Vancouver's Real Estate Market

[Traum]

I'm sure these bank CEOs have some hard data to back their talk up. Still, it is leaving a really bad taste in my mouth if that's what the CIBC dude really thinks:

https://www.vancouverisawesome.com/n...owdown-6350457

A pullback in the economy would mean more pressure on consumers, but shouldn't affect bank finances as much thanks to the still heighted cash reserves of borrowers and the ability to divert spending, said CIBC chief executive Victor Dodig.

"This is not a bank credit issue. This is an issue of consumer lifestyle. More money will have to go from discretionary spending to interest expense" he said.

CIBC is aiming to keep its capital ratio at around 11.5 per cent, he said, which is above the minimum set by the Office of the Superintendent of Financial Institutions, but below the 12 per cent maximum the regulator could potentially raise it to.

FWIW, this Dodig guy is raking in $12M/yr from CIBC, so of course it is easy for him to say what he said.

[68style]

haha most everyone in the general public is gonna be like "WHAT discretionary spending Victor?"

[westopher]

Discretionary spending like eating well, dental work, and a bus pass to get to your job.

[JDMDreams]

^^ I dunno man, Starbucks and mcd always has line ups, sounds discretionary to me

[westopher]

Its cheaper to eat at mcdonalds than it is to eat decent food at home.

[carsncars]

Originally Posted by westopher

Its cheaper to eat at mcdonalds than it is to eat decent food at home.

If you count your time, yeah, I agree. Although nowadays my cheapass special McDouble + Jr Chicken costs $6 + tax for one sort of depressing meal.

If I shop a sale I can usually get 1 kg chicken breast (about 4 breasts) for $12. A bag of pasta is $2, a bottle of sauce is maybe $3, and a bag of spinach or frozen peas is $3 or so. So that's $20 for 4 meals = $5 a meal that's more nutritious isn't awful.

But if you value your planning/shopping/prep time, yeah, McD's is cheaper still. If you try to put a price on health outcomes down the road though...

[westopher]

I'm picking up what you're putting down, but canned pasta sauce and frozen veg isn't my idea of eating well. I'm talking about buying fresh produce, and quality meats, but you are totally right that's better than Mcdicks.

[Alpine]

Originally Posted by Traum

I'm sure these bank CEOs have some hard data to back their talk up. Still, it is leaving a really bad taste in my mouth if that's what the CIBC dude really thinks:

https://www.vancouverisawesome.com/n...owdown-6350457


FWIW, this Dodig guy is raking in $12M/yr from CIBC, so of course it is easy for him to say what he said.

They're all cut from the same cloth. It's the same as Tiff saying that consumer spending is driving inflation and corporations need to stop handing out raises.

[carsncars]

Originally Posted by westopher

I'm picking up what you're putting down, but canned pasta sauce and frozen veg isn't my idea of eating well. I'm talking about buying fresh produce, and quality meats, but you are totally right that's better than Mcdicks.

Oh for sure, I'm just comparing budget eats.

The price of fresh produce, meat, in particular has really put pressure on the grocery budget.

[GGnoRE]

Originally Posted by Traum

I'm sure these bank CEOs have some hard data to back their talk up. Still, it is leaving a really bad taste in my mouth if that's what the CIBC dude really thinks:

https://www.vancouverisawesome.com/n...owdown-6350457


FWIW, this Dodig guy is raking in $12M/yr from CIBC, so of course it is easy for him to say what he said.

I'm not sure what is distasteful about what he said... seems like a pretty accurate statement to me. Like you said in your first statement, these guys like bank CEOs aren't making statements like that based on grocery receipt comparisons with their buddies. Reality is that the average Canadian has gotten much wealthier during Covid, and we have the room to divert discretionary spending to paying off interests of household debt.

If you look at the numbers from the government and the major banks, Canadians have amassed 300-400 billion during 2020 and 2021 in excess of what they would have normally saved without Covid (real estate, stocks, crypto, etc.). For a population of less than 40 million, this is a substantial amount of savings and this didn't just end up all in the top 1% either; Middle and upper class are major beneficiaries. The real 'losers', like in most situations, are the lower income class who haven't benefitted from the past two years but their solvency isn't a threat to a major bank's business model. Nobody likes paying $300 in groceries for what used to cost $200, but the bank knows that the average Canadian has a buffer of discretionary spending/savings that can be trimmed.

https://nextgenedition.com/canadians...anyones-guess/
https://mobile.twitter.com/i/events/1525501774764904450
https://economics.td.com/ca-excess-saving

Spoiler!

[blkgsr]

produce pricing these days is crazy.

we need to promote more local advanced indoor agriculture to limit our imports of certain products. look at what europe is starting to do with things like aquaponics/hydroponics (not 100% which is which but you get the point). lettuce seems to be a very easy one to do yet we have a shortage on lettuce coming in from out of country.

[AzNightmare]

Originally Posted by Traum

I'd say it depends on what field the graduate is from.

In my field (computer science), the trend that BCIT graduates have a lot of practical / hands-on experience continues. That makes them excellent candidates for certain positions -- technicians of different kinds, certain types of system administrators. But they also tend to be poor programmers, QA/testers, or things that require more theoretical understanding.

Then again, there are tons of ugrad graduates that can't program or do QA work even if their lives depended on it LOL~

The field you go into is definitely a big factor...
I went to VCC, but applicable skills I use today were learnt on the job.
At least for me, I found people cared a lot more about the work experience than where I went to school 10+ years ago.

[Traum]

Well... for one thing, the guy comes across as being a heartless dick with zero compassion for the working class, but I guess it was silly of me to expect that level of human decency from a top dog banker, right?

Originally Posted by GGnoRE

I'm not sure what is distasteful about what he said... seems like a pretty accurate statement to me. Like you said in your first statement, these guys like bank CEOs aren't making statements like that based on grocery receipt comparisons with their buddies. Reality is that the average Canadian has gotten much wealthier during Covid, and we have the room to divert discretionary spending to paying off interests of household debt.

[CivicBlues]

BoC for the last 20+ years: Canadians need to Save MORE! Their household debt ratio is too high.


*COVID Hits*

NOooo not like that!!

[freakshow]

Originally Posted by Traum

Even with a maximum allowed rent increase, I doubt it can cover the increased costs for the landlord with most residential rental suites.

Isn't the max allowable increase 2%? so thats $60/mo on a $3k rent. If you have a great tenant, that barely seems worth the conversation in a sense that I'd rather tell them to sign a contract for another year (instead of month to month) at the same price.

[Manic!]

Originally Posted by freakshow

Isn't the max allowable increase 2%? so thats $60/mo on a $3k rent. If you have a great tenant, that barely seems worth the conversation in a sense that I'd rather tell them to sign a contract for another year (instead of month to month) at the same price.

But 5 years Down the road that's 300 a month.

[freakshow]

If you lose a couple months rent over that 5 years from tenants switching, i think it'll even out pretty quick

[mikemhg]

Originally Posted by Badhobz

It’s not all about education either. I mean graduating from a good school gives you a better chance but not synonymous with success.

I went to langara first then sfu (university transfer to save money) then got a shit ass history & philosophy degree. This useless piece of paper did nothing for me. What ultimately got me where I am was playing mmorpg (lineage 2) with a guy who worked at CN. He got me in as a conductor and then I moved up to port manager (take that mom!!! Who says playing games is pointless).

Having a piece of paper that says I can write essays did diddly squat. 45k of student loans too (that I used to invest instead of schooling).

Holy fuck I haven't heard the name Lineage in a while.

I used to play Lineage 1: The Blood Pledge back in the day.

Sold my LVL 52 knight for $3K at 18 years old to some Korean dude and never looked back

[mikemhg]

Originally Posted by westopher

I'm picking up what you're putting down, but canned pasta sauce and frozen veg isn't my idea of eating well. I'm talking about buying fresh produce, and quality meats, but you are totally right that's better than Mcdicks.

People post that shit all the time on Vancouver reddit as a way to "save money".

I'm sorry but eating frozen veg and lentils 5 times a week isn't exactly the idea I had years ago of what a future life would be as manageable grocery expenses

[Manic!]

Originally Posted by freakshow

If you lose a couple months rent over that 5 years from tenants switching, i think it'll even out pretty quick

Had a long term tenant that stayed for over 5 years. There rent was just under $1700. after they moved out I rented it for $2600 then $2800. Also a tenant in this market is not going to move out because of a rent increase. I have heard of landlords offering 5 to 10k for a tenant to move out and they have still said no. Also renting a unit is super easy in this market. If you are lazy or out of town you can hire a property manager. They charge anywhere from 5% to 15%.

[JDMDreams]

Just leaving this here.

Home prices will bottom in early 2023: TD Economics

https://ca.finance.yahoo.com/news/ho...162841768.html

[68style]

All the tops are going to be so excited!

[supafamous]

Originally Posted by freakshow

Isn't the max allowable increase 2%? so thats $60/mo on a $3k rent. If you have a great tenant, that barely seems worth the conversation in a sense that I'd rather tell them to sign a contract for another year (instead of month to month) at the same price.

I've always raised rent on my tenants on an annual basis and never had an issue with it. We're upfront about us doing that when they sign and we give the required notice in writing. In this market a 2% increase is cheap compared to what's out there. Our approach to renters is that we treat them respectfully and are professional about everything - clear notice/expectations, fast responses from our side to problems, meet or exceed any legal requirements, etc so a rent increase is hard to consider unreasonable.

[Alpine]

Originally Posted by mikemhg

Holy fuck I haven't heard the name Lineage in a while.

I used to play Lineage 1: The Blood Pledge back in the day.

Sold my LVL 52 knight for $3K at 18 years old to some Korean dude and never looked back

LVL 52? Fuck. I couldn't get to 50 because it took 300 hours for 1 level, and I would lose 30 hours with each disconnect.

[Badhobz]

Lineage 2 was a lot worse than lineage 1. TOTAL GRIND FEST. i paid a lot of money to russian botters