Canada Housing/Debt: Trust me, I'm a landlord.

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Lexicon: Jul 29, 2003; I had a beer with Stephen Harper once and now I like him.

Franks Happy Place posted:

All fair points. We disagree, but definitely not in a way I think you're nuts or anything.

edit: for additional perspective on my position: I'm wayyyyy more bearish on CAD than I am on Canadian equities. They'll beggar the currency if that's what it takes to keep boomer's valuations in the stratosphere.

# ? May 14, 2015 23:55

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# ? Jun 5, 2024 21:11

Franks Happy Place: Mar 15, 2011; It is by weed alone I set my mind in motion. It is by the dank of Sapho that thoughts acquire speed, the lips acquire stains, stains become a warning. It is by weed alone I set my mind in motion.

Lexicon posted:

edit: for additional perspective on my position: I'm wayyyyy more bearish on CAD than I am on Canadian equities. They'll beggar the currency if that's what it takes to keep boomer's valuations in the stratosphere.

Right, which is why USD-denominated equity ETFs are my beautiful shining star. My USD etfs went up like 25% last year when converted back to CAD.

# ? May 15, 2015 00:05

etalian: Mar 20, 2006

Lexicon posted:

edit: for additional perspective on my position: I'm wayyyyy more bearish on CAD than I am on Canadian equities. They'll beggar the currency if that's what it takes to keep boomer's valuations in the stratosphere.

a currency stable like the Canadian economy

# ? May 15, 2015 01:22

cowofwar: Jul 30, 2002; by Athanatos

I think Harper's PR people keep leaving because they get tired of the one page mad libs where every second word is "strong" or "stable".

Although my least favorite political phrase by far is "dirty tricks". I can't take an adult saying that seriously.

# ? May 15, 2015 01:34

Bloody Hedgehog: Dec 12, 2003; 💥💥🤯💥💥
Gotta nuke something

cowofwar posted:

Although my least favorite political phrase by far is "dirty tricks". I can't take an adult saying that seriously.

This. Politicians might as well be complaining about the oppositions "nefarious schemes", it sounds so ridiculous.

# ? May 15, 2015 01:44

etalian: Mar 20, 2006

cowofwar posted:

I think Harper's PR people keep leaving because they get tired of the one page mad libs where every second word is "strong" or "stable".

Although my least favorite political phrase by far is "dirty tricks". I can't take an adult saying that seriously.

Even better the prime minister doesn't have term limits so hopefully future generations can have even more Harper brilliance.

# ? May 15, 2015 02:56

namaste friends: Sep 18, 2004; by Smythe

http://www.theglobeandmail.com/report-on-business/rapid-growth-of-canadian-car-loans-prompts-caution-flag/article24441790/

quote:

Rapid growth of Canadian car loans prompts caution flag

While alarms ring about debt in Canada, changes in the way Canadians finance their car purchases are fuelling a debate about whether the auto loan business needs to be restructured.

Loans that drivers are taking out to buy new vehicles are growing much faster than inflation and gross domestic product, jumping 13 per cent in the fourth quarter of 2014 from a year earlier. The Bank of Canada raised a caution flag last December about auto debt generally, and fretted that the terms of loans might be growing too long.

That concern stems from a drastic change in how drivers finance car purchases. Before the 2008-09 recession, leasing represented nearly half the new vehicle financing market in Canada.

When the credit crunch wiped out leasing, lenders moved in with loans as long as eight years � including interest-free offerings � to address the No. 1 concern among most car buyers, which is to keep monthly payments as low as possible.

But the fear raised by the central bank and shared by some bankers, auto industry executives and even some dealers is that things have gotten out of hand.

�We�re now starting to recognize that longer-term loans are not good for the industry, it�s not good for the consumer and it�s not good for anyone,� Ray O�Kane, managing director and head of national dealer finance for Bank of Montreal said in an interview. �An awful lot of customers that have a really good credit rating in my mind are making ill-informed or poorly informed financial decisions.�

Auto debt has grown as auto makers revel in what is the best of times for the Canadian market. Vehicle sales topped a 10-year-old record in 2013, broke that record last year and were 4 per cent higher than the 2014 pace through the first four months of this year.

Loans of six years or longer are helping to fuel those sales. They accounted for 66 per cent of auto loans in April, which was down from a recent peak of 69 per cent in August, 2014, according to data compiled by consulting firm J.D. Power and Associates.

Mr. O�Kane�s worry is that even though vehicles are more durable than ever, the technology in them is changing so quickly that drivers will want to trade them in long before the term of the loan is complete and the vehicles paid off.

�Somebody has a two- or three-year-old car and their neighbour gets a new car � all of a sudden their car feels old,� he said.

But if the owner of the older car is only two years into paying off a seven-year loan, he could find the amount remaining on the loan is more than the car he�s trading in is worth.

Mr. O�Kane believes dealers and lenders should make sure consumers are aware that a five-year loan will cost less than an eight-year loan even though the monthly payments are higher on shorter-term financing.

�If after three to four years you get disillusioned with the car, you have built up some equity and you can turn it,� he noted. �The problem I�m having is we�re not having these conversations with the consumers.�

Industry analyst Dennis DesRosiers is a firm believer that concerns about auto debt and long-term loans are overblown. If drivers plan to hang on to their vehicles for six, seven or eight years, there�s nothing wrong with financing them over those same periods, Mr. DesRosiers said.

�What the vehicle companies worry about is longer amortizations lead to longer ownership cycles,� he said. �I think it�s the exact opposite. Because we have a longer ownership cycle, we have longer amortizations.�

He noted that leasing has bounced back from the low levels it hit during the recession to about 25 per cent of the market.

The return of leasing helps, Mr. O�Kane said, but he added that consumers need to realize that a lease is effectively a long-term rental, they can be liable for wear and tear and are subject to penalties if they exceed the annual kilometre limits.

Consumers need to be as well-educated on what he calls the �back end� of a car purchase as they are when they walk into a dealership fully armed with knowledge about the features of the vehicles on display, he said.

�I�ve asked my team here to talk about how we can talk to the dealers, but we�re leaving it up to them to have that conservation [with buyers],� he said.

There�s no doubt that people taking out auto loans or any kind of debt need to live within their means, said Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada Inc.

�As consumers, we have to be fiscally responsible,� Mr. Schwartz said. �We have to look and say, �what can we truly afford?� Just because somebody is willing to give it to us doesn�t necessarily mean we can afford it.�

Brian Moynihan found that out the hard way. Through a series of trade-ins, the 61-year-old Vancouver retiree found himself owing $43,000 last year on a pickup truck. Then his pension was cut and his income fell from $4,000 a month to $3,100.

He was paying $580 a month on the truck plus insurance, so he gave it up and now he doesn�t own a vehicle. He is in the process of moving in with a friend to reduce his rent and help pay off other debts.

�I should not be in the position I�m in, but I am,� he said. �That�s my doing.�

The pension didn�t help, he acknowledged, but he plans to be debt-free in a couple of years.

lol gently caress off and die old man.

# ? May 15, 2015 05:38

Baronjutter: Dec 31, 2007; "Tiny Trains"

I'm almost done my 2 year financing on my car, that $900 a month is going straight into my e-series.

# ? May 15, 2015 05:56

Femtosecond: Aug 2, 2003

Very pleased to be switching from a job that required a 20 minute drive to one with a 15 minute bike ride. Cars are a money pit, and it's incredibly stupid that we've designed our lovely towns to require them.

# ? May 15, 2015 06:18

Femtosecond: Aug 2, 2003

1. Announce massive new bridge to the valley
2. Fire the outspoken chair of the Agricultural Land Reserve critical of efforts to undermine protection of farmland
3. ????

Clearly the best way to create more affordable housing is to replace "poor quality" farmland with new suburbs out in the valley. Good time to be a realtor in Tsawwassen?

:tinfoil:

# ? May 15, 2015 06:50

Risky Bisquick: Jan 18, 2008; PLEASE LET ME WRITE YOUR VICTIM IMPACT STATEMENT SO I CAN FURTHER DEMONSTRATE THE CALAMITY THAT IS OUR JUSTICE SYSTEM.; Buglord

Cultural Imperial posted:

http://www.theglobeandmail.com/report-on-business/rapid-growth-of-canadian-car-loans-prompts-caution-flag/article24441790/

lol gently caress off and die old man.

Financing a new truck on a fixed income, where you are likely using 1/6 your entire income on transportation costs :downs:

I never understood people and vanity cars, it's just transportation. Congrats on spending 50k+ to get from A to B.

# ? May 15, 2015 07:17

MiddleOne: Feb 17, 2011

jm20 posted:

Financing a new truck on a fixed income, where you are likely using 1/6 your entire income on transportation costs

I never understood people and vanity cars, it's just transportation. Congrats on spending 50k+ to get from A to B.

It's just good old marketing, you've been imprinted since birth that what car you drive is a measure of your success and that having a shittier car than someone else means you're beneath them.

# ? May 15, 2015 07:57

I would blow Dane Cook: Dec 26, 2008

jm20 posted:

Financing a new truck on a fixed income, where you are likely using 1/6 your entire income on transportation costs

I never understood people and vanity cars, it's just transportation. Congrats on spending 50k+ to get from A to B.

Gotta build up truck equity.

# ? May 15, 2015 08:42

MikeSevigny: Aug 6, 2002; Habs 2006: Cristobal Persuasion

quote:

"That is good for first-time owners, but not for anyone who is counting on the equity in their homes to maybe get a loan or use the money to finance some other projects," Clark said.

I think I know how Christy's getting those LNG plants built.

# ? May 15, 2015 11:31

Jan: Feb 27, 2008; The disruptive powers of excessive national fecundity may have played a greater part in bursting the bonds of convention than either the power of ideas or the errors of autocracy.

jm20 posted:

I never understood people and vanity cars, it's just transportation. Congrats on spending 50k+ to get from A to B.

By god, if I'm going to drive through 2 hours of gridlock traffic to get to work from my $600 dream house in Chilliwack, I ain't doing it in a lame prius. :colbert:

# ? May 15, 2015 13:07

triplexpac: Mar 24, 2007; Suck it
Two tears in a bucket
And then another thing
I'm not the one they'll try their luck with
Hit hard like brass knuckles
See your face through the turnbuckle dude
I got no love for you

Cultural Imperial posted:

http://www.theglobeandmail.com/report-on-business/rapid-growth-of-canadian-car-loans-prompts-caution-flag/article24441790/

I am really thankful that I don't give a poo poo about cars.

# ? May 15, 2015 13:53

EvilJoven: Mar 18, 2005; NOBODY,IN THE HISTORY OF EVER, HAS ASKED OR CARED WHAT CANADA THINKS. YOU ARE NOT A COUNTRY. YOUR MONEY HAS THE QUEEN OF ENGLAND ON IT. IF YOU DIG AROUND IN YOUR BACKYARD, NATIVE SKELETONS WOULD EXPLODE OUT OF YOUR LAWN LIKE THE END OF POLTERGEIST. CANADA IS SO POLITE, EH?; Fun Shoe

Owning a vehicle that is mechanically fit but beat up on the outside owns.

# ? May 15, 2015 14:19

Kraftwerk: Aug 13, 2011; i do not have 10,000 bircoins, please stop asking

My car has a small four year loan on it. I could pay it off in full if I wanted to but it makes a lot more sense to have the loan because of 0% interest. I'm sure the car will last me about 10 years.

# ? May 15, 2015 14:40

Count Roland: Oct 6, 2013

http://www.cbc.ca/news/business/average-house-price-in-canada-up-9-5-to-448-862-1.3075567

quote:

The average price of a Canadian resale home rose 9.5 per cent in the 12 months ending in April and now stands at $448,862, according to the Canadian Real Estate Association.

The national realtors group said Thursday that in addition to strong price gains, the was a much higher volume of houses sold, too.

Spring is always a popular month for home sales, and this year's was no exception. But sales were 10 per cent higher last month than they were in April a year earlier.

Indeed, the numbers were pretty close to the best month ever. More than 50,000 homes changed hands in April � only the third time ever that's happened during a month.

"We'll all get rich selling our houses to each other."

# ? May 15, 2015 14:44

EvilJoven: Mar 18, 2005; NOBODY,IN THE HISTORY OF EVER, HAS ASKED OR CARED WHAT CANADA THINKS. YOU ARE NOT A COUNTRY. YOUR MONEY HAS THE QUEEN OF ENGLAND ON IT. IF YOU DIG AROUND IN YOUR BACKYARD, NATIVE SKELETONS WOULD EXPLODE OUT OF YOUR LAWN LIKE THE END OF POLTERGEIST. CANADA IS SO POLITE, EH?; Fun Shoe

Kraftwerk posted:

My car has a small four year loan on it. I could pay it off in full if I wanted to but it makes a lot more sense to have the loan because of 0% interest. I'm sure the car will last me about 10 years.

Any loan with rates at 0% should be dragged out forever.

# ? May 15, 2015 15:25

jet sanchEz: Oct 24, 2001; Lousy Manipulative Dog

Seat Safety Switch posted:

Ignore them and buy an equivalent weight of Apple stock?

My friend begged me to buy Apple in 2009. It was approaching $100 and I thought that it was too high already. Hahaha.

# ? May 15, 2015 15:29

Baronjutter: Dec 31, 2007; "Tiny Trains"

I had a very vivid dream last night where I ran into Thomas Mulcair at a pizza shop and he sat and asked me what I'm most concerned about and I gave him a big inarticulate rant about the CMHC and house prices/debt and he didn't seem interested.

# ? May 15, 2015 15:31

Risky Bisquick: Jan 18, 2008; PLEASE LET ME WRITE YOUR VICTIM IMPACT STATEMENT SO I CAN FURTHER DEMONSTRATE THE CALAMITY THAT IS OUR JUSTICE SYSTEM.; Buglord

Baronjutter posted:

I had a very vivid dream last night where I ran into Thomas Mulcair at a pizza shop and he sat and asked me what I'm most concerned about and I gave him a big inarticulate rant about the CMHC and house prices/debt and he didn't seem interested.

This probably wasn't a dream.

EvilJoven posted:

Any loan with rates at 0% should be dragged out forever.

Saving about 2% a year at 0% interest, thanks Canada :snoop:

ed: Just wait until 0% financing at 4% inflation aaaaaaaaaaaaaa

Risky Bisquick fucked around with this message at 15:42 on May 15, 2015

# ? May 15, 2015 15:38

namaste friends: Sep 18, 2004; by Smythe

jm20 posted:

This probably wasn't a dream.

Empty quotin dis

# ? May 15, 2015 15:42

Lain Iwakura: Aug 5, 2004; The body exists only to verify one's own existence.; Taco Defender

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-century-old-downtown-eastside-sro-listed-at-1-4m-1.3075527

quote:

A 110-year-old character home with a single room occupancy designation in the Strathcona neighbourhood of Vancouver's Downtown Eastside is on the market and listed at $1.4 million.

The 2,600 sq. ft. house at 320 Union Street has been vacant for the past decade and is in need of major renovations.

However, Stonehouse Team Real Estate agent Shawn Gregory said the home has development possibilities.

"A lot of people come to buy these homes that are in need of some attention and make them modern inside."

Gregory said the neighbourhood is changing and people are taking notice.

"I think a lot of people are moving into this neighbourhood because it is a hidden gem and people are now discovering it. It's absolutely booming."

Up-and-coming neighbourhood

Strathcona Residents Association chair, Elana Zysblat, said the listing doesn't surprise her.

"I'm not shocked. It is in line with recent prices we've seen in the neighbourhood."

She added that developments such as Tinseltown and the proposed relocation of St. Paul's Hospital have pushed land prices up.

St Paul's Hospital to close, new facility built
"It's becoming unaffordable for new families to come in and it's hard for families to maintain their mortgage."

Zysblat hopes anyone who purchases the house will keep the SRO designation to help the area remain affordable.

Vancouver's Downtown Eastside stretches from Victory Square to Clark Drive, according to the City of Vancouver

Nice shack or crack house? Also citing Tinseltown as a draw is like saying that a cemetery brings life to a neighbourhood.

# ? May 15, 2015 15:58

HookShot: Dec 26, 2005

EvilJoven posted:

Owning a vehicle that is mechanically fit but beat up on the outside owns.

It really does.

When I do dumb things like forget how parking works and make a giant 1 square foot scratch on the side of it because I accidentally drove the side of it against a wall I don't actually give a poo poo, because it's a 10 year old Prius with 300,000kms on it.

# ? May 15, 2015 16:09

triplexpac: Mar 24, 2007; Suck it
Two tears in a bucket
And then another thing
I'm not the one they'll try their luck with
Hit hard like brass knuckles
See your face through the turnbuckle dude
I got no love for you

OSI bean dip posted:

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-century-old-downtown-eastside-sro-listed-at-1-4m-1.3075527

It's a fun mental exercise to read the article and try to imagine what the house looks like, then look at the link and see it's even worse than you could possibly imagine

# ? May 15, 2015 16:19

Rime: Nov 2, 2011; by Games Forum

OSI bean dip posted:

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-century-old-downtown-eastside-sro-listed-at-1-4m-1.3075527

Nice shack or crack house? Also citing Tinseltown as a draw is like saying that a cemetery brings life to a neighbourhood.

This is...really not in the DTES and holy gently caress would the people living on that street get into a furor if they read this. Union is getting insufferably NIMBY these days.

That being said, I rode past this house for three years and always wondered what was up. It's a pretty grand old building when you see it up close and it would be a drat shame to see it demolished or gutted, rather than renovated like most of its neighbors have been The problem is none of those neighbors sold for anything over $300k thus making renovations actually feasible from a financial standpoint, this is pretty clearly being sold at lot value only to encourage a demolition.

# ? May 15, 2015 16:42

Femtosecond: Aug 2, 2003

quote:

Zysblat hopes anyone who purchases the house will keep the SRO designation to help the area remain affordable.

Haha yes ok.

# ? May 15, 2015 16:44

namaste friends: Sep 18, 2004; by Smythe

http://www.theglobeandmail.com/report-on-business/april-home-sales-rise-led-by-toronto-and-montreal/article24452004/?service=mobile

Montreal had the hottest housing market in April. loving lol. Who needs a job when your monthly payment is so low

# ? May 15, 2015 16:45

Femtosecond: Aug 2, 2003

It's weird to me to read articles about Strathcona as if it's a rough, just recently discovered, still gentrifying neighbourhood. The area has been gentrifying since the 80s and has a large upper middle class population.

# ? May 15, 2015 16:48

ocrumsprug: Sep 23, 2010; by LITERALLY AN ADMIN

Rime posted:

This is...really not in the DTES and holy gently caress would the people living on that street get into a furor if they read this. Union is getting insufferably NIMBY these days.

Femtosecond posted:

It's weird to me to read articles about Strathcona as if it's a rough, just recently discovered, still gentrifying neighbourhood. The area has been gentrifying since the 80s and has a large upper middle class population.

While is it true that Strathcona (and the rest of the DTES too) has been gentrifying, if you can literally throw a rock and hit Chinatown, you are most certainly in the DTES. It is really unfortunate that the approach to gentrifying the area is going to come with such a high cost to the current residents of the area.

For our readers unfamiliar with Vancouver, this 1.4 million dollar house is 3-4 blocks away from Vancouver's world famous open air drug markets and skid row SRO housing.

# ? May 15, 2015 18:00

cowofwar: Jul 30, 2002; by Athanatos

There is a Beavis and Butthead episode where they have to sell a case of cookie boxes so instead of working they sell them back and forth to each other using a single $5 bill. At the end they get in trouble for eating all the cookies and only making $5. This is a metaphor for Canadian real estte.

# ? May 15, 2015 18:41

namaste friends: Sep 18, 2004; by Smythe

cowofwar posted:

There is a Beavis and Butthead episode where they have to sell a case of cookie boxes so instead of working they sell them back and forth to each other using a single $5 bill. At the end they get in trouble for eating all the cookies and only making $5. This is a metaphor for Canadian real estte.

Hahahaha

# ? May 15, 2015 18:43

Reince Penis: Nov 15, 2007; by R. Guyovich

cowofwar posted:

There is a Beavis and Butthead episode where they have to sell a case of cookie boxes so instead of working they sell them back and forth to each other using a single $5 bill. At the end they get in trouble for eating all the cookies and only making $5. This is a metaphor for Canadian real estte.

# ? May 15, 2015 19:44

Rhobot Mk. II: Jan 15, 2008; Mk. II: Bigger, longer, uncut robo-cock.

Kraftwerk posted:

My car has a small four year loan on it. I could pay it off in full if I wanted to but it makes a lot more sense to have the loan because of 0% interest. I'm sure the car will last me about 10 years.

EvilJoven posted:

Any loan with rates at 0% should be dragged out forever.

jm20 posted:

This probably wasn't a dream.

Saving about 2% a year at 0% interest, thanks Canada

ed: Just wait until 0% financing at 4% inflation aaaaaaaaaaaaaa

***posts on internet forum about dumb people financing houses they can't afford**
***still falls for 0% APR trick by paying the cost of borrowing hidden in the invoice cost rather the loan from the bank**
***Thinks they got a deal***

:stare:

# ? May 15, 2015 23:30

EvilJoven: Mar 18, 2005; NOBODY,IN THE HISTORY OF EVER, HAS ASKED OR CARED WHAT CANADA THINKS. YOU ARE NOT A COUNTRY. YOUR MONEY HAS THE QUEEN OF ENGLAND ON IT. IF YOU DIG AROUND IN YOUR BACKYARD, NATIVE SKELETONS WOULD EXPLODE OUT OF YOUR LAWN LIKE THE END OF POLTERGEIST. CANADA IS SO POLITE, EH?; Fun Shoe

Rhobot Mk. II posted:

***posts on internet forum about dumb people financing houses they can't afford**
***still falls for 0% APR trick by paying the cost of borrowing hidden in the invoice cost rather the loan from the bank**
***Thinks they got a deal***

You think I'm some kind of moron that falls for bullshit like the foursquare sales technique?

Always negotiate walk out the door cash price first. Once that is settled talk about financing and trade in.

I've bought all my vehicles this way. Sometimes I'd finance with the dealer, sometimes with a third party, sometimes I'd literally pay cash.

# ? May 15, 2015 23:34

Rhobot Mk. II: Jan 15, 2008; Mk. II: Bigger, longer, uncut robo-cock.

EvilJoven posted:

You think I'm some kind of moron that falls for bullshit like the foursquare sales technique?

Always negotiate walk out the door cash price first. Once that is settled talk about financing and trade in.

I've bought all my vehicles this way. Sometimes I'd finance with the dealer, sometimes with a third party, sometimes I'd literally pay cash.

Do you really want me to answer that question? I'd pay good money to see one of your bills of sale.

# ? May 15, 2015 23:44

namaste friends: Sep 18, 2004; by Smythe

Yo, rhobot is a straight up car finance gangsta. Search this thread for all of his posts.

# ? May 15, 2015 23:53

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# ? Jun 5, 2024 21:11

EvilJoven: Mar 18, 2005; NOBODY,IN THE HISTORY OF EVER, HAS ASKED OR CARED WHAT CANADA THINKS. YOU ARE NOT A COUNTRY. YOUR MONEY HAS THE QUEEN OF ENGLAND ON IT. IF YOU DIG AROUND IN YOUR BACKYARD, NATIVE SKELETONS WOULD EXPLODE OUT OF YOUR LAWN LIKE THE END OF POLTERGEIST. CANADA IS SO POLITE, EH?; Fun Shoe

Rhobot Mk. II posted:

Do you really want me to answer that question? I'd pay good money to see one of your bills of sale.

We might have done better but we were in quite a bit of a hurry to buy this unfortunately seeing as it was the middle of winter we were losing money with one of us needing to take time off to shop and also this is a very decently equipped 4x4 our mechanic said was in pretty damned good shape for the age.

EvilJoven fucked around with this message at 00:12 on May 16, 2015

# ? May 16, 2015 00:09

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

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