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"Ownership transfer costs—mostly real estate commissions—accounted for an astonishing 2.5 per cent of Canada’s overall economic activity, Rabidoux notes." Hahaha hahaaaaaaaaaaaa
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May 18, 2021 20:06
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| # ? Jun 13, 2024 07:46 |
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Speaking of Ben, just saw this tweet. https://twitter.com/BenRabidoux/status/1394286639367790603?s=20
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May 18, 2021 20:38
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You never failed at getting back into the housing market. You succeeded at not getting back into it.
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May 18, 2021 20:52
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qhat posted:You never failed at getting back into the housing market. You succeeded at not getting back into it. I sure hope you're right. Only time will tell which perspective is correct because I'm sick of being punished for showing a modicum of financial prudence.
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May 18, 2021 20:53
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Cold on a Cob posted:New Maclean's cover story is about how hosed everything is in Canadian real estate. The anecdotes are depressing as hell though in my case made worse by my own failure to get back into the housing market. This demonstrates the insanity that has seized this stupid country. $400K increases in months...unbelievable. I have recently relocated from Vancouver to the island. Incomes are great, savings are great, but the quality of what is out there is insane. There is a huge gap in livable homes and what people want, and what some are willing to pay, is just unreal. Anything that is livable, people are staying in, leaving extreme luxury and extreme junk available.
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May 18, 2021 21:03
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Pretty confident I'll never be able to afford to own in a place I want to live and I'm seriously considering just dumping my future downpayment money into long term investment. I don't necessarily care about "pride of ownership" or whatever. I can accept the concept of renting indefinitely, provided I have the stability of not being renovicted and enough space to raise a family. But that doesn't seem realistic either so I dunno guess I'll just forgo the family and stay in my aging rent controlled 1 bedroom apartment until the building disintegrates!
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May 18, 2021 21:06
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Maybe I'm just in a fortunate position age wise (early-mid thirties) but I don't think I want to ever buy a place here. Even if it took twenty years for prices to fall (if ever) and I had kids I think I would just figure out a way to keep on renting, rather than be ripped off by some nameless shell company for all of my life savings, and then have to deal with all the bullshit that comes with owning. But I think that's just me and my infinite stubbornness, I totally understand the frustrations of others. If I look at the S&P500 (or any highly diversified equity index fund), it's up roughly 50% since that very same time period in the article, only it's obviously diversified across the entire globe and I can liquidate them whenever I want cheaply, and without any leverage at all. So financially wise, I can never see myself wanting to drop down from what I consider to be an Extremely Stable position to something where I have very little liquidity and a ton of debt.
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May 18, 2021 21:12
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Mandibular Fiasco posted:This demonstrates the insanity that has seized this stupid country. $400K increases in months...unbelievable. To a pretty large extent, other than the move-up buyers who are going from "pretty darn nice" to "extreme luxury" because they want more land / whatever, the non-builder/flipper housing supply that ever becomes available is almost always going to be dated due to finances + 'downsizing' or years of neglect + estate sale style stuff. I guess occasionally you might hit the jackpot on someone else's misfortune, too, a divorce where neither spouse can afford their really nice place on their own, but lots of competition for those right now. I made a few posts earlier this spring about selling my mother-in-law's place into a really hot market - about to get my father's up too. It hadn't seen any real work/maintenance in thirty years so we paid someone to do a bit of a flipper reno on it - enough to hopefully make it also appeal to non-flipper buyers who are willing to live with the rest and do it later, etc. Listing for a solid 40% more than last year's assessed, probably this week ... we'll see how it goes. Arguably missed the top, but it's a smaller market with way less supply so it may not matter.
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May 18, 2021 21:46
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qhat posted:Maybe I'm just in a fortunate position age wise (early-mid thirties) but I don't think I want to ever buy a place here. Even if it took twenty years for prices to fall (if ever) and I had kids I think I would just figure out a way to keep on renting, rather than be ripped off by some nameless shell company for all of my life savings, and then have to deal with all the bullshit that comes with owning. But I think that's just me and my infinite stubbornness, I totally understand the frustrations of others. If I look at the S&P500 (or any highly diversified equity index fund), it's up roughly 50% since that very same time period in the article, only it's obviously diversified across the entire globe and I can liquidate them whenever I want cheaply, and without any leverage at all. So financially wise, I can never see myself wanting to drop down from what I consider to be an Extremely Stable position to something where I have very little liquidity and a ton of debt. On the other side of this coin, I bought specifically to get that stability, because the way the rental market is here having to move every couple of years and stressing about the hundreds of dollars a month price increases each time was just getting to be a lot. We finally bought when our landlords sold our place and the new one wanted to illegally up our rent $500 a month (or 20%). Like sure, there are problems associated with owning, but ultimately the stability of being able to stay in this place forever so long as I keep making the mortgage payments, which are around the same as my rent was for a much nicer place, is so, so worth it to me. For this same reason I also don't really care what my home is worth, as I don't consider it an investment, I just want to be able to make the payments. I'm not saying what you're doing is wrong, or that what I'm doing is wrong, just offering a bit of perspective on how everyone's situation can be totally different.
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May 19, 2021 00:01
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Yeah getting pushed out of our rental during the pandemic sucked a lot and the $400 increase in rent for our new place made it even worse. Thankfully we are in a good position financially where an extra sudden $5k per year added to our expenses won’t cripple us but that’s $5k less going to our investments for 2021.
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May 19, 2021 00:31
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HookShot posted:I'm not saying what you're doing is wrong, or that what I'm doing is wrong, just offering a bit of perspective on how everyone's situation can be totally different. On that point, I completely get that. My perspective is probably not anywhere near that but I understand that many people don't want the things that I want, which is probably right now a function of my position in life rather than some absolute right way to do things.
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May 19, 2021 02:06
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Sassafras posted:To a pretty large extent, other than the move-up buyers who are going from "pretty darn nice" to "extreme luxury" because they want more land / whatever, the non-builder/flipper housing supply that ever becomes available is almost always going to be dated due to finances + 'downsizing' or years of neglect + estate sale style stuff. I guess occasionally you might hit the jackpot on someone else's misfortune, too, a divorce where neither spouse can afford their really nice place on their own, but lots of competition for those right now. Yeah, the supply is practically nil. People aren't moving unless they have to, and that's cranking up prices. We're lucky we found a rental that's pretty great but at this point in my life with our family income, I never dreamed it would be so difficult to find a place to live.
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May 19, 2021 04:48
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The answer is to just forget you ever had dreams. Simple!
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May 19, 2021 04:52
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I'm so glad my wife didn't listen to me saying we should wait till after the summer to buy because there seems to be a covid bubble brewing. I mean who knows where the market will be at in 5 years or 10 or 20, but our landlords health wasn't doing great and his kids made it clear they had no interest in being landlords so we panic bought right before things went totally insane last year. Not smart, just lucky.
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May 19, 2021 04:54
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https://twitter.com/YVRHousing/status/1394661494327939074?s=19 Only 35% are worried about affordability, the rest just want a better price? That's not very bearish considering the run we just had.
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May 19, 2021 09:20
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Sassafras posted:I keep saying people underestimate the tech money's role in this market segment, here's another almost certain example of Canadians who worked for Amazon (or less likely Microsoft) and came home for family support after kids. A notable local builder of passive houses and laneway homes weighed in on this remarkable sale to break down the price and reveal what the implied land value is. https://twitter.com/Lanefab/status/1393990600781832198?s=20 Construction materials costs have of course spiked like crazy, but we also know that city processes have become, um, insane, (see: Globe and Mail's 4 part series about the agony of building a laneway house in Vancouver) so at this point the buyer is probably paying a premium to have these soft costs around new construction done and not having to deal with the bs. A big takeaway from the article should be that Vancouver is already seeing silicon valley money, both in terms of successful locals who left for the USA and are now returning, and locals working at branch offices getting flush with the results of their RSUs. I don't think many local tech workers are going to be buying 4M houses, but pricy condos and townhouses are within reach. The funniest thing about this article are the quotes from the realtors which dance around saying "the chinese ruined the west side" but without explicitly saying so. This sort of coding is so typical of how polite Vancouverites talk when they know they're approaching saying something racist. No doubt the author Kerry Gold, known for anti-foreign capital, vaguely xenophobic, demand side leaning real estate pieces, was delighted to have these quotes and be able to inject this angle into the article without forcing it with her words. quote:...
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May 19, 2021 18:11
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It's only really been a week so far but I'm quite enjoying how all the Bitcoin people in Canadian real estate twitter have shut the gently caress up about it for the moment. (Down 35% in the ten days since Elon Musk made a joke about it on SNL or something?)
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May 19, 2021 19:18
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I would really enjoy seeing bitcoin falling even further and seeing some of those guys get wiped out entirely. But not like they would post about that on twitter.
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May 19, 2021 19:24
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Sassafras posted:It's only really been a week so far but I'm quite enjoying how all the Bitcoin people in Canadian real estate twitter have shut the gently caress up about it for the moment. (Down 35% in the ten days since Elon Musk made a joke about it on SNL or something?) I think China also banned it for stuff but I don't care enough to search for details.
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May 19, 2021 19:25
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As of today, Bitcoin is back where it was in like, January? Long ways to go yet.
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May 20, 2021 00:18
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https://www.singlelunch.com/2021/05/19/the-tether-ponzi-scheme/
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May 20, 2021 00:27
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I wonder how many of these idiots margin'd up on those BTC ETFs when they came out this year. The drop could happen faster than you realize.
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May 20, 2021 00:54
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Is this in the right thread? Also, it is wild and I’m certain I don’t understand it, or rather I only dimly understand it.
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May 20, 2021 02:19
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   https://www.reddit.com/r/canadahousing/comments/ngce7i/hi_toronto_billboard_is_up/ Nice
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May 20, 2021 16:53
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Everything old is new again. https://m.youtube.com/watch?v=E-P2qL3qkzk
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May 20, 2021 16:56
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OSFI moving ahead with changes to the mortgage stress test, up to the highest of interest+2% or 5.25%
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May 20, 2021 22:47
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qhat posted:OSFI moving ahead with changes to the mortgage stress test, up to the highest of interest+2% or 5.25% Is that what this is about? https://www.newswire.ca/news-releases/media-advisory-government-of-canada-to-make-housing-related-announcement-in-toronto-837591764.html
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May 20, 2021 22:53
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Claes Oldenburger posted:Is that what this is about? Maybe? The feds also said they would be applying that stress test to insured mortgages too, the OSFI only recommended it for uninsured.
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May 20, 2021 23:00
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My money is on another nothing announcement that has the illusion of action but in reality does nothing. The Feds are useless.
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May 21, 2021 03:06
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qhat posted:OSFI moving ahead with changes to the mortgage stress test, up to the highest of interest+2% or 5.25% If only they would raise the real loving rates instead.
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May 21, 2021 03:42
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Purgatory Glory posted:If only they would raise the real loving rates instead. Stress test is the step before that, I'd imagine. Make sure new borrowers can absorb the hit before you start the ratchet
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May 21, 2021 16:29
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If you're a retiree with no assets besides a car loan, and you can't make your debt payments anymore, and you're only receiving CPP with no additional retirement savings, what are the bank's options for making you pay your debt? Can they garnish CPP payments?
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May 21, 2021 23:28
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just another posted:If you're a retiree with no assets besides a car loan, and you can't make your debt payments anymore, and you're only receiving CPP with no additional retirement savings, what are the bank's options for making you pay your debt? Can they garnish CPP payments? Banks don't garnish wages, the most they can do is hold your account to try and snag payments before you withdraw your payrol/pension etc. But you can just move your pay to another bank. Then the only tool is to proceed with foreclosure. The Bank will likely exhaust all other options before that though: Skip payments, make interest only payments for a while. In theory this person should have the income to qualify for the payments and if they really can't then they can sell and rent somewhere else cheaper. Easier said then done though. Edit, my dumb rear end just answered it assuming they had a house. In your scenario the banks going to write off the debt. The person will stop having their cpp go into an account the bank controls.
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May 22, 2021 00:28
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just another posted:If you're a retiree with no assets besides a car loan, and you can't make your debt payments anymore, and you're only receiving CPP with no additional retirement savings, what are the bank's options for making you pay your debt? Can they garnish CPP payments? Why not? Is CPP a special class of compensation? Income is income, no?
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May 22, 2021 00:28
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just another posted:If you're a retiree with no assets besides a car loan, and you can't make your debt payments anymore, and you're only receiving CPP with no additional retirement savings, what are the bank's options for making you pay your debt? Can they garnish CPP payments? Securitize the debt, ask Tiff Macklem to buy it, and then forget about it.
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May 22, 2021 08:03
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Bonus points for shorting the debt immediately after it's off your books.
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May 22, 2021 08:05
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Purgatory Glory posted:If only they would raise the real loving rates instead. The central bank is supposed to set rates without political interference. Anyway, decreasing purchasing power by 4.5% is basically nothing. More to the point, how many people are taking loans from alternative lenders that are not subject to the stress test? It only applies to federally regulated banks. Credit unions, private lenders, mortgage finance companies, and mortgage investment corporations can just ignore it. My guess is, plenty. Canadian buyers have shown they are absolute idiots and will do anything to buy a house.
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May 22, 2021 17:21
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If they want to decrease mortgage purchasing power, they just need to ban mortgage insurance. Once the banks need to assume the risk themselves, it will stop a lot of the crap.
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May 22, 2021 19:27
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RBC posted:The central bank is supposed to set rates without political interference. The big 5 do stress test. Credit unions are hit and miss as far as I know. Anybody who is running into issues can easily go to a broker to find a non stress tester. To top it off, GDS and TDS ratios have just straight up been raised as some institutions to negate the stress test altogether. Used to be 32/44. Now it's 37/47 in my experience. With wiggle room if these are your only issues with an application.
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May 22, 2021 19:37
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| # ? Jun 13, 2024 07:46 |
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unknown posted:If they want to decrease mortgage purchasing power, they just need to ban mortgage insurance. Once the banks need to assume the risk themselves, it will stop a lot of the crap. First of all, the lenders don’t actually assume that risk ever, mortgage insurance is only useful for getting a higher price on the mortgage bonds they sell, and at that point it’s off their books anyway. Even if they can’t insure the mortgages individually, the mortgage bonds themselves can be insured and the products they get included in can be insured, unless you’re suggesting banning insurance on arbitrary asset classes, or in fact maybe all asset classes.
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May 22, 2021 20:23
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