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Jun 12, 2024 16:36
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- HookShot
- Dec 26, 2005
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23 new posts and here I thought something had actually happened but no it's just mallchat.
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Oct 12, 2016 19:24
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- namaste friends
- Sep 18, 2004
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by Smythe
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~*urban planning and land use discussion*~
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Oct 12, 2016 19:40
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- I would blow Dane Cook
- Dec 26, 2008
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Pure subprime, inject it right into my veins:
quote:
Sub-prime mushrooms as FHBs go interest-only
Got to keep that ponzi going! From The New Daily:
A leading financial services expert has described the rise in interest-only mortgages among first home buyers as “disturbing” and likely to trigger higher loan defaults in the future.
Data published by the Australian Prudential Regulation Authority shows that more first home buyers are resorting to interest-only loans to get a foothold in the property market.
The official statistics show that the total value of interest-only loans made by Australian banks rose by $10 billion to $481 billion in the June quarter.
Historically, interest-only loans have been popular among investment borrowers, but the latest data shows that owner-occupiers now account for a larger proportion of interest-only mortgages compared to June 2015.
Dr Adrian Raftery, a senior lecturer in financial planning at Deakin University, believes the trend in the official data indicates that a time bomb might be ticking for thousands of low-income borrowers who bought into the booming property market in the last 12 months.
“There’s been a lot of brainwashing from the operators of get-rich-quick schemes encouraging investors and owner occupiers to take out interest-only loans,” Dr Raftery told The New Daily.
“Brokers are also contributing to the growth of interest-only mortgages because they get bigger trail commissions from banks when borrowers take longer to reduce the principal.
“This is a disturbing trend.”
The problem with interest-only loans is that borrowers do not build equity in their homes until their mortgage contract requires them to start reducing the principal.
That can be up to 10 years after they take out the loan.
“If there is an economic downturn and interest-only borrowers lose their jobs they have little room to adjust their repayments with the bank,” Dr Raftery said.
“For people with few assets or savings that might force them to sell the mortgaged property at a loss.
“Australia could lose a whole generation of savings because of how these loans are structured.”
At the end of June this year the value of interest-only loans in Australia exceeded the value of investment loans by $60 billion.
That means the banks are now selling a larger number of interest-only mortgages to owner-occupiers.
This was not meant to happen because bank regulators have been trying to crack down on the growth of risky lending practices in the banking system since the middle of last year.
Interest-only loans add to credit risk in the banking system because they take much longer for borrowers to pay off.
Dr Raftery is concerned that banks are contributing to the build-up of credit risk in Australia by writing more interest-only loans, especially to people on low incomes.“If there is a correction in the property market or a downturn in the economy a lot of people are going to default on these loans.
“Owner-occupiers should be using the current low interest rate environment to pay down as much of the loan principal as they can.”
From Wikipaedia on the US housing bust:
The United States (U.S.) subprime mortgage crisis was a nationwide banking emergency that contributed to the U.S. recession of December 2007 – June 2009.[1] It was triggered by a large decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities. Declines in residential investment preceded the recession and were followed by reductions in household spending and then business investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines.[2]
The expansion of household debt was financed with mortgage-backed securities (MBS) and collateralized debt obligations (CDO), which initially offered attractive rates of return due to the higher interest rates on the mortgages; however, the lower credit quality ultimately caused massive defaults.[3] While elements of the crisis first became more visible during 2007, several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.[4]
There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others.[5] A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.[6][7] A high percentage of these subprime mortgages, over 80% in 2006 for example, were adjustable-rate mortgages.
Interest-only loans are a form adjustable-rate mortgage. Pure sub-prime stuff.
http://www.macrobusiness.com.au/2016/10/sub-prime-musrooms-as-fhbs-go-interest-only/
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Oct 12, 2016 21:49
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- Brannock
- Feb 9, 2006
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by exmarx
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Fallen Rib
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Your average hardworking Canadian and their family values
quote:Father convinced me to buy his home so he may retire early. 4 years later, house value has dropped $150k. Want to move, what to do? (CA)
(self.personalfinance) submitted 6 hours ago * by alienwarecasio
The house is in an oil city (Fort McMurray), and due to the oil crash I’ve lost a lot of money as the title says. My father bought the house for $530k a few years prior to me living in the home with him. I lived there cheap for one year before he told me that he was going to sell and retire early. The home was not selling as fast as he had hoped, so he approached me with the idea of buying it off of him for market value $585k and he would give $30k of the profit towards my down payment. I was 21yo fresh out of school at my first real job, and expressed concerns that I haven’t done any research into real estate and wasn’t ready being so young. I told him I didn’t want to work in this city for more than 5 years and would rather rent, but if he truly believed this was the best decision then I will trust him. He said that I should get a couple roommates to help with the bills, and that buying the home from him is the best thing to do. Everything was pretty rushed so I never sat down to crunch the numbers of buy vs rent. I bought the house, he paid a realtor $3500 in closing costs to finalize the deal, it was now mine.
Everything was great until the crash. The house was valued at $620k in 2014 but is now $470k. Couldn’t find trustworthy roommates since most of my friends got laid off and left town, or they were stuck with a big mortgage like me. Fortunately, I managed to keep my job.
I have a detailed spreadsheet of overall home costs:
- $192k went towards the home in the 4 years (mortgage, taxes, insurance, interest, maintenance, etc)
- $112k was earned from roommates
- Which means I’ve paid $80k (rent in those 4 years @ average of $1000/mo is $48k)
- Plus $30k down (+ father’s $30k) to = 10% down payment
- Overall I’m in it $110k, so far
- There shouldn’t be any capital gains to worry about come tax time
I’m now unhappy here, and work has given me an opportunity to move close to family/friends. I owe $470k and the value is at $470k. Renting the house isn’t an option, it won’t cover my costs and I won’t be living in the same city. Due to closing costs (approx. $21k) and mortgage penalty (1yr early on the 5yr term $10k) I cannot afford to sell. I’ve already depleted my retirement savings and have been living paycheck to paycheck in hopes of the economy to turn around. Should I ask my father to pay the closing costs since he put me in this situation? Is it right to be angry with him if he doesn’t? Open and use a line of credit? Bankruptcy? Need some help with this one please!
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Oct 13, 2016 16:42
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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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Isn't Alberta the only province where you can give your mortgage holder the keys, the finger and then walk away?
If that's the case it might be his best option.
As long as he makes sure to rent his new apartment first. His credit score will admittedly be hosed for the next several years.
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Oct 13, 2016 16:51
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- peter banana
- Sep 2, 2008
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Feminism is a socialist, anti-family, political movement that encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians.
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Yeah but a lot of the people quoted in that article are engineers and technicians, not just uneducated guys who flocked to an industry because the money was good. I mean, the engineers ALSO flocked there because the money was good, but they went through a lot of training and preparation. It sucks that some are now working retail.
Ah well, I guess it's just a classist thing. Guess the petroleum engineers should've gone into software or something.
Savings plans exist. HTH.
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Oct 13, 2016 17:50
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- namaste friends
- Sep 18, 2004
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by Smythe
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http://business.financialpost.com/p...tax-to-cool-top
quote:
Canada’s most populous province is considering measures to enhance housing affordability while avoiding moves to actively lower home prices, people familiar with Ontario’s plans said.
The approach sets up a policy divergence between the provinces overseeing Canada’s two hottest real estate markets. The federal government tightened mortgage rules last week in a bid to temper price growth in Toronto and Vancouver, and this summer British Columbia imposed a tax on foreign buyers snatching up properties in the Pacific Coast city.
Ontario is instead considering affordability measures such as new support for first-time home buyers and more funding for government-subsidized housing, according to the people who spoke on condition of anonymity because the plans haven’t been finalized. That leaves Ontario focused on supporting the bottom end of the market as British Columbia tries to cool the top.
“We take a lot of pride in being one of the top destinations in North America for foreign direct investment,” Ontario Finance Minister Charles Sousa told Bloomberg TV Canada last week, adding the province remains “very sensitive to affordability.”
Asked if the difference in approaches could drive investment to Toronto from Vancouver, fuelling further price growth in Canada’s financial capital, the minister said “many are wondering the same.”
Foreign Buyers
Sousa has said the government is considering all its options while seeking data on home purchases, though he offered no timeline for any new provincial measures. Ontario Premier Kathleen Wynne has remained cool to the notion of a foreign buyer tax.
“That increase in demand and increase of desire to invest in Ontario is not a bad thing, provided it provides jobs, economic growth, economic development. We’ve been encouraging that,” Sousa said Friday. Ontario is taking its time in part because it’s not clear what the impact has been in British Columbia, he added. “The market was already softening. There were already indications it was tapering down” before the new tax.
The average price of a detached single-family home in Greater Vancouver rose to $1.6 million in September, up 34 per cent from a year earlier — though sales of the properties slowed significantly after the foreign buyer tax took effect. A single-family detached home in the Greater Toronto area is now C$1 million, up 24 per cent from the previous year.
Social Housing
Toronto Mayor John Tory wants both the federal and provincial governments to contribute roughly C$800 million each to Toronto Community Housing Corp. properties. He has also expressed doubt Ontario will make any housing regulation changes before the full impact of measures in British Columbia are known.
“I’m focused on two things: One is getting the social housing stock repaired and secondly, increase the supply of affordable housing,” Tory said in a Sept. 29 phone interview. The Toronto mayor also called for greater coordination between governments. “This needs to be a national strategy.”
Ontario is considering a tax on vacant properties, one person familiar with plans said, though Sousa maintains he needs more data on vacancies before taking any action. Vancouver Mayor Gregor Robertson proposed a vacancy tax last month.
Tory is hesitant to add a tax on either foreign buyers or vacant homes. Toronto has a housing affordability problem, he said, but “if you don’t know or understand what’s causing it, you don’t understand what the solution is.”
Federal Measures
Prime Minister Justin Trudeau has pledged funding for “social infrastructure” as part of a 10-year, C$120 billion infrastructure plan. Toronto’s mayor wants housing to be a guaranteed part of that and said he has an “inkling” there could be new funding in the federal government’s fall economic update, expected in November.
The measures federal Finance Minister Bill Morneau unveiled Oct. 3 tightened rules across the country for mortgage eligibility and capital gains exemptions on the home sales, while beginning consultations on risk-sharing with lenders to leave the government less exposed in case there’s a rash of defaults. Lenders and insurers are resisting the changes.
Morneau said Wednesday each province is free to make its own housing regulation decisions, and that policies aimed at affordability and at foreign buyers each have merit.
“You want to make sure we have people in our market that are here for the right reasons, if they’re foreign investors, and you want to find ways to get people into the housing market who should be in it,” Morneau said in an interview. Ontario and British Columbia are “going to take measures they think are most important,” he said.
hahah holy gently caress
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Oct 13, 2016 20:35
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- cowofwar
- Jul 30, 2002
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by Athanatos
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So Ontario's strategy is to further inflate the bubble by subsidizing home sales.
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Oct 13, 2016 20:51
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- namaste friends
- Sep 18, 2004
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by Smythe
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Tim hudak is worth every penny isn't he
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Oct 13, 2016 21:00
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- Purgatory Glory
- Feb 20, 2005
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I love this total disconnect of thinking.We need to make homes affordable and at the same time protect equity...
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Oct 13, 2016 21:39
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- peter banana
- Sep 2, 2008
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Feminism is a socialist, anti-family, political movement that encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians.
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I love this late stage capitalist paradigm that all of your net worth should be tied up in one asset that could burn down or be washed away in a flood.
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Oct 13, 2016 22:41
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- MickeyFinn
- May 8, 2007
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Biggie Smalls and Junior Mafia some mark ass bitches
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I just loving love this middle class delusion across this continent that you can some how "address affordability" but also "don't lower home value growth!" at the same time. Do we just want some sort of house based GMI where the government pays you a % of your house value each year? A GMI would be dangerous socialism, but massively subsidizing home ownership then practically guaranteeing gains because oh my god it's our retirement and investment plan is just fine and a sound investment into the world's richest middle class.
I love this total disconnect of thinking.We need to make homes affordable and at the same time protect equity...
There is no alternative that is palatable to a politician. What can they do? Announce that their goal is to destroy the savings of homeowners or tell non-homeowners to get hosed? The only option is to keep building in cheaper areas and hope no one notices their life flying by on the morning and afternoon commutes.
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Oct 13, 2016 23:19
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- Juul-Whip
- Mar 10, 2008
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We'll make them affordable by allowing broke millennials to sign a multimillion dollar mortgage. Simple!
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Oct 13, 2016 23:31
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- Dreylad
- Jun 19, 2001
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well im looking forward to paying rent to the bank I guess??
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Oct 14, 2016 00:31
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- snorch
- Jul 27, 2009
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They're going to have a hell of a time managing the rampant vandalism that will undoubtedly plague the building facade.
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Oct 14, 2016 01:47
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- namaste friends
- Sep 18, 2004
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by Smythe
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The chinee in charge of holborn is the most tone deaf autist you can imagine so sorry van losers trump is here to stay
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Oct 14, 2016 02:32
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- Rime
- Nov 2, 2011
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by Games Forum
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All that work was going on before they covered it up. It was still covered up as of two days ago.
We're still washing the building with acid as of two days ago. But, having asked the crew, it's just because the letters are fancy expensive and Holborn doesn't want to have to clean poo poo off them before the building opens.
Everything about that building is a loving nightmare, btw. I always knew Arthur Erickson was a brutal joke, but this last building of his really tops off a career spent designing garbage fires.
Rime fucked around with this message at 02:35 on Oct 14, 2016
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Oct 14, 2016 02:32
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- namaste friends
- Sep 18, 2004
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by Smythe
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gently caress Erickson and all his loving sycophants
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Oct 14, 2016 02:59
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- I would blow Dane Cook
- Dec 26, 2008
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This is the Trump tower with the ad where the woman cuts off the top of a Champagne bottle with a Katana right?
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Oct 14, 2016 03:05
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- namaste friends
- Sep 18, 2004
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by Smythe
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Vancouver "architecture" lmao
Just watch we're going to get windowless bedrooms to "increase affordability". gently caress architects
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Oct 14, 2016 03:36
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- I would blow Dane Cook
- Dec 26, 2008
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Vancouver "architecture" lmao
Just watch we're going to get windowless bedrooms to "increase affordability". gently caress architects
This was rejected thankfully.
http://www.theage.com.au/victoria/southbank-tower-with-borrowedlight-bedrooms-rejected-by-minister-20150625-ghxijd.html
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Oct 14, 2016 03:39
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- leftist heap
- Feb 28, 2013
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Fun Shoe
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Haha, gently caress the loser capitalists in this goddamn country.
http://www.theglobeandmail.com/news/british-columbia/bc-tech-companies-complain-of-shortage-of-skilled-workers/article32360079/
quote:
B.C.’s growing tech industry faces a “talent crisis” that is limiting its growth and forcing companies to consider relocating out of the province, the British Columbia Tech Association says.
While the tech sector, which employs 92,700 people – more than forestry, mining and oil-and-gas in B.C. combined – continues to provide jobs that pay far more than others, companies say a shortage of talent is making it difficult to fill key job openings, according to a statement from the association on the release of its 2016 British Columbia Technology Report Card.
“It is the burning issue for most tech companies in the province,” Bill Tam, president and CEO of the technology association, said in an interview on Thursday.
“The thing that fuels growth in companies, especially in tech, is the human capital.”
Much of the concern about talent is expressed in anecdotal terms, although the report card promises a more detailed assessment soon.
But the report says B.C. graduates the third-highest number of students from technical programs, but, on a per capita basis, this is lower than larger provinces such as Ontario, Quebec and Alberta.
And while B.C. does better than Alberta and Quebec in undergraduate degrees, its schools award fewer graduate degrees per 100,000 people than other provinces. The report says 17.2 per cent of undergrads in B.C. are in tech-related fields, compared with 19.9 per cent in Alberta and 18.6 per cent in Ontario. For graduate students, it is 22.2 per cent in B.C. compared with 33.7 per cent in Alberta and 30.2 per cent in Ontario.
The association has called on the B.C. government to invest $100-million in postsecondary institutions over the next three years to produce the required workers.
And it also wants the province to facilitate changes in the immigration system to allow talent to be brought in from abroad.
The concern about skilled tech workers is part of an otherwise rosy view of the potential for the industry.
The B.C.’s tech sector includes such industry titans as Vision Critical and D-Wave. The industry, which occupies about 40 per cent of downtown Vancouver’s commercial real estate, also has many lower-profile companies working in software.
Kostya Polyakov, a partner in technology, media and telecommunications with KPMG, which helped produce the report card, said the thing that jumps out in reviewing the sector is a “fantastic” growth rate of more than 6 per cent a year.
Mr. Polyakov noted that wages in the sector are annually worth more than $8-billion, and jobs are paying on average 76 per cent more than the average B.C. wage.
Employment in the sector has grown by 22 per cent from 2004 to 2009, but softened to 5.7 per cent in the past five years. The tech association produces its reports every two years.
Since the 2014 report, Mr. Tam said, the number of tech companies with more than 50 employees has increased 14 per cent. “We see this as a sign of the continual maturing that’s happening in the ecosystem,” he said. “It has created great momentum for companies but exacerbated access-to-talent challenges.”
Mr. Tam said the shortage of talent is limiting the growth potential of tech companies and forcing them to consider other locations.
Last month, Premier Christy Clark told The Globe and Mail her government will beef up funding to the postsecondary system to deal with the issue, but did not offer specific figures.
“There will be some announcements coming in the next little while with respect to investing in computer science in particular in universities. … It will be a significant amount,” Ms. Clark said.
The Premier said the government is reviewing the advice it has received, and sorting through options with an eye to those that will yield immediate benefits.
In an interview on Thursday, Amrik Virk, the Minister for Technology, Innovation and Citizens’ Services, said the province has been in talks with the federal government on bringing in more new Canadians with tech skills.
“That’s going to be able to respond directly to what the tech sector needs,” he said.
George Heyman, the B.C. NDP critic for technology and the green economy, said the opposition has long been calling for the government to spend more money on supporting the tech sector through such measures as education investments.
“Instead, they spent years focusing on a yet-to-materialize [liquefied natural gas] sector at the expense of other parts of the economy,” Mr. Heyman said.
Labor shortage  how the industry ever overcome this shortage of talent.
Good news for the tech industry because Canadian governments absolutely love to subsidized whiny, uncompetitive industries.
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Oct 14, 2016 03:39
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- I would blow Dane Cook
- Dec 26, 2008
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Where is the obligatory comment by the Hootsuite guy?
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Oct 14, 2016 03:41
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- Adbot
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ADBOT LOVES YOU
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Jun 12, 2024 16:36
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Oct 12, 2016 18:14
'ers
