Friday free-for-all! June 24th 2016

It’s the end of another work-week and that means it’s time or another Friday Free-for-all!

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, let’s play the blame game!:

Blame Ottawa
Blame the ALR
Blame immigration
Blame hype
Blame empty homes
Blame early retirement
Blame tax dodgers
Blame yourself

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

An empty home tax for Vancouver

Mayor Gregor Robertson has announced that Vancouver will move ahead with a tax on empty or under-occupied homes with our without the support of the provincial government.

The city’s report states the preferred option is for the provincial government to create and administer a new class of “residential vacant” property through BC Assessment. The designation would trigger the city to charge extra taxes on empty or under-occupied investment properties.

The second option is for the city to establish a new business tax for empty and under-occupied homes held as investment properties.

Premier Clark responded on twitter saying “We are reviewing your report and will respond quickly.”

Read the full article over at the CBC.

Ask David Eby anything at noon today

David Eby is definitely one of the most vocal politicians in Vancouver when it comes to issues around housing.

Have you ever wanted to ask him a question?

Now’s your chance. Eby will be hosting an ‘ask me anything’ thread on reddit today at noon (June 22nd)

His first comment on that thread:

I’m looking forward to it. A bit nervous, I’m expecting challenging questions on this important issue. I’ll do my best to answer, or to find the answers for you. I’m also interested to hear suggestions for policy opportunities and what you think needs to be done to respond to the housing crisis. See you then!

Let us know in the comments below if you spot anything note-worthy.

David Eby AMA June 22nd 12pm on Reddit.

 

Canadian Banks could absorb losses in US-style housing crash

Good news for your monday morning!

If Canada saw a ‘US-style housing crisis‘ the big 6 banks could generate enough capital in a few quarters to cover losses.

If Canada were to experience a U.S.-style housing crisis, with house prices falling by up to 35 per cent, mortgage lenders including the country’s big six banks could lose nearly $12 billion, according to a new report from Moody’s Investors Service.

CMHC would also take a hit of about $6 billion if they challenge and reject claims, but if they decided not to they would take about half the loss as it would be more evenly split between the banks and CMHC.

You probably don’t have to worry about a US-style nationwide housing crash, because we have a different mortgage market that is explicitly backed by the government. The main concern would be rate increases and job losses as Canadian debt loads continue to increase:

There was almost $1.6 trillion in mortgage debt outstanding at the end of March, including home equity lines of credit, more than double the amount outstanding 10 years ago.

Read the full article over at the Financial Post.

Friday Free-for-all! June 17th 2016

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:

Lowest interest rates in 5000 years
Tales from a line-up
Careful with that equity Eugene
Would ‘Brexit’ affect our prices?
Bank of mom & dad
More tales from a line-up
Housing bubble alarm

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