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  #9261  
Old Posted Jan 25, 2019, 8:59 AM
ssiguy ssiguy is offline
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With all the condos built over the last 20 years you would think there would be a lot of rentals available but such is not the case.

There are several reasons for Vancouverès rental crisis. First and formost is the sky high price of real estate. In nearly every other Canadian city people who have decent incomes can buy a house if they want to and nearly everyone could at least get a condo but not in Vancouver. Now even condos are becoming the perfew of only the upper incomes. In other words Vancouver has tens of thousands of people who would have bought homes in the rest of the country forced to stay in the rental market. This is why high real estate and high rental prices go hand in hand as do rental shortages.


Second, all the condos built often have very few actual residence. In every other place on the planet when housing is built it is for people to live in but not Vancouver. Often they are left completely empty and then flipped to the next buyer who leaves them empty and flips them again. Many condos in Vancouver are bought enmasse by Chinese `investors` and flipped well before the building is even built. The empty house tax means nothing to these people............ 10k fine is their kids monthly allowance.


The city and all the cities of Metro have gone out of their way to make housing destruction easy hence driving up the price of the land itself and yet allow more SFH to take their place. The vast majority of greater Vancouver {änd the city itself} is zoned for SFH Vancouver also has very low municiple tax rates which makes flipping and leaving homes vacant even more profitable.


Funny I was listening to CBC Radio One today and they had the Richmond CoC on talking about how the extreme cost of living is causing hardships in getting and retaining staff. A survey of it`s member said that 81% could not get/keep staff entirely due to the lack of affordable housing within commuting distance. One business person was talking and he runs a law firm and he said that for the first time in their 40 year history they can`t keep lawyers or para-legals due to the cost of housing. He said one of his lawyer`s {who`s wife is also a lawyer at a different firm} recently quit because they couldn`t find a decent house to buy that they could realistically afford and so they moved to Saskatoon. When law firms can`t find help you have a real crisis on your hands.
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  #9262  
Old Posted Jan 25, 2019, 2:53 PM
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Beer cost me an arm and a leg when I was last in Oz. I recall going to a supermarket (Equivalent of Superstore), and my six-pack of VB was 24$Aus. I thought there was a mistake and that the cashier had scanned it twice. A real downer, for down-under.

Otherwise, I really love Australia.
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  #9263  
Old Posted Jan 25, 2019, 7:28 PM
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Finally! Shadow banking has been rising at an alarming rate:

Canada is considering subjecting private lenders to the same mortgage stress test rules faced by banks to prevent housing markets from being destabilized by the lenders’ rapid growth, three sources with direct knowledge of the matter said.

Officials from the country’s finance ministry, financial regulator, central bank and federal housing agency have discussed whether the private lenders’ expansion over the past year poses a threat to economic stability, said the sources, who declined to be named because the talks are confidential.

Private lenders, usually groups of wealthy individuals, currently account for around one-tenth of Canada’s $1.5 trillion mortgage market, according to economists, and are still dwarfed by banks but their growth has accelerated since rules introduced by the country’s financial regulator last year made it harder for banks to grant loans...


https://business.financialpost.com/r...lenders-growth
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  #9264  
Old Posted Jan 25, 2019, 8:17 PM
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Originally Posted by SpongeG View Post
I found it either the same or slightly cheaper than Canada. Uniqlo, H&M prices were the same or cheaper than here. Food was cheap at the Grocery stores I went to. Imported stuff and brands could be expensive though. I found dairy products much cheaper than BC, you could get 1kg of cheese for $8.99 at coles, 1 kg of cheese at walmart in Vancouver is like $18+. Milk was at least $2 cheaper than BC.

Fuel was cheaper than Vancouver. Was around 120 - 130.5 when I was there last summer, Vancouver was around 140.9 at the same time.

The dollars were at par, Canada was slightly higher but credit cards didn't reflect that.
Funny, I found it expensive compared to Toronto.

Its very easy to find cheap groceries, restaurants, clothing here.

Perhaps this is not the case for Vancouver.

I came away with the idea that Australia is expensive since basically most things are imported to a small out of the way market. As opposed to say Ontario which is in the middle of a huge NA market and supply chain.
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  #9265  
Old Posted Jan 25, 2019, 8:23 PM
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My uncle travels from Sydney to North America once every year or so and literally brings back an extra suitcase of clothing, electronics and other specialized goods. And always mentions how much cheaper meals out and things like craft beer are.

I do believe groceries are a bit cheaper in Toronto than in Western Canada, so maybe that's part of the difference compared to Vancouver. H&M is almost exactly the same price wherever I have traveled, including Sweden. Which is either an incredible deal or very expensive in some cases.
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  #9266  
Old Posted Jan 31, 2019, 3:14 AM
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New Vancouver immigrants are spending $824,000 more on houses

Greg Quinn and Erik Hertzberg, Bloomberg News


Amanda Lang: When global markets set home prices, local residents are poised to get priced out
Vancouver homes purchased by recent immigrants are worth a third more on average than those owned by Canadians, a government study found.

People who moved to the Pacific coast city between 2009 and 2016 own 5 per cent of the detached properties, which are worth $2.34 million on average, or $824,000 more than those owned by people born in Canada, Statistics Canada reported Tuesday. The gap in Vancouver prices is much larger than for immigrants who arrived earlier, and the same pattern doesn’t hold for Toronto, the agency said.

The report is one of the most detailed yet on immigration and housing in Vancouver and Toronto, the nation’s two most-expensive real estate markets. Policy makers are seeking to get a handle on the decade-long housing boom that drove prices to unprecedented levels, creating record household debt burdens and an affordability crisis.

Tuesday’s report said the role newcomers play in the Vancouver and Toronto real estate markets reflects the large share of the population they represent in each city. Immigrants own 37 per cent of homes in Vancouver and made up 41 per cent of the population in 2016, while in Toronto they own 43 per cent of homes and were 46 per cent of the population.



...

https://www.bnnbloomberg.ca/new-immi...uses-1.1205881
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  #9267  
Old Posted Feb 1, 2019, 5:34 PM
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We've passed peak real estate.

Toronto new home sales plunge to lowest in almost 20 years as unsold condos pile up

New home buyers finally reached their limit in Toronto last year.

After years of frenzied price increases, sales of new homes in Canada’s biggest city sunk to the lowest in almost two decades in 2018 and the supply of unsold condos piled up, according to a pair of new reports released Friday.

“Greater caution” should be taken when investing in new condo units, particularly over the short-term, as trends point toward slower appreciation, Shaun Hildebrand, president of condo research firm Urbanation, said in the report. The “market has started to normalize after unprecedented activity in recent years.”

Toronto’s housing market is dramatically cooling after higher interest rates and new mortgage regulations bite. The city joins other global metropolises such as London and Sydney seeing a slowdown as international investors retreat and domestic buyers balk at higher prices...


https://business.financialpost.com/r...iraling-prices

Cue the federal government to try and unwind some of the needed reforms they introduced to cool the market.

And of course Alberta bring us that idiot Jason Kenney saying he'll ask the Feds to roll back the mortgage stress test for Alberta, because you know, it's the stress test that is the real big problem for AB real estate!
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  #9268  
Old Posted Feb 1, 2019, 5:41 PM
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I dunno.. I am not necessarily against tightening mortgage rules but I don't think credit is the root cause.

Our recent credit binge in Canada didn't cause the price of shirts or potatoes to spike. Our consumption of housing hasn't changed that much either.

What's changed, I think, is that there's a huge focus on urbanization and immigration yet our cities are extremely inflexible. We're not expanding the stock of attractive real estate enough so people are packing into the existing stock more and more and speculation is rewarded.
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  #9269  
Old Posted Feb 1, 2019, 6:12 PM
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Originally Posted by whatnext View Post
that idiot Jason Kenney saying he'll ask the Feds to roll back the mortgage stress test for Alberta, because you know, it's the stress test that is the real big problem for AB real estate!
More proof that Kenney is literally too stupid to govern, as he cannot get his head around basic numbers. Albertans are still amongst the highest earners in the country and our house prices are reasonable, so if someone is impacted by stress test rules here then it is quite right that they should be prevented from being given an irresponsible mortgage.
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  #9270  
Old Posted Feb 5, 2019, 5:21 PM
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From Bloomberg...

Quote:
Biggest Vancouver Home Price Fall Since 2013 Is Just Tip of Iceberg

Vancouver began the year with benchmark home prices falling the most in almost six years, according to the local real estate board. That may be just the tip of the iceberg.

Metro Vancouver’s composite home price, including houses, condominiums and townhouses, fell 4.5 percent in January from a year earlier to C$1.02 million ($780,000), the biggest decline since May 2013 and down about 8 percent from the June 2018 peak, according to the Real Estate Board of Greater Vancouver.

....


"It may be simple to summarize the slowdown as a few local tax policies and tightening of lending standards, but in reality it’s much more complicated,” says Saretsky, who’s now trying to explain the darkening macro picture in a market where many locals have long considered home price appreciation unstoppable.

He rattles off troubling indicators, such as the 19.5 months of unsold inventory languishing on the market. The benchmark composite price is a “lagging index” and doesn’t capture the full picture, since detached houses have been falling for nearly two years and are down 12.8 percent from their peak, says Saretsky.

The top end of the market driven largely by foreign buyers, especially Chinese, has been the hardest hit. Prices in posh West Vancouver have plunged 14 percent in a year.

“These homes in West Van were selling for C$12 million, C$13 million two years ago,” says Adil Dinani, a realtor with Royal LePage, a unit of Brookfield Real Estate Services Inc. “Agents are asking me to throw them off for anything -- C$8 million, C$8.5 million, whatever it is.”

Dinani, who’s been in the business for 14 years, says there are fewer speculative investors, and foreign buyers have really pulled back. “And what local buyer has C$6 million, C$7 million to put towards a home?” he said.
https://www.bloomberg.com/news/artic...tip-of-iceberg

Quote:
Toronto New Home Sales Plunge as Buyers Reach Price Limit

New home buyers finally reached their limit in Toronto last year.

After years of frenzied price increases, sales of new homes in Canada’s biggest city sunk to the lowest in almost two decades in 2018 and the supply of unsold condos piled up, according to a pair of new reports released Friday.

“Greater caution” should be taken when investing in new condo units, particularly over the short-term, as trends point toward slower appreciation, Shaun Hildebrand, president of condo research firm Urbanation, said in the report. The “market has started to normalize after unprecedented activity in recent years.”

Toronto’s housing market is dramatically cooling after higher interest rates and new mortgage regulations bite. The city joins other global metropolises such as London and Sydney seeing a slowdown as international investors retreat and domestic buyers balk at higher prices.
https://www.bloomberg.com/news/artic...premium-canada
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  #9271  
Old Posted Feb 5, 2019, 11:41 PM
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With Canada increasing immigration numbers could that have an effect on things though? 330,000 immigrants for 2019 and going up in 2020 again. They will need housing most likely in Vancouver and Toronto.
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  #9272  
Old Posted Feb 6, 2019, 4:27 AM
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Just like oil, the Vancouver/Toronto housing megaboom had to end sometime.
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  #9273  
Old Posted Feb 6, 2019, 4:55 AM
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Originally Posted by Chadillaccc View Post
Just like oil, the Vancouver/Toronto housing megaboom had to end sometime.
Oil went down due to competition abroad and less oil being used. Housing here has little competition and more people are using housing each day.
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  #9274  
Old Posted Feb 6, 2019, 6:16 AM
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Originally Posted by niwell View Post
My uncle travels from Sydney to North America once every year or so and literally brings back an extra suitcase of clothing, electronics and other specialized goods. And always mentions how much cheaper meals out and things like craft beer are.

I do believe groceries are a bit cheaper in Toronto than in Western Canada, so maybe that's part of the difference compared to Vancouver. H&M is almost exactly the same price wherever I have traveled, including Sweden. Which is either an incredible deal or very expensive in some cases.
eating out is very expensive there. All the bars I went to a single beer from a tap was $15. $10 for a drink at happy hour was considered cheap. Cocktails seemed to be $17 & up outside of Happy Hour prices.

They have TK Maxx there, or Winners as we call them in Canada, I found the prices to be the same, a belt that sells for $19.99 here was $19.99 there. Almost everything I compared was about the same price.

A chicken Caesar salad was about $25 or more at a restaurant. A burger at a restaurant was pushing $30. For one lunch they had a special it was a basic burger with fries and a beer for $30 for their Lunch time special. same thing was more than that at dinner. McDonalds cost more, the cheapest coffee I saw was $4.50 at fast food places and cafes etc. Starbucks was actually the same price we pay in Vancouver. about $6.50 for a venti soy chai.

Costco was pretty cheap I thought.

The M&Ms were cheap. We pay $14.99 for the same




They sell Method at David Jones a pretty expensive dept store. $6.95. Its usually $5.99 here.




anyway going off topic.
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Last edited by SpongeG; Feb 6, 2019 at 6:28 AM.
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  #9275  
Old Posted Feb 7, 2019, 6:36 PM
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Cars are super expensive in Australia too. A Toyota sedan will cost you 911 money, and a 911 will cost you Ferrari money.
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  #9276  
Old Posted Feb 7, 2019, 9:10 PM
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Heard another talk on CBC which is having a week long program on the affordability crisis. This time it was about teachers. BC teachers have the 2nd lowest starting wage in the country and due to always starting at part-time and fill in positions till they get a full time job, they can`t survive. They said they are also losing a lot of those newer full time teachers as they can`t afford to stay.


They are looking at alternatives and of course one of the things on the table is government rental accommodation which they are trying in North & West Vancouver. Very pathetic and crisis level when you have to build rental stock for teachers as UBC has had to do for profs.


I am VERY strongly opposed to this. There are thousands of people on the waiting lists for government/subsidized rental accommodation as it is so building for teachers who already have a decent income smacks of elitism and the teacher`s union influence. There are people in far more dire straights and they should be given 100% priority. If a teacher, due to low pay scales as in BC, qualify for housing then they should have to wait in line like everyone else with priorities placed on the already homeless, disabled, and single parents.

Another consequence of building an economy based on real estate flipping..........it strangles the rest of the economy and forces well educated young professionals out of the province. This is why BC has a critical lack of skilled & professional labour despite having good schools. As the Boomers continue to retire, there is no one to take their place.
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  #9277  
Old Posted Feb 8, 2019, 12:46 AM
khabibulin khabibulin is offline
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Originally Posted by misher View Post
Oil went down due to competition abroad and less oil being used. Housing here has little competition and more people are using housing each day.
Oh really? Use of crude oil worldwide has increased almost 20% since 2009. From 84.3 M bpd to 99.3 M bpd.

https://www.statista.com/statistics/...nd-since-2006/
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  #9278  
Old Posted Feb 13, 2019, 5:54 AM
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‘Non-individuals’ own 10% of B.C. residential property: CMHC

Non-individual ownership in Kelowna outstrips that in Vancouver

By Tyler Orton | February 12, 2019

Nearly one in 10 residential properties in B.C. are owned by “non-individual entities,” according to the Canada Mortgage and Housing Corporation (CMHC).

Tuesday’s (February 12) report from the Crown corporation finds that non-individual ownership of residential properties amounts to 9.8% in B.C. and 5.6% in Metro Vancouver.

Kelowna has the highest rate of non-individual ownership among the province’s metro areas at 7.6%, while non-individual ownership amounts to 15.8% outside urban regions.

The CMHC defines non-individuals as corporations, governments, sole proprietorships and partnerships.

...

https://biv.com/article/2019/02/non-...3hSLY_xiqmlkmg
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  #9279  
Old Posted Feb 13, 2019, 11:31 PM
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Any idea how the decline in that 5% gst from new home sales I s going to affect the federal budget? I imagined it would be a large chunk.
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  #9280  
Old Posted Feb 24, 2019, 4:26 AM
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#1 Toronto has almost double the amount of construction cranes as 2nd place Seattle, even as the air slowly hisses out of the condo bubble.

Cracks appear in Toronto’s new-build condo craze as the investor-supported frenzy fizzles

...From a distance, Toronto’s preconstruction condominium market has looked like the last remaining bubble in the city’s overheated real estate market, with prices hitting a record high in 2018 and the average unit selling for more than $1,000 a square foot in central Toronto, according to industry data-tracking firm Urbanation Inc.

Even across the Greater Toronto Area, which includes vast suburbs, the price of a preconstruction condo climbed 56 per cent over the past two years to a record $921 a square foot, says Urbanation, which estimates the average unit sold for $625,000 in 2018.

But on the ground, there are signs the new-construction market is cooling and sales are moving back down to more normal levels. The number of preconstruction condo units sold in the GTA fell 42 per cent in 2018 from the previous, peak year, as demand for new projects slowed and long lineups virtually disappeared at sales centres...

...One big reason has been growing cautiousness among investors – those buyers who intend to flip or rent out their units. They have been key to the new-build market, buying about half the units sold in the Toronto area in recent years – and creating the largest supply of rental units in the city.

Rental price growth fuels the investor market, but the math is not working as well these days: Interest-rate increases and rising sale prices have left costs outstripping rents, with owners having trouble covering their monthly expenses and facing lower potential profits....

...Many are now watching Vancouver, where sales of preconstruction condo units fell 15 per cent in the first nine months of 2018 and average sale prices slid almost 15 per cent between the first and third quarters as investor activity cooled, according to data firm Altus Group.

Toronto may not follow the same pattern, and many builders say new-construction sales are simply stabilizing at a historically normal level after an unnatural frenzy in 2017.

But some analysts fear a more significant hit could be coming as a flood of new supply comes on the market, potentially easing the city’s ultralow vacancy rate and limiting rent increases for investors...


https://www.theglobeandmail.com/busi...-condo-frenzy/
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