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Friday Free-for-fall!

Autumn is here! Can you smell it?

This being the end of the week, let’s do another Friday Free-for-all shall we?

This is our regularly programmed end of the week news round up and open topic discussion thread for the weekend, we do this every week if you’re new here.

So let’s get to a few links to kick off the chat:

Mayor: foreign buyer tax too little, too late
Opinions? Share them with the city.
Canadians, Aussies and Kiwis in same trap
Bigger bubble than London
AirBn…waitwhataretherulesagain?
Housing Crisis? Blame Canadians.
Skook blogs again! Bowen and Coast stats
Millenials: No Retirement for you!
Correction to be painful.

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

Free Money: BC taxes foreign purchases of real estate

The BC government has decided to tax foreign purchases of real estate:

Foreigners who buy residential property in the Vancouver area will have to pay an extra 15-per-cent tax as part of a B.C. government plan to slow the foreign speculation that many blame for making the region’s homes the most unaffordable in Canada.

The change to the province’s property transfer tax announced on Monday means an extra $300,000 in taxes for people from abroad buying a home for $2-million. Detached houses in the area typically run around that or higher. The surprise move comes after the government tracked all residential real estate transactions across British Columbia over four weeks in June and July and found foreign citizens who were not permanent residents bought just more than a billion dollars worth of property.

Read the full article at the Globe and Mail.

Odd that this tax applies to Vancouver only and not the whole province. Why that particular limitation? Will this push buyers into other areas of the province or simply “keep home ownership within the grasp of the middle class in British Columbia” as ms. Clark puts it?

Friday Free-for-all! May 13th, 2016

Lucky you!

It’s Friday the 13th and that means it’s time for another Friday free-for-all, or regular end of the week news round up and open topic discussion thread.

Here are a few recent links to kick off the chat

Normal interest rates are history
Canadian rates to rise?
Why does this government hate free money?
Negative discretionary income
Vancouver, stay or go?
Freak show housing market
One heck of a student loan
Loonie sinks

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

Grey Pride Parade: The Vancouver thats Vanishing

A local filmmaker is documenting some of the abandoned and condemned houses in Vancouver and making short films about them:

And so for the past nine months, Fieldwalker has been entering abandoned multimillion-dollar properties equipped with a DSLR camera and drone, shooting them from every angle he can before they’re gone forever.

So far, he’s filmed five properties in Point Grey and a few in the south Cambie area. Many of them sit behind blue fences, the telltale sign a backhoe is on its way.

Fieldwalker said accessing the properties is simple: “We just go up to them and shoot.”

In one film posted to Fieldwalker’s Vimeo page, the viewer is brought inside a 3,430 square-foot Point Grey teardown on Drummond Drive, which last year sold for $17.5 million.

Here’s a look at that $25.8 million property on Belmont:

Belmont Avenue | $25.8 Million from Corbie Fieldwalker Studio on Vimeo.

Read the full article over at the Vancouver Sun and view more videos over at Corbie Fieldworkers site. Hat-tip to Bullwhip29 for the link.

Are young homeowners doomed if house prices drop?

That’s quite a headline on this CBC article.

…the Canadian Centre for Policy Alternatives suggests that one in 10 homeowners under 40 will be underwater on their mortgages — meaning their debts will be greater than their assets  — if real estate prices crash as expected at some point in the near future.

Right now, real estate prices are overvalued by anywhere from 10 to 30 per cent, according to Bank of Canada estimates. Eventually, most analysts say, the market will correct itself and prices will go down, either due to declining incomes, rising interest rates, or a combination of both.

When that happens, homeowners under 40 will be disproportionately affected — not because they stand to lose more actual dollars, but because they are debt-strapped and will see a bigger drop in their net worth, the study argues.

Realtors and economists say not to worry. Read the full article here.