- namaste friends
- Sep 18, 2004
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by Smythe
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quote:
Paris-based economic organisation says boom may end in significant downward correction and government policy should limit investor lending
A crash in Australias unprecedented housing market could lead to a broader economic downturn, according to a report from the OECD.
In their first major review of the Australian economy since 2014, the OECD warned the housing market was showing hints of a slowdown, in what it identified as an extreme vulnerability for the economy.
A large drop off in house prices could cut household consumption and increase mortgage defaults ... The market may not ease gently but develop into a rout on prices and demand with significant macroeconomic implications, they said.
A continued rise of the market, fuelled by both investor and owner-occupier demand, may end in a significant downward correction that spreads to the rest of the economy.
Australias house prices have increased by 250% in real terms since the mid 1990s, with the median house price in Sydney hitting almost $1m at the end of January.
The OECD attributed this boom to domestic buyers rather than foreign investment, and recommended government policy should pressure banks to limit mortgage lending for investment properties, and avoid risky loans echoing 2014 measures already put in place by the Australian Prudential Regulation Authority.
Household debt also rose to record levels, with the debt to disposable income ratio rising to 186.9% at the end of September last year. However, the report noted household debt was concentrated in high income households, and was balanced by rising asset values and low interest rates.
A global plunge in iron and coal prices was also identified as another major vulnerability, and the OECD noted the economy still faced challenges in the gender pay gap and in greenhouse gas emissions.
They recommended an emissions trading scheme could be adopted if carbon reduction targets beyond those brought about by the Direct Action Plan were needed.
The price of carbon emissions in Australia is low, with large shares of emissions in industry, electricity, agriculture and fisheries are not priced at all. This weakens the incentives to cut carbon in a cost-effective manner, said the report.
https://www.theguardian.com/busines...re_iOSApp_Other
Search and replace Australia with Canada
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Mar 3, 2017 03:35
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- Adbot
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ADBOT LOVES YOU
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May 9, 2024 23:57
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- I would blow Dane Cook
- Dec 26, 2008
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Can't post for 17 hours!
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Speaking of Australia, even real estate agents are complaining about empty homes:
quote:
Sydney's ghost homes: How 200,000 homes sit VACANT in Australia's most expensive city - because foreign investors buy them and leave them to gather dust
There are 200,000 homes on prime Sydney real estate sitting empty because foreign investors have bought them with no intention of living in them or renting them out, a leading real estate expert claims.
Douglas Driscoll, the chief executive of Starr Partners, estimates the number of unoccupied homes has almost doubled from 120,000 in 2011, in a city which is already the second most unaffordable in the world after Hong Kong.
Mr Driscoll believes the empty homes are a major contributor to Sydney's housing crisis, which has seen prices double in the past eight years and rise at an average of $222 a day.
'Foreign investors are only exacerbating the problem by buying properties and leaving them vacant,' he told Daily Mail Australia.
'(It) only gained genuine momentum in 2012 and in just a few short years we are already seeing 10-20 per cent of property being sold in some pockets to offshore buyers, which leaves a lot of Australians on the sidelines.'
Mr Driscoll said the government needed to realise the effect of empty homes on housing affordability and urgently start addressing it.
'Foreign investment is not the elephant in the room, it is a heard of elephants in the room and more needs to be done,' he said.
'These properties should be offered for rent, but if they were to hit the open sales market, it would certainly help alleviate the sparsity issue we are currently facing.'
Mr Driscoll said hotspots included anywhere in the inner-city or where new houses or apartments were going up, such as Alexandria, Waterloo, Green Square, Sydney's city centre, Parramatta, and even Blacktown.
'There are some developments where you can see straight through apartments because there's no furniture,' he said.
'In my own building in Kirribilli there's 35 units and three of them are left empty.'
He said Chinese buyers were used to not receiving much of a return on investment and believed tenants lowered property values by putting 'wear and tear' on them.
'They bring that same mentality over here without doing the research,' he said.
'A lot of them are also buying their children's future, even if they are only in their teens, they are buying them now in highly desirable inner-city areas.
'When their children are old enough they send them off to university and that's where they live. So they might sit empty for three or four years.'
He said Australia was also an attractive location because homes were much bigger than those in Asia.
'On average, an Australian home has 89 square metres of floor space, while a country like China has about 33 square metres of space,' he said.
Mr Driscoll's said investors didnt get capital gains tax concessions if the property was uninhabited for more than 12 months, but more needed to be done.
'The government should introduce significant financial penalties or inordinate property taxes for any property owned by a non-resident that is known to be empty for more than 12 months,' he said.
'NSW accounts for half of all investor mortgage finance. Such a strong level of investor interest in Sydney is pushing up the price of our dwellings and its time for government intervention to reduce this.
'Im certainly not against foreign investment or property investment as a whole, but I do believe it has led to the market becoming hugely out of kilter, causing a multitude of social and economic issues.'
He said this policy wasn't aimed at holiday homes because those were almost always outside metro areas and not adding to housing affordability woes.
Mr Driscoll applauded developments like Mirvac's new high-rise project in Olympic Park, in Sydney's west, where the first 60 of 690 flats were set aside for first home buyers for only a five per cent deposit.
A housing affordability survey last month ranked Sydney as the second more unaffordable city in the world behind only Hong Kong.
The median house price now stands at $1.1 million, 12.2 times the average annual wage, and dropping to $850,000 when units were included.
It doubled since 2009, increasing 16 per cent in the past year alone, with the most sought-after suburbs rising by more than $1,000 a day.
http://www.dailymail.co.uk/news/article-4270282/Sydney-200-000-homes-foreign-investors-blamed.html
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Mar 3, 2017 04:10
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- namaste friends
- Sep 18, 2004
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by Smythe
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Well it's a good thing because otherwise Canada would be in recession. Consider it your national civic duty to buy condos and houses.
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Mar 3, 2017 16:14
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- EvilJoven
- Mar 18, 2005
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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?
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Fun Shoe
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The black hole of Toronto has gotten so big the 905 has completely slipped in past the event horizon and the 613 514 and 705 are soon to follow.
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Mar 3, 2017 16:24
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- namaste friends
- Sep 18, 2004
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by Smythe
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quote:
Janet Yellen has given the Federal Reserves strongest signal yet that it is on the cusp of lifting rates again, predicting that the pace of tightening is likely to accelerate from the sluggish speed set in 2015 and 2016 as it seeks to prevent the US from overheating.
Following a week of hawkish messages from top US rate setters, the Fed chair told an audience in Chicago on Friday that a further increase in short-term interest rates was likely to be appropriate at the Feds policy meeting on March 14-15 if employment and inflation stay in line with officials expectations.
While reiterating her longstanding guidance that changes will happen only gradually, Ms Yellen added barring unexpected developments the monetary stimulus the Fed has provided for the US economy would be reduced at a quicker pace than in 2015 and 2016.
The mounting signals that the Feds third rate increase since the 2007 financial crisis is imminent have helped spark a global rally in stocks, with investors viewing a rise as a sign policymakers believe US economic growth is becoming stronger and more sustainable.
Despite dipping towards the end of the week, the S&P 500 index notched up its sixth straight week of gains with all four of the biggest stock gauges hitting new records on Wednesday and the 10-year US Treasury yield climbed 19 basis points, the most since mid-November, to end the week above 2.5 per cent again.
The dollar index gained 0.8 per cent over the past five trading days, propelled by bets on a more bullish Fed.
Ms Yellen has traditionally been viewed as an instinctive dove who waits until the last minute before lifting rates. The Feds once-a-year pace of tightening in 2015 and 2016 solidified that impression.
But a confluence of factors has prompted US policymakers to take a more aggressive approach. This includes an economy that is at or near full employment, firming price growth that has taken the Feds favoured measure of headline inflation closer to its 2 per cent target, and rising investor spirits as demonstrated by the surging stock market. The latter factor was cited by Stanley Fischer, the Fed vice-chair, who on Friday afternoon added his voice to those signalling a march rise.
In addition, many investors are anticipating a looser fiscal policy to emerge from negotiations between the Trump administration and Congress.
We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect, Ms Yellen said in her Chicago remarks. Indeed, at our meeting later this month, [policymakers] will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.
Ms Yellen spoke after a procession of her Fed colleagues in recent days hammered home the message that a third rate rise is probably imminent following quarter-point increases in 2015 and 2016. The bullish chorus led to a violent shift in investor expectations, with the markets-implied odds on a March interest rate increase as indicated by Fed funds futures jumping from about a third last week to 90 per cent earlier on Friday.
In her speech Ms Yellen said the US economy had demonstrated remarkable resilience in the face of shocks from overseas in recent years, and that developments since mid-2016 had reinforced Federal Open Market Committee members confidence that the economy was on track to meet the Feds employment and inflation goals. Continuing to raise rates will probably be necessary to keep the US economy from significantly overheating in the years ahead, Ms Yellen added.
Given how close we are to meeting our statutory goals, and in the absence of new developments that might materially worsen the economic outlook, the process of scaling back accommodation likely will not be as slow as it was in 2015 and 2016, she said.
The Feds December forecasts suggested there would be three quarter-point rate increases over the course of 2017. Ms Yellen said such an increase would be consistent with the Feds strategy of gradual rate rises and the goal of pushing the real federal funds rate close to some estimates of its neutral level. The Fed has projected further increases in 2018 and 2019.
Many investors had until recently been expecting the Fed to sit tight until May or June before the US central bank lifted its target range for the federal funds rate to 0.75 per cent to 1 per cent. But signals from officials including Jerome Powell and Lael Brainard of the Feds board of governors, Robert Kaplan of the Dallas Fed, and John Williams of the San Francisco Fed, have radically changed expectations.
A 3/4 percent increase in interest rates on a 'fixed' 5 year mortgage lol
get hosed canada
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Mar 3, 2017 20:41
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- Wasting
- Apr 25, 2013
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The next to go
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A 3/4 percent increase in interest rates on a 'fixed' 5 year mortgage lol
get hosed canada
I was trying to explain this to someone today, but they kept saying, "But the bank of Canada won't raise its rates, so who cares?"
And around in circles we went
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Mar 3, 2017 22:17
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- PittTheElder
- Feb 13, 2012
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 Yes, it's like a lava lamp.
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But if you're a foreigner, you're not Canadian so you don't fall under the Canadian Bill of Rights...right? 
Also, from here:
"It recognizes the rights of individuals to life, liberty, personal security and enjoyment of property. It does not recognize "possession" of property, since that is a matter of provincial jurisdiction.
...so uh...nice try foreign home buyers?
You're completely misreading that. A right to possession of property would mean that the government can't take your poo poo via expropriation. Also that law doesn't even really apply since the Charter exists. And while some Charter rights are limited to the citizenry proper, these are mostly political rights, like your rights to vote and representation, etc. Everything else applies to anyone in Canada regardless of nationality; for example, our governments are not allowed to sentence people to criminal punishment without trial just because they're not from here.
That said, I'll be real surprised if this lawsuit goes anywhere at all.
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Mar 4, 2017 00:25
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- leftist heap
- Feb 28, 2013
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Fun Shoe
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mods rename me Mortgage Strife
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Mar 4, 2017 05:41
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- namaste friends
- Sep 18, 2004
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by Smythe
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lol wtf is mindful leadership
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Mar 4, 2017 14:49
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- triplexpac
- Mar 24, 2007
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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
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lol wtf is mindful leadership
It's how you holistically strategize to provide optimal change management for all stakeholders
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Mar 4, 2017 16:43
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- Mandibular Fiasco
- Oct 14, 2012
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And I here I thought the Mandarin Walk was something involving oranges at Christmas time.
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Mar 5, 2017 05:27
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- Mandibular Fiasco
- Oct 14, 2012
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It's how you holistically strategize to provide optimal change management for all stakeholders
It's how someone with no actual knowledge or technical skill gets overpaid for slinging platitudes drawn from the Art of War and Zen and the Art of Motorcycle Maintenance.
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Mar 5, 2017 05:29
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- Wasting
- Apr 25, 2013
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The next to go
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It's how someone with no actual knowledge or technical skill gets overpaid for slinging platitudes drawn from the Art of War and Zen and the Art of Motorcycle Maintenance.
Both good books if you aren't a piece of poo poo
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Mar 5, 2017 05:34
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- namaste friends
- Sep 18, 2004
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by Smythe
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Both good books if you aren't a piece of poo poo
Both good books if you aren't a piece of poo poo
We're talking about Australians here
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Mar 5, 2017 05:39
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- namaste friends
- Sep 18, 2004
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by Smythe
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https://www.bloomberg.com/news/arti...m_medium=social
Check it out you guys Vancouver is in this list hurrah!
no
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Mar 5, 2017 15:30
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- namaste friends
- Sep 18, 2004
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by Smythe
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lol no loving way
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Mar 5, 2017 22:43
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- Lexicon
- Jul 29, 2003
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I had a beer with Stephen Harper once and now I like him.
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Why so many for sale in Tsawwassen? They all somehow collectively realized it's among the worse places you could pick to live In the whole LM?
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Mar 6, 2017 00:36
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- namaste friends
- Sep 18, 2004
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by Smythe
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quote:
Desperate businessman commits suicide after losing $300K in investment scam: The house always wins
Frederick Turbide sent a photo of his suicide note to an overseas investment dealer just before Christmas in a desperate last attempt to recover his missing life savings.
Over the previous few months, the 61-year-old Edmonton businessman had lost more than $300,000 in the murky world of binary option trading, and was hoping against hope the dealer he knew as Julian Wellington could somehow make it right.
He said everything was on the line, and if he wasnt able to put the money back that he anticipated this was the letter he was leaving behind, son Tom Ferreira says.
He was sick that whole week, sleep deprived The next thing I know is I got a text message, all the kids did, saying, Stop what youre doing now, go home, be with your mom. Its going to be a sad day.
A short time later, on Dec. 21, Turbide went into the garage of his Highlands home and fatally shot himself.
The popular co-owner of promotional products company Novel Notion Advertising Inc. was the latest victim of a financial crime that has grown steadily in Canada over the last two years.
Binary options are essentially bets on whether the value of a stock or other asset will reach a certain price within a specified time, which can be as short as 60 seconds.
Guess right and you receive a big payout, typically boosting your money by at least 50 per cent. Guess wrong, and you lose it all.
It just became, in my opinion, the No. 1 investment fraud targeting Canadians, says Jason Roy, manager of investigations at the Manitoba Securities Commission and chair of a national binary options task force.
The individuals that are running these schemes see it as a very effective, easy way to steal money from Canadians, and its working There are literally hundreds of boiler rooms that are targeting consumers.
Clearly, the odds are heavily stacked against the customer even on legitimate binary options trades, and the vast majority arent legitimate, run out of other countries mostly Israel because no one in Canada is licensed to sell them.
Canadian authorities have a hard time investigating offshore operations. Roy cant say why these firms often set up in Israel, and there arent reliable statistics on how many people they dupe annually.
His group went to a summit on the issue in The Hague, Netherlands, earlier this year attended by police and regulators from Europe and North America.
The task force is also working with credit card firms to stop payments to binary options companies, and taking other steps Roy wouldnt outline for security purposes.
Last year, the Alberta Securities Commission received 114 calls about binary options, up from 19 in 2015, and the average victim in the province lost $20,000.
Maria Chaves-Turbide, Turbides wife for 21 years, thinks her husband was lured into the field last fall by one of the many Internet ads promising investors easy money, while Ferreira suspects it was through an acquaintance.
No one knows what really happened, since he kept everything secret. His losses included $20,000 from their home-equity line of credit that Chaves-Turbide, 62, understood was being invested in mutual funds.
She only learned he was entwined in binary options when the children looked through his computer after he died.
Shes not sure why he got in so deep. The company they both owned was doing well and he didnt have a lot of experience with the stock market.
The man she describes as a kind, generous personality, who gave jobs, food and money to people down on their luck, appeared happy last fall and promised a Christmas surprise for their four adult children from Chaves-Turbides previous marriage.
We wanted to retire. We were tired. We put in a lot of time and effort to getting the business started, she says.
I didnt think much about it when he asked to take the (line-of-credit) money out. I thought Hes getting informed, its in a safe place, and then I just let it go.
But the profits he thought he was generating following his first $2,500 contribution turned out to be a fiction.
Transcripts of dozens of breezy Skype conversations with Wellington supposedly based in Toronto and the United Kingdom show Turbide working to get more money into his investment account even when his credit card company balked.
G-OD is with us. Im taking you to 250k., Wellington wrote Dec. 12 to convince the man he called his brother to put in the extra cash.
While Turbide admitted, I will be at the end of my rope after this 20k, hes still a believer, telling Wellington It is amazing that we both feel so strong about trust we have with each other.
But on Dec. 21, the news turned bad. Turbide had apparently been told of big losses and wrote to his angel that he had never been under such stress and he prayed Wellington would come through.
(Oh) my god Julian tell me this is not true i am at the end of myself Julian, this is too much. please tell me all is good pleas(e) Julian.
His final message turned angry, damning Wellington and another man for pushing further investments when they knew Turbide needed the cash that day to pay bills.
i am going to take a shower then go to my garage to finish myself off. i am giving you 1 hour to call me with positive result(s) to put back the money i lost into my account, dont trick me this time Julian.
Traders often lead on clients by putting bonuses into their accounts.
Only the fine print shows they must trade 20 to 40 times the entire account before the bonus can be withdrawn, and companies can keep topping up the amount or reveal other rules so its practically impossible to collect any cash.
Ferreira, 35, is furious that even when this group knew Turbide was talking of killing himself they didnt try to alert anyone.
Somebody tells you theyre going to take their life, and you dont do as much as pick up the phone and make an anonymous call?
The family recently hired Tel Aviv lawyer Haggai Carmon to see what can be done. He says he has already identified the individuals involved, who generally hide behind a string of companies and fictitious names.
The entire binary option is not a stock trade. Its a gamble, a game of chance (using) fast-talking brokers who are really not brokers, theyre people off the street who are well trained by fraudsters, Carmon says.
The house always wins.
Although Israel tightened the rules for binary options companies last year, the countrys securities regulators dont feel they have the power to intervene in activities overseas, Carmon says.
He says he has handled four cases similar to Turbides in which he recovered $2 million without bringing a lawsuit, and has several others on the go.
While Carmon wont reveal his methods, he says he worked for the American government for 20 years chasing criminals and going undercover.
Im really ashamed of my countrymen. This is one reason I rolled up my sleeves and became active, because it fosters anti-Israel sentiment and anti-Semitism, he says.
Im cautiously optimistic, but Im determined. When Im determined, people should be aware. I sound like a nice person, but Im not. I bite.
Back in Edmonton, Ferreira is hopeful Carmon will recover something, but isnt expecting much success.
He and his mother just want the perpetrators exposed and everyone alerted about the dangers of dabbling in this sort of unregulated Internet investment.
Their other message is that people who are victimized shouldnt try to spare others from stress by keeping the bad news to themselves.
Its really difficult trying to mourn the death of my husband, a man I love, and thinking about him having to go through this alone He must have felt so betrayed. He didnt talk to anyone. He bore the weight all alone, Chaves-Turbide says tearfully.
If he had come to me and said something I would have supported him. I would have been angry Holy crow, what did you get into? but I know his nature. Hes always giving.
http://www.nationalpost.com/m/wp/ne...use-always-wins
smh loving canadians are greedy and dumb as gently caress
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Mar 6, 2017 03:15
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- triplexpac
- Mar 24, 2007
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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
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A boomer taking financial advice from some idiot millennial ?
The real-estate meme in victoria now is that when Vancouver crashes or looks like it's going to crash everyone's going to sell and buy in Victoria so buy now or be priced out forever.
The trick to investing is just timing the market, all the pros do it
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Mar 6, 2017 05:35
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- UnfortunateSexFart
- May 18, 2008
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ð» ððð« ð·ðð
ð·
ð ð ð ð« ð®ð ð¾ð
ð ð¡ððð
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Nothing like living in a 5-story death trap for $1.1 mn.
You don't even get the condo, you get the land and have to build the condo yourself! In literally the middle of the worst neighbourhood in the country maybe?
quote:Investor Alert! Great opportunity to buy this lot assembly (over 33,000 sqf land from 3 properties together). Development plans have been submitted with city of Surrey. Properties included in this land assembly are 10362 142nd Street, 14227 103a Ave, and 14235 103a Ave. Asking price for all these 3 properties is $3.5million. This development site is situated in both established and emerging neighborhoods on major transit + commuter routes within shortest distance to shopping, recreation, restaurants and schools. New Light Rail will be only half block from this development. It will connect to Downtown Langley and Surrey City Centre as well as Newton, Guildford, Fleetwood, and Clayton.
But is the asking price $1.1 or $3.5? Or did they forget to update the description after a price drop? Or are they selling part of a failed land assembly? Who knows, I'm sure Gursewak Sran of Sunrise Realty (who?) has better things to do.
https://www.rew.ca/properties/R2119284/14235-103a-street-surrey?property_click=map
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Mar 6, 2017 07:51
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- Adbot
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Mar 3, 2017 03:35
