Vansanity at vancouvercondo.info 19 Jul 2011 3:40pm -
“This week I’ve had the conversation with 3 friends that are planning on moving away due to the disproportionate ratio between the cost of living:income.
One is going to Calgary and the other two are going to UK and Australia (Australia has its own housing bubble to deal with but it sounds like the incomes are higher in their field).”
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- “My folks find themselves at 65 still owing half the value of their home and recreation property to the bank. After almost 30 years of ownership in the BPOE and a number of boom markets, they have very little to show for it.”
- “Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”
- “They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours.”
- Greater Vancouver Home Builders’ Association Annual First-Time Buyer Seminar Attendance Plummets
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- The average British Columbian homeowner is not going to pay off their mortgage by the time they retire.
- “He’s sold all his properties except his current one, which is now for sale. He explained that the market’s currently in crash mode, worst that he’s ever seen.”
- “One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”
- “I know someone who just declared bankruptcy because her condo was assessed at $150k and she bought it presale north of $250k in 2005 or 2006.”
- Sturdy, With Views – “Calling Froogle Scott!… Is Dr. Scott ‘In The House’?” [Not In This One, Certainly]
- “She said the market was dead in Victoria and that it would remain so for a very long time. I asked how she knew. Her answer was fascinating and should scare the pants off the real estate crowd.”
- Kits Notes – “I’m pretty sure that this is the first 3+ bedroom property of any type that I’ve seen in the 5 years I’ve lived here that is priced below $700K.”
- “A beautiful Belfast home, in the equivalent of 1st Shaughnessy, bought at their RE peak in 2007 for £3.5 million, has now sold for £800K, almost 80%-off. The market didn’t suffer any significant economic shocks. Rates & unemployment didn’t skyrocket. They didn’t build more land. Sentiment just changed and the prices fell and fell.”
- “Two family members of hers are trapped, underwater, in condos on the East Side.”
- “Interprovincial migration is not saying good things about BC’s economy.”
- Vancouver RE: Not As Expensive Provided You Don’t Think – “It’s clear that our perception of affordability has been coloured by living on a continent where housing is unusually inexpensive.”
- More Undisclosed RE Industry Insiders Publicized As Clients – “In 1995, Allan and Karin Hoegg were mortgage-free. But no more. Today their Vancouver home is a valuable source of income as they plan for full retirement.”
- Rumor that some OV units will be reduced by 20%.
- Downside Weights On The Vancouver RE Market – “One of the older guys (over 60) mention to the guy beside him that he and his wife were thinking about selling their family home, and renting, in order to get some of the money that was locked up in the house.”
- “My buddy was looking to upgrade to a house in the Coquitlam area. With 200k extra for a home, that’s half of lifetime saving between him and his wife.”
- “I was walking in the Fraser neighborhood yesterday, I noticed that the population, on average, seem to be composed of workers. I belong to the top 5 percent in terms of income. Nevertheless, I cannot afford any of the houses for sale in that neighbourhood.”
- “Vancouver is an urban resort whose value mostly resides in its real estate and not much else.”
- “Rogers Communications is expanding into RE; aiming to relaunch website; providing critical data that can help potential buyers assess the value of a property from the comfort of their home computer.”
- I’m only 50 and I can just about retire if I want to, all because of a single simple decision – “When prices rebounded to their former highs, then rocketed another 30% higher to what I considered to be totally unsustainable levels, I decided that only a fool would pass up a second opportunity to harvest such a massive non-taxable capital gain, and in 2011 I sold my place.”
- The Vacant Lot of Versailles, Richmond.
- “I don’t think that most people think things are going to crash, just that there is going to be a slight correction, but it was amazing to me how sentiment has changed, and the fact Vancouver RE is too high was just understood.”
- “The ‘investor’ who purchased our house put it up for sale two months later, in January 1981, but the bubble had burst.”
- For A City To Have That Kind Of Vacancy, It’s Like Cancer – “Downtown, the vacant unit rate is so high that it’s as though there were 35 towers at 20 storeys apiece – all empty.”
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Anyone who is talking about leaving Vancouver to come to Australia because the cost of living:income ratio is too high is talking pure bullshit or they’re in for a real surprise when they get here.
Wages might be higher if by field they mean barista since the minimum wage is about $16-17/hour but they wouldn’t make any tips so maybe that’s a wash. Real estate is just as or more expensive to buy, rents, food, clothing etc are much more expensive.
The whole economy is propped up by a) exporting stuff from the ground to China and b) real estate. Real estate is already suffering, just wait for the bubble in China to burst and Australia is in serious trouble.
The real reason someone would be moving here is that when the weather is 18C and raining it’s winter, not summer.
“The real reason someone would be moving here is that when the weather is 18C and raining it’s winter, not summer.”
If you keep that up, CDU – I’m hopping on Quantas tomorrow to give you the thrashing you so richly deserve.
Earlier this week the evening low in the CrowsNest was 36F. Two days prior on Highway3 at Allison Pass/Sunday Summit the ‘high’ was 58F.
July.
Right.
I do laugh whenever I see the first scarf of the season, it’s always when the daily high is about 20-21C. To be fair you do acclimatise awfully fast, it’s not as if the winter feels warm.
Not sure if this media will play overseas.
I mean what bus driver doesn’t plan his retirement around a 10% deposit on a $1.56 million investment unit? “We’re not millionaires.” So why would you borrow $1.4 million to get into ground zero of the Australian property bubble?
http://au.news.yahoo.com/today-tonight/video/watch/26011557
Well I don’t think anyone saw it coming.
lol
I guess that means it does play overseas. “I thought property was going up…”
I’ve never watched Today Tonight but I’m guessing they lack journalistic integrity. I did a search and found this property piece they ran less than 2 weeks ago:
Hot Property – If you had heeded Australian Property Investor Magazine’s advice twelve months ago, you would be well on your way to being a millionaire.
http://au.news.yahoo.com/today-tonight/money/article/-/9822395/hot-property/
Just look at their amazing predictions! I love the grin on this bimbo as she says that house prices went up over 58% in Stuart Park in the last 12 months.
I checked out sales in Stuart Park – there have a been a total of 6 house sales so far in 2011! What a joke, there’s absolutely no statistical significance in these sales prices and that’s the best they can come up with?
Canadian Government realizes that asian investor wealth is contributing to overheating our real estate market and they are taking measures to cool it down to protect the average working class of Canadians.
1. Canadian Investor program limits of 700 people per year starting July 1, 2011. Chinese immigration companies are panicking and saying that quota will be met in a matter of days. By the way, this annoucement was made June 24, 2011 so that gives it 7 days notice. I think I gave my mother in law a longer notice about last weeks BBQ.
2. Yesterdays news. Canadian Gov. announced 1800 Canadian citizenship passports will be revoked. Guess what ethic group?
3. USA announces to all Chinese immigrants. BUY a HOUSE, get a GREEN CARD!
Connect the dots and see what is really happening.
i heard the quota was met in 1 day
Sinification of the US would be significantly more difficult than in Canada.
i use my middle finger a lot these days, and folder #2 track 1 is always turned up to level 30.
for the sake of irony, not that they have any.
at 1:25 they’re all black panthers
CanuckDownUnder, agree with everything you say. Anyone coming here to Australia to find a real estate bargain is in for a rude shock, with Australia being one of the most expensive places in the world to buy property. Our interest rates are much higher than Canada’s too, and it also seems that rents are higher as well. However, the good news is that housing sentiment has started to turn negative and the bubble is finally letting out some air. As long as the government doesn’t interfere in an effort to prop up prices, then housing will become more affordable in the years to come.
One of those pundits was seriously blaming the carbon tax for depressing the housing market. Kind of like the HST right?
The carbon tax is certainly reducing consumer confidence because nobody knows yet just how much we will be affected by hidden costs. I think your HST is like our GST which has been in place here for several years now. In any case, the threat of the carbon tax (to be introduced next year) is not the only factor affecting the housing market Utility bills have gone up a lot over the past year. We had several interest rate rises last year, and generally wages are not keeping up with the increased cost of living. Government intervention during the GST caused real estate prices to blow out when interest rates were cut very low (not as low as yours though) enabling people to take on huge debt, tripling the first home owners’ grant, relaxing laws on foreign ownership and bringing in huge numbers of migrants. We also have negative gearing tax laws which meant investors were bidding against homebuyers, also pushing prices up. As expected, our housing bubble grew substantially, and newspaper articles boasted that homeowners were growing wealthier to the tune of hundreds of dollars per day. Now that the market has started to turn down, many people think this is just a temporary set-back, and it’s going to take a while for vendors to realise that the high profits they could have gained a year ago were based on a government sponsored Ponzi scheme which was unsustainable. The full force of the downturn will probably not be noticed by many for perhaps another year (though many have been affected for months now, especially in Queensland), and when it does become apparent that this bubble has burst, it will probably be around the same time as the carbon tax is introduced, so many will probably blame the carbon tax.