Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Aug 13th, 2018 7:37 pm
Tags:
None
Deal Addict
Dec 27, 2006
1671 posts
701 upvotes
zakarydoks wrote:
Feb 11th, 2018 11:03 pm
I didn't learn anything useful except maybe how lefties think. I guess I learned something about social justice but again it's not anything useful but sometimes entertaining Face With Tears Of Joy.
I think you’ve learned all your ideas are made up, as you each time you were asked for a source you basically said you made them up Loudly Crying Face
Deal Addict
Jan 14, 2009
1601 posts
628 upvotes
Vancouver, BC
Motoss wrote:
Feb 11th, 2018 11:08 pm
I think you’ve learned all your ideas are made up, as you each time you were asked for a source you basically said you made them up Loudly Crying Face
You might not believe me but I'm truly trying to help you by presenting you with facts. Being born and raised in Canada we are exposed to a lot of left leaning social justice crap that we take as truth. We get very little exposure to financial literacy in Canada because we are told to rely on government for that. That might have worked 40 years ago but it will not in the future. You don't have to believe me but just know there is another point of view out there if you care to explore.
Deal Addict
Dec 27, 2006
1671 posts
701 upvotes
zakarydoks wrote:
Feb 11th, 2018 11:14 pm
You might not believe me but I'm truly trying to help you by presenting you with facts. Being born and raised in Canada we are exposed to a lot of left leaning social justice crap that we take as truth. We get very little exposure to financial literacy in Canada because we are told to rely on government for that.That might have worked 40 years ago but it will not in the future. You don't have to believe me but just know there is another point of view is out there if you care to explore.
This is true but when your point of view has zero sources to back it up what are people to believe?

Do you have sources for what I asked for earlier? Perhaps it’s you that needs to rethink your point of view since it’s base purely on your emotions and made up “sources”.

Do you understand?
Deal Fanatic
Feb 9, 2009
6210 posts
3415 upvotes
The question remains -- how do you get all the empty homes in the market? Obviously saying 100% empty homes tax is not gonna happen... so realistic solutions...
Deal Addict
Feb 23, 2009
1315 posts
1185 upvotes
Oshawa
Sanyo wrote:
Feb 11th, 2018 11:33 pm
The question remains -- how do you get all the empty homes in the market? Obviously saying 100% empty homes tax is not gonna happen... so realistic solutions...
The vacancy tax is a start. It will force people to sell or rent them out sooner or later.
If not, then it will still generate more money so I don't have to pay more taxes.
Deal Fanatic
Jan 27, 2006
8585 posts
2920 upvotes
Vancouver, BC
zakarydoks wrote:
Feb 11th, 2018 8:11 pm
They are the same supply. The "investment" supply will eventually be lived in, either by the current owners, future owners, or rented out. Government has to encourage owners to rent out their vacant units. Some homes will never be occupied full time because not every Vancouver resident lives here full time. A city with high percentage of residents with roots in Asia will inevitably have more part time residents. Vancouver also has many residents working overseas and their homes would be empty too. There is nothing wrong with having part time residents in Vancouver. They bring much needed investment and cultural enrichment (the good kind).
In the sense that they draw from the same pool, yes... but not in normal percentage of properties used as investments as the idea of what qualifies and the pay off of the real estate investment has changed in recent years with the rapid rise in prices.

As I've said in the past, real estate investments in normal markets was the longer term view where rents supplemented (or ideally, paid for) the mortgage on a property. And over the years of ownership, that rent built the equity in your investment so when you eventually sell the property, you don't have to pay off such a large mortgage (or any mortgage at all). Because of the slow nature of letting rent build equity, a small percentage of local housing stock was used and it fit the purpose of rental housing as well for those who couldn't afford to buy or didn't want to buy. You see this happen in many of the secondary markets where prices haven't spiked.

In the hot markets, the above is too much trouble for most investors. They aren't in it for the rents to supplement or pay the mortgage on a property any more as they don't care. The fast price appreciation in recent years made the idea of finding renters, collecting rent and having to deal with renter's concerns no longer relevant. The price appreciation from year to year (or even month to month) overshadowed any money that could have been made from renting. After all, if you can make $100,000 in 6 months of just letting a house sit there, why would you want to trouble yourself with a renter paying you $18,000 (ie $3,000 per month for 6 months) if it means having to deal with the renter if you are going to sell the property.

I don't have an issue with part time residents or foreigners coming here to live. After all, my parents did in the '50s so it would be wrong of me to say that they can't do it now. However, that's not necessarily the issue. It's really about people buying property for the sole reason of investment and not to live in as can be seen in various Greater Vancouver neighbourhoods with derelict houses who neighbours haven't never seen the owners in years.
Deal Fanatic
Jan 27, 2006
8585 posts
2920 upvotes
Vancouver, BC
pkrash wrote:
Feb 11th, 2018 11:47 pm
The vacancy tax is a start. It will force people to sell or rent them out sooner or later.
If not, then it will still generate more money so I don't have to pay more taxes.
It is a start but there are too many holes in the existing process. In addition, we don't even have a definite way of 'officially' stating how many homes are empty as every one that has a number seems to have a different number and used a different methodology to get to that number.
Deal Addict
Jan 14, 2009
1601 posts
628 upvotes
Vancouver, BC
Motoss wrote:
Feb 11th, 2018 11:18 pm
This is true but when your point of view has zero sources to back it up what are people to believe?

Do you have sources for what I asked for earlier? Perhaps it’s you that needs to rethink your point of view since it’s base purely on your emotions and made up “sources”.

Do you understand?
You keep asking for sources when something is an observation but you don't me tell me what you observe. It is really hard to have a useful discussion like that - try it in real life. The author states that there are biases in business schools but where's the source? You don't need one although you have not observed it yourself and I doubt the author has either. Canadians have been indoctrinated to swallow leftist garbage - again just an observation but you are going to ask for a source instead of telling me what you observe?

The primary drivers of housing prices are demand and supply. How do you want me to source that? Any ECON 101 textbook? How about the efficient market hypothesis? Are we going to ignore both of those facts when reading the "supply myth" article? You did not question the conclusions of that article one bit because you already agreed with it and it confirmed your conclusions.
Deal Addict
Dec 27, 2006
1671 posts
701 upvotes
zakarydoks wrote:
Feb 12th, 2018 12:06 am
You keep asking for sources when something is an observation but you don't me tell me what you observe. It is really hard to have a useful discussion like that - try it in real life. The author states that there are biases in business schools but where's the source? You don't need one although you have not observed it yourself and I doubt the author has either. Canadians have been indoctrinated to swallow leftist garbage - again just an observation but you are going to ask for a source instead of telling me what you observe?

The primary drivers of housing prices are demand and supply. How do you want me to source that? Any ECON 101 textbook? How about the efficient market hypothesis? Are we going to ignore both of those facts when reading the "supply myth" article? You did not question the conclusions of that article one bit because you already agreed with it and it confirmed your conclusions.
Reread the article - supply has been met per household formations- do you understand what the authors as written? Are you able to articulate some sort of educational rebuttal or just more antidotal comments?

Your lack of supply has all been addressed many times over.

Does that make sense to you?
Deal Addict
Jan 14, 2009
1601 posts
628 upvotes
Vancouver, BC
Motoss wrote:
Feb 12th, 2018 12:21 am
Reread the article - supply has been met per household formations- do you understand what the authors as written? Are you able to articulate some sort of educational rebuttal or just more antidotal comments?

Your lack of supply has all been addressed many times over.

Does that make sense to you?
That is not true because markets are forward looking. It doesn't give a crap about the past which is what that idiot looked at. If the market thinks projected supply cannot satisfy future demands, prices will increase. Jeez take some econ and finance courses because they are useful in real life.
Deal Addict
Dec 27, 2006
1671 posts
701 upvotes
zakarydoks wrote:
Feb 12th, 2018 12:28 am
That is not true because markets are forward looking. It doesn't give a crap about the past which is what that idiot looked at. If the market thinks projected supply cannot satisfy future demands, prices will increase. Jeez take some econ and finance courses because they are useful in real life.
“A troubling prophecy for a neighbourhood like Coal Harbour where 22.2 per cent of homes are empty or non-resident occupied, according to 2016 data gathered by Simon Fraser University's Andy Yan”

http://www.cbc.ca/beta/news/canada/brit ... -1.4027167

As I said to you before - you need to spend a little time catching up on what has already been covered in this thread.

Makes sense?
Deal Addict
Jan 14, 2009
1601 posts
628 upvotes
Vancouver, BC
Motoss wrote:
Feb 12th, 2018 12:32 am
“A troubling prophecy for a neighbourhood like Coal Harbour where 22.2 per cent of homes are empty or non-resident occupied, according to 2016 data gathered by Simon Fraser University's Andy Yan”

http://www.cbc.ca/beta/news/canada/brit ... -1.4027167

As I said to you before - you need to spend a little time catching up on what has already been covered in this thread.

Makes sense?
Haha it is clear now how you debate. Empty homes = no supply problem. There is your dishonest leap. This kind of leap is the staple of leftist arguments. See "income inequality = oppression".

No. Nothing makes sense in this thread because according to this thread the bubble began on January 2002 Smiling Face With Open Mouth. This thread is filled with delusional people who are in denial because accepting the fact that they are wrong will crush their souls. Instead they double down by pointing to dubious sources and citing experts who have no formal training in economics while cementing their own fate of being renters for life Smiling Face With Open Mouth. Academics in the field of business and finance cannot be trusted because they lie to keep the bubble inflated Smiling Face With Open Mouth. Real estate agents and the media can bend market forces by being deceitful Smiling Face With Open Mouth. That makes sense Smiling Face With Open Mouth.
Deal Addict
Jan 14, 2009
1601 posts
628 upvotes
Vancouver, BC
Sanyo wrote:
Feb 11th, 2018 11:33 pm
The question remains -- how do you get all the empty homes in the market? Obviously saying 100% empty homes tax is not gonna happen... so realistic solutions...
craftsman wrote:
Feb 11th, 2018 11:50 pm
It's really about people buying property for the sole reason of investment and not to live in as can be seen in various Greater Vancouver neighbourhoods with derelict houses who neighbours haven't never seen the owners in years.
It's hard to do because basically you are asking private individuals to provide a public service that they do want to provide. This could be for a million and one different reasons. But to start, I would make it economically profitable to rent out their dwellings. Give massive tax breaks and make rental regulations much much more flexible. Nobody leaves money on the table repeatedly, especially long term. I don't rent out my unit because being a landlord is woefully unprofitable. The damage to the unit and the emotional pain and suffering is just too costly. Being a landlord in Vancouver shortens your life.

If they are flipping, then let them flip until prices stabilize. We have to be patient but it looks like the market is stabilizing. Vancouver does not have a huge problem with vacant units when compared to other cities.

Image
Despite the large spike in empty homes, Toronto and Vancouver continue to have a lower rate of empty homes than the country as a whole — 6.5 per cent for Vancouver, and 4.4 per cent for Toronto.
Newbie
Dec 23, 2007
22 posts
3 upvotes
Burnaby
zakarydoks wrote:
Feb 11th, 2018 8:32 pm
That's my observation of DT too. Supply dried up in 2016 and new developments are mostly high end due to high cost of land. Lots of out of towners won't live outside of the downtown core but I can see why. Downtown Vancouver is really convenient.

Locals should avoid locations with low inventory and high demand. Young people should check out Surrey. Skytrain and lots of amenities.
https://www.realtor.ca/Residential/Sing ... bia-V3T1V6
Actually the listing realtor was pitching to some people this as well as he was going to be listing a unit in Surrey in a couple weeks for much less. He mentioned the next downtown area will be Burnaby Metrotown area and then Surrey, however even Surrey has increased quite a bit already.
Penalty Box
User avatar
Dec 13, 2016
1829 posts
1405 upvotes
pkrash wrote:
Feb 11th, 2018 11:47 pm
The vacancy tax is a start. It will force people to sell or rent them out sooner or later.
If not, then it will still generate more money so I don't have to pay more taxes.
This is hilariouz

Top

Thread Information

There is currently 1 user viewing this thread. (1 member and 0 guests)

AndyZoooo