Vancouver's Real Estate Market

[Hondaracer]

Originally Posted by MarkyMark

That's a nice story, it doesn't say much about their financials when they sold a place for 625 and rent a shithole in Surrey.

So when the real estate market finally hits its limit and people who bought in just before then lose a bunch of money are we going to call them idiots too?

if they wanted to sell to cash out to have money in the bank, they essentially missed out on 600k over a 4 year span. The most exponential growth their property ever experienced in the 20+ years of owning it.

I dont have all the insight regarding their financials, but if you're paying $2000 or more a month in rent, i guarantee their mortgage was equal or less to those payments. odds are pretty good they were less knowing the family and considering how long they had owned the house for.

When "the bubble bursts" that house will never be worth less than the 620 they sold for, i guarantee you. So yea.. it was the wrong move. Easy to say in hind sight, but losing 600k or more in a 4 year span i'm sure makes selling their house at the time they did the worst financial move they ever made.

[Tapioca]

^ These people in your example did it wrong. The whole purpose of cashing out is to lower your cost of living as opposed to timing the market.

They should have taken that $625K and invested it so that they could live off the interest staying in Metro Vancouver, or they could have bought a condo/townhouse and pocketed the difference, or they could have moved somewhere else and pocketed the difference.

[MarkyMark]

Of course with a crystal ball they look like idiots. You could call a guy who worked 24/7 in his youth so he could have a big house and retire early instead of spending more time with his family only to die from an illness a few years beforehand an idiot too.

Not everyone gets to ride out the wave when their house loses value, and when you're forced to sell and 200k in the hole they might have wished they didn't listen to everyone saying Vancouver is different when it comes to housing.

[ImportPsycho]

Province says 3% of homes in BC bought by foreign nationals - NEWS 1130

is this a joke?
BC gov expect anyone to take this crap seriously?

[twdm]

Originally Posted by meme405

And don't bullshit me and tell me "I would put it into mutual funds or the stock market". I have money in those, I want to diversify and real estate is the method of which I am choosing.

Deal?

Wait. So you're saying you're diversifying by putting all your eggs in one basket?

[MarkyMark]

Originally Posted by ImportPsycho

Province says 3% of homes in BC bought by foreign nationals - NEWS 1130

is this a joke?
BC gov expect anyone to take this crap seriously?

"However, this information is based on a very limited from June 10th to June 29th."

What an in depth review they did, no foreign buyer problem folks move along.

[Gululu]

It is unfortunate that average Canadians are fooled by dogma and blinded by ideology.

[Ferra]

Originally Posted by ImportPsycho

Province says 3% of homes in BC bought by foreign nationals - NEWS 1130

is this a joke?
BC gov expect anyone to take this crap seriously?

foreign national means people with no canadian citizenship (i.e. did not immigrate to Canada.)

Most buyers are Canadian citizen/immigrants, buying using foreign money.

I am actually surprised there is 3% foreign buyers...very few people would buy real estate in a place they have no ties, and no citizenship right in. (would you go buy some houses in Europe or Australia when you dont' live there?)

[yray]

^ yes if its in paris and london.

Don't mind a chalet in switzerland either

[SumAznGuy]

Originally Posted by MarkyMark

Of course with a crystal ball they look like idiots. You could call a guy who worked 24/7 in his youth so he could have a big house and retire early instead of spending more time with his family only to die from an illness a few years beforehand an idiot too.

Not everyone gets to ride out the wave when their house loses value, and when you're forced to sell and 200k in the hole they might have wished they didn't listen to everyone saying Vancouver is different when it comes to housing.

No, no one would ever call that guy an idiot.
It would be very unfortunate but no one would call him an idiot for working hard in his youth and trying to retire early with a house that was paid off.

As long as one can pay the mortgage, I don't see they would be forced to sell their place at a $200K loss.
If they over extended themselves, then that is a different story.
But if they had solid financials and bought within their means, then that shouldn't happen.

[Traum]

The results from the News1130 article doesn't really give you an accurate picture at all. This link that I've just read at least gives you a more accurate idea of what is going on:

Majority of foreign buyers from China, new real estate data reveals | CTV Vancouver News

Finance Minister Mike de Jong said there were 10,148 home sales during the first 19 days of data collection between June 10 and 29. That represents about 10 per cent of what is expected for total sales in the province this year.

According to the data, 337 sales were made by foreign nationals – equating to roughly 3.3. per cent. Of those, 258 buyers – or 76.6 per cent – originated in China.

Also, I'm sure there are other ways to avoid using a foreign national's own name to make the RE purchase.

[Gululu]

gululu's thoughts on Vancouver's real estate allocation problem. and 3 ways to combat atypical region wide unaffordability in Lower mainland.


1. diplomatic relationship with China is of significance importance. This means Trudeau and house of commons must embrace China her government with mutual respect , recognizing Chinese rule of law , and recognizing Chinese sovereignty. This announcement alone will already deter foreign money at its door step. but this is not enough.
Stop giving China the cold shoulders Canada. Like his father, What better way to warm up relations than increasing trade ties between China and canada. having quotas and nafta agreements against China goods, we need to rethink that, I think having China as Canada top trading partner is more adventagous in the long run. having increased foreign reserves in RMB is very beneficial to Canada, as this prevents Canadian assets being prayed on by overseas speculators.
Cabinet ministers such as Teresa Twat of no.3 road in Richmond, needs to be removed from political campaigns as career in future. these people do get weekly kick backs from many various interest groups in the usual industries that are too long to list here.


2. Infrastructure is lacking and it shows when markets behave this way. The need exist. government need to source funds to allow to build. big projects are the best. big highway projects are what i think should take place right now. Bridges more please. Public transport more.
There also needs to be a increase to M2. Money for the masses. Either in the form of infrastructure building or cold hard cash in average people's bank accounts. Preferably both at same time. Canadians are poor. They need money. Print more money if thats what it takes.

3. this is suggested regulation changes to chartered banks. stricter amortization periods. longer 30 year mortgages does not make sense in today's world. this should be cut down to a shorter time to reflect current situations. also, mortgages should not be extended to people over 60 years of age. it doesn't make sense again because people are working older but are they living longer? nope. so why make that risk.
At same time I believe there also should be easings for young people to help them get into first homes as soon as possible.

[Traum]

Originally Posted by Traum

Also, I'm sure there are other ways to avoid using a foreign national's own name to make the RE purchase.

A friend that works in the RE industry just reminded me of a very simple way to avoid having an RE registration tied to a foreign national -- the foreign national can just incorporate a business in Canada, and proceed to purchase a property under the business' name. Technically, that unit would only be tracked back to the origins of the company -- ie. a local Canadian firm -- instead of the foreign national director.

Of course, I'm sure there are still numerous other loopholes that can be taken advantage of.

[dat_steve]

Originally Posted by Gululu

gululu's thoughts on Vancouver's real estate allocation problem. and 3 ways to combat atypical region wide unaffordability in Lower mainland.

Canadians are poor. They need money. Print more money if thats what it takes.

I don't think that's how money works, guy. i just don't even.... let's make everyone millionaires a la Zimbabwe

i appreciate that you take the time to share how you think the country should be run, and I'm sure you can bring up good discussion points here and there. However, I think I speak for a few people when I say your posts are so hard to read.

[MarkyMark]

Originally Posted by SumAznGuy

No, no one would ever call that guy an idiot.
It would be very unfortunate but no one would call him an idiot for working hard in his youth and trying to retire early with a house that was paid off.

Exactly. So why would someone fault someone else for thinking they are cashing out before the crash, trying to maximize their profits to better their situation? Who actually knew their house would double in price in a few years.

As long as one can pay the mortgage, I don't see they would be forced to sell their place at a $200K loss.
If they over extended themselves, then that is a different story.
But if they had solid financials and bought within their means, then that shouldn't happen.

Yeah but generally when something crashes other factors are at play, such as people losing their jobs and being forced to sell.

[Mr.C]

Originally Posted by Gululu

recognizing Chinese rule of law

I know you're not fucking stupid. So, from one guy born in a shitty corrupt country to another, what, pray tell, constitutes "rule of law" in China?

[yray]

^ bribing is the law

[meme405]

Originally Posted by Gululu

gululu's thoughts on Vancouver's real estate allocation problem. and 3 ways to combat atypical region wide unaffordability in Lower mainland.

I laughed and stopped reading here.

[westopher]

Originally Posted by Gululu

It is unfortunate that average Canadians are fooled by dogma and blinded by ideology.

Its unfortunate that you still post in here.

[flagella]

https://www.theguardian.com/cities/2...itish-columbia

[buhdeh]

that gululu post is absolute gold

[GLOW]

Originally Posted by meme405

I laughed and stopped reading here.

i was intrigued so i read, but when i saw the title my first thought:

[hotjoint]

Jennifer Fox: Goodbye Vancouver, you should go and love yourself | The Province

[westopher]

I agree with some of her sentiments about the cost of living in Vancouver, but her complaining about its social scene paired with her grade 9 quality of writing was unbearable the first time, never mind the 50th.

[GLOW]

that article lead to this link:

Ryan Holmes, Hootsuite CEO: Without affordable housing, Vancouver risks becoming an economic ghost town