThemOut
Member
KickThemOut

I guess BC is not Canada either as French is also an official language.

Best place on meth
Member
Best place on meth

With Weaver being against $10 day care and against the $400 renters rebate, it makes me wonder how many other NDP promises are being held up by the Greens.

http://www.saobserver.net/news/ndps-signature-child-care-promise-put-off/

YVR
Guest
YVR

Weaver is against the renters rebate and childcare program because they cost a lot of money. The NDP had no problem canceling the tolls which Weaver was strongly against. The NDP could easily cancel the first time buyer loan program. According to the article below it is the NDP holding out trying to keep the status quo on housing with Weaver pushing for a province wide foreign buyers tax and restrictions on farmland.

Green leader Andrew Weaver, meanwhile, is urging the government to ban non-resident purchases of B.C. farmland, citing obscene levels of speculation, and extend the Metro Vancouver foreign-buyer tax on residential properties to the whole province. The New Democrats have so far steered clear of endorsing such “populist” measures

http://www.coastreporter.net/opinion/editorial/housing-crisis-needs-royal-fix-1.22309939

YVR
Guest
YVR

Andrew Weaver is the new David Eby. David Eby is the new Rich Coleman.

In particular, it is worrisome that B.C.’s economic growth remains so dependent on the housing market, the growth of which has priced many British Columbians out of their own communities.

http://www.voiceonline.com/demonstrates-governments-underscores/

Abdul Lahazi
Guest
Abdul Lahazi

Ontario, B.C. job markets won’t go bust from a housing correction: DBRS

https://app.tmxmoney.com/news/cpnews/article?locale=EN&newsid=TB8400&mobile=false

The ratings agency says if house prices fall dramatically, other sectors of the economy should be able to absorb those jobs thanks to strong economic growth and steady population gain.

Doomcouver
Guest
Doomcouver

I think they’re underestimating how much real estate money circulates through the economy. Systemic impacts are a real concern here.

Abdul Lahazi
Guest
Abdul Lahazi

http://www.cbc.ca/news/canada/british-columbia/surrey-limousine-crash-1.4284965?cmp=rss
“A Surrey family and their tenants… The family of four and their three basement tenants escaped the crash unharmed.”
Another Desi house in Surrey with illegal suites and tenants and undeclared rental income. Just like every other Surrey house.

Oracle
Guest
Oracle

Gov condoned. Join the underground economy or be left behind. Days of being the goody goody citizen long gone.

Doomcouver
Guest
Doomcouver

The city should be checking if they have registered these rental suites. I’m sure they aren’t though because most of these laws are unenforced and worthless. Even if the city can get off their collective asses to do something, at worst they will get a small fine, but probably just a warning. The warnings and fines aren’t working though, and they’re robbing taxpayers blind. We need to raise fines on illegal suites, or tack on some jail time for these crooks. The illegal hotel operators need to be arrested and jailed. I’m sick and tired of it.

KickThemOut
Member
KickThemOut

yes we should!!! Get rid of all unauthorized suites! Force owners to tear them out!

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29

Ontario, B.C. job markets won’t go bust from a housing correction, but risks remain: DBRS
http://www.vancouversun.com/ontario+markets+bust+from+housing+correction+risks+remain+dbrs/14645897/story.html

>>> so I guess we must live in a world where water only flows uphill since all these housing related jobs that have been created as the RE bubble continues to inflate will somehow remain intact if the market turns south. makes perfect sense…

YVR
Guest
YVR

The problem is half the jobs ‘not’ related to housing in BC are related to housing and/or the wealth effect of housing. Most of BCs manufacturing is directly for housing (cabinets, doors, trusses, windows, furniture, etc.) and the retail economy with things like restaurants and car dealers are related to the wealth effect from housing.

Doomcouver
Guest
Doomcouver

Yes I agree pretty much everything is paid by sky high housing prices in BC. We’re facing the biggest recession in our province’s history when the market corrects.

bullwhip29
Guest
bullwhip29

Number of new CMHC-insured mortgages drops following tightening of regulations
https://www.biv.com/article/2017/9/high-risk-borrowers-hit-new-rules/

Doomcouver
Guest
Doomcouver

This doesn’t surprise me. Housing is so expensive middle class people could just barely afford to get into the market before. With so many borrowers at the margins, even small changes are having big impacts.

YVR
Guest
YVR

UBC Professor Tsur Somerville, an expert on affordable housing and real estate development, says this budget doesn’t adequately address BC’s housing issues. “It seems like a drop in the bucket on overall affordability. The spots for the homeless is important because those are the people who most suffer from situations in the housing market, but relative to the campaign promises, it’s pretty light,” he says.

http://www.news1130.com/2017/09/11/unions-happy-mixed-reviews-ndp-budget/

Just me
Guest
Just me

No. You don’t tell me! And I thought I was crazy and impatient.
This is pretty much the same as we had with Krusty, but with higher taxes.

Dave
Member
My biggest surprise in this budget is the NDP did even less about housing than I expected, which was nil to nothing. I thought they would at least do a few superficial token announcements for the sake of optics and they didn’t even do that. Taxes are predictably going up, but not on the people who actually have the wealth and pay no taxes and yet consume services. It’s outrageous. So, here we are four months later and housing is getting more expensive and everybody’s income is taking a hit. This is going to be the future of Canada in my opinion. I think in the next 10 to 20 years people are going to get squeezed more and more. Asset prices will remain high and continue to grow because of all the things happening today with no government response… Read more »
bullwhip29
Guest
bullwhip29

chatter from some quasi real estate industry folks is that investors/buyers are using this period of indecision to do whatever the heck they want and aggressively circumvent any/all laws or regulations that MAY be proposed which in effect is forcing the govt’s hand. of course, by the time “something” actually happens prices will be at another level and NDP support will be in the dumpster as a result.

Oracle
Guest
Oracle

NDP is done. They won because of housing in Metro Vancouver.

Next election, the NDP will lose votes and this will be split evenly between Greens and NDP allowing Liberals to win.

PR won’t pass as people now see the NDP as liars and Libs as corrupt. They won’t want these 2 in power forever.

I’m going to be campaigning against PR. I did a 180 like the NDP.

Dave
Member
The Greens will try to act as moderate and accommodating as possible in an attempt to show that PR can work. But that discipline will fall apart should PR ever come to pass. Our Province would be run by single issue special interests as they would hold the balance of power. What people don’t yet realize is that those groups exist on both the left and right. Does anybody want the Christian Heritage Party having the swing vote? I was happy to see Trudeau make that same point recently. He used the example of an anti-immigration party. I agree with him that our current system already enables compromise within a party. I think it’s preferable to have somewhat moderate parties, rather than extreme voices. Our current form of government has served us well since Confederation and has served the Brits… Read more »
KickThemOut
Member
KickThemOut

Right…because our government have worked so well for people in this province and hey, why mess with it, right?

Thank goodness venture capitalists & scientists don’t subscribe to your logic of don’t change anything that’s working. Otherwise, we will still be using typewriters…after all why changing anything if it ain’t broken?

Maybe, just because maybe, there is something better lurking around the corner.

oncebittwiceshy
Guest
oncebittwiceshy

…. and not content with simply copying the american’s speculative mania, we insist on showing everyone we can even out do them.

http://vancitycondoguide.com/one-bedroom-vancouver-condo-inventory-plummets/

To highlight just how dire a situation the Vancouver condo market is in, the sales to actives ratio for one bedroom units is still a mind blowing 107%. A number that has never been seen recent history.

“One bedroom sales to actives ratio Vancouver
Sales to Actives Ratio for One Bedroom units hits 107%
A speculative mania has buyers bidding up condos at a rapid pace with little signs of slowing down”

YVR
Guest
YVR

“To highlight just how dire a situation the Vancouver condo market is in, the sales to actives ratio for one bedroom units is still a mind blowing 107%. A number that has never been seen recent history.”

Don’t worry the NDP housing minister Selena is currently studying this to see if action is necessary. Meanwhile Whoregan still has $500 per head tickets available for his Sep 23 fundraiser. Maybe buy a ticket to get access and bring it up?

Doomcouver
Guest
Doomcouver

On economic matters like this Canada often seems the better part of a decade behind the Americans. The fact that we can usually “see the future” and do nothing to change it is just testament to how ignorant your average Canadian is. Greed is king and screw all other critical thinking.

I will have 0 sympathy for all the dumb millenials buying million dollar condos that are going to ruin their finances for most of their life. They’re sheep and they deserve what they have coming to them.

bullwhip29
Guest
bullwhip29

many millenials simply served up another glass of the coolaid to their parents who then went on to provide the DP. so, worst case is they lose face and maybe some furniture from IKEA but in actuality many of them don’t have much skin of their own in the game. it is their parents who wind up in the poor house as they head into retirement

Oracle
Guest
Oracle

Fraser valley prices heading up a further 20% in my opinion. People now know that NDP ain’t gonna do shit. They are developers too.

And don’t even think about rents. They going to skyrocket too.

oncebittwiceshy
Guest
oncebittwiceshy

Oracle, when you take a jumbo mortgage at 2.5% and move it to 4.84% you have effectively met a brick wall.

https://www.cibc.com/ca/mortgages/calculator/mortgage-payment.html

Mortgages payments go up by 27% on a simple 2.4% move.”

Interestingly enough, that is exactly what the Bank of Canada qualifying rate is today. OSFI rules will shut down the fraser valley real estate market so you can get back in, buds.

Dave
Member

I think the bridge traffic is going to hurt the Valley market more than anything. I’m hearing Highway 1 has been crazy busy since the tolls were removed off the Port Mann.

KickThemOut
Member
KickThemOut

So widen the highway then….I’m sure NDP backers will be all over that now that big infrastructure projects are dead in water for a year or two now.

Oracle
Guest
Oracle

Most buying in Valley are for investment purposes only. They using proceeds from sale of Vancouver homes.

And no one scared of evading cap gains.

oncebittwiceshy
Guest
oncebittwiceshy

Oracle, you have to stop talking past tense. $2.5 billion dollars taken out of the market from just last year.

http://vancitycondoguide.com/vancouver-detached-volume-down-36-year-to-date/

“Perhaps even more telling was total dollar volume (money spent) was down 36% this year. From $7,258,694,631 to $4,622,880,039.00.”

Owen
Member
Owen

I think Oracle’s right unfortunately. There has been a big spike in local investors buying up condos in Langley; foreign dollars have seen a commensurate drop. Sounds like locals will be the ones left with egg on the face.

KickThemOut
Member
KickThemOut

You mean like in 08/09 when mortgage rates went from 3.5% to 5%-6%? That brick wall? The one that stopped bears & pigs on here stone cold while bulls kept going and doubled their RE wealth since then? That brick wall?

oncebittwiceshy
Guest
oncebittwiceshy

You are so cute when you’re trying to argue. As a matter of fact, if your memory serves you right, prices did hit the wall to the tune of 15% back then.

Now the more telling feature of your story was the drop in interest rates down to 1% shortly thereafter. You do understand that we don’t have that kind of room to drop rates this time, right?

KickThemOut
Member
KickThemOut

If I get a penny every time a bear sprouts that crap, I would own 2 west side houses by now…..this is so hilarious..no wonder bears are getting slaughtered.

Oracle
Guest
Oracle

LMAO

You really think gov would let rates rise above 4%? QE would be instituted and rates dropped.

Haven’t you learned anything about last decade?

oncebittwiceshy
Guest
oncebittwiceshy
Oracle, you have to quit glazing over comments and actually read them. First of all the bond market sets mortgage rates not the government and they are going up right now. Regardless of the bond market, OSFI will be setting the qualifying rate for mortgages starting this fall and no the government won’t intercede. Unfortunately, the financial system of a country is far more important than a crashing housing market. The Toronto housing market is the largest market in Canada and that crashing market hasn’t even given Poloz a second thought as he implemented another interest rate hike. You really think that the government is going to step in for Vancouver? http://www.msn.com/en-ca/money/topstories/toronto-houses-are-losing-value-at-a-rate-of-dollar100000-a-month/ar-AArohxk?li=AAggFp5 “Toronto Houses Are Losing Value At A Rate Of $100,000 A Month” Get used to headlines like this because the media is the bull’s best friend on the… Read more »
KickThemOut
Member
KickThemOut

Really? Bond market set the interest rates??? Seriously? Care to tell us why people buy negative rate bonds in Europe? Why 10Y JPY bonds can’t go above 0.1% in yield?

Oncebittwiceshy
Guest
Oncebittwiceshy

Bond market determines the mortgage rates. Bank of Canada determines the interest rates.

oncebittwiceshy
Guest
oncebittwiceshy
Let me help you to understand the bond market. First of all it dwarfs the stock market in size. Bond traders look for secure return or they look for stability depending on the political/economic status of the day. During the Global Financial Crisis, Canada was deemed to be a safe haven for bond traders because it “escaped” the GFC. Hundreds of billions of foreign dollars flowed into Canadian bonds for stability. Despite the Bank of Canada dropping interest rates the bond traders sought “safe return” at the time. This pushed and kept mortgage rates at all time lows. Now that things are recovering, those same bond traders are looking for return so if Canada doesn’t keep close to the U.S.A. in terms of interest rate increases at the fed level then those very bond traders that pushed our mortgage rates… Read more »
KickThemOut
Member
KickThemOut

Without poor people, how would NDP get any votes? It must make most of the people poor to be relevant in this BC and lucky for them, morons like Meth never learn, and will still be telling people to be patient come next election.

Irma
Guest
Irma

I wouldn’t just say poor people. Its also people who have been schooled into oblivion by the state; those people who wouldn’t dare use a cell phone while driving, those that wouldn’t drive over the posted speed limit, or those who would declare their rental income…etc etc. etc..

The only people getting ahead these days are those breaking laws and exploiting loopholes. So maybe you don’t want to awaken these people. Keep quiet and carry on…LOL Let these people buy the idea that ‘this was a first step on housing’ LMAO.

KickThemOut
Member
KickThemOut

You are for distracted driving at outrageous speed? What kind of sicko are you? Do you seriously enjoy watching news story about family ruined by distracted driver who can’t wait to like that stupid Instagram post from Kim K?

Doomcouver
Guest
Doomcouver

You forgot to mention the main type of person getting ahead these days, wealthy people exploiting the working class. The fact that some of them are massive tax cheats as well is a side-issue.

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