$10K Length Of Rope For New Buyers – “I think it’s fantastic. A lot of people are surprised at how much they can afford when they actually sit down with someone. It definitely helps people get into the market younger.”

The new $10,000 bonus for first-time buyers of new homes will likely help a lot of potential buyers make the leap into the real estate market, a mortgage expert says.
Ryan McKinley, mortgage development manager at Vancity, said he’s had a lot of calls from buyers seeking to understand the bonus, but no one who has yet bought a home because of it.
“Mortgages have been top of mind for many people lately, and the calls that I’ve been getting have been in regard to clarity — what this is, and can they take advantage of it,” McKinley said. “Spring tends to be a popular buying season.”
The bonus, a one-time refundable personal tax credit, equal to five per cent of the purchase price of a home to a maximum of $10,000, was announced last month in the provincial budget. The bonus is still subject to legislation, which is expected to be introduced sometime this spring.
“I think it’s fantastic,” McKinley said. “I think it will definitely make it easier for people to get into the real estate market and if they’re thinking about it, that might be the deciding factor.”
He said because the $10,000 will come directly to purchasers in the form of a cheque, it will be possible to apply it in several different ways. Someone could take a loan from their parents or a line of credit from a bank to make a down payment, then repay it when the bonus comes through.

“A lot of people are surprised at how much they can afford when they actually sit down with someone,” McKinley said.

McKinley said Vancity also has a “mixer mortgage” where roommates can go together to buy a home they wouldn’t be able to buy otherwise.
“It also works well for parents and children, because the parents can own part of the home as an investment, while it helps the child get into the market,” McKinley said. “It definitely helps people get into the market younger.”

– excerpts from ‘$10k home-buyer bonus sure to spur first-timers: mortgage expert’, Vancouver Sun, 19 Apr 2012
[hat-tip Zerodown, who commented “The glass is overflowing at VanCity”]

The contradictions are so obvious, they must be apparent to everyone.
BOC Governor Carney implores Canadians, for the 6th or 7th time, to take on less debt.
BC Provincial Government adds teaser loans to already criminally cheap mortgages to tip the last marginally qualified young buyers into the market. Shame on everyone involved.
– vreaa

102 responses to “$10K Length Of Rope For New Buyers – “I think it’s fantastic. A lot of people are surprised at how much they can afford when they actually sit down with someone. It definitely helps people get into the market younger.”

  1. I think this is only for new home purchases.

    Zerodown indeed!

  2. And who is paying for that 10K length of rope? Oh, I know! The BC taxpayer!! You know, if I were living in BC right now, I would convey the following three points to any politician who knocked on my door:

    1) Why am I paying for this?
    2) Do you plan to put a stop to this?
    3) If not, leave right now. There’s no votes to be had here.

  3. Raging Ranter, in response to this article, on earlier thread, reproduced here for the record and the discussion:

    Raging Ranter 20 Apr 2012:

    I just about threw up reading that. How does it feel to be a renter in BC knowing your taxes are being used to subsidize someone’s urge for house porn? If Ontario does anything like that, I will FREAK.

    Check out this comment that was left by someone very angry at other posters who had the audacity to suggest interest rates might rise, and that Vancouver is in a housing bubble:

    7:41 AM on 4/20/2012

    6% is the ‘normal’…in what world? the ‘normal’ is more like 3-4% on the HIGH end. You can’t include the ridiculous rates of the 80′s, because that will never happen again. The central banks won’t allow it because the global economy couldn’t handle it. Take your fear mongering elsewhere…please.

    You too. The average drop was $90K? Don’t believe so, but even if it were, the average sale price was well north of $1M….so……..your point? All you bubble pushers are 1d10ts, plain and simple. Yes, there are many places in North America that have real estate bubbles, or real estate that moves on a boom-bust cycle. Vancouver is NOT one of them. What part of “they aren’t making any more land’ and ‘supply & demand’ don’t you get? Just because you have a menial (or union) job, and your prospects for increased earnings are nil (or tied to what your union can hold your company or the province hostage for), doesn’t mean houses are overpriced.

    That’s what happens when you try to interfere with someone’s house porn fantasies. It’s like you insulted their religion. They get angry.

  4. If the stars perfectly align, if we line up the dominos just so, if we take a little bit from here and a little bit from there, if your whole family pitches in, if you trim all the excess fat from your budget (you know, things like food), and if you can for a moment put aside those annoying little details like mortgage insurance, renovations and repairs, sloppy construction, increased home insurance, realtor and conveyancing fees, annual property taxes, annual city utility bills, monthly maintenance fees , across-the-board cost of living increases, future mortgage rate increases, and a 100% chance your high-rise box will be worth much less in two years than it is today, you too can just barely squeeze into the most overpriced real estate market in the world just as the fattest real estate bubble we’ve ever witnessed is coming apart at the seams. Build equity! Buy now or…don’t! Cure housing impotence! Get your real estate groove on!

    With a come-on like that, who could resist?

    You’re right, VREAA, this is absolutely shameful.

    • Seems about right Gord. The only people who will survive it are the ones who learn to knit their own socks, fix their own car, grow veggies for canning and learn home-dental surgery. In other words, there is going to be squat for disposable income for most and that is why retail and services are as doomed as homeowners when this comes apart.

      Now where are my clippers. I need a damn haircut.

      • Hehe. Farmer, seriously, you should see the size of the lineups crossing the border every day. Just massive and only getting longer every week – going south in the morning and early afternoon, and north in the late afternoon and evening. Funny isn’t it that so few Americans seem to want to venture to the Best Place on Earth. While the southwest corner of Canada houses the most overpriced real estate in the world and is where “everyone wants to live,” the northwest corner of the US, to most Americans, is simply a lightly populated rainforest. But I digress. My real point, being the doomer I am, is that escaping to the US for gas & groceries is now seemingly a *necessity* for so many BPOEers. I talk to them in the stores just over the line and it’s always the same story: “I don’t know what I’d do if I couldn’t shop down here.”

      • Joe_Blown_Away_By_High_Housing_Costs

        “The line ups were long back when I used to do the Blaine trips but they can only have gotten longer in the three decades since.”

        Might the increased line-ups at the border simply be a function of 3 decades of population growth? In 1981, the Greater Vancouver population was about 1.2 million. Today, we’re at 2.3 million. So the population of Greater Vancouver has almost doubled over the past 3 decades. Even if there is no increase in the proportion of Greater Vancouver residents who shop south of the border, one would expect the border line ups to be approximately double today what they were 3 decades ago.

      • Or maybe they added a few more lanes to accept the extra traffic so the net difference is the nil. You know, like what they would do if they had been watching the demographic changes for 30 years and taken note to compensate for it.

        Or were you thinking that maybe everything was frozen in time?

      • Joe_Blown_Away_By_High_Housing_Costs

        Farmer: Fair enough. I didn’t take into consideration upgrades to the highways and increases in the number of lanes you can go through the border. I really do not know if there have been significant upgrades in that regard. Still even with those upgrades, you would still notice more traffic on the roads going south, simply due to population growth.

      • Joe_Blown_Away_By_High_Housing_Costs

        When considering explanations for increased border line ups today versus 3 decades ago, I think another factor has to be the geographic distribution of the population of Greater Vancouver. I don’t have the numbers at my fingertips, but today, I am sure a greater proportion of the metro population lives in Surrey and the South of Fraser. A greater share of the population lives closer to the border today. This is partly due to sheer population growth, but it’s also due to high housing costs pushing people out to Surrey and Langley. People who live near the border are more likely to cross regularly for groceries, compared to people who live on the North Shore, for example. The population centre of gravity has shifted south east to the South of Fraser, closer to the border, over the past 30 years. This must have something to do with increased border traffic heading south.

    • “If the stars perfectly align…”

      Oh no, Gord is into astrology too?!?


      • I believe it Gord. The line ups were long back when I used to do the Blaine trips but they can only have gotten longer in the three decades since. I got my second computer there around then and it was half price Vancouver then! The border wait was an interminable 20 or 30 minutes each way. Betting it is hours these days.

      • On the Easter weekend, the Peace Arch lineup topped out at 3 kilometers. (!)

        Even on a rainy Monday morning at, say 10:00 AM, it’s often hours long.

        So yeah, it’s far different than it was back in the day.

  5. I’m actually looking to buy – well trade I guess is the better term – since I’m not happy with the neighbourhood / city I am in (Burnaby). The person who is selling his home is quite wealthy running his own business for many years and is a good friend of a friend so we just stopped by and checked it out and have a glass or two of wine. Incredible home in an incredible area and I actually wouldn’t be surprised if he sold his home in short order but I’m not willing to trade my home + $800K to get his.

    We had some wine, got into talking about real estate and I shared my opinion on where it is going. I could have been telling him that aliens were going to be landing on his backyard based on the reaction. His comments were that if it dropped even 5% he would be shocked and it would immediately shoot right back up again because everyone wants to live here. I knew there was no point arguing with him so I asked him if he would lease the place to me for 2 years and I would pay the first 6 months up front and cover any non-prior-existing damages. For someone that was so bullish on real estate and who did not need the funds from the sale he sure said “Absolutely Not” pretty quickly!!!

  6. Since it is a free market and equilibrium comes into play then house prices will build in that $10,000 into the price no?

  7. “McKinley said Vancity also has a “mixer mortgage” where roommates can go together to buy a home they wouldn’t be able to buy otherwise.”

    Some more of that “prudent lending” Canadian banks are so famous for. No subprime here.

    • Oh c’mon. Marriages come and go, but roommates are forever. Everybody knows that.

    • Mixer mortgages: Get in a disagreement with your roommate and now you can’t just move out and move on; you’re stuck on title. This would be a boon for lawyers fighting out these nasty little disagreements IF there was any equity to fight about.

      • Agree. It is one of the worst ideas they ever came up with. At least when you are married you have a chance to make up in the sack once in awhile, have kids and life goes on. With a room-mate conflict though, you would just have a never ending simmering resentment. Way too much stress when you are sharing a kitchen and bathroom. This idea is about as idiotic as interest-only mortgages.

      • Not long ago, if you had a roommate, it meant you were a renter. Now, the only people who can afford not to have roommates are renters. How very ironic! 🙂

      • Oh man, that’s funny Raging. You seem to have hit the nail on the head. So much for the pride of home ownership and being the king of your own castle. Owners without renters and room-mates are like bikes without wheels these days. You got to have them or you risk slipping into the purgatory of mortgage default. So then the worst part of all is they have to play nice or the renter will leave. The fools traded their savings and their pride for mortgage documents.

  8. Hey, sounds great ! Lets have everyone’s roommates and friends plus all family members in this cesspool together, so when it soon tanks, everyone will be left with no friends or family. Time to invest in counselling services me thinks ? lol

    • What happens in foreclosure with full recourse under such circumstances?

      • This is just another example of how a massive wealth transfer is going to take place as the boomers wealth evaporates along with that of their children and everything ends up back on the banks ledgers. Wonder if anyone will be so ashamed to be a renter then?

      • If you buy a house with a roommate, it’s like buying one with a spouse. You’re co-buyers and co-owners. If your roommate bails, your responsible. It’s not like you can just say to the bank, “My roommate just took off and I don’t know where he is. But I’m still paying my half, so don’t bug me. It’s not my problem.”

        That’s when the friendly loans officer, in her most sympathetic voice, starts to explain the birds and the bees to you, and why your mortgage just doubled.

      • Yes, you better know who you’re co-signing with. The bank will choose the easier target if they need to get their money back.

        This seems like a bad idea. I’m a fan of community-run banks but let’s be honest in Vancouver that’s like putting KFC-addicted foxes in charge of the hen house.

      • Mmmm Chicken. I feel hungry now. I love KFC.

        So imagine there is a pot-luck. Everyone brings a dish. The bankers show up with pork but then they eat is all themselves. The Brokers and the media both show up with Red Herring (oddly enough) and the Realtors come demanding bbq sheep on a spit and try to pawn off a little box of smarties in exchange for a full course meal. Us chicken-lovers meanwhile are quite happy to sing the “sky is falling”, get the hell out of the way and peck at seeds in greener pastures. I really hate real estate buffets.

      • “in Vancouver that’s like putting KFC-addicted foxes in charge of the hen house.”

        Jesse, your metaphors are consistently amazing.

        The only reasonable explanation I can see is that you have a database of metaphors on your computer, and every time you post, you look up in your database the most appropriate one.

        Or perhaps you’re just amazing. Either way, it’s impressive.

  9. Anybody see Daphne Bramham’s opinion piece in the Vancouver Sun a few days ago, titled something like “Ants at the Picnic” (about Canadian buyers buying houses in the U.S.)?

    First she makes misleading statements about what Americans “typically” think of Canadians (she bases her research apparently on her visits to Southern California. I lived in the US for many years and only ever heard admiration expressed for Canada).

    Then she excoriates (rightly in my view) American materialism.

    But then she expresses horror at what easy credit led to California — homelessness.

    Has she ever looked around at the West Side for evidence of gross materialism and the results of speculation?

    Does she read her own newspaper’s rah-rah articles on investing real estate?

    Does she read any other newspapers out there (The Guardian, the Wall Street Journal, The South China Post) pointing out Vancouver’s credit-fuelled bubble?

    • *American* materialism? Isn’t that precisely what the BPOE is all about? Sure seems that way to me.

    • American materialism. Is that what’s causing those line-ups at the border these days? 🙂

      • Yeah, good point. Those silly Americans have an average savings rate of 5 or 6% but up here we still live on credit and savings are net negative. Oh, we will come out ahead all right. Shop till you drop! Spend the inheritance too.

      • Hehe. I don’t know. I’m easily confused. All I know is that a $2.25 gallon of milk, a $1.08 liter of gas, and a $10 case of beer must be music to the ears of anyone trapped in a death spiral mortgage.

  10. Host, got a comment stuck in moderation.

  11. As each day passes it will become harder and harder to entice more buyers from the wings. I see that Whispers on the Edge has noted Vancouver just surpassed 17,000 listings which is a 70% increase since the start of the year. Now it is not difficult for most people to appreciate that rising listings combined with falling prices is the signal to stand back and wait….which usually pushes prices down further.

    Too bad for everyone who waited to sell. Now they are the bag holder.

    Seems a lot of people in Vancouver tried timing the top. Got coy and waited. They played the game right to the end of the last inning and now they are in for some serious corrections because a lot wil not get out for years to come. They were just too smart for blogs like this.

    Needless to say, once a bubble pops then mean reversion is just a matter of time. Incredibly, our inevitable correction was in fact forestalled a few years back with emergency rates. We witnessed a rather unusual event. Policy and rates reinflated a market that was already destined to fall.

    This time the air really is coming out of the windbag.

    • “Bag holder.” Ewww…

      • I know it sounds stinky, but its not. A bag-holder is a novice investor who is left with a sack of worthless paper after the company he bought goes bust. Think Enron here. The old term though referred to the poor sap who was on the scene of the crime during a bank robbery. As the bad guys flee they hand him the bag in a big rush and he is therefore the guilty party when the cops cuff him and confiscate the cash. Also known as a Rube, Yokel or unsophisticated person.

    • “This time the air really is coming out of the windbag.”…

  12. Clearly, VREAA should retitle his blog: “Oh, the humanity.”

  13. 4SlicesofCheese

    10k buys alot of rope to hang yourself with.

  14. FYI to anyone who still remembers, my Global interaction over the Cam Good / Tara Fluet thing has not ended. We shall fight them on the beaches…

    • We have not forgotten.
      Keep sending missives from the trenches…

    • And speaking of the media, Gord. I just picked up a tidbit over at Greater Fool where Mel in Victoria writes:

      “This morning , Bill Good, pathetically politically correct early morning host of CKNW ,a back water radio station in Vancouver B.C.,was interviewing a self proclaimed expert in everything financial, a Mr Michael Levy….and for the few moments I listened, they were talking about RE.

      Mr Good along with his buddy Levy were both critical of Diane Francis’ recent article in which she suggested there were some real issues with foreign RE buyers and both were very much opposed to any restrictions on foreign RE purchases in Canada, (read Vancouver) ..and were especially critical of countries which had done so. And actually called them racist!!”

      And there you have it. The media brain trust that is the wrecking ball for the city has come right out and called those who raise legitimate concerns racist. Seems the efforts to shut down the debate will never end. These vested interests have money at stake and could not give a hoot about anyone here who was priced out long ago. Nor do they care for the way this speculation has destroyed the soul of the city as they carve out their own little piece of paradise. Fortunately, rates will rise in an attempt to head off a damaging bubble that is now threatening to inflict itself on Toronto.

      • >70% off the foreigners who bought here are Americans and Europeans. Thus, they may have their own vested interests to hide.

      • Not sure, but was that 70% statistic not provided by a Real Estate firm? It does not add up in any case. Anecdotal stories are providing quite a different perspective and if I am getting the story right, the overwhelming number of buyers in the past few years are from China, not the US or Europe. So we need to explain the discrepancy. If I was hiding money from my overlords in the homeland though I might also use a return address from a lawyers office in the US or EU.

      • Good olde honest farmer! I am imitating speaking from both sides of the mouth that is the fad today. :p

      • Well that makes no sense Troll (er Tol). Why don’t you point out the inconsistency in what I have written? My message varies little by the way and it is this: a bunch of bleeding heart Liberals (aka NDP hacks) made a wreck of this country and now it is up to responsible people to tighten the rules and reintroduce the idea of fiscal and monetary discipline where it has been lacking for too long. Oh yeah, guess that makes me a Conservative. I figured that was your complaint.

      • Truly, is there ANY reason for an American to buy here when A) They could buy in Blaine for 1/4 the cost but don’t, B) Houses all across the US are far cheaper, C) The cost of living here is astronomic in comparison, D) The rain in the glorious BPOE is non-stop for eight months a year.

      • “a bunch of bleeding heart Liberals (aka NDP hacks) made a wreck of this country and now it is up to responsible people to tighten the rules and reintroduce the idea of fiscal and monetary discipline”

        It would be a shame for this blog to get too politically polarized, but I’d like to point out that the federal Conservatives have certainly played a significant role in inflating this bubble.

      • Vancouver In The Rearview

        I actually got on the air and gave them my thoughts on what real estate is doing to this city. Of course, they offered no rebuttal or really any comment at all. Check out the CKNW audio vault at 1025h approximately, on Thursday, April 19th if you want to hear my rant.

      • theragingranter

        As a Conservative myself, I must admit Gord is right. As in “correct”. The Conservatives have done NOTHING to ameliorate the idiotic housing conditions, and in many ways have made it worse. They’ve only recently realized there is a problem, and seem completely paralyzed over what to do about it.

    • theragingranter

      Ah yes. Tara Fluet, the condo “investor”, who just happens to be a salesperson for said condo development. How could we forget?

      • “Some chicken. Some neck.”

        For the HIstoriographers.

        And, of course, for IllustriousEd. For this “Wondrous Thing”.

        We shall…

      • I don’t know, Nem, should I invoke Godwin here…?
        It’s Friday night so I’ll let it slide 🙂

      • Please, speak English.

      • Only Vesta/Espe, IllustriousEd, Jesse, Farmer, Gordon, et al – TheHonourary, “The Few, The Proud” (from whom, by the way, ‘Nem’ received his first Salute – albeit, not of ‘their’ tribe)… would understand this..

        In Cambridge (not that one!… well, Jeezus may, indeed, have
        ‘water’ privileges… but ‘Nem’ has grass rights (admittedly, ‘guest privileges’ – but valid nonetheless).

        Apart from that, Anonymouse & compatriots… I shall not engage.

        You have a useful function here. An amusing one, to be true. And a useful one.

        To interfere or otherwise obstruct your ‘contributions’… well, it would kind of be like the WWF hosting a match between between HulkHogan and PeeWeeHerman… Hulk just wouldn’t feel ‘righteous’ when it was over. And neither would our DearReaders.

        Well. There it is.

      • there it is … the kingdom of the father is spread out upon the earth and men do not see it

      • @Jesse… it could just be a surfeit of Gehringer’s “Desert Sun” (Cheap&Cheerful Plonk – but a gold medallist in its class/2011)… Godwin? Yikes! Closer to the truth than you might well imagine, OldChap; albeit, ‘Nem’ normatively eschews all ‘isms’ – good manners, air cooled Italian V-Twins and TrueLove aside – there’s a lot to be said for Bakunin & Kropotkin… ‘Nuff said. Any more ‘loose’ talk and ‘they’ll’ take all my licenses away!.

      • &Chubster!… among others… DesertSun impedes the eidetic…

      • @jesse/nem. far too soon invoking godwin’s doom. one must challenge god first. desert sun is but one. in maple south, andrew will forestall the chill … and with time improves the rhyme. some say jesus, i say shiva. when god seeks to enter, what the open mind perceives blissful, the closed one only wrathful. i submit you this … 😀

  15. “The contradictions are so obvious, they must be apparent to everyone.
    BOC Governor Carney implores Canadians, for the 6th or 7th time, to take on less debt.”
    “BC Provincial Government adds teaser loans to already criminally cheap mortgages to tip the last marginally qualified young buyers into the market. Shame on everyone involved.”
    – vreaa

    Best quote of the day!

  16. Good and Levy are both idiots who are using the race card to protect their own real estate interests. A couple of blow hards who have made idiot predictions that have never come to pass. Good is a Christy Clark suckup, it’s so disgusting.

  17. Joe_Blown_Away_By_High_Housing_Costs

    …and somebody yesterday on this blog asked me how the provincial NDP would help the housing situation in this province.

    Well not giving out tax credits to lure first time home buyers, might be a good start. After all, this $10k credit is a BC LIBERAL policy.

    Other ways the NDP would ease the affordable housing crisis:

    -abolition renovictions (that was also brought in by the BC Liberals changes to the Residential Tenancy Act)

    -stop privatizing public housing and displacing tenants so that public housing land can be converted into speculative condos developed by a Malaysian developer (I am refering to BC Liberals policy of public housing redevelopment/privatization carried out at the Little Mountain Housing Project)

    -actually invest in the creation of new social housing that is for low income families as opposed to the BC Liberal approach of only funding supportive housing for drug addicts/people with mental illness

    -regular increases to the minimum wage and abolishing a two tier minimum wage so that low wage workers can actually earn enough money to pay the rent (BC Liberals froze min. wage for 10 years and brought in a two-tiered min. wage–which is still in place contrary to reports in the mainstream media)

    -abolishing the BC Liberals changes to the Employment Standards Act that allow employers to pressure workers to sign agreements agreeing to work overtime without being paid time and a half (again, enabling low wage workers to make enough money to pay the rent)

    -stop selling out the province to condo developers in all manner of backroom deals that the Liberals undoubtedly engage in

    That’s just a start as to how the NDP would improve the housing situation in BC. Not a panacea and not a cure for the bubble itself–but still some welcome relief for poor renters.

    • theragingranter

      That was me who asked. And I doubt very much the NDP would remove tax credit incentives that invariably prove wildly popular. As for social housing, well that’s nice, but it is awfully expensive, and most governments will promise the moon regarding social housing and all you end up with is some “projects” monstrosity that is equally, if not more, offensive than the empty McMansions. Also, the NDP are if anything more race sensitive than the other guys, meaning they will be terrified of offending the Asian investor class.

    • So you would agree it is interesting how little progress was actually made over the years that the NDP held power despite the fact they have dominated BC politics since the Thirties. Where is all the social housing and low cost alternatives for those of today who are beset by high prices if the NDP was so far-thinking in philosophy? And aren’t those the same guys who wasted billions building Fast Ferries that eventually just got scrapped in the wrecking yard. Great make work project. Have you seen the size of the provincial debt that was built up beginning with the tenure of Barret and all his socially advanced policies? Maybe you don’t realize you get to pay that off. The province is a financial basket case on par with Greece (yes, I am serious). Lets hand it to the guys who know more about spending than earning. Bloody incompetents with little more than an agenda and an axe to grind while they squabble over power and drain the economy of blood. Meanwhile, they sold out the forest sector, mining and fisheries even though that was the largest source of revenue and then they handed out big pay raises for teachers, nurses and other union organizations for good measure. You know, drain the coffers while killing the geese that lay the eggs. BC politics is the worst farce in this country.

      • Ah the Fast Ferries bugbear. Consider this: if the fast ferries project were to have continued on and learned from its mistakes, and a strong shipbuilding industry fostered over the past 10 years instead of privatizing what little was remaining, BC might have had a decent shot at the federal navy contract that ended up going to Halifax. Nah, that wouldn’t fit the mantra.

        The BC Liberals presided over the largest speculative bubble in the province’s history. They chose the easy way out, using investment in unproductive assets as a crutch. They got a GDP boost as a result — as all investment surges produce — but have nothing left by which to fill the void when housing hits the skids save offshore investment, which undoubtedly includes selling off real estate assets — including residential properties — to foreign interests.

        This is not a repudiation of the BC Liberals per se — I doubt the NDP could have done better given their silence on the whole speculative bubble meme — but to claim the NDP will be worse for BC flies in the face of what this blog has been expounding for years now: BC is in a huge speculative bubble, addicted to debt, and has little to fall back on when the bubble bursts. Whatever fallout awaits BC in the years ahead is unlikely to be a result of the incumbent government of the day, rather the result of the one presiding over the past 10 years.

    • All the NDP will do is accelerate the real estate and economic collapse of this province which long term is probably a necessity. Realistically the next 5 years are going to be very, very ugly in this province and I’d rather we hit rock bottom allowing whatever government comes after the NDP a chance to rebuild something hopefully based on reality.

      So I agree in that NDP will help the housing situation by getting BC to rock bottom status in an efficient manner.

      • Perhaps that is what they are fit for, Roygon.

        To ToL, if you don’t mind, I really don’t care to discuss anymore about politics on a real estate site. You know where I stand so we can drop it. I did not appreciate your “two sides of the mouth” insult though. You might keep your own opinions to yourself if you feel that strongly and carry on elsewhere. Maybe join a blog that argues politics full time instead.

      • “So I agree in that NDP will help the housing situation by getting BC to rock bottom status in an efficient manner.”

        Agreed. I would like to see this pretentious city cut down to size.

        “I really don’t care to discuss anymore about politics on a real estate site.”


      • Good lord! Where did you read the insult, farmer?
        I may be inebriated, but I stay out of local politics – can’t handle the “kopi money” or “SHKP red packets”.

        I don’t mind some poetry though on a Friday night.

  18. Joe_Blown_Away_By_High_Housing_Costs

    I don’t want to get into a partisan debate with you guys. The way you see through the mainstream media spin when it comes to the housing bubble, made me hopeful you could see through the same spin when it comes to the BC Liberals and NDP.

    The NDP have NOT dominated BC politics since the 1930s. That is an outrageously false statement. The NDP were in power for 4 years in the 1970s and for 10 years from 1991 to 2001. That’s it.

    It’s the Social Credit Party that dominated BC politics in the 20th century, now re-packaged as the BC Liberals, who are desperate to re-package themselves once again as the ‘Free Enterprise Coalition’.

    Not one thing either of you have said rebuts the points I made. I said the NDP would do little to address the bubble. My points focused on rolling back the regressive changes the BC Liberals have made to the Residential Tenancy Act and the Employment Standards Act–things that would help renters have more secure tenancies (remove the threat of renoviction) and increasing their earning potential. Pretty modest changes in the grand scheme of things but they can make a world of difference to min. wage workers just trying to make the rent at the end of the month. Maybe the NDP wouldn’t roll back the 10k tax credit for first time buyers due to political fallout (or maybe they would roll it back, I don’t know)–but they surely wouldn’t have introduced it in the first place. It’s the BC Liberals who want to add fuel to the speculative housing bubble. Gordon Campbell has his roots in the real estate development industry, as documented in the book “Five Ring Circus” by Chris Shaw (about the Olympics). The BC Liberals are bought and paid for by the developers in a way the NDP never could be. There’s also all the stuff about John Les removing land from the ALR in the Fraser Valley for residential development.

    I can’t believe you are bringing up the Fast Ferries–not even a scandal and it should long be forgotten except the corporate media keeps reminding us about. People I work with who were infants in the 90s when the Fast Ferries fiasco unfolded know about that–because Vancouver Sun makes sure we will never forget. But they don’t report 1% of the very real scandals of the BC Liberals–scandals of corruption and insider deals. For that, you need to go to the blogosphere. Just like you need to go to blogs like this one to get the straight goods on the housing bubble.

  19. Joe_Blown_Away_By_High_Housing_Costs

    “I really don’t care to discuss anymore about politics on a real estate site.”

    The two are inextricably linked in my mind.

  20. Joe_Blown_Away_By_High_Housing_Costs

    “Have you seen the size of the provincial debt that was built up beginning with the tenure of Barret and all his socially advanced policies?”

    BC Liberals inherited a budget surplus from NDP in the 90s.

    • You see? This is why talking politics is a waste of time here. We will never agree because guys like Clark are bums who drained the coffer first chance they got. And they say real estate is the most emotional of subjects, eh?

      Let’s just go back to topic.

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