The coming housing correction in Vancouver and Toronto. Jim Flaherty’s mortgage reforms tried to protect Canadian buyers and Canada’s capital requirements for banks should protect them. Too bad for the new, young owners.
The coming housing correction in Vancouver and Toronto. Jim Flaherty’s mortgage reforms tried to protect Canadian buyers and Canada’s capital requirements for banks should protect them. Too bad for the new, young owners.
Sorry to be off topic but I had to post this,
Justin Trudeau is changing our national anthem to make it gender neutral
http://www.torontosun.com/2016/06/03/national-anthem-rewrite-is-an-insult-to-women
As long at there are tens of millions of Chinese and eastern European gangsters looking for somewhere to run to safety after they have bled their own countries dry, there is a lot of room for the price of Canadian real estate to rise. We will have cities full of vacant houses and Canadians will have nowhere to live.
From the visual capitalist:
http://www.visualcapitalist.com/vancouver-real-estate-mania/
Pardon me , but who the F’K are the CCEC?.. Toronto bozo’s have been calling this “Bubble” for 10 years. The only real driver in the Vancouver economy right now is the construction industry. Kill that, you kill Vancouver(the West).. So mind yr own F’kin business East.
Have been following this for over a year as ZH has been extensively documenting the Vancouver housing bubble. I’m just glad that I got out of Vancouver when I did and moved to the S interior of BC. Being in a moonbat free environment is so refreshing.
Housing prices have gone up in the interior and I’ve talked to lots of ex-Vancouver people who sold their house in Vancouver for >$1 million and for less than half that amount bought a house locally which was considerably larger than their Vancouver home. Their primary concern was inability to find a local GP and having to drive back to Vancouver to see their previous GP. Fortunately I moved out of Vancouver before the local price rise and primary effect on me has been increased municipal taxes due to increased assessed value of my property.
The thing people forget about house prices is that, until one sells their house, one doesn’t know the true value. In order to sell one of the multi-million dollar decrepit Vancouver houses, one has to find a buyer. The outflow of Chicom money won’t last forever and, when TSHTF, the last place any sane person would want to be is in Vancouver.
Every time I go to Vancouver, I marvel that I lived there as long as I did and have an intense desire to leave as soon as possible. The W. end of Vancouver is the safest place to be in an earthquake, but I wouldn’t want to see if the massive new highrises can withstand the next earthquake if I was walking beside them. The best thing about Vancouver is, now that the Port Mann bridge has higher capacity, one can leave the city at a minimum speed of 120 kph and not hit any traffic jams.
I note that the visualcapitalist link has Expo86 as a pivotal moment in Vancouver history. Prior to that, I really enjoyed living in Vancouver and couldn’t imagine living anywhere else. Expo86 changed everything and the Chinese started flooding into the city and it’s now basically just a shithole with nice views. I should have suspected something major was going to happen when I did my obstetrics rotation in 1991 and over half of the babies I delivered were to mothers from Hong Kong who were emigrating to Canada by having a child who was a Canadian citizen. The only good thing about the massive immigration to Vancouver is that virtually all of these people have no interest in living in “redneck country” and want to be in large cities.
It’s nice to have a house, but mine is paid off and all my future purchases are going to be survival supplies as, given the current very unstable world economic situation, things have nowhere to go but down.
Here’s another driver. Governments derive huge amounts of revenue from home sales…and the more expensive the home, the more cash that rolls in.
In the GTA, land transfer taxes alone amount to $27,950.00 on the sale of the average home – half goes to the province, the other half to Toronto. And I haven’t even touched the billions that roll into federal coffers because of capital gains taxes.
Our son works for a large landscaper in the lower mainland area. This business did the landscaping around the new Port Mann bridge and the new highway around Golden. Last year they did landscaping at a home that was built from marble and cost $300 million. They had machines inside to blow garden soil into garden plots inside the home.
I asked if the owner was Oriental and he said, “No, Caucasian.”. I did not ask further questions as he could not tell me who the owner was even if he knew the name. I’m guessing Russian oligarch.
Feel bad for the young people? Hell, no. They bought those houses/properties with eyes wide open and not under duress. If they didn’t know better or overtaken by greed of “it’s a mil now, it’ll be worth two when we sell!!”, that’s not my problem. They likely believe in Darwinism, too; seems like the fiscal version of it.
Why are banks lending money for a one million dollar home when the average family income is 76,000.00 ? If foreigners wish to by houses at far more than they are worth , let them. If you own one of those homes , sell it to them. Take a 100,000 buy a real nice home in a small town on the parries and go south for the winter. It isn’t the governments fault if banks lend money to people who can’t pay it back. And there is no way taxpayers should bail them out apron failure. So beware of the new rules in the budget which allow banks to turn your deposits into “equity “.
“Higher down payment requirements that took effect in February have made virtually no difference and the heads of the Bank of Nova Scotia and National Bank have both called for minimum payments to be increased again.”
The policy protects the “Lenders” from default…..Those without the means to pay, or mere speculators are financially locked out….Does nothing, but reduce risky buyers…
The Banks can, in fact, set their own lending practices. This policy conflict suggests taxpayer’s are underwriting the loans.
“Justin Trudeau is changing our national anthem to make it gender neutral”
I choose to sing it in the original French. No pandering to every flaky trend in these lyrics:
“O Canada!
Terre de nos aïeux,
Ton front est ceint de fleurons glorieux.
Car ton bras sait porter l’épée,
Il sait porter la croix.
Ton histoire est une épopée,
Des plus brillants exploits.
Et ta valeur, de foi trempée,
Protégera nos foyers et nos droits.
Protégera nos foyers et nos droits.”
Moi aussi, JJM.
JJM, the original French goes as:
Sous l’œil de Dieu, près du fleuve géant,
Le Canadien grandit en espérant.
Il est né d’une race fière,
Béni fut son berceau.
Le ciel a marqué sa carrière
Dans ce monde nouveau.
Toujours guidé par sa lumière,
Il gardera l’honneur de son drapeau,
Il gardera l’honneur de son drapeau.
De son patron, précurseur du vrai Dieu,
Il porte au front l’auréole de feu.
Ennemi de la tyrannie
Mais plein de loyauté,
Il veut garder dans l’harmonie,
Sa fière liberté;
Et par l’effort de son génie,
Sur notre sol asseoir la vérité,
Sur notre sol asseoir la vérité.
Amour sacré du trône et de l’autel,
Remplis nos cœurs de ton souffle immortel!
Parmi les races étrangères,
Notre guide est la loi :
Sachons être un peuple de frères,
Sous le joug de la foi.
Et répétons, comme nos pères,
Le cri vainqueur : “Pour le Christ et le roi!”
Le cri vainqueur : “Pour le Christ et le roi!”
Under the eye of God, near the giant river,
The Canadian grows hoping.
He was born of a proud race,
Blessed was his birthplace.
Heaven has noted his career
In this new world.
Always guided by its light,
He will keep the honour of his flag,
He will keep the honour of his flag.
From his patron, the precursor of the true God,
He wears the halo of fire on his brow.
Enemy of tyranny
But full of loyalty,
He wants to keep in harmony,
His proud freedom;
And by the effort of his genius,
Set on our ground the truth,
Set on our ground the truth.
Sacred love of the throne and the altar,
Fill our hearts with your immortal breath!
Among the foreign races,
Our guide is the law:
Let us know how to be a people of brothers,
Under the yoke of faith.
And repeat, like our fathers,
The battle cry: “For Christ and King!”
The battle cry: “For Christ and King!”