Mortgage Rules

[Taipan]

I'm so glad the international jet setters like Taipan focus on the Vancouver market. It's funny that he and his super rich friends all focus on our market, and when theories come up about big foreign money keeping our prices high, he laughs it off...

No im just here laughing at the silly old bulls and the craziness of the Vancouver market. They will write psychology and economics papers on the extreme's that can occur in the market based on Vancouver.

I wouldnt buy in Vancouver and it was given to me - id sell it as quick as I could.

[Writeoff]

FYI... All the new Mortgage applications with be underwritten based on the new guidelines. It is only the applications that were and are in the pipeline will have the old rules applied. Its over people. Flippers are dead.

[timber2012]

FYI... All the new Mortgage applications with be underwritten based on the new guidelines. It is only the applications that were and are in the pipeline will have the old rules applied. Its over people. Flippers are dead.

Does anybody know anybody that has bought real estate in the past 2 years for flipping purposes?

I think they died a LONG time ago. Most realtors don't believe in their product anymore.

[jesse1]

Does anybody know anybody that has bought real estate in the past 2 years for flipping purposes?

Does spec building count? If so then yes I do know someone who bought in the past 2 years with the express purpose of selling as quickly as possible. But I think that's not flipping because she doesn't look like this guy:

[timber2012]

Does anybody know anybody that has bought real estate in the past 2 years for flipping purposes?

Does spec building count? If so then yes I do know someone who bought in the past 2 years with the express purpose of selling as quickly as possible. But I think that's not flipping because she doesn't look like this guy:

I think with spec building you are adding value to something. You should get paid for that.

[jesse1]

I think with spec building you are adding value to something. You should get paid for that.

OK sure, I used to malign flippers, but found the line rather grey with a scant few exceptions. A friend's rental suite is owned by a guy who has stated he may sell at any time, has been saying that since he took possession. Not a pure flipper I guess but has some flipper-like qualities.

I have to admit, as perverse as it sounds, I think flippers are a great supplement that ensures distressed market turnover of properties owned by people with real jobs.

[tdma800]

I think with spec building you are adding value to something. You should get paid for that.

OK sure, I used to malign flippers, but found the line rather grey with a scant few exceptions. A friend's rental suite is owned by a guy who has stated he may sell at any time, has been saying that since he took possession. Not a pure flipper I guess but has some flipper-like qualities.

I have to admit, as perverse as it sounds, I think flippers are a great supplement that ensures distressed market turnover of properties owned by people with real jobs.

Well, tell your friend to make sure to ask for 1 month free rent when he gets notice to get out.

[Warren12]

I think with spec building you are adding value to something. You should get paid for that.

OK sure, I used to malign flippers, but found the line rather grey with a scant few exceptions. A friend's rental suite is owned by a guy who has stated he may sell at any time, has been saying that since he took possession. Not a pure flipper I guess but has some flipper-like qualities.

I have to admit, as perverse as it sounds, I think flippers are a great supplement that ensures distressed market turnover of properties owned by people with real jobs.

Well, tell your friend to make sure to ask for 1 month free rent when he gets notice to get out.

You don't have to ask.

[tdma800]

Yes i know, and another fun thing he can do is when he moves out, don't ask for the deposit. just hand over the keys and a piece of paper with your address on it and say "thanks!" and wait 15 days and pray he doesn't get the deposit back, and then , he can ask for double the money back - lol

[jesse1]

and another fun thing he can do is when he moves out

He's been in the place for 4 years, I might think there's no imminent danger of that, never mind the new owner might just want to keep on renting it out. The LL had said he wants the unit vacant when he tries to sell. My friend LOLed; true to form he's still there living the dream.

[tdma800]

and another fun thing he can do is when he moves out

He's been in the place for 4 years, I might think there's no imminent danger of that, never mind the new owner might just want to keep on renting it out. The LL had said he wants the unit vacant when he tries to sell. My friend LOLed; true to form he's still there living the dream.

thats actually not allowed to have a vacant unit when he tries to sell unless he moves into the unit himself(or his wife or kids)

[timber2012]

Back to the topic -

how does the new mortgage rules effect the typical home in the greater vancouver area?

I say it has no effect.

[eyesthebye]

Back to the topic -

how does the new mortgage rules effect the typical home in the greater vancouver area?

I say it has no effect.

it'll only effect first time buyers - unless those first timers are wealthy asian.

[jesse1]

unless those first timers are wealthy asian

Or Albertan. Or Californian.

[ArthurFonzarelli]

Back to the topic -

how does the new mortgage rules effect the typical home in the greater vancouver area?

I say it has no effect.

I'm surprised you would say that. It seems to me that the bit of hard data we have on this is that 40% of mortgages nationally are 30 year terms. Ceteris paribus, it should be >40% in local markets with higher price:income ratios. Going forward, you have to assume that some (I think a high) proportion of people will still be purchasing based on their present carrying costs, which just went up for probably half of the local market, give or take. Polls have shown that a high percentage of people are maxxing out based on what they can afford at present rates and taking the longest possible terms to get into this "crazy" market. So I think it will have a huge impact in Vancouver proper - less so in the less inflated markets where price:income isn't so outlandish. In terms of product mix, everyone said houses were immune to the downturn pre 2008 as well but SFHs crashed more than other product mixes at the time, non? But for the specker condo flipper covering that mortgage payment with rental income just got a whole lot harder than it was with a 40 year term so even though it hasn't appreciated as rapidly that segment should be in for a smack in the pants too, methinks.

Am I missing something here, Timber? Why don't you think it will have an impact?