Archive for the ‘data’ Category

Anyone got any data?

Monday, June 22nd, 2015

Many Franks says:

With the “Give Us The Data” rally upcoming, I think it would be useful to collect past unanswered calls for data. I’ve started a thread for this:

http://vancouverpeak.com/showthread.php?tid=5329

If the speakers at that rally can say that consistent, clear calls for data have gone unanswered for half a decade, rather than “hey, does anyone have data?” I think it’ll be much tougher for the old “we shouldn’t do anything until we know more” line to prevail.

Flipping houses in Dunbar

Tuesday, June 16th, 2015

Many Franks pointed out this article over at BiV about house flipping in Dunbar. and points out how the math might not always be as appealing as it first sounds:

“A well-backed investor leveraging 20% down financing [around $400,000] would yield over 100% [on their cash investment],” said Derek Tinney, Landcor Data operations manager.Vancouver realtor Ken Leong, who admits to a brief – and heady – history of flipping condominiums for himself and clients, said it takes more nerve and cash to speculate on Vancouver’s detached-house market than during the exuberant days of condo flips a decade ago.

Leong said that if house price increases go soft – as in the current condo market – investors could find themselves financially under water fast.

Buried below the big numbers and cherry-picked examples are some important details:

[I]f an investor bought a house for $1 million and flipped it a few months later for $1.1 million, he or she would have to pay $18,000 in B.C.’s property purchase tax. Realtor commissions to sell the house would total around $33,500. The capital gains tax, likely at the highest tax bracket, would be roughly $30,000.“So now your $100,000 gain is down to less than $20,000, and you still have to add in the carrying costs of financing of around $4,000 per month while the house is for sale,” he said.

“It would be hard to make a big profit on such a flip,” Leong said. “Actually the government would make more than the investor.”

The last sentence is key.

Read the original article here.

Majority of BC supports absentee homeowner tax

Monday, June 1st, 2015

A recent poll by Insights West says that 73% of people polled believe that levying a tax on those who buy homes in BC but don’t live in them is a ‘very good’ or ‘good’ idea.

It also suggests this sentiment is strongest among residents of Metro Vancouver (77 per cent), people aged 18 to 34 (76 per cent) and those in the highest annual household income bracket (76 per cent.)

Mario Canseco, vice-president of public affairs at Insights West, says it shows that even homeowners, who stand to make a lot of money on the resale of their home as foreign ownership drives up prices, are concerned about the negative effect on the community.

For instance, 86 per cent believe that absentee homeowners are speculators and not really part of the community, and that number jumps to 92 per cent for those with higher incomes.

That’s despite a high number of homeowners (76 per cent) saying they believe when foreigners buy homes the value of their properties go up.

“To have (developer) Bob Rennie tell you that a condo is the best thing to do is kind of like having the CEO of McDonalds tell you that their burgers are nutritious and they are the only thing you can afford,” Canseco said in an interview.

They also addressed the racism angle by breaking down responses by ethnicity and asking if they feel that the debate on foreign real estate ownership in BC is inherently racist.

They only divide ‘ethnicity’ into ‘white’, ‘east asian’ and ‘south asian’ because … ?

Read the full article over at the Vancouver Sun.

Housing costs in bc ‘pretty reasonable’

Monday, May 18th, 2015

The BC Housing Minister has clarified whether or not his ministry or the government will collect data on real estate buyers:

“I don’t believe we should be in the market place,” Coleman said, referring to his ministry, “and we have not had any request to go and do this work … There is no initiative at this time in government to go and interfere in the market place in regards to housing.”

The collecting of any data is not necessary because housing cost are actually pretty reasonable when you look at it right:

“I believe that the market place adjusts. If you notice over the years, it has fluctuations up and fluctuations down. If you look at the mean cost of housing across British Columbia and you compare it to other major cities worldwide, the reason it is attractive internationally is because it’s actually pretty reasonable compared to other cities like London, Singapore, Tokyo,” Coleman answered.

It’s actually a VERY favourable comparison. Initially we thought he was asking us to compare Vancouver housing prices to London house prices, but then we realized he was actually asking us to compare the mean cost of housing across the province of BC to a city like London.

Other than the differences those two things are very much alike.

Read the full article over at VanCity Buzz.

Friday Free-for-all!

Friday, May 15th, 2015

It’s that time of the week again…

Friday Free-for-all time!

This is our standard 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:

How about more taxes?
Not all owners oppose lower prices
Equity Protection
What a realtor says
The premier wedge issue?
Lessons learned in the 80s?
Harper warns of high debt

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

 

Canadians deep in debt and getting deeper

Monday, May 11th, 2015

The Globe and Mail nicely sums up the current Canadian obsession with taking on household debt. This infographic has all the pretty charts related to the current situation in which current debt totals a record $1.8 trillion. Just over a trillion of that is Mortgage debt, with the other big growth seen in lines of credit and car loans.

One Trillion is a big number and it can be hard to visualize.  Here’s one way to put it into perspective:

If you spent $1-million every day, it would take you 2,740 years to spend $1-trillion.

Albertans carry the largest debt to income ratio followed by BC. It seems the nation loves debt, but the west loves it best.

Read the full article here.

Vancouver Realtors getting less hungry.

Tuesday, May 5th, 2015

RFM has posted an updated Vancouver Realtor Hunger Index for April 2015.

The index now stands at 37%.

As RFM says:

he VANCOUVER REALTOR HUNGER INDEX is the percent of realtors who earned no commission income for the stated month. For April 2015 the VRHI was 37%. How does this compare? The 18-year average for April is 41%. At 37%, the 2015 April VRHI was higher than 5 years, the same as one year and lower than 11 years since 1998. Sales outpacing listings? Prices strongly increasing? Consult the DSM-5 for a complete explanation! (The Diagnostic and Statistical Manual of Mental Disorders (DSM-5), published by the American Psychiatric Association, offers a common language and standard criteria for the classification of mental disorders.)

Details and comparison data for 18 years at: http://vancouverpeak.com/showthread.php?tid=64

Report your neighbours vacant home

Thursday, April 30th, 2015

The city of Vancouver is looking at the issue of vacant homes and has expressed interest in building a website to allow people to report vacancies.

“We’ve all heard people asking why Vancouver is so expensive and telling us to look at all these empty houses. It’s a persistent question, so let’s get to the bottom of it and find out,” Coun. Kerry Jang said on Sunday.

Jang said he often receives feedback from frustrated residents blaming vacant homes and prospective foreign owners on Vancouver’s high housing prices, but the city is unsure whether those claims are justified and to what extent.

Jang said he personally is unsure whether those claims are true or not.
“That’s what we’re trying to find out,” he said.

Read the full article over at metronews.

Hey Vancouver! Why so unhappy?

Monday, April 27th, 2015

Imagine this:

There’s a city in Canada that has a temperate climate – it’s not frozen half the year. It’s widely acknowledged as a beautiful place with access to nature and people are willing to pay some of the highest prices in the world just to buy a bit of real estate there.

And yet the citizens are some of the most unhappy in the country?

What gives you bunch of ungrateful louts?

According to Statistics Canada the entire province of BC is filled with a bunch of unhappy people. Not a single city in BC even cracks the top ten happiest places in Canada.

And our fair city of Vancouver? Well 33rd place isn’t really that bad is it?

Stop crying and move to Quebec already if you’re so miserable!

 

Dutch Disease: Alberta Canada vs. Norway

Wednesday, April 1st, 2015

The term ‘Dutch Disease‘ refers to an increase in natural resource based economy crowding out manufacturing and other sectors. It’s also a stand in descriptor for taking all your winnings in a booming market and re-investing them in the same market.

When Oil prices were high, both the province of Alberta and the country of Norway benefited from a petroleum based economy, but they approached the future in different ways.

Brian Ripley over at CHPC summarizes Bruce Campbells take-away of the differences between these two economies approach to oil wealth:

Alberta’s so called “progressive” conservative governments; 7 consecutive iterations since 1971, have squandered their provincial energy resources leaving their treasury with a CAD 12 billion dollar debt and a 500 million dollar deficit.

Norway, a county of 5.2 million people (Alberta’s population is similar at 4.2 million), began their first successful North Sea oil drilling in 1971 and by maintaining sovereign control and creating partnerships with the private sector “… now sits on top of a CAD ONE TRILLION DOLLAR pension fund established in 1990 to invest the returns of oil and gas. The capital has been invested in over 9,000 companies worldwide including over 200 in Canada. IT IS NOW THE LARGEST SOVEREIGN WEALTH FUND IN THE WORLD”

Read the full article over at CHPC.

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