“You and that stupid girl are single, unemployed and miserable because you think so highly of yourselfs, blow what little money you have instead of saving and investing. I am single have a awesome job in health care and OWN a condo in Surrey that is not eating up my paycheques. I have no debt except my mortgage because I thing ahead, don’t you reaserch a career before you enter university? The people in this town never want to look at themselfs first they want to point the finger and blame others for their lifes problems, as a minority born, raised and educated in BC, I am glad I didn’t move downtown and end up like all of you. Yes Surrey sucks but I am making good money and can walk to work in 5 min. form a condo I OWN.”
– ‘vince’, commenting at soloinvancouver 23 Mar 2012 5:31pm
Debt and Compromise.
You can do it!
Posted in 05. Where do Buyers get the money?, 08. Overextended Buyers, 15. Misallocation of Resources
Tagged Anecdotes, British Columbia, Bubble, Canada, Debt, Employment, Housing, Real Estate, Vancouver
“In fact in the entire budget, for which at least one medium forest died, the words “mortgage debt” do not appear. No cautions about overborrowing or the dangerous amount of collective net worth now stuffed into a single asset.
So much for Mark Carney. His continuous warnings about overheated housing in Vancouver, condo madness in Toronto or the inevitable impact of higher interest rates.”
– Garth Turner at greaterfool.ca 29 Mar 2012
“I had hoped this budget was really going to have some significance, but its totally anti-climatic. Canada is being crippled economically with the biggest ponzi scheme this country has ever seen.”
– ‘Vancouver Mt Pleasant renter’ at greaterfool.ca 29 Mar 2012 6:08pm
It’s what he didn’t say that is noteworthy.
The dog that didn’t bark.
The Finance Minister tippy-toed around the housing bubble, knowing that if he woke the bear, so much else in his budget would become moot. The bear will wake, regardless.
Posted in 05. Where do Buyers get the money?, 08. Overextended Buyers
Tagged Anecdotes, Banks, British Columbia, Bubble, buyers, Canada, Debt, Government, Housing, Mortgage brokers, Real Estate, Vancouver
“The article makes reference to our situation paralleling the US situation, and that is also utter nonsense in so many ways that I wouldn’t even start to get into them all. We do not offer loans at 100%+ LTV, we do not offer teaser loans to subprime clients and qualify them on the teaser rates, and we do not offer NINJNA (no income, no job, no assets) mortgages. As it is, in the Vancouver market, it is quite difficult to qualify people for mortgages even for the amount of house they need. The government has done plenty to put the brakes on the Vancouver market as it is. The harder the government makes it to lend money, the more that the market tilts in favor of the wealthy and the more difficult it will be for average and lower income earners to get ahead. That is a much greater thing to fear for the future.
I have said this many times, but the lending that really needs more regulation is the credit card and unsecured lending industries. What regulation have they been scrutinized under other than a regulation that requires them to disclose how long it takes to pay off a credit card bill with minimum payments? It is that ability to spend money so easily at such high interest rates that is really hurting people. However, the housing market is the one that gets constantly attacked. “Pay no attention to that man behind the curtain.”
I live and work in the highest priced market in Canada, and this is where it is hardest for people to buy. In most of Canada, housing is SO much more affordable than here. Most of the country has nothing at all to worry about.”
– Jeff Evans, Richmond mortgage broker, posting as ‘Jeff’ at greaterfool.ca 28 Mar 2012 9:01pm
“I have been enjoying all the radio, TV and print ads from the major banks telling everyone about 2.99% for 4 years as if they are offering you something special. I do have that available with other lenders as well, but I have something even better… 2.89% for 4 years! That is better than the banks are offering!
Contact me today and we can get you locked in for this special offer.”
– Jeff Evans at his site bc-mortgage-brokers.ca, 20 Mar 2012
What do you call a mortgage that starts at a 2.89% rate and then, after 4 short years, resets to a rate that is perhaps substantially more than that?
Posted in 05. Where do Buyers get the money?, 08. Overextended Buyers
Tagged Anecdotes, British Columbia, Bubble, Canada, Debt, Housing, Interest Rates, Mortgage brokers, Real Estate, Vancouver
Those who own a condo unit in a Whistler hotel are sitting on great potential, but at the moment the units are not showing great value.
Real estate consultant Denise Brown with Re/Max Sea to Sky Real Estate reported that a unit originally sold in the Four Seasons Whistler for about $1.1 million was recently resold for only $520,000.
“We’ve seen the prices come down significantly,” she said.
According to Brown, this segment of the real estate business is at the bottom of the cycle so prices are good right now. She said the people who are happiest in the condo hotel market are those who are in for the long-term and have made a lifestyle choice in purchasing a condo unit in a hotel.
“It is only those people who are looking for a lifestyle that own their own property in a complex that they like and believe in and want to use with their family,” she said.
Pat Kelly, from the Whistler Real Estate Company, said when condo hotel units first became available in Whistler expectations were high.
“People were buying on vision,” said Kelly. “Revenue has not met expectations in the last few years.”
According to Kelly, the lower than expected revenues produced through hotel condo units has combined with exchange rates, high strata fees, high property taxes and fixed overhead costs to drive prices down.
“The market is now valuing these things properly,” Kelly said. …
“Some of our friends to the south have had to do some pretty significant financial rationalization, which has caused them to want to sell things,” he said.
According to Brown, the people who were relying on the hotel condo units to produce high returns beyond covering all the costs associated with owning this type of property are getting out of their investments.
“It’s not anything wrong with Whistler or that Whistler is worth less,” said Kelly. “It is just that people are prepared to spend less.”
– from ‘Hotel condominium units hit hard by current economy’, John French, Pique, 1 Mar 2012
“Great potential, but at the moment the units are not showing great value.”
“It’s not anything wrong with Whistler or that Whistler is worth less.”
(This from the same guys, we’ll bet, who used to say stuff like “real estate is worth whatever somebody is prepared to pay for it”.)
“I had an informal conversation with a Burnaby accountant who has been very busy working as a debt manager. He said most of his clients are so ridiculously over-invested in GVRD real estate – significantly negative cash flow returns, average mortgage debt per client of $600K, etc – that he fully expects a hard landing for Vancouver.”
– Airedales at VREAA 27 Mar 2012 2:10pm