Real Estate Talks

Desirable markets down south showed rents remaining strong, and subsequently skyrocketing shortly after their RE fiasco.

I would expect the same here;

•  Increase demand for Vancouver once (if?) prices ever reach lower levels.
• Inability of new residents to buy due to multitude of issues;

1. Credit restrictions
2. Transient nature of job opportunity
3. Perceived fear of RE market

• Strong rental increase with stagnant or inflation level price rises, leading to compelling ownership metrics.

I think the stage is set for this - this town is booming; film, tech, mining, its all go. This is already leading to record rent increases.

Throw in reduced housing purchase costs and some long time fundamentals will begin to turn in favour of the investor vs speculator.

I think the majority of this was Credit Restrictions...You had a revamping of Fannie and Freddie as well as many people who suffered collateral damage in the downturn. People that were unaffected as far as their employment situation but were caught in the ARM resets with underwater assets nonetheless.

You wont see people renting homes to leave them vacant here....That makes no sense. Maybe the Folks in Shaughnessy and Point Grey should watch "Animal House"?
I think the 1600 Students who need a place to live will be finding rentals on WeChat.....



 

Numerous studies have shown that a very high percentage of Canadians are living "pay-check to pay-check".

When the economy turns down, people lose their jobs, others may keep their jobs but lose their overtime. If they belong to the "pay-check to pay-check" crowd they will not be able to pay their mortgages, the lenders will forclose, sell the homes for whatever offer they can get, and then go after the hapless debters for any shortfall.

Here is what The Financial Times discovered:

http://business.financialpost.com/perso ... io-and-b-c

Almost half of Canadians polled said they are living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week. The situation is worst in Ontario, British Columbia and Atlantic Canada.

Less than one quarter of respondents said they could probably not come up with $2,000 if an emergency arose within the next month. Some 36 per cent of working Canadians said they felt overwhelmed by their level of debt and 12 per cent doubted they’ll ever be debt-free.

Numerous studies have shown that a very high percentage of Canadians are living "pay-check to pay-check".

When the economy turns down, people lose their jobs, others may keep their jobs but lose their overtime. If they belong to the "pay-check to pay-check" crowd they will not be able to pay their mortgages, the lenders will forclose, sell the homes for whatever offer they can get, and then go after the hapless debters for any shortfall.

Here is what The Financial Times discovered:

http://business.financialpost.com/perso ... io-and-b-c

Almost half of Canadians polled said they are living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week. The situation is worst in Ontario, British Columbia and Atlantic Canada.

Less than one quarter of respondents said they could probably not come up with $2,000 if an emergency arose within the next month. Some 36 per cent of working Canadians said they felt overwhelmed by their level of debt and 12 per cent doubted they’ll ever be debt-free.

How many of these guys living pay check to pay check managed to save up 600-700K for a down on a house? I would argue the pay check to pay check people live in cheaper condos out east, Langley and Maple ridge. you don't have great saving habits and all of a sudden live in the poor house after buying a place.
Cheaper condos, and new developments might get destroyed however if the perfect storm comes with un employment. Rising interests rates and panic selling. Where everyone mortgage resets at the same time and everyone is of the working class pool with mortgages as opposed a established neighborhood with a mosaic of people owing and owning outright with strong equity  

The source of that latest reference to our crash

Quoted for future reference.
We're in a market crash folks...Rentah is calling it.

Wow, you are so forgetful, you seem to have the attention span of a humming bird and you are confusing words like "apparently", "probable" and "downturn" with an absolute declaration of the bubble having already burst. I'm certainly calling a bubble but please re-read the comment I posted yesterday, the one you already seem to have forgotten. Here it is again for the slow learners:

"Agreed, hence my statement yesterday:
"I think it may be well beyond October before we know with any certainty that the bubble has burst. If it follows the typical pattern there should be a sharp drop (which already appears underway), followed by a modest but short-lived recovery, followed by a massive collapse. It could be next spring before the really big plunge."

Working people with a motgage of 1 million?
Working class folks with 500k mortgage?
Fuck that's funny.

Lol yeah, how many 1 million dollar mortgages are there in Vancouver to working class?

I duno where you live, but you are out of touch with the city. As someone who lived in east van for the past 30+ years I can tell you the average detached home owner is not some young hot shot power couple. East van is way to un hip for that. That's what Yale town is for.

East van is either old families from pre 80's or working class Asian from Hongkong / Taiwan from early 2000 or new mainland Chinese.

Btw most basement suites are run by the Asians, its in the culture to maximize profits. Even if they don't need the money they will rent it out anyways. It's considered free money.

I just don't see people dropping all their money to live in east van, especially since it requires such a huge down payment. If they were able to save $500+ k they would not be stupid enough to live cheque to cheque. That type of lifestyle would be suited for downtown or out east.

Then again it's just here say.. This is my .02 from my experience and understanding


Btw is bought my place in east van in 2011, I got a 700k cheque from the bank of mom day and 100 of my own from the sale of my apartment in Burnaby. With a montage of 300k. That's my situation, so it's not like I'm saying all this stuff with bull goggles on for my survival.


A dip would help me out because I'm here long term for my kids, and I don't qualify for grants because of assed value. It's a $7,000 a year tax bullet every year.

If two working professionals can qualify for 1 million mortgage with no CHMC that means +200,000 K down payment minimum + 150-200k year combined income.

The chances are they are no idiots, some of them living pay cheque to pay cheque plossible but majority of them doing that? Highly unlikely

If two working professionals can qualify for 1 million mortgage with no CHMC that means +200,000 K down payment minimum + 150-200k year combined income.

The chances are they are no idiots, some of them living pay cheque to pay cheque plossible but majority of them doing that? Highly unlikely

Perfect example.
Two working professionals, each making $100k / year - pretty much exactly where our government punishes those who do a little better than average. They would pay about 25% in income takes. Combined take home pay is $150k, or about $12,500 / month. Seems like a lot?
With their mortgage, property taxes, house maintenance, utility bills, insurance, etc. their housing costs are probably approaching $6k / month. Car payments , gas and insurance are $1k  month.
That leaves them about $150 / day (or $75 each) to pay for all their food, housing supplies, entertainment, lunches (these are working professionals), retirement savings, clothes, haircuts, vacations, etc.  That's not even considering if they have children.
Don't know the actual stats, but I wouldn't be surprised if more of these heavily indebted working professionals are living paycheck to paycheck than we might thing.

Working people with a motgage of 1 million?
Working class folks with 500k mortgage?
Fuck that's funny.