PostCardsFromTheBlastRadius #15 (2012Teaser) – “Oki CourtOrdereds… LookLikeThis…‏”

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Photos and commentary for the ‘BlastRadius’ series by ‘Nemesis’.
[Images Ⓒ2012 ‘Nemesis’ – All Rights Reserved]

12 responses to “PostCardsFromTheBlastRadius #15 (2012Teaser) – “Oki CourtOrdereds… LookLikeThis…‏”

  1. Good job poco. If you post with my name, be smarter. I have an picture beside my name. Grow up dude. I didn’t post with your name. You need some boji buddy. But with your attitude, you can’t. No one wants to give you any.

  2. Perhaps all is not lost in Kelowna resort town. Come April’s Fool Day
    – 90 per cent of home buyers will be eligible for a provincial HST rebate of up to $42,500, and
    – purchasers of new secondary vacation / recreation homes can claim a
    up to $42,500 as well.

    In that case, buy both and get $85,000 HST rebates.

  3. You pay the HST… after April 1st too? Meesa so confused!

  4. Regarding the repealing of the HST and the interim 2% tax or whatever it is. The whole thing confuses me enough I don’t want to bother. I’ll just buy used; I know what I am getting and no tax confusion.

    I’m probably alone, but then most of the province voted to repeal the HST so heck maybe rationality isn’t the driving force of prices these days. But best of luck to builders nonetheless!

  5. The reality of the HST or non-HST regime is that houses are priced by the market in terms of what the final $$$ outlay is going to be.

    In other words, neither buyers or sellers are so moronic that they’d buy based only on the asking price (well, some probably are moronic… but let’s just say that most are rational actors).

    In other words, if you remove the taxes on new house sales sellers will be inclined to ask for more and to pocket more. Buyers will be inclined to try to find deals. You meet somewhere in the middle.

    And, if you add a tax, buyers only have so much money and sellers know that. Again, you meet somewhere in the middle.

    Removing a tax may mean an increase in the asking price of houses (realtors will love those stats, of course), but I suspect that it will do very little in terms of the actual amount that people go into debt for a house.

    • I have to completely disagree with you here. I don’t think you get a majority of rational actors in real estate until you’re talking about multi-unit apartment buildings or high value centrally located land to be redeveloped to highest and best use.

      Everyone else focuses on monthly payment. Look at the difference in total cost paid for the same unit between someone putting 5% down, 30 year am with CMHC fees rolled in, and someone putting 20% down, 25 year am. $300k property. One guy’s paying $419,094, the other’s paying $486,326, ignoring closing costs and inflation. Is the thought process really “I’m willing to pay $66,000* extra just for the privilege of getting into the market now rather than waiting until I’ve saved 20%”? Hell no, he’s thinking “$$1,310 a month plus condo fees? I can afford that!” He doesn’t even factor in property taxes.

      * Actually it’ll be more, as the above calculations assume renewing at 3.49% for the life of the mortgage

      • But the monthly payment is directly related to the entire cost of purchase. That is what the market ‘sees’ as it were.

        As far as people not being rational… no argument there in this market.

  6. Ghost Estates in Ireland, ghost cities in China and now there are ghost towns in…..Spain (?). Yup, that’s right. I could not believe this article when I came across it.

    http://www.dailymail.co.uk/news/article-2102074/Spain-haunted-ghost-towns-built-boom-years-unemployment-tops-5million.html?ito=feeds-newsxml

    What is most interesting here is that all of the worst case scenarios discussed on this site are actually happening there. Falling rents, surging supply, crashing home prices and an unemployment rate that is through the roof.

    I doubt it will ever get so bad in Canada so we might comfort ourselves by knowing about the pain in another market similar to our own. Spain was Canada’s contender for quite awhile for a seat on the UN Security council. They had a GDP not far off our own and a booming economy. Well that did not last and in the end we lost our seat anyway.

    The article is instructive where excess is concerned. Worthy of a read.

  7. Who says ‘Pay to Play’ is dead?…. 😉

    [CBC] – B.C. home builders ‘applaud’ HST transition rules

    …”He said starting April 1, 2012, the government will raise the HST rebate threshold for new home buyers to $850,000, up from the current $525,000, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500.

    After the HST end date, those who buy a home built before April 1, 2013, will pay a two per cent transition tax on the full house price, he said.

    Phil Hochstein, president of the Independent Contractors and Builders Association of B.C., said the HST changes are well thought out and are “definitely worth the wait.”…

    http://tinyurl.com/7kc6jyr

    At this point, I would imagine the UsualSuspects consider their campaign contributions… “Money well spent.”

  8. I did a search of kelowna for a house with 2 or more bedrooms and 2 or more bathrooms and got 277 results.
    I did another search for condos and got 479 properties.
    With a population of 118,500 this would indicate to me that the flippers are getting scared and are trying to unload at a profit.

    Other towns in the okanagan are also feeling the “getting out with a profit syndrome”.

  9. Nem, I appreciate your palpable evidence….

  10. I live in Winfield, in an upscale development called “The Lakes.” This should be on here, as it’s a huge development which was supposed to build out at least 280 houses, but stalled less than halfway through.
    Thankfully, I sold in Vancouver in 2011 and bought here after the prices fell significantly.
    But here’s the funny part, there are easily 50 houses/lots for sale right now that aren’t selling, and as of the last few weeks, some developers began breaking ground on what will be another 50-75 houses to add to that list.
    I personally know two people selling, one an owner and the other the busiest realtor in the area, and both tell me the same thing, no interest, no buyers.
    So, I have no idea what these developers are smoking, but when it runs out they’re going to have one heck of a hangover.

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