All posts by VCI Admin

The $6 Million tear-down

What would you call a 20 year old 7300 Sq foot house with brand new hardwood floors and an indoor pool?

In Vancouver we call that a tear down.

Property records show that the 7,300-square-foot house was last sold in 2013 for just over $6 million — the assessment today is $7.44 million. According to the 2013 listing for the property, it boasted $350,000 in recent renovations including new hardwood floors, a water purification system and windows. The listing sheet shows the two-storey house on a corner lot has 19 rooms including seven bedrooms, a media room, office and 12-foot by Seven-foot walk-in closet off the master suite.

…Well, we certainly know how to keep bulldozer operators and city dump workers employed!

Read the full article here.

By-election: What do politicians say about housing?

Patriotz pointed this out in the weekends open topic thread:

Tomorrow there will be provincial by-elections in Van Mount Pleasant and Coquitlam Burke Mtn. Both former MLA’s ran in the recent federal election – for the NDP (won) and Conservatives (lost) respectively.

What do the candidate websites have in common? None of them have anything to say about housing. For example in Coquitlam Burke Mtn which is the only real contest:

http://www.jodiewickens.bcndp.ca/issues
http://www.bcliberals.com/joanisaacs/

However I think this bizarre paragraph by Issacs on “Sharing Economy, Growing BC Tech” is notable:

I will advocate for a Sharing Economy to optimize new services for families – the Ubers, the AirBnBs, the Lyfts. A diverse economy means being open to new ideas and technologies. A Sharing Economy encourages the tech sector in BC, which helps create jobs and generates investment. It starts by giving British Columbians the freedom to participate as entrepreneurs or consumers or both!

So BC’s high tech future is operating your car as a taxi or your house as a hotel!

Friday Free-For-All!

It’s that time of the week again…

Friday Free-for-all time!

This is our regular end of the week news round up and open topic discussion thread for the weekend – here are a few recent links to kick off the chat:

The bank will pay your mortgage
The illusion of equity
More cutting by Poloz?
Bubbles and crying wolf
The kids are all right
HSBC stops some china US mortgages
Prices up beyond wages

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments section below and have an excellent weekend!

Let’s get negative (interest rates)

As the economy deteriorates further Canadians are sitting on a pile of cash. Stock portfolios are holding a record $75 billion in cash.

How do you get people spending and investing again?

Well, you could try negative interest rates.

That kinda worked in the EU. Denmark has driven down their currency which has helped exports. Of course the flip side of negative rates is the risk of housing and stock bubbles.

But how would negative rates most likely affect Canadian consumers?   Higher fees.

“What you might see happening is a negative interest rate masquerading as higher fees,” Milevsky said. “No bank in their right mind would tell a consumer, give us your hundred dollars and we’ll give you 95. That will never happen.”

Read the full article here.

BC Cabinet gains $2.3 Mill from real estate surge.

CTV looked at how much rising real estate prices added to the personal wealth of the BC Cabinet – $2.3 million this year alone.

Surging real estate values added $2.3 million to B.C. cabinet ministers’ personal wealth this year alone, as the government says coming measures to ease housing affordability won’t include any that lower prices.

One minister saw her four properties jump $765,000, more than five times a minister’s salary. Another saw gains on a portfolio of eight homes. On average, ministers made $103,000 – more than an MLA’s salary, according to a review of public records by CTV News.

It’s natural for those ministers to welcome their own wealth boost, but they have to realize how their eye-popping gains translate into tremendous hardship for young people trying to get into the notorious Vancouver property market, said UBC professor Paul Kershaw.

Read the full article here.

As YVR points out, maybe it’s not just wealthy foreigners who are to blame for rising prices:

Funny thing is HAM is supposed to be buying all the property. Susan Anton owns 4 houses in Vancouver and DeJong owns 8 properties in Abbotsford.

Could that be the problem? Locals owning multiple properties? That is 12 properties between 2 people. Both are white and locals.