It’s the end of another week and that means it’s time for another Friday Free-for-all!
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!
421 Comments
[…] detached home sales have dropped nearly 40% compared to a year ago and you know what that […]
[…] Detached sales hit 27 year low –RBC chief alarm over flood of cash –Region home prices far outstrip incomes –Real estate made up 1/5 of Canadian economy […]
[…] Toronto is becoming a better and better investment as prices fall, you just need to buy when they’ve stopped falling. Right now they’re seeing quite a price drop. […]
[…] People who own more than one home are worried about the new speculation tax: […]
Foreign cash is ‘gasoline’ on Vancouver’s overheated housing market: RBC CEO
‘We do not need foreign capital using Canadian real estate as a piggy bank,’ David McKay said
Weaver is calling for a full ban on home purchases using foreign capital and says the NDP is not doing enough. He says the new speculation tax in the 2018 budget will punish Canadians as well as foreigners.
“If the government wanted to deal with this they could bring in legislation next week to clamp down on foreign purchase in B.C.,” he said. “The barrier is not legislative, the barrier is political will.”
http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-housing-foreign-1.4565374
“Woodhouse suggested that if the provincial government was truly concerned about laundered or “dirty” money entering the real estate market from foreign investors, rather than taking a 20% cut of it in the form of a tax, a more effective measure would be limiting investors to one property. Such a rule would be easy to track and enforce, Woodhouse says, given the comprehensive land title registry in Canada.”
one per person is still too loosey goosey. SIN numbers of all family members have to be linked with only one property per FAMILY being allowed. at time of purchase, buyers would have to provide certified proof they do not currently own any real estate in BC/Cda
“Such a rule would be easy to track and enforce, Woodhouse says, given the comprehensive land title registry in Canada.”
This is bullshit, of course. Contradicted by all the discussion over bare trusts, beneficial ownership, opaque corporate ownership, etc. Woodhouse is a mortgage broker, trying to whip up reaction against the foreign buyer’s tax.
Toronto nightclub faces backlash for Asian-themed ‘Stir Fry’ party
https://globalnews.ca/news/4067842/wildflower-stir-fry-party-toronto/
“a man identified by users as a member of nightclub staff is donning a straw conical hat and squinting his eyes.”
some people are so sensitive. i don’t see the problem here …
that was just a “poor man’s” version of this…
https://globalnews.ca/news/4032289/blackface-skit-china-lunar-new-year-gala-prompts-racism-accusations/
Nice “latest” avatar bullwhip 29
Is Bullwhip the brother of Just Me? Both are fond of posting useless links and quotes in huge batches polluting this blog.
You forgot to call it fake news.
Spaceshit, that’s way less concerning compared to locust garbage arriving here in huge batches and polluting this country.
That’s for sure.
More than 2,000 homeowners to be taxed under Vancouver’s empty homes tax
http://vancouversun.com/news/local-news/more-than-2000-homeowners-to-be-taxed-under-vancouvers-empty-homes-tax
>>> a breakdown (or lack thereof) of the numbers:
183,911 declarations submitted (98% of homeowners)
177,562 occupied by owner or tenant
6,349 declared vacant OR qualified for “exemption”
2,132 no declaration made = deemed vacant
how amusing that the 6,349 is not broken down further to reveal how many units were actually declared vacant. regardless if the full 6,349 were actually all vacant (highly doubtful) the fact remains that these numbers do NOT jive in the slightest bit with those bantied around by Gregor and co
~4% homes vacant. matches up with other studies…
so 4% of homes cause a 3x+ run up in home prices in MetroVan in the last 10 years? How many are owned by our favorites?
only 4% if one assumes the 6349 + 2132 are actually vacant. the article states that the 6349 is comprised of vacant + exempt. i think it is rather curious they did not provide breakdown of this specific number, which makes it impossible to determine actual number of vacant. for that matter, there is nothing to say the 2132 are actually vacant as well, robertson and co originally estimated no of vacant to be in the order of 25000 homes, so someone is clearly misinformed or flat out lying
Or 23,000 said no vacancy on the form, because who’s going to check?
Yeah that’s what I’m thinking. There could easily be twice as many vacant properties where the owners lied on their declaration. I hope there’s some sort of push to ensnare the liars in the years to come. We’ll see.
2,132 property owners who failed to notify the city before the March 5 deadline will now be included in the total of 8,481 homes that “could be” subject to the tax or be granted an exemption for reasons such as home renovation or the resident living in a long-term care facility
http://www.cbc.ca/news/canada/british-columbia/empty-homes-tax-1.4566199
>>> once the appeals process has concluded I suspect few will actually wind up paying this tax
I believe that 25,000 was greater vancouver. I think the Vancouver number was more like 10K
I’m calling the reported vacancy numbers pure BULLSH*TE.
They are much greater than what they reporting.
Figures. Never satisfied with official data, are you?
I stand corrected. What we’re failing to take into consideration is the fact that many of these empty units were in fact rented out as per the goal of this policy. Also, many owners probably lied on the declaration, or stretched the truth.
Port Moody man gets 18 years for setting house fire that killed his wife
https://globalnews.ca/news/4068172/port-moody-man-sentence-house-fire-killed-wife/
The man, who cannot be named due to a publication ban, gets a credit of two-and-a-half years for time served
>>> this wing nut will be out in a couple of years with new identity, paperwork etc…
and i guess the authorities forgot that any old moron can easily google this to come up with the name Bay Khac James Luu and various glorious photos of him being carted away by the rcmp
https://www.ctvnews.ca/polopoly_fs/1.2982180.1468259990!/httpImage/image.jpg_gen/derivatives/landscape_960/image.jpg
Right to be forgotten law coming soon to Canada
and in your case, the right to not be forgotten
Due to financial considerations, such as a weaker exchange rate, American artist Sheila Klein has walked away from a $250,000 controversial public art project at the new, but delayed Minoru pool and seniors’ centre — and she’s taken $50,000 from city hall with her
http://www.richmond-news.com/news/city-of-richmond-blows-50-000-on-failed-minoru-multipole-1.23193349
Fucking locusts… a western civilized and educate person would never do that.
no, they instead get their birth certificates altered before entering the country so that they qualify for all the free seniors benefits this wonderful place has to offer
http://www.news1130.com/2018/03/07/homebuyer-forum-alternative-financing/
Rent to own and reverse mortgages are really bad ideas that certainly do not benefit the homeowner. If people need to resort to these types of financing methods then they can’t afford to buy real estate.
“We look at how to find out where the hot markets are, where the value will appreciate over time, as well as how to provide the best home for you and your family.”
until we get past the mindset that a property is a financial investment and not just a place to live we won’t be out of the woods on this…
A flip worked:
4072 YUKON ST VANCOUVER
Sales History (last 3 years)
20-Sep-2017 $1,575,000
07-May-2015 $1,070,895
Did it, If the house is built from scratch in 2017?
exactly. not a simple quick flip for 500k profit
The dollar is down 1% already today. LOL. That’s why my investments are 100% USD.
Next stop $0.75, then a bit a turbulence and then $0.73. If the US gets a couple more increases before we move, we’ll probably get back to $0.70.
one never knows for sure what will occur in the US. everything they say must be taken with grain of salt and then some. one wrong or off script manoeuvre by trump admin and the SHTF. smart money knows this whole pig of a market is a las vegas casino scam on steroids but the ??? remains when exactly do they pull the plug on it and ride the sucker back down. in 12, 18, 24 months we could have substantially higher rates or QE Infinity: The Final Chapter. pick your poison…
The tax cuts pretty much guarantee increased corporate profits which I think will drive the market for another year. It’s hard to have a correction in that environment. The US economy is operating at full capacity and Trump just threw gasoline on that fire. In the short run, I think the fire burns hot and we get some good growth out of it. But, I don’t see it as sustainable because that growth will lead to higher rates, which eventually causes a recession. In the short run, people are going to be calling it the miracle economy and believe that higher rates aren’t affecting growth because in the short run, they probably won’t. The low rates and QE have created asset bubbles in everything. Real estate shouldn’t have a cap rate of 3. PE ratios of stocks are too high.… Read more »
imho the tax cuts (and possible rolback of volcker rule) are already baked into the market, which is up 35-40%+ across the board since the election. basically a small handful of FANG stocks are keeping things propped up for now. when you look closer, there is pretty much a bubble in everything from gas to food to travel, entertainment etc.. not to mention what you already stated and customer gouging going on for as far a the eye can see. i don’t think the fraction of the 1% who are benefiting from all these measures will be able to carry along the rest of the population, many of whom have been (since 2008) and continue to be totally tapped out
I don’t think it’s fully baked in and increased earnings at the same PE will juice the market. I think PE will get even higher as people buy growth.
There is full employment right now and we’re finally seeing signs of real wage growth. That plus better earnings can only raise the market in my view.
But, I have heard very intelligent investors that I know and follow closely say otherwise. To them, there is very little upside left and a lot of downside. Since it’s hard to time peaks, it’s a good time to go defensive or sit it out.
I think we have another 15% to go with a top of 3,100 to 3,200. I think we eventually see 2,000 again.
and would you look at that, it sounds like Trump was lying (again) , this time about the steel tariffs which apparently might not apply to canada and mexico. they must all be making a $hitload trading this stuff…
Fed’s Bostic Says Trade Battles Could Dampen Need for Rate Hikes
https://www.bloomberg.com/news/articles/2018-03-07/fed-s-bostic-says-trade-battles-could-dampen-need-for-rate-hikes
how long until the first story about a cop taking a bribe from HAM comes out?
you never know…
interesting how the rcmp stepped in to “manage” the library incident and even went so far as to discourage the public from posting stories and incriminating video footage online as it could complicate their investigations
“If anyone has witnessed or filmed an incident that may require our involvement, please contact the police first.”
https://bc.ctvnews.ca/man-who-kicked-richmond-library-worker-identified-1.3826949
Canada take a step in global sustainability. Good thing we got an unlimited supply here? BPOM & CO probably pops out thousands a day.
Bugs in the grocery aisle; Loblaw adds cricket powder to its PC line
http://www.cbc.ca/news/business/cricket-powder-loblaw-1.4563956?cmp=FB_Comment_News
business report today was saying cdn interest rates are 2% below ‘neutral’ which means the point at which the economy is not affected either way by rates. so we have a long ways to go and polz is still saying ‘we still need the stimulus’. but if the usa keeps raising and we don’t the cdn dollar sinks and we get accused of currency manipulation and that won’t bode well for our free trade agreements with the usa.
Poloz is hoping a recession hits the US before our housing bubble pops. Then he has something to blame other than himself. Our dollar is headed down in my opinion because Poloz will only raise rates when forced to. Chances are that he’ll always be able to point to some data or external reason to stay ‘cautious’ and not raise rates. But either way, rates are headed up and it won’t be long for another one to come. In a couple years, I think we’re back at the zero bound and then we’re in for a long recession. We’re at the tail end of a global ‘everything bubble’ IMO. When that pops, it’s going to be a long ugly recession, or another Great Recession. I think we’d be wise to take our medicine now and get ahead of it. Clear… Read more »
-no reason to be bullish CAD over next 2-3 yrs at a minimum
-poloz certainly can’t hit the QE “easy” button prior to his counterparts in the US and elsewhere
-trudeau is the only plausible wildcard in this equation; his actions along with weakening CAD keep a floor under housing prices while local owners wont even realize they are in fact treading water or falling further behind
If CAD tanks your only store of value will be property which always outperforms in inflation or currency stress.
US currency is the gold standard. After that gold.
I was listening to ‘a minute with bill good’ on cknw and he’s going on about the ndp taxing secondary homes and how terrible it is. then the next commercial is for capital direct and there is bill good saying ‘let us help you get that ski condo you’ve always wanted …’ lol what a conflict of interest and hypocrisy.
Here is Vancouver for you.
We are all nice and progressive. Until they touch our vested interests and our housing. Then we vote for the BC Libs to get our privileges back and tax free.
i literally laughed out loud when i heard the timing of that. and i’m sure i wasn’t the only person listening who noticed it.
I think it’s a reflection of overcompensation. Latte environmentalists are another great example of this.
bill good jr is just a paid RE schill, nothing more. he went all in on a waterfront estate on sunshine coast (and moved there) in the hopes Krusty would give the go-ahead to a multi-billion dollar bridge linking it with the mainland. if i am not mistaken he also has a secondary place in coal harbour. i am guessing he isn’t all that thrilled about the vacation home tax and having to re-route all his activity through the place in Vanc which is subject to the additional taxes while his place in Sechelt can remain empty and is still presently outside the crosshairs of Robertson’s, James’ and Krusty’s tax bombs
https://pbs.twimg.com/profile_images/610865427774898176/MxhdBYfk_400x400.jpg
Bank of Canada stands pat, keeps benchmark interest rate at 1.25%
http://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.4565579
>>> imho poloz to remain on perma-hold indefinitely while clinging to his book of hope and prayers…
Pools and Wilkins confirm themselves as the worst central bankers we have ever had.
They are hostage to the housing market and to households’ leverage. They even admit as much.
Reading the press release, it is clear slowing housing sales motivate their decision to wait and delay interest rates. The more they wait, the more systemic risk is introduced in the economy as more households keep borrowing and increasing their debt liabilities.
Polizia and Wilkins are wrong. And we will all pay for it.
They enabled an asset bubble to be created under their watch and they knew it all along. Cutting rates in 2015 was world class stupid. The housing market needs to correct because there has been a tremendous misallocation of capital.
Our employment data has been strong and we are at full capacity. They need to raise rates.
Yes they showed a complete lack of consideration about inflating a housing bubble, but now the BoC doesn’t want to catch the blame when it inevitably collapses. With the way gas and other consumer prices are going the inflation numbers are going to force the bank’s hand though. Low inflation has given the BoC a mandate to leave rates rock bottom for an excessively long time. It seems like those days might be over.
The RSS feeds on this page are broken and no longer updating. Who is the admin that can fix this?
Vaughn Palmer: Readers stunned by impact of B.C.’s new ‘speculation tax’
From a Vancouver Island resident with a condo in Vancouver: “If the proposed speculation tax proceeds as you describe, the two-per-cent tax will far exceed the B.C. income tax that we normally pay. We will have no choice but to sell our Vancouver condo. We’re not speculators. We simply wanted to enjoy a few days a month in the city we used to live in, in the comfort of our own condo.”
No choice but to sell? How about renting it out to someone who actually needs a place to live in Vancouver? Just want to enjoy a few days a month? How about staying in a hotel?
Every one of these complainers owns two personal residences in some of the least affordable RE markets anywhere. Boo hoo.
Renting it out wouldn’t make it easy to leave all your personal belongings there. Obviously the same applies with a hotel. Renting also comes with many other responsibilities.
But of course the NDPers won’t allow people to enjoy the things they’ve worked all their lives for. That would be “unfair”.
How about a speculation tax that actually targets speculators?
“How about a speculation tax that actually targets speculators?”
Why would anyone, other than the truly wealthy, hold on to a property in Vancouver they hardly use? The first answer that comes to mind is because they expect the price to go up. It has also occurred to me that some of these “vacation homes” might actually be rented out on AirBnB.
“Renting also comes with many other responsibilities.”
Somebody said this upthread: “It should be hands-off if you use a professional management company. That’s exactly what they’re for.”
I already told you why – it’s more convenient than the alternatives. Now you’re trying to imply that they’re Airbnb hosts?
One of the reponsibilities of being a landlord is the circumstances under which you can turf out tentants – can a property management company help with that, smart ass? It’s “hands off” if you’ve already made the decision to rent out.
I guess some people work hard to get ahead. Others work hard to pull everybody else down. I wonder which you are?
We have a housing crisis. Some people should be pressured to sell. Is it fair? No, but neither is this bubble. They’ll be more than rewarded for selling.
The government screwed up big time in letting the market get to this point. Sadly, they’re also the only solution. We can’t bifurcate society into the lucky to have bought group and punish those who didn’t. Governments distorted the market and now they need to correct that and that means some level of redistribution of wealth.
And I’m as capitalist as they come. But this wasn’t capitalism.
If they wanted such a “reward” they’d have sold already. They use the property and shouldn’t be forced to change that usage by an amateur government.
The NDP could start by educating people that a house isn’t a retirement plan. Right now they somewhat do the opposite. It’s financial illiteracy that got us into this mess, after all.
Ownership comes with both privileges and responsibility.
If you want the privilege to live in multiple homes, you pay for that privilege. By making that choice you reduce the stock of housing for others, so it seems fair you pay more for this.
If you don’t want to pay for it, it means you don’t va
Ue it enough.
Bottom line: you cannot sit on multimillion dollar assets and pay no taxes, while reaping appreciation and other benefits.
I have a vacation home and guess what I’m about to do? Rent it out.
What got us into the mess was failure of every level of government. The central bank failed by lowering rates in 2015. The Federal government failed by implementing a pro-real estate immigration program. Revenue Canada failed by not investigating rampant money laundering and financial shenanigans. The municipalities have failed by constraining supply and causing high building costs. The Provinces failed by not keeping track of foreign ownership. The CMHC failed by not making affordable housing a serious plank of their mandate. The media failed by not reporting or discussing any of this until the populous revolted.
The only person who has had the nuts to do something about it has been John Horgan.
Total agreement Dave. The time for allowing mostly unused property is over. If you have a “vacation home” in an urban center in BC you are either exceedingly wealthy, or are speculating the price will appreciate. If you’re wealthy then just pay the damn tax, if you’re a speculator then kindly sell your property and take your millions of dollars elsewhere.
The BC NDP have showed a spine I didn’t expect them to have. If the NDP can stick to their guns they’ll be getting my vote and many others’ next election. The speculation tax is actually a brilliant move because it’s disproportionately punishing non-voters and the ultra-wealthy, delivering on their campaign rhetoric, and minimizing the damage to their voter-base.
The government did not force idiots to buy. Those idiots chose to buy. And they’re still buying.
“How about staying in a hotel?” But Dave, you missed the part about how they enjoy staying in the comfort of they’re own condo. You see, these people really are victims.
Oops, Patriotz, not Dave
“‘Be really realistic,’ advises real estate agent as Calgary sales drop 18%”, CBC News
“As Calgary real estate sales lag this year, a prominent city realtor is recommending sellers price their homes aggressively.”
“Toronto-area home prices drop more than 12% in February as sales plunge” Toronto Star
“Re-sale home prices in the Toronto region dropped 12.4 per cent, or about $110,000, year over year in February.”
“The average price fell to $767,818, from $875,983 for all housing categories, including detached, semi-detached, town homes and condos.”
“The number of sales also plunged nearly 35 per cent last month compared to Feburary 2017 — to 5,175 transactions from last year’s record 7,955, according to the latest statistics from the Toronto Real Estate Board (TREB) on Tuesday.”
Saretsky reporting Greater Vancouver detached sales hit 27 year low in February…..
https://www.youtube.com/watch?v=UgnhhnpeHk8#action=share
Vancouver Real Estate Detached Home Sales hit 27 Year low in February
Xi Jinping, plus all the NDP measures, is having some effect. We need to keep this up for a few more years and we might get our city back to a reasonable standard. One month changes little. But 100 months can change the city. For the better!
Are you predicting 8 years of Asians packing up and leaving? Hahaha. You won’t get even 8 months
They might not leave. But they will not be able to speculate in RE and launder money without paying taxes.
At the very least, we might raise some much needed funds for schools, hospitals and other valuable social programs.
The free lunch might be coming to an end. We just have to rebut the unavoidable waves of protest coming from those who have been profiting from the status quo.
Correct, even if the leaches and locusts remain around to some extent but their devastating activities hence impact get at least reduced let alone eliminated, there will be a chance for society and local community to recover and create an opportunity for future generations to survive and exist in this part of Canada.
You are so full of shit; still pumping the Asian Invasion angle to spook locals into FOMO-buying. Say, how much do they pay a shill like you?
ostritch – when this is over, many of them will leave.
Xi Jipig, no ‘N’ remember?
I can’t believe houses at 25X income are going out of style.
It’s amazing how rising interest rates and falling china men can affect a super-bubble.
New
246
Price Change
48
Sold
130
TI:8372
When will these idiots dry up?
According to Zolo, most of these transactions are condos. Roughly 65% of them.
I suppose that also condos will slow down if the NDP does not make a U-turn on its promised taxes.
I found an article published in April 2017 that says that Seattle/Washington’s high property taxes and low income taxes were … unfair and encouraged inequality. “Washington’s tax system would fail just about anyone’s fairness test because it relies mostly on property and sales taxes, which have inequality baked in.” I seem to recall Patriotz arguing that a system like Seattle’s would result in lower property values. It would also would force house rich satellite families to pay taxes regardless of their declared income. I personally agree on both points, and don’t know the details of the Washington income tax system, but tweaking the higher end income earners without doing away with the property taxes would seem to solve any inequality that their system might have. https://www.seattletimes.com/seattle-news/politics/state-relies-on-a-rotten-tax-system/ Anyone want to chime in on this piece? I find it interesting since most… Read more »
Stop letting gov’t off the hook……. and quit the pitting of one group vs other.
Within multi- generational time frames……citizens have been subjected to Gov’ts beholden and capitulating to vested interests that are not at grassroots level. Gov’t policy created . or deferred to Central Banking…….Depression……Wars….Inflation…..opening the doors to HAM…
Go ahead…tax the snot out of every homeowner till the jingle mail is 24/7….
As has been noted before..apparently Richmond and Burnaby each have over $ ONE BILLION DOLLARS in reserves..imagine COV and others.
and burnaby still raises taxes by 1.5% this year and on average about 3% each other year and the ratepayers just keep on paying up…
I noted this before the magic 3% give or take…..
NO bank provides this in any short term deposit….Cities are making out like bandits acquiring and hoarding OUR after tax taxes.
Richmond is an quasi orgy of spending on capital projects like pools, fire halls,…..rec centers etc. which seems to be to embellish egos.
Sales tax, property tax and income tax all target high income earners who earn/declare their income in the state. Property tax sales tax also target those who do not declare income (criminals, wealthy foreign investors, tourists, snowbirds, drug dealers, etc). Obviously you are to not going to pay much property tax or sales tax if you have no wealth no matter who you are. Property tax and consumption taxes are more fair IMO with respect wealth equality. Income can be hidden too easily in assets, offshore, businesses or through the underground economy. You can’t hide your house from taxation and sales taxes are impossible to avoid in most cases.
If we are talking local…..litany of blown opportunities by all levels of gov’t to tax according to the law and direct the “owed” revenue to venues, social projects etc that would alleviate the given wealth disparity and discrepancies that continually marginalizes many.
VISION will go down as THE biggest disaster given it had the golden opportunity to lead…..and as a consequence one should hold little hope their “big brother” NDP will be much different..