REVscene - Vancouver Automotive Forum


Welcome to the REVscene Automotive Forum forums.

Registration is Free!You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today! The banners on the left side and below do not show for registered users!

If you have any problems with the registration process or your account login, please contact contact us.


Go Back   REVscene Automotive Forum > Automotive Chat > Vancouver Off-Topic / Current Events

Vancouver Off-Topic / Current Events The off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.

Reply
 
Thread Tools
Old 07-12-2016, 11:41 AM   #7076
nma
#RVG
 
nma's Avatar
 
Join Date: Sep 2008
Location: Richmond
Posts: 557
Thanked 623 Times in 200 Posts
The only way you're going to see a big change is if interest rates dramatically changed. Or if some disaster happens or money stops coming in but that's kinda common sense.

Bank of Canada won?t hike rates until Q2 2019: Macquarie | Financial Post

I think we are starting to see the prices level off a bit, however, desirable properties are still in HUGE demand. I see less desirable properties sitting a bit longer on the market as opposed to before. However, they are still eventually being sold, as some get fed up and just decide to compromise.
Advertisement
nma is offline  
Reply With Quote
Old 07-12-2016, 12:55 PM   #7077
I contribute to threads in the offtopic forum
 
Hehe's Avatar
 
Join Date: Dec 2002
Location: YVR/TPE
Posts: 2,683
Thanked 1,237 Times in 501 Posts
Quote:
Originally Posted by Manic! View Post
If you have a job and can pay your mortgage what would be the point of selling. If your from China what would you do with that money after selling the house?
This is actually not entirely true in Canada as we usually have 5yr terms on mortgage (as in US you can have 30yr at once, hence no renewal) and every time it comes to renewal, a calculation would be done.

In the example shown, or when one's downpayment gets wiped, lenders would ask one to come up with the difference to ensure their loan to value is still balanced and/or meeting CMHC requirement.

Let's say you buy 2M house, put down 400k, you have a LTV of 80%, which is a healthy number for residential mortgage. Now the house drops by 20% (1.6M asset value). Even if you have no problem on continuing the payment, at your renewal, your LTV becomes different. You now owes 1.36M after 5yrs of payment (calculated at 2.69% interest with 25yr, assuming that stays fixed) on an asset worth 1.6M, so the LTV becomes 85% (or 15% down) and it would trigger CMHC.

2 Options:
1 - pay CMHC insurance and live with the now 15% down and higher monthly payment

2 - pony up ~80k so that the LTV stays the same 80% as before.

Current generation CDN buyer have not experienced something like this as RE have been growing like mad for the last decade and more. But this is exactly what a bank would do (barring any gov't new policy/intervention) in a down market.
__________________
Nothing for now
Hehe is offline  
Reply With Quote
Old 07-12-2016, 12:55 PM   #7078
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
Quote:
Originally Posted by 68style View Post
^ so why wait? Go buy something in Aberdeen, UK then... It suits your ideology perfectly.
because I know nothing about those places.. At least I know (I hope) Vancouver housing and an comfortable with the decisions I would make here
kr4l is offline  
Reply With Quote
Old 07-12-2016, 02:20 PM   #7079
I don't like cheese but I love milk!
 
Ferra's Avatar
 
Join Date: Nov 2002
Location: Van
Posts: 1,831
Thanked 760 Times in 192 Posts
Quote:
Originally Posted by twdm View Post
It doesn't work like that. The better hypothetical situation is. You bought a $3mil house. It dropped 15% in one year. Do you sell? No. OK it drops another 10% next year. Do you sell? No. It drops another 10% in 3 months. Do you sell? How many people could stomach this situation where they lost a few hundred thousand and wiped out all of their down payment and equity.

In addition, no one wants to buy in a down market. Would you buy a house that has been losing 15% year on year? That's what usually happens just like in a stock market crash. The people who can handle the swings ride it out, the majority gets slaughtered.
Actually...most people will hold until they can no longer afford it...human psychology.

and like going to a casino, you never know when prices will raise or drop the next day.

remember back in 2008-2009 after the financial crisis, the housing price in Vancouver only dipped slightly. Many people including a friend of mine were standing on the side line waiting for price to drop further (it only went down like 5-10%)
I was expecting a much steeper decline like in the US. (maybe not 30-40% like in the US, but 15%-20%)...well that didn't happen, and who would've thought prices would increase so drastically over the next few years...
Ferra is offline  
Reply With Quote
Old 07-12-2016, 02:42 PM   #7080
I Will not Admit my Addiction to RS
 
Gululu's Avatar
 
Join Date: Feb 2013
Location: Shaughnessy
Posts: 564
Thanked 755 Times in 209 Posts
Quote:
Originally Posted by Gululu View Post


vancouver only #7. hong kong is negative
china cities takes top 5

nothing will change in vancouver.
I just wanna say this. Any attempts at tinkering with the housing on demands' side will end badly. Just look at what happened to Hong Kong. Now that Mainlanders don't wanna frequent HK anymore, housing in HK has collapsed and continue to downfall. Without Chinese central government's subsidy, Hk cannot compete. Now that Thailand tourism is no1, HK people is so sad.
Not to mention there will be a huge influx of filipino workers in the coming months ahead. Many hong kong's residents are making a return back to Vancouver as well.

Collapse of Hong Kong unfolding in our times
Gululu is offline  
Reply With Quote
This post FAILED by:
Old 07-12-2016, 03:50 PM   #7081
Captain Happy Bubble is my Homeboy
 
Join Date: May 2011
Location: van
Posts: 335
Thanked 1,890 Times in 166 Posts
Quote:
Originally Posted by Gululu View Post


vancouver only #7. hong kong is negative
china cities takes top 5

nothing will change in vancouver.
Can you learn to read before posting? You say #3 Istanbul, TURKEY is part of China
Coren is online now  
Reply With Quote
This post thanked by:
Old 07-12-2016, 04:10 PM   #7082
I only answer to my username, my real name is Irrelevant!
 
Hondaracer's Avatar
 
Join Date: Oct 2001
Location: Off-Topic
Posts: 26,812
Thanked 6,596 Times in 2,290 Posts
Istanbul, Stockholm, Budapest and Gothenberg are probably all as a result of North African/middle eastern refugees.

I'll take dem mainlanders as opposed to those situations.
__________________
Canucks - ftw!
Hondaracer is offline  
Reply With Quote
Old 07-12-2016, 04:26 PM   #7083
linguistic ninja
 
CivicBlues's Avatar
 
Join Date: Aug 2001
Location: Vancouver, BC
Posts: 13,735
Thanked 551 Times in 173 Posts
LOL I love how gululu's post was failed by "JoshuaWong"

Nice one RS.
__________________
http://www.en.wikipedia.org

Still a card carrying member of the SFC :)
CivicBlues is offline  
Reply With Quote
Old 07-12-2016, 04:31 PM   #7084
Everyone wants a piece of R S...
 
Join Date: Nov 2012
Location: YVR
Posts: 395
Thanked 224 Times in 123 Posts
I don't get the argument that if houses drop a bit people on the sidelines will buy in and cause the market to go up again.

Unless everyone has $1.5M in cash ready, if the market goes down banks will start being much more conservative in giving out mortgages or freeze lending altogether. You'll probably need at least 30-35% down.
noclue is offline  
Reply With Quote
Old 07-12-2016, 04:41 PM   #7085
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
Quote:
Originally Posted by noclue View Post
I don't get the argument that if houses drop a bit people on the sidelines will buy in and cause the market to go up again.

Unless everyone has $1.5M in cash ready, if the market goes down banks will start being much more conservative in giving out mortgages or freeze lending altogether. You'll probably need at least 30-35% down.
The people complaining won't have it. The overseas investors will buy 10 at a time. Cash

On another note, i visited my neighbors place across the street. He does those cheap $30-$50 room rentals to mostly Chinese people visiting from out of province etc etc. The place was crazy. Each area you can think of was turned into a 'bedroom'. Basically you walk in and there's a bunch of locks on all the doors (I believe 9 total) and a kitchen common area. Supposedly pulls in $15k cash per month. Crazy
kr4l is offline  
Reply With Quote
This post FAILED by:
Old 07-12-2016, 04:44 PM   #7086
I Will not Admit my Addiction to RS
 
Gululu's Avatar
 
Join Date: Feb 2013
Location: Shaughnessy
Posts: 564
Thanked 755 Times in 209 Posts
Quote:
Originally Posted by kr4l View Post
The people complaining won't have it. The overseas investors will buy 10 at a time. Cash

On another note, i visited my neighbors place across the street. He does those cheap $30-$50 room rentals to mostly Chinese people visiting from out of province etc etc. The place was crazy. Each area you can think of was turned into a 'bedroom'. Basically you walk in and there's a bunch of locks on all the doors (I believe 9 total) and a kitchen common area. Supposedly pulls in $15k cash per month. Crazy
could also be a birth house
Gululu is offline  
Reply With Quote
Old 07-12-2016, 04:45 PM   #7087
My homepage has been set to RS
 
Spoon's Avatar
 
Join Date: Apr 2001
Location: VAN/RMD/BBY
Posts: 2,072
Thanked 659 Times in 298 Posts
Quote:
Originally Posted by kr4l View Post
The people complaining won't have it. The overseas investors will buy 10 at a time. Cash

On another note, i visited my neighbors place across the street. He does those cheap $30-$50 room rentals to mostly Chinese people visiting from out of province etc etc. The place was crazy. Each area you can think of was turned into a 'bedroom'. Basically you walk in and there's a bunch of locks on all the doors (I believe 9 total) and a kitchen common area. Supposedly pulls in $15k cash per month. Crazy
I believe they're called brothels
__________________
My Buyer/Seller Rating
Spoon is offline  
Reply With Quote
Old 07-12-2016, 04:45 PM   #7088
My dinner reheated before my turbo spooled
 
dat_steve's Avatar
 
Join Date: Jun 2006
Location: Vancouver
Posts: 1,797
Thanked 790 Times in 336 Posts
that sounds shady as fuck
dat_steve is offline  
Reply With Quote
Old 07-12-2016, 04:54 PM   #7089
I only answer to my username, my real name is Irrelevant!
 
Hondaracer's Avatar
 
Join Date: Oct 2001
Location: Off-Topic
Posts: 26,812
Thanked 6,596 Times in 2,290 Posts
lolol
__________________
Canucks - ftw!
Hondaracer is offline  
Reply With Quote
Old 07-12-2016, 04:54 PM   #7090
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
i should mention the place is super clean. It's just Airbnb on a more 'ghetto' scale. You guys can think or say whatever you want, but buddy is supposedly pulling in $150k tax free a year so..
kr4l is offline  
Reply With Quote
Old 07-12-2016, 04:58 PM   #7091
this is the hardest n***a of all time
 
GLOW's Avatar
 
Join Date: Aug 2006
Location: Vancouver
Posts: 7,479
Thanked 4,425 Times in 1,775 Posts
Quote:
Originally Posted by dat_steve View Post
that sounds shady as fuck
or where you go for a shady fuck
__________________
Feedback
http://www.revscene.net/forums/611711-glow-1-0-0-a.html

Quote:
Greenstoner
1 rat shit ruins the whole congee
Quote:
[04-06, 11:34]radiomanI'm doing happy hour with bj#3 today
[07-04, 10:27]radiomani need just the tip
[22-12, 08:51]mellomandidnt think and went in straight..scrapped like a bitch
[17-09, 12:07]FastAnna glowjob
[17-09, 12:08]FastAnna I like dat

GLOW is offline  
Reply With Quote
Old 07-12-2016, 05:15 PM   #7092
My homepage has been set to RS
 
Join Date: Apr 2007
Location: Surrey
Posts: 2,090
Thanked 1,097 Times in 442 Posts
Quote:
Originally Posted by kr4l View Post
The people complaining won't have it. The overseas investors will buy 10 at a time. Cash
Yup people who are smart with their money buy 10+ houses at a time in a crashing market. It'll go up sometime right?
MarkyMark is online now  
Reply With Quote
This post thanked by:
Old 07-12-2016, 05:46 PM   #7093
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
Quote:
Originally Posted by MarkyMark View Post
Yup people who are smart with their money buy 10+ houses at a time in a crashing market. It'll go up sometime right?
IF you did that during the downtime in 2008 or whenever it was, you'd be a mulitmillionaire.. So yes?
kr4l is offline  
Reply With Quote
This post FAILED by:
Old 07-12-2016, 05:56 PM   #7094
My homepage has been set to RS
 
Join Date: Apr 2007
Location: Surrey
Posts: 2,090
Thanked 1,097 Times in 442 Posts
Quote:
Originally Posted by kr4l View Post
IF you did that during the downtime in 2008 or whenever it was, you'd be a mulitmillionaire.. So yes?
They are looking for a safe place to hold their money in another country not lose on a depreciating asset that may regain the glory days in 10 years.
MarkyMark is online now  
Reply With Quote
Old 07-12-2016, 06:05 PM   #7095
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
Quote:
Originally Posted by MarkyMark View Post
They are looking for a safe place to hold their money in another country not lose on a depreciating asset that may regain the glory days in 10 years.
Maybe yes. Maybe no. Unless you're someone that actually did that. I don't know the reasons behind it. All I see is the amount of money that was made and I'd like a small piece of that pie. Obviously I'm not going to jump in head first
kr4l is offline  
Reply With Quote
Old 07-12-2016, 06:44 PM   #7096
I help report spam so I got this! <--
 
Join Date: Dec 2010
Location: Vancouver
Posts: 2,318
Thanked 808 Times in 370 Posts
Dude, enough with the crazy speculations and claims. Please educate yourself on investment. Human psychology doesn't work the way you describe: i.e. "market drop 50% and there's a line up out of the door". No such thing ever.

Second, you are discounting all other dots in the economy connecting to RE. A 50% haircut in RE will create a fucking tsunami in the local economy and the whole world. Remember Thailand 1997. That event wiped out the whole world economy, including the most successful hedge fund at the time LCTM. Feel free to read up. You will have a tons of seller with very few buyers. Guaranteed. Market is all about discounting the future, if people think future will be bleak, they are not gonna buy, Chinese or not. This is called fear.

Third, you are claiming crazy things like if we buy US RE in 2008, we would be billionaire. Just no. Calling bottom is a gambling business. A solid investor will not buy at the bottom, he will buy when price recovered somewhat. Ever watch or read "The Big Short", the guys that predicted the 2007-2008 event, was deep in shit buying credit default swaps before the events happen. It takes knowledge, a lot of money reserve and brass balls to hold out when your P&L are deep in the red. 99.99% of the population will not be able to do that.

Like seriously go educate yourself in investing. It's a very valuable thing to know, even just the basic.
Nlkko is offline  
Reply With Quote
This post thanked by:
Old 07-12-2016, 08:03 PM   #7097
Everyone wants a piece of R S...
 
Join Date: May 2013
Location: Richmond
Posts: 362
Thanked 327 Times in 130 Posts
Ok you guys are right and I'm wrong.
kr4l is offline  
Reply With Quote
This post FAILED by:
Old 07-13-2016, 10:17 AM   #7098
Where's my RS Christmas Lobster?!
 
heleu's Avatar
 
Join Date: Sep 2008
Location: Rmd
Posts: 825
Thanked 345 Times in 163 Posts
Any property owners here use a HELOC on their mortgage for further investing? Given the huge jump in assessed values, you must be able to borrow quite a bit if you bought a detached house in the last 5 years.
heleu is offline  
Reply With Quote
Old 07-13-2016, 10:50 AM   #7099
Rs has made me the woman i am today!
 
Join Date: Apr 2001
Location: Vancouver
Posts: 4,096
Thanked 1,576 Times in 719 Posts
^ I'm surprised that the Smith Maneuver doesn't get discussed more here. People always say that the market is only gains on paper, but for those who are risk-tolerant, the rising market has also increased the opportunities for investing. However, people will say that borrowing on the house is no different than borrowing on margin. The difference is that rising housing values, in particular rising detached values, have given people access to far more equity than borrowing on margin ever could.

Using HELOC for investing, whether it's in real estate or equities, is pretty par for the course for many baby boomers. Heck, it's how some first-timers are able to get into the market today - HELOC loans from baby boomer parents.
Tapioca is offline  
Reply With Quote
This post thanked by:
Old 07-13-2016, 11:30 AM   #7100
Hypa owned my ass at least once
 
westopher's Avatar
 
Join Date: Apr 2011
Location: vancouver
Posts: 6,525
Thanked 16,664 Times in 3,592 Posts
Quote:
Originally Posted by heleu View Post
Any property owners here use a HELOC on their mortgage for further investing? Given the huge jump in assessed values, you must be able to borrow quite a bit if you bought a detached house in the last 5 years.
Looking into using mine to invest in a 997 gt3 lol.
Sort of joking......
On an actual real estate note, we had our walk through today to check out our place. Everything I hoped for and then some. 17 more days to move in. Exactly one year from our deposit date.
__________________
98 technoviolet M3/2/5
Quote:
Originally Posted by boostfever View Post
Westopher is correct.
westopher is offline  
Reply With Quote
This post thanked by:
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -8. The time now is 06:37 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2016, vBulletin Solutions, Inc.
SEO by vBSEO ©2011, Crawlability, Inc.
Revscene.net cannot be held accountable for the actions of its members nor does the opinions of the members represent that of Revscene.net