Moonbeams

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Some days it’s easy to encapsulate dumb. This is one of them. Behold Christy Clarke.

The BC preem on Friday banned assignment clauses in real estate deals. Unbelievable. The only winner here is the Globe and Mail, which managed to take a routine aspect of real estate transactions and turn it into something evil. Mistakenly, many poor souls in Vancouver think legions of realtors are madly flipping houses for obscene and hidden gain, when there’s zero evidence this is doing anything to fluff prices.

What’s an assignment clause? Simple. You sell a house and receive the agreed-upon amount of money on the day of closing. You also agree to allow the buyer to resell the place (at his own risk) prior to closing if he thinks he can do better. Whether an offer has one of these clauses in it or not is irrelevant to being paid what you expect. But in a rising market a buyer may be willing to take the bet that in a month or two he can sell for more, pocketing the difference when the deals close simultaneously.

This isn’t illegal. Or unconventional. Certainly not new.

In the 1980s boom, Toronto houses routinely closed six or more times on the day of closing. Today there are real estate offices, brokers and agents who do nothing but deal in assignment clauses. In the GTA it provides one of the main means for people to buy condos – shopping among assignment sales from those investors/speculators who snapped up new units from pre-build plans.

Every real estate board and provincial regulatory body in the country is cool with assignment clauses. They fill a market niche. They recognize that cheap rates and house lust have turned real estate into an investment commodity. For Vancouverites to recoil in horror (and the premier to pander to them) because a few ballsy buyers are making money this way – when the whole city is a cauldron of amateur speculation – is pure hypocrisy.

But Christy knows that. She’s being a drama queen. Yuck. The worst of politics.

Why did so-called ‘shadow flipping’ lodge so deeply in Vancouver’s collective craw? Because some sellers whose offers included assignment clauses were horrified they could have been even greedier if they’d waited to sell, or been more aggressive. Of course they received the full, inflated contracted amount, but were convinced of being ‘cheated’ out of still-greater windfall profits. The premier was even heard to utter that her government would have a role in ‘restoring’ that loot to the vendors. Sheesh. The whole province is on drugs.

Shadowy, flippy realtors are the latest shiny thing diverting BCers’ attention from themselves. Last year it was Chinese dudes. When our dollar cratered, there was worry about Americans stealing houses. Meanwhile ridiculously low mortgage rates and a local culture of house fetish, where real estate’s the single topic of discussion, are making the region uninhabitable. Look at sad, sleepy little Victoria – where Asian buyers account of less than 1% of buyers and realtors are choirboys. Sales last month were up 42% and the benchmark price swelled almost 15%. As Vancouveritis spreads it becomes clear who the true enemy is. Look in the mirror.

Of course, Christy (I thought she was fetching when I used to be on her radio show) could address runaway house prices with a simple speculation tax. No, not on the rich, Asians or realtors. Everybody. Regular people would pay capital gains on properties held for less than a year or two. And a great way to help dim the fires is to stop stoking them. The recent BC budget wiping away land transfer tax for most first-time buyers was a case in point. You don’t make housing more affordable by subsidizing people to buy in. Duh.

The main culprit remains money so cheap that people without personal discipline (that would be most of Vancouver) can’t help gorging themselves in order to chase inflated assets higher. They think real estate has intrinsic worth, instead of seeing the correlation between low rates and high prices. In time this will change. Meanwhile two great cities and a stunning province turn into financial war zones that sane people avoid. Like politics.

228 comments ↓

#1 Spiltbongwater on 03.18.16 at 6:26 pm

What was the reason for the introduction of assaignment clauses, and is the current shadow flipping of the assaignments in the spirit of why they were introduced?

Such clauses were an evolutionary aspect of contract law. If someone wants to take a risk reselling an asset – any asset – and the original seller assigns that right, why is a government involved? — Garth

#2 BRIAN on 03.18.16 at 6:28 pm

First. Great article Garth. Have a great weekend

#3 Mark on 03.18.16 at 6:30 pm

The whole ‘shadow flipping’ thing all along was mostly speculators selling houses to each other, to inflate the MLS prices. That’s how we have the spectre of the Realtors claiming that house prices are rising, while real people and macroeconomic data tells us that prices have been stagnant, if not falling in the GVR/GTA. And that little to no “Chinese money” has been involved.

With people like the Vancouver Realtor “Khalid” (as quoted in that notorious Globe and Mail article) owning “15 to 20 houses”, its no surprise that they want to generate hype to unload their “inventory” onto any remaining suckers. Only problem is, the Realtors with their bizarre claims of higher prices have lost so much credibility that the damage to their long-term reputations may very well be irreparable.

#4 Get Off My Lawn You Rotten Realtors on 03.18.16 at 6:33 pm

My friend who owns a $2.5M house in Shaughnessy woke up the other morning to a For Sale sign on his lawn. Thinking it was a mistake he called the realtor to explain he made a mistake and needs to move the sign. The realtor explained it wasn’t a mistake and he had ‘a number of offers’ already on the place and tried to convince my friend to sell. Apparently, the buyers were ready to close sight unseen. Anyway, he told them he didn’t want to sell so the realtor applied more pressure until he had to just hang and tell him to get lost. After a day the sign disappeared. Seems to me that realtor must be in violation of some industry standard or protocol.

#5 Frank on 03.18.16 at 6:35 pm

Meh, I agree it treats the symptom not the disease and is mainly a populist thing but I see an upside.

The province is running on construction as it’s best industry and that is courtesy of stupid housing. There is huge risk in the provincial economy. Curbing a speculation tool won’t solve the bigger picture but it’s a way to cool rampant speculation without triggering a collapse. When markets get overheated it’s prudent to exert a little control.

Sure it’s reactionary to a news story but it’s not a bad thing. When the market settles in a few years it can easily be changed back.

#6 Read on 03.18.16 at 6:35 pm

The real reason is people are preparing for an influx of foreign students with big money.

The PCTIA agency that regulates private career schools in BC is being folded into a new agency called PTIB under the Ministry of Advanced Education. There is a huge backlog of schools that are set to open in the next 18 months.
Christy knows exactly what she is doing. And there is stuff she doesn’t want you to know.

Metro Vancouver’s student population is expected to soar by about 50,000 over the next 18 months. In addition to this, 10 year visitor visas can be secured by parents of these students.

Students from overseas don’t attend these schools to get a 2 year culinary diploma only to work as a chef after paying $40,000 tuition. I won’t post the real reason for attending these schools for politically correct reasons.

For the parents, it offers an alternative to the Immigration Investor Program at a fraction of the price.

#7 Bram on 03.18.16 at 6:38 pm

Good point!
A missed opportunity on not taxing RE gains for properties held less than 2 yrs.

sigh.

Bram

#8 rainclouds on 03.18.16 at 6:41 pm

She is a piece of work for sure. (of course if we want intelligence, apparently Ontario has a certifiable genius at the tiller……………..)

Premier Clarkes emergence from the bowels of Govt to make this latest breathless pronouncement is less about giving a sh#t about the RE situation and more to steal the headlines given to Dipper David Eby and his 600+ pissed off West Side town hall a couple of nights ago .

http://www.cbc.ca/news/canada/british-columbia/bc-ndp-vancouver-real-estate-town-hall-1.3494974

And on it goes, till it doesn’t

#9 tundra pete on 03.18.16 at 6:43 pm

Sounds great but who does Crusty Clark plan on having as the realty cops? Gaylord Robertson? Are the two of them going to each listed property each day and make sure no one is cheating? Can’t stop a runaway “gravy train” but it will eventually run out of track.

#10 Lulu on 03.18.16 at 6:45 pm

Yep, if you want to cool the market and stop shadow flipping, simply implement a Speculation Tax to it, anyone selling it within 12-24 months, you got to pay 15-20% capital gain tax, primary residence got no exception. I bet if any province got the balls to do it, the market will cool right off, and a true soft landing will occur, not a sharp and hard landing if the bubble continue to grow to an unstoppable pace, like BC now.

#11 MoneyDriven on 03.18.16 at 6:48 pm

Garth,
Easy to sit on the sideline and not really offer any solutions. My soon to be wife and I make MULTIPLE of average DECLARED income in BC. We are in 30’s and worked really hard to get here and have a descent saving invested. Yet I’m terrified to start raising family and go on one income which is still higher than average household income.
Vancouver is shit show. I love to leave the god damn unaffrodable city. Even YOU DON’T see a crash coming and that puts even Coquitlam 1.2M houses out of reach forever. Call me a bitching millennial, but the reality of not being able to raise family when I’m much better off than a lot of people says a lot about Vancouver and its future.
Only if I manage to get the wifey to leave Vancouver, life would be so much better when you have attainable hopes and dreams.

Happy Friday

#12 Andrew Knapman on 03.18.16 at 6:49 pm

I think you overlook and oversimplify the issue Garth.

In simplistic terms yes, the realtor is taking on risk by buying the property from the seller in hope to gain more in the future.

But in reality that is not really happening. The realtor is purposely underselling houses at prices they know they can profit from. If a realtor is able to buy a house for $5million and then in a few weeks sell it again for another $1million more (usually to someone they likely already know will pay more), where is the trust? A realtor has a fiduciary duty to get the seller the absolute best deal they can. They are going against this duty in droves here in Vancouver, buying properties for below what they know they can sell them for later to buyers they already have lined up. This is not in the best interests of the original seller whatsoever. I’d be livid if I had been shafted out of a million bucks by some slime ball realtor pulling a quick one.

The purpose of an assignment clause is not for profiting by re-selling. It is to be able to re-sell the house should you need to get out of the contract. It should only be used in severe circumstances, not to make short-term profits at the expense of the original seller.

Man, for someone who doesn’t trust realtors I find it very odd you don’t see anything wrong with what they are doing with these assignment clauses.

I for one am most pleased Christie is doing something about it.

#13 camelotAcid on 03.18.16 at 6:53 pm

“…why is a government involved? — Garth”

Probably because it’s being perceived as being abused.

#14 Victoria Real Estate Update on 03.18.16 at 6:54 pm

House prices in American west coast cities experienced some of the biggest price declines during the US housing meltdown. More than 50% in some cases.

Amateur speculation was a key factor in their housing price run-up (think Vancouver and Victoria).

#15 ILoveCharts on 03.18.16 at 6:56 pm

Does this mean that if I buy a condo pre-sale and then sell the condo at a higher price in two years (before it is done,) for $100k more, that the entire $100k profit would be given to the developer?

#16 crowdedelevatorfartz on 03.18.16 at 6:58 pm

I think that a great deal to do with Christy Clark’s sudden interest in the BC Housing Bubble has more to do with her upcoming election in 1 year and the fact that the NDP are getting standing room only crowds of “dont have a million” millenial voters…
The next knee jerk reaction will be a new law or tax on offshore ownership…ie people that dont vote.

Stay tuned.
BC politics are like Donald Trump’s lunacy.
Only EVERY election

#17 For those about to flop... on 03.18.16 at 6:59 pm

Greetings from New Mexico, the wife and I sat in Lax for 3 hours on the way here ,Cnn with Trump on repeat no one paid any attention.

The Metrosexual Messiah was on t.v here yesterday, had the volume turned down, wife said let’s turn it up ,I said NFW.

Great weather here , friendly people the opposite of Van.

Off to Santa Fe tomorrow and then going to check out their version of hipster ville called Nob Hill,where I am expecting to see a statue of Mark…

M41BC

#18 Panhead on 03.18.16 at 7:00 pm

Aw c’mon now Garth … you left out the most important point. We get to vote out here next year. Christie has to be seen to do something. ANYTHING …

#19 Buddha on 03.18.16 at 7:01 pm

Mark…How’s the unicorn farm these days?
Sheesh!

#20 IKnow on 03.18.16 at 7:01 pm

Not correlation between low rates and high prices, but correlation among the belief of infinite money from China, the pride of being a land baron, then low rates, lead to high prices.

#21 Smartalox on 03.18.16 at 7:03 pm

Did you happen to read the article in the Globe about how Vancouver’s market was ripe for money laundering?

Best line: “Between 2012 and 2015, the agency (FINTRAC) received seven (reports of cash transactions greater than $10 000)”

Christy is smarter than you give her credit for: as one whose real estate holdings have soared (along with several other members of her government), she has repeatedly stated her reluctance to “do anything that would threaten the equity people have built up in their homes”. Then Rich Coleman said it, so you know it must be true.

#22 bsant on 03.18.16 at 7:06 pm

That market cannot end well.

When it falls, there will be a lot of whining from the greedy that are left holding the bag on an underwater mortgage.

Clark window dressing, save the land transfer tax, and in so fanning the flames.

So reminiscent of early 80s Calgary…people never learn that greed and avarice will never amount to anything good.

#23 IKnow on 03.18.16 at 7:10 pm

Mark, I like your comments about jobs in electrical of computer engineering technologies, as i’m technical myself.

But your logic and comments on house prices really lost me, like many others have commented.

#24 waiting on the westcoast on 03.18.16 at 7:12 pm

What’s funny (scary) is that we keep giving away our freedoms to avoid responsibility. Rather than accepting that a purchase and/or sale has risk, we would rather create structures that are less dynamic and ultimately will turn out to be more risky. All because some people have felt they missed out on future upside during a giddy time. I wonder how many people would complain if someone was forced to sell lower under an assignment because the market radically shifted to the downside….

Mark – I find it hard to imagine that people would go through the cost to create a market impression of increasing prices… The last guy had to believe that price is worth what they are going to pay.

I think during the last few months of intense speculation, assignments have created liquidity and opportunities for reaping monies. It is a pretty dangerous play but if you have enough market knowledge and a reasonable window to flip and can find a buyer willing to pay you more… good on you. We should let the market do it’s thing.

In Portland, OR, there was a story of a young contractor/developer who went from zero assets to owning 4 homes and making beaucoup $$$ during the run-up in the mid-2000s. He ended up bankrupt on 2009. You can make awesome money when things are good and it can bite you in the rear when things change.

#25 common sense on 03.18.16 at 7:15 pm

Is the seller’s agent responsibility to give expert advice on signing the offer with the best price possible or using their knowledge to deceive the seller to accept a lower price so they can flip?

This is why I have dealt directly with the house seller FIRST to negotiate a price on 3 houses bought before an agent even was aware to the agent’s chagrin…of course they spoke with the agent afterwards but initially? NO way.

And yes all 3 deals went through to the satisfaction of all involved.

How many times are agents worth their commission?

#26 common sense on 03.18.16 at 7:16 pm

#16 Flopper

Have fun fella and make sure you clothe the statue of Mark when you see it.

Enjoy!

#27 Bottoms_Up on 03.18.16 at 7:18 pm

#11 Andrew Knapman on 03.18.16 at 6:49 pm
——————–
Yep.

#28 Bobs ur uncle on 03.18.16 at 7:19 pm

“I thought she was fetching when I used to be on her radio show”

And this is related to your topic how exactly?

#29 common sense on 03.18.16 at 7:23 pm

#11 Andrew

“Slime ball realtor” ? Never!!!

I’ve never heard such language.

Garth, please delete his comment.

#30 Scumop on 03.18.16 at 7:31 pm

So someone makes you an offer on your house, and you are so pleased, you accept.

With all the paper signed, you are 100% assured of getting your money, barring a giant asteroid hitting the planet.

The money WILL show a few days later.

Then the buyer resells the house before the closing date.

Why, why, why would you even care?

You liked the offer, and you are getting what you wanted.

You won.

The complaints sound more like a case of “I don’t understand it, therefore it must be devious trickery.” A common line of thinking, sadly.

#31 Captain Stun Doe on 03.18.16 at 7:35 pm

Off topic. What’s the deal with all the simpletons posting First?? as if posting first is a big deal? So big of a deal to point it out by posting “FIRST”.

Gee no offense all you firsts but that is stupider than buying a condo in Toronto.

Will you also live up to firsts quality and be first to post you went titties up when real estate chits the bed ?

#32 crowdedelevatorfartz on 03.18.16 at 7:35 pm

But, as an aside
Hulk Hogan just won his lawsuit against “Gawker”.
$115,000,000 for punative damages for releasing his “sex tape video’. (The visual is almost as bad as his fake and bake tan).

#33 ESL Teacher on 03.18.16 at 7:40 pm

#5 READ—I teach in the University/College Pathway program at the biggest academy for international students in Canada. We have campuses in Toronto and Vancouver.

Not sure if this is relevant, but, none of my students are Chinese: a typical class includes a couple of Venezuelans, 3-4 Brazilians, a Mexican or two, the odd Korean, 1 or 2 Ukrainians/Russians, the occasional Turk or Kazakh, and a token Vietnamese student, whom nobody can ever understand. It’s an interesting scene.

These are not really international students, as far as I understand the term: they are newcomers to Canada who are using the Canadian college system as a pathway into Canada. They have discovered that this is the easiest way to become a Canadian: if they come to my academy for 6 months, and get accepted into a college program, then they can get a work permit, and later apply for permanent residence. In other words, if your family can afford to pay for your student visa, your English classes, your room and board, and your college tuition, if they can afford roughly $100,000, then they can become permanent residents.

Many of these students are studying programs they have little or no interest in, or they are settling for a cheap program even though they are doctors or engineers back home, knowing they have little chance of pursuing their careers here. Others are teenagers ready to study business, hospitality, or culinary arts. Some have admitted that they basically don’t give a shit about their program: they just want the work permit.

Many others ask for real estate advice because their dad is purchasing a place in Toronto…

In my opinion, these students should not be charged this much money, since they are not really international students in the traditional sense of the word. What, in effect, the government is doing is creating another barrier to entry that ensures only the sufficiently moneyed can enter Canada through our school system.

But I do ask myself, how many of these students have family making a real estate investment in Canada: many of the Russians come from families involved in oil, the Venezuelans are looking for a place to park their money for obvious reasons. Most of the South Americans just want to live in a place where they won’t get shot.

Anyway,

#34 John on 03.18.16 at 7:42 pm

I really don’t think a 15-20% speculating capital gains tax would fix anything.
If someone can flip a house for a quick $100,000, paying $15,000 tax will not stop them from doing it. Big deal. Still clearing $85,000 for almost no work.

The $85,000 is then taxed as income at their marginal rate. — Garth

#35 Annoyed in Burnaby on 03.18.16 at 7:44 pm

There’s way more to the Vancouver real estate corruption than shadow flipping. Only reason she’s deciding to “do” something is because the rest of the Chinese money laundering corruption is a whole lot worse. Even Garth, you’ll never understand this because you don’t personally live it.

Love the way YVRers believe all immigrants with more money that them are criminals. So endearing. — Garth

#36 everythingisterrible on 03.18.16 at 7:44 pm

Im not a Christie fan, but the fact is Realtors provide the price assessments and push/pressure their clients into undervalued deals so they can turn around to sell and pocket the difference. Never forget Realtors don’t have your best interests in mind, they’re only working for the deal and commission. Volume is the name of the game. You’re giving that Reeltor* cartel of slime balls way too much credit Garth. If an agent encouraged or advised me to accept an offer then sold for more months later for more , I think I have a legitimate reason to be pissed off.

Ignorant comment. The listing agent is not the buyer. — Garth

#37 common sense on 03.18.16 at 7:49 pm

#33 John’s post

Still nice, quick EASY money AFTER taxes for having inside knowledge and quasi screwing the seller.

Skunks.

Your premise is wrong. The seller gets exactly what they contracted for. — Garth

#38 Mark on 03.18.16 at 7:54 pm

“Mark – I find it hard to imagine that people would go through the cost to create a market impression of increasing prices… The last guy had to believe that price is worth what they are going to pay. “

There was almost no cost to the assignment flipping. That’s the entire point. By doing everything through contracts, nominees, trusts, etc., and avoiding the physical land transfer registry, the assignment flippers had, in effect, reduced the transactional costs to next to nothing (and even made it very difficult for the CRA to detect tax evasion since the CRA would not be readily privy to private contracts!). Especially with the speculators basically flipping houses to/amongst themselves, which is what most available evidence points to. Creating elevated valuations, at least as far as the MLS is concerned. On the strength of those elevated valuations, the speculators can then go to the bank and get their mortgages/credit lines extended against their existing base of property. Withdraw the cash, and ship it off to places like China (most evidence points to capital flight from Canada, not inflows!).

If this BC legislation sticks (it may or may not), or at the very least, puts enough fear into the speculators playing this game, the next few months should be very, very interesting.

#39 Move on VREU on 03.18.16 at 7:54 pm

Oh my VREU, should you correct the above statement that the benchmark price in Victoria went up 15% in the last month with a 42% increase in sales? After all, that is contrary to what you have been preaching like a parrot.

Remember, your little graphs up to 2014 that show a stagnant Victoria market? Too bad its 2 years behind the times and cannot account for the true state of the market.

#5 ‘Read’ is the only one that knows what is going on – that the purposeful doubling of the foreign student quota in BC is a back door to permanent residency for those seeking to import their foreign capital into real estate.

Oh please VREU, do tell us why the prices have popped so high so quickly? What? Your charts cannot explain it? Rates are the same, the domestic population is the same number, the industries are the same. Oh, I know, maybe the domestic population just woke up to cheap rates after 7 years :)

Perhaps you should get outside and notice that in the last year the demographics have changed in Victoria along with the ostentatious displays of wealth? Notice the ‘super cars’ yet VREU? Hmmmmm…..

You have been warned VREU – the disastrous Vancouverization of Victoria has started and its naive population has no clue what is in store for them despite being less then 50km away from the epicentre of the Vancouver plague.

You can continue to stick you head in the sand for the next many years looking at economic fundamentals, and shaking your head while muttering ‘it does not make sense.’ The Vancouver bears did this for years – and see where it got them – priced out.

#40 understood by few on 03.18.16 at 7:55 pm

#11 Andrew Knapman on 03.18.16 at 6:49 pm


I for one am most pleased Christie is doing something about it.

——————–
And there we go. Case in point. That was Krusty’s entire goal. Look like she’s doing something about it.

The NDP are breathing down her neck what with their “town hall” meeting discussing housing prices. Pure and simple pandering. Assignment clauses are not to blame. You don’t have to include one. You as the seller decide or can charge a premium to include it in the sales contract. Easy peasy. Don’t want it resold, don’t agree to letting the buyer do that. If you don’t want it, say no. Don’t need a law. So stupid.

Garth, I don’t like your capital gains tax idea either. Might work for Greater Van, but it’ll screw over the working class in smaller towns that have to move unexpectedly for work reasons. They plan to stay somewhere long term, then boom, forced to move to feed their family and take a hit on any gains (which they’ll need to buy elsewhere since saner markets seem to move more in unison).

I don’t have a solution. At the same rate, I’m not sure a solution is required. Should the gov’t have stepped in with the dotcom bubble?

#41 dutch4505 on 03.18.16 at 7:59 pm

crispy crème……that’s what we call her in Bellingham WA. (Christy Clark) tough on the outside…a little doughy on the inside. plus she is dumping Victoria’s raw sewage into our water.

#42 Bingo!! on 03.18.16 at 7:59 pm

Posts #5 and #32

That’s all you have to know about Vancouver real estate.

#43 Mark on 03.18.16 at 8:07 pm

BTW, I feel really sorry for the ethical/honest YVR and YYZ Realtors, who basically have to explain the “facts of life” to their clients who have overly indulged in the newspaper headlines of rising prices. It must be horrible, professionally, to have your professional association saying one thing about the housing market on the strength of a few bad apples causing distortions, and the market, in actual fact, being something dramatically different. Honest Realtors may even be losing business to the dishonest ones as most of us tend to prefer to hire professionals who are “yes men”, rather than those who sit down and give the whole truth even if its not so favourable.

In Calgary, for instance, you can get Realtors not very interested in actually making a sale to still list one’s house at the peak (ie: 2012-2013) prices. But the ones that actually are able to sell things and move a reasonable amount of volume aren’t even taking listings unless the seller is willing to list at a 20% discount to peak pricing. The properties listed by the former will languish on the market until the listings expire. The listings of the latter will actually have a chance of moving before prices fall even further.

#44 waiting on the westcoast on 03.18.16 at 8:08 pm

Mark says… “Especially with the speculators basically flipping houses to/amongst themselves, which is what most available evidence points to. Creating elevated valuations, at least as far as the MLS is concerned. On the strength of those elevated valuations, the speculators can then go to the bank and get their mortgages/credit lines extended against their existing base of property. Withdraw the cash, and ship it off to places like China (most evidence points to capital flight from Canada, not inflows!).”

Mark – maybe I don’t understand your logic but unless there thousands of people committing fraud and willing to overpay just to get a couple of hundred thousand extra dollars out of the country… Your logic doesn’t scale. I am sure there are a few scenarios like you describe but not enough to move the entire market.

#45 BS on 03.18.16 at 8:11 pm

The BC preem on Friday banned assignment clauses in real estate deals.

Does this include banning the assignment for a condo presale contract? If so this is a big change. If not irrelevant.

If you take away the option to assign a condo presale that will kill the condo presale market. My bet is they did not include those in the new regulation. Developers would be freaking out otherwise.

#46 common sense on 03.18.16 at 8:16 pm

#36 Garth

The seller gets the best price possible “At the time of offer”?

I realize that the seller naturally has the final responsibility to sign the offer and can refuse.

Seller beware. I just feel the agent holds as many cards as the seller with far more inside knowledge that the seller has no access to.

Likewise, how many listings never see the full market once a listing agent has it? Please don’t tell me agents don’t provide this info to friends and family first in most cases.

#47 X on 03.18.16 at 8:35 pm

Never saw the big deal with assignment clauses….pretty much the same as if the buyer waited until closing, then relisted and sold for more…the assignment clause just gives them a head start on trying to resell. The original seller still closes the deal on the agreed upon date and gets the agreed upon money.

Sounds like a politician who wants to make it look like they are actually doing something in the publics eyes….

#48 wallflower on 03.18.16 at 8:38 pm

Developers who need commercial financing to build their condominium apartment buildings and who value stability will write contracts explicitly not permitting assignment. They need to be able to exemplify solid financing of their buyers, preferring to not chase paperwork of flipping units with the wrong kind of financing which could catch them at the wrong time.

#49 First Rewards on 03.18.16 at 8:40 pm

Garth, start paying ‘First’ers $10 but ONLY if they don’t say ‘First’

#50 Victoria Real Estate Update on 03.18.16 at 8:49 pm

# 38 Move On VREU

Perhaps you haven’t seen this chart.

Understood by few needs a refresher course on how to read this chart. So it’s really for both of you.

. . . . . . . . . . . House Prices. . . . . . . . . . . .
. .Percent Above/Below June 2008 Price Level.
. . . . . . . x = Canada, * = Victoria . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+35%. . . . . . . . . . . . . . . . . . . . . . . x . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+30% . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+25%. . . . . . . . . . . . . . . . . . .x . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+20% . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+15%. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+10% . . . . . . . . . . x. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+ 5%. . . . . . . . . . . . . . . . . . . . . . . .*. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
….0%. . . x*. . . . . . *. . . . . . .*. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 5%. . . . . . . . . . . . . . . . . . . . . . . . . . . .
————————————————————————–
. . . . . . June. . . . .June. . . . .Aug . . Feb. . .
. . . . . . 2008. . . . 2011. . . . 2014. . 2016. . .

(source: Teranet’s index)

Follow the x symbols from left to right for Canada and the * symbols for Victoria.

House prices in Victoria are only 6% higher than in 2008 based in this data.

Of course real estate “professionals” like you (you’ll deny it) in 2008 were spreading the same hype as today – the those who are waiting to buy will “miss out”, that prices can only go higher…

All of those things proved to be false in 2008 and they will be proven false again.

We heard the same hype in 2010 on Victoria just before house prices fell more than 15%, despite falling 5 year rates.

Prices in Victoria will fall to the deep bottom that awaits.

It isn’t different in debt-bloated Canada.

#51 Give us this Blog our daily Garth on 03.18.16 at 8:50 pm

#6 Bram
Good point!
A missed opportunity on not taxing RE gains for properties held less than 2 yrs.
—————————————-
Agree! Agree! C’mon Christy! Even for one year… I believe the first time home buyer (BC around 2008) used to be exempt from the Property Transfer Tax, if lived in for at least one year. Gov’t would send you a letter and you sent back confirmation, or the tax would become retro active. Don’t know if it’s still available.

#52 Road Trip on 03.18.16 at 9:00 pm

DELETED

#53 ww1 on 03.18.16 at 9:08 pm

#48 First Rewards
Garth, start paying ‘First’ers $10 but ONLY if they don’t say ‘First’
===================
If you spend a little time scraping the HTML for this blog, you will find that Garth (or someone on his staff) occasionally completely deletes posts and/or re-arranges them – sometimes long after they are first published. And I’m not talking about the ones he leaves in the comments tagged as “DELETED”.

So he can easily delete the “First’rs” .. or move them down the page to make them look foolish. It’s his blog and he can do (and does do) what he likes with it.

incidentally. that’s why you periodically see people quoting posts at a specific comment number (#) that are not at that number when you read the comment.

Incorrect. Posts are never rearranged and are time-stamped. — Garth

#54 Mark on 03.18.16 at 9:22 pm

“Mark – maybe I don’t understand your logic but unless there thousands of people committing fraud and willing to overpay just to get a couple of hundred thousand extra dollars out of the country… “

I wouldn’t underestimate, even for a moment, how desperate many people are to have the proverbial “music” continue to play. Like “Khalid”, the Vancouver-area Realtor who was so deep and heavy into speculation that he didn’t even know if he owned 15 houses, 20 houses, or some number of houses in between when quoted by the Globe and Mail as owning “15 to 20 properties”. “Khalid” is almost certainly just the tip of the iceberg out there if traditional Vancouver speculative “culture” is any indication.

Add to it the thousands of Realtors, mortgage brokers, advertising companies, lawyers, bank employees, appraisers, home inspectors, construction/renovation labourers, and individual small businesspeople who absolutely depend on rising prices, and you easily could have many tens of thousands who have an extreme interest in keeping the bubble going.

A small percentage of people in those groups, if history and the experience in US is any indication (Google the name “Casey Serin” sometime for a good laugh), will (and probably have) resorted to dishonesty.

What can those of us not involved realistically do about it? Sit back, hold tight with a balanced portfolio, and watch it inevitably collapse.

#55 Johnboy on 03.18.16 at 9:28 pm

We lived in France for a number of years and gov’t uses the tax system in creative ways. Want to speculate in real estate? Go ahead, 50% cap gain tax off the top if you sell within a year. Tends to discourage flippers.
Want to renovate with “black” labour to avoid 21% VAT? Use legit licensed trades who are in the system and the VAT was just 5.5%. Save the 21% but no guarantees on the labour. Go the legit route and the consumer is well-protected against shoddy work. Eg. roof on our house 100% guaranteed for 10 years, labour and materials, no “pro-rated” bullscheiss.

#56 WalMark of Sadkatoon on 03.18.16 at 9:30 pm

don’t take employment advice from an unemployed person who can’t get hr to respond. just sayin

#57 TurnerNation on 03.18.16 at 9:32 pm

Hey Seattle guy. Stay there. Here in Kommunist Kanada capitalism is outlawed and your money is the Party’s money. Unless you are in a public sector union or working for a Crown Corp or NGO forget about it.

#58 Sand in the eyes on 03.18.16 at 9:32 pm

That’s what Christe Clark is doing: throws fake bones so that the fools don’t see the real problems: themselves in the mirror, unregulated foreign buyers, stupid city rezonings, no incentive for builders to build 3+ bedrrooms where u can actually grow a family

#59 ww1 on 03.18.16 at 9:34 pm

Incorrect. Posts are never rearranged and are time-stamped. — Garth

=======================

Good to know- thanks for the clarification.

Havin said that, it appears tha they are sometimes completely deleted after being published – causing the numbering to shift. My logs showed that while I was trying to understand it.

And are they also sometimes just deleted and never posted at all?

Those I archive & sell to Chinese hackers. — Garth

#60 TurnerNation on 03.18.16 at 9:35 pm

Which new law will better help you survive this brutalistic social cultural genocide underway in Canada:
– Legalized pot.
– Assisted suicide.

Please debate. They are giving us just enough rope to hang ourselves. Literally.

#61 Ian M on 03.18.16 at 9:36 pm

We just experienced the stupidity first hand. House in Markham listed for 800K. 1 day sale with multiple offers. Wife loved it and convinced me to bid 40K over asking. Seller’s agent said thanks but too low to consider. Apparently, lucky 13 other bids showed up. We are two working professionals in our late 30s (no real-estate). Frankly, I’m a bit disgusted at the 1 day sale, multiple offer setup. This might be okay you buy an investment property but not a home to live in. Oh .. and this is not sustainable.

#62 Smoking Man on 03.18.16 at 9:41 pm

Paradise. In a booth at senica alone.

Hammered our of your mind. Knowing you made a new life long friend today. Proudly state I don’t have many.

Your ablivious to those around you. Your mind in the stars , flying with out wings..
.

Fk how can I bottle this felling and sell it. I would be the richest man in the world.

Artist are so under rated. Just like nectonite pilots.

#63 ed on 03.18.16 at 9:42 pm

Garth’s predictions…
Garth has previously said house prices will not drop quickly or drastically. I think this is just a prediction, his, and I disagree. Like any commodity, any number of things can happen and house prices can drop. Canadians seem secure in the idea that house prices will not fall–that they will rise or just hold their own and inflation will catch up. I don’t know of any examples of the latter, but I do see many examples of housing falling fast once it becomes unattractive. The fundamentals are different from the US, but different also in Spain, Japan; any country where housing has fallen. As a prediction, I see RE in Canada falling slowly at first and then building momentum; kind of like oil. At best this is a guess, but so is everything about the future.

#64 Ole Doberman on 03.18.16 at 9:42 pm

Garth interest rates are cheap in the US too, still, and you don’t see sales and price rises of this magnitude.

Gotta be more to it than the usual thought. It’s an asian invasion.

#65 Observer on 03.18.16 at 9:45 pm

1) Opposing politician gaining traction on high house prices in Vancouver

2) Follow up with an announcement of your own

3) Weekend headlines (and Garth’s blog) is all about you
and not your opponent

#66 For those about to flop... on 03.18.16 at 9:47 pm

Common #25

Hey Common,thanks brother.
Yeah I hope the statue of Mark doesn’t have his sales mix hanging out…

M41BC

#67 Captain Stun Doe on 03.18.16 at 9:55 pm

From this point on we shall refer to First’ers as “Dip Chitters” it’s fitting since the First’er in true fashion shall be the First’ers at the table for the real estate dip that’s coming, dip chitters unite, you shall also share firsts in the real estate pop.

#68 Bottoms_Up on 03.18.16 at 10:00 pm

#52 ww1 on 03.18.16 at 9:08 pm
———————
Posts go into a queue until such a time that Garth’s minions allow the posts to go through and show up on the website. That’s why they seem to disappear, and also why someone might say first but actually be the 15th entry.

#69 Cristian on 03.18.16 at 10:02 pm

Good for BC!!! You want to sell an asset, sell it after you own it (that is, after you paid for it), not before!
Houses are meant to be lived in, not to be sold ten times per month!

Not in house-horny YVR. — Garth

#70 Smoking Man on 03.18.16 at 10:10 pm

Sherly Valintine.

God . The prick seems to be out mauvering me in the bar. My missing tooth and the after taste of two many french kiss of a hero smoking man.

No idea where I’m going with this post. Beyond the sweet spot of fiction writing.

Now in the zombie zone. The carpet burn on the fore head if you trip.

#71 45north on 03.18.16 at 10:10 pm

For Vancouverites to recoil in horror (and the premier to pander to them) because a few ballsy buyers are making money this way – when the whole city is a cauldron of amateur speculation – is pure hypocrisy.

But Christy knows that. She’s being a drama queen. The worst of politics.

like Donald Trump. He appeals to the lowest common denominator. His proposals don’t have to make sense they just have to be simple.

When Vancouver real estate crashes the middle class is going to be badly hurt but Justin Trudeau supposedly has their interests at heart. A picture is worth a thousand words:

http://www.macleans.ca/politics/ottawa/the-truth-about-justin-trudeaus-tax-cuts/

they’re all a bunch of drama queens. They don’t really care.

Let’s talk real measures: increase interest rates, tighten lending standards.

#72 slick on 03.18.16 at 10:12 pm

so to take this assignment clause issue a little further, if’n I sell a stock, and the price goes higher, I should be somehow compensated for selling too soon?
What is the difference? I divested the risk to someone else, they assumed the risk, best of luck to them.
The rule in our house is ‘ you make your decisions, you live with the consequences’.

An old school chum of mine teaches in a public school in Van city. when he started there abooout 15 years ago, 20% of the kids were of Asian origin. Now it is aboooout 80%. I doubt it was all immigration, I assume that the Asian population reproduced, something us stupid white folk are to precious to do.
1.5 kids in the family, single parents, abortions, nobody wants to ruin their girlish figures, give up holidays in the sun, get seen driving a minivan, or spend time changing diapers.
Then people complain about all the immigrants. If we don’t increase our population, the country goes stagnant. I don’t have a problem with Asians coming here, they know how to spend money, invest and grow an economy, where everyone benefits. And they don’t try to chop off peoples heads.
there, I said it.

slick

#73 Kothar on 03.18.16 at 10:15 pm

How does a premier have the power to do this? Shouldn’t a bill be introduced to become law? They can’t just come up with changes on the fly!

#74 Puzni on 03.18.16 at 10:16 pm

Obvious issue with shadow flipping :

1)
As a seller how do you know that your realtor acted in the best faith when you have listed the house with them?

How do you know that they haven’t suggested better price for you just so they could cash on the extra commission ?
Just flawed from the start !

The ignorance surrounding this issue is stunning. — Garth

#75 Ace Goodheart on 03.18.16 at 10:17 pm

Re: #66 Captain Stun Doe:

From this point on we shall refer to First’ers as “Dip Chitters” it’s fitting since the First’er in true fashion shall be the First’ers at the table for the real estate dip that’s coming, dip chitters unite, you shall also share firsts in the real estate pop.

Maybe. But look at the bond markets. No more capital. Dried up. What usually happens when bond yields go up?

Maybe we are in for another long rise in real estate prices.

One thing is for sure, Garth’s “rule of 90” is nuts. By his metric, I would be selling my paid for Toronto house, and renting. Why would I pay $2500 per month + utilities to rent a house, when I already own one?

Because it probably means your entire net worth is in one asset. — Garth

#76 understood by few on 03.18.16 at 10:27 pm

Prices in Victoria will fall to the deep bottom that awaits.

———-

Hey vreu, give us a number. What is this magical number you think Victoria real estate will fall to?

#77 Smoking Man on 03.18.16 at 10:29 pm

DELETED

#78 Andrew Woburn on 03.18.16 at 10:29 pm

#1 Spiltbongwater on 03.18.16 at 6:26 pm
What was the reason for the introduction of assaignment clauses, and is the current shadow flipping of the assaignments in the spirit of why they were introduced?
===========================

Assignment clauses have been a standard part of general commercial law probably since the mid 19th century. They protect the buyer against adverse changes in circumstance.

The buyer is on the hook to complete at the agreed price even if, for example, his financing is retracted which can happen with sudden changes in the lending environment. One way to save his butt might be to assign the contract to someone who can complete. If there were no assignment clause, the buyer would be hooped or the vendor might grind further financial concessions from the buyer in order to agree to an assignment. There are no morality issues in the use of assignment clauses. The buyer has assumed full liability for the closing price and if he flips on closing at a huge profit, it is his paid-for right.

The morality issue in my mind is the dubious position of a listing agent who is paid to act for the vendor but then also profits from the buyer’s subsequent flip. This may not amount to a breach of trust for criminal law but it sure smells like a breach of good faith for civil law, ethics and reputation.

The vendor has clearly paid for and is entitled to rely on the listing agent’s market knowledge. Even if the agent truly did not foresee the property selling for another million, it is hard for him to defend against the charge that he sandbagged the vendor, especially if he then co-profits with other realtors who regularly facilitate such re-flipping.

In my view, the listing agent should be prohibited from additionally profiting in any way, directly or indirectly, on any property he listed for at least 90 days after the closing. It may be difficult to enforce this rule but the threat of losing one’s livelihood should dissuade most agents from playing games and induce them to maximize the price for the original vendor.

#79 ww1 on 03.18.16 at 10:32 pm

#67 Bottoms_Up
Posts go into a queue until such a time that Garth’s minions allow the posts to go through and show up on the website. That’s why they seem to disappear, and also why someone might say first but actually be the 15th entry.

====================

That also explains the other thing that I was puzzled about.

Even though the posts are “time stamped” and not re-ordered (per Garth), they are apparently not all released to the web page in time sequential order. So posts that are held back and later released get inserted into the middle of the page where they disrupt the numbering system and may be missed by people just watching the bottom of the page.

Then watch the whole page. Like, what else do you have to do? — Garth

#80 jaybee on 03.18.16 at 10:34 pm

Hey Mark,

Just curious. What do you do for a living?

#81 AfterTheHouseSold on 03.18.16 at 10:43 pm

“Some days it’s easy to encapsulate dumb. This is one of them. Behold Christy Clarke.”

Not to be outdone, our own Ms Moonbeam, Kathy Wynne, continues her stupidity in Ontari-owe.

“New provincial rules are going to require a crew of five workers to do jobs such as fix a single pothole – even on quiet country roads – and it’s upsetting at least one rural mayor.”

http://www.thepeterboroughexaminer.com/2016/03/17/new-ontario-government-rules-boost-road-repair-costs-for-peterborough-county

#82 DON on 03.18.16 at 10:50 pm

“But Christy knows that. She’s being a drama queen. Yuck. The worst of politics”

She definitely didn’t think it up herself, she is cunning… yes, knowledgeable is laughable.

Deceitful at based. She rarely comes out of hiding. Her approval rating is crashing.

#83 Bram on 03.18.16 at 10:51 pm

#4 Get Off My Lawn You Rotten Realtors on 03.18.16 at
My friend who owns a $2.5M house in Shaughnessy woke up the other morning to a For Sale sign on his lawn.

Damn, that’s one arrogant realtor.

I don’t understand the 2.5M Shaughnessy house though.
I’m pretty sure those do not exist.
Are you sure it’s not a $25M house?
That seems to be the going rate in Shaughnessy.
The last time you could get a house in Vancouver’s fanciest hood for 2.5M must have been when people wore jackets with shoulder pads and watched Miami Vice on TV.

Bram

#84 West Coast on 03.18.16 at 10:52 pm

http://www.theglobeandmail.com/news/investigations/the-real-estate-technique-fuelling-vancouvers-housing-market/article28634868/

nice diagrams………same old stuff……….

#85 Retired Boomer WI on 03.18.16 at 10:52 pm

I think the changed BC rule may have a small impact on property price escalation. Anything to slow down the self destructive price increases might help.

#59 TurnerNation

Good post there. Got a chuckle out of that one. Can’t the Canadian people have BOTH legalized pot, AND assisted suicide? Some may decide to try both on the same day.

Right after the house failed to sell….

#86 DON on 03.18.16 at 10:53 pm

For all those pondering the crash vs. a slow melt in certain bubbly markets. Both are paths to the same inevitable reality.

#87 Prairie Oysters for All on 03.18.16 at 10:53 pm

#70 Smoking Man on 03.18.16 at 10:29 pm

DELETED

….

3-2-1… kiss the dirt.

Listen to me, Butterfly, there’s only so much wine
You can drink in one life
But it will never be enough
To save you from the bottom of your glass

#88 Victoria Real Estate Update on 03.18.16 at 10:55 pm

# 38 Move on VREU

Please post the exact quotes to substantiate your claims that I have written what you accuse me of.

You are fabricating stuff to try and make me look bad, but it won’t work.

You won’t be able to find any quotes that back your accusations. They don’t exist.

Now that I’ve made you look bad you will likely drop the current name and post under another like so many have in the past. Is that the way all realtors handle themselves? Where’s the accountability?

For example: OMG the original”, a long time commenter on this site. We all saw OMG self destruct in slow motion. It wasn’t pretty.

You and other realtors can try to make me quit but it won’t work.

The basic thing you don’t understand is that, like any market, the recent past performance of a housing market doesn’t enable us to predict the next month’s performance.

Realtors like you take the recent past performance of the market and try to convince others that it is the way things will be from now on. That’s how you make sales. You try to use people’s emotions against them. In this case, fear. “Buy now or be priced out”.

This is but one of many things you do to make sales. Claiming that buyers from Asia were driving Victoria’s market in 2015 was a good example of this. The facts don’t support that claim. But realtors used it anyway, despite having no proof that it was true. As I said, the sales data shows it was false.

You comments, probably under various names, add no value to Garth’s comments section. You are a negative and angry individual.

Did you lose a bunch of money in Victoria’s last housing price decline (2010-2014)? That would explain the anger.

Perhaps you should consider talking to someone instead of venting on this site.

#89 DON on 03.18.16 at 11:00 pm

#5 Read on 03.18.16 at 6:35 pm

The real reason is people are preparing for an influx of foreign students with big money.

The PCTIA agency that regulates private career schools in BC is being folded into a new agency called PTIB under the Ministry of Advanced Education. There is a huge backlog of schools that are set to open in the next 18 months.
Christy knows exactly what she is doing. And there is stuff she doesn’t want you to know.

Metro Vancouver’s student population is expected to soar by about 50,000 over the next 18 months. In addition to this, 10 year visitor visas can be secured by parents of these students.

Students from overseas don’t attend these schools to get a 2 year culinary diploma only to work as a chef after paying $40,000 tuition. I won’t post the real reason for attending these schools for politically correct reasons.

For the parents, it offers an alternative to the Immigration Investor Program at a fraction of the price

***************************
My sister is law mentioned that teachers were telling students to not brother applying to UBC who are less and less interested in local students. I have no problem teaching the world, but eh let’s also take care of our own citizens and keep Canada productive.

What happened, this never used to be the case…so what the hell is happening, someone fall asleep at the wheel, too many disenfranchised paper millionaires. What pray tell is going on. Is someone sleeping at the helm…or is just the best of leadership generation. Yup I said it…read between the lines.

End rant.

#90 DON on 03.18.16 at 11:04 pm

Repost due to bad spelling.

#73 DON on 03.18.16 at 10:50 pm

“But Christy knows that. She’s being a drama queen. Yuck. The worst of politics”

She definitely didn’t think it up herself, she is cunning… yes. Knowledgeable…no freakin way.

Deceitful at best. She rarely comes out of hiding. Her approval rating is crashing.

she is not liberal, conservative or NDP. But social credit and neocons, tea party ring a bell.

#91 waiting on the westcoast on 03.18.16 at 11:14 pm

#53 Mark says… and you easily could have many tens of thousands who have an extreme interest in keeping the bubble going…

There is a substantial difference between interest and outright fraud and tax evasion. Again, examples like Khalid are not in the thousands… I know lots of lawyers, developers, contractors, mortgage brokers, etc. The odd one has a second place or maybe an apartment complex but there are not thousands of people sitting on 10-20 properties (those are brave souls indeed). And even if there were, doesn’t mean that they are illegally manipulating the market.

#87 VREU – as per my last post… you seem to be attacking anyone/anything that pokes at your thesis. My point was that while your data to 2014 was accurate, it has become apparent that the market has upticked. I wish it wasn’t so (as I have been looking to buy in that market). Also – while I cannot provide data on the migration of tech people to Victoria, I am privy (and therefore this is anecdotal) to organizations that work with those people and they have said that they are seeing migration to Victoria in the tech space.

I am not looking for a fight… just think it is important to acknowledge what is happening even when its counter to our desires. I agree with you that there will be a reckoning… but it appears that it is not likely to be this year.

#92 Andrew Woburn on 03.18.16 at 11:19 pm

Several comments have supported the idea of a minimum hold period for properties and/or a capital gains tax for flippers. However the Income Tax Act already covers these bases.

In general, the Act considers that the buyer of a property acquired it to hold long term as an investment which yields annual income or, alternatively he bought it as an inventory item to sell at a trading profit. R/E flippers clearly belong in the latter category. Trading profits are generally taxed at full business rates in the year of sale.

The application of the rules depends on what the circumstances reveal about your real intentions. If you buy a house, immediately list it for sale and sell it three months later for a honking profit, good luck on claiming a tax free gain. If you move in to your home but two months later you sell it because you lost your spouse, you have a reasonable claim that your plan for long term occupancy of the property was unforseeably frustrated and the principal residence exemption should apply.

In between these extremes, there is plenty of room for game playing but CRA already has all the power it needs to reassess R/E profits as trading gains and I would be very surprised if it is not already doing so at least in the more obvious circumstances.

It is not clear to me that some kind of forced flip tax would actually control prices. In overheated and irrational seller’s markets like YVR and GTA, vendors would just adjust their net pricing to get back to where they want to be and prices would tend to increase by the amount of the tax levy.

#93 Entrepreneur on 03.18.16 at 11:24 pm

At least the talk is on and it looks like a little on the heated side with the help of the 2017 B.C. election. Bring it on!

#94 Zillow Fan on 03.18.16 at 11:30 pm

Zillow, why are you not in Canada yet? Zillow would enlighten many buyers and sellers and not rely on greasy salespeople for their information or misinformation. I guess all that information would be too open a market for us…

#95 Move on VREU on 03.18.16 at 11:34 pm

VREU, you my dear little girl are simply too amusing.

Again, according to you, prices are not going up – yet Garth shows significant benchmark price increases. Which one is it?

And if all the supposed variables are the same – rates, population, economy – why are the prices going up now after 7 years of low interest rates?

And labelling any detractor as a realtor, over, and over and over, as your only defence is nauseating to say the least. You demonstrate your youthfulness in this approach.

FYI – I am a long time bear that lived through what happened to Vancouver and can see exactly what is coming to Victoria….

#96 Sheldor on 03.18.16 at 11:36 pm

The BC Libs find it offensive that properties are changing hands without them collecting a property transfer tax on every flip. That’s the real driver of this policy.

#97 Nobody on 03.18.16 at 11:42 pm

No need to ban assignment clauses – just make the “sale” subject to the same transfer tax as any other property sale.

#98 Shirley Valentine on 03.18.16 at 11:48 pm

#69 Smoking Man on 03.18.16 at 10:10 pm

Sherly Valintine.

God . The prick seems to be out mauvering me in the bar. My missing tooth and the after taste of two many french kiss of a hero smoking man.

No idea where I’m going with this post. Beyond the sweet spot of fiction writing.

Now in the zombie zone. The carpet burn on the fore head if you trip.
—————–

Beastly hot smokey man…. you seem in need of a drinking party partner! where’s the sword swinging mrs!!

God.. elusive concept is it not? Aliens surely know we are but star stuff . birthed of a super nova…… a short blip of time we have to find sweet happiness and meaning…

You seek challenges…. keep writing that book! need to honour that awesome book cover painting you have

Missing teeth!.. I won’t ask

Party on! Sweet dreams!

#99 The Most Obnoxious Man in the World on 03.18.16 at 11:51 pm

I don’t always post here,
but when I do I prefer it’s about me!

Stay jealous my friends.

Freedom 1st

#100 Trudeau on 03.19.16 at 12:06 am

My prediction is that Canada will set a marriage record this year!

Me, Trudeau, is going to allow foreign spouses to become PR’s the day they get married. No more waiting for 2 years.

You think housing prices soared? You haven’t seen anything yet. Due to short supply of PR’s and Citizens for the foreign students to hook up and then divorce, the going rate has shot up to $100,000. Foreign students and TFW are like get in before they change another law.

$100,000. I kid you not. Canada is the laughing stock of the world. Gong Show Country.

#101 Kenchie on 03.19.16 at 12:19 am

Garth,

Normally I agree with you, but not on this subject. Assignments should not be treated as the same as futures market, in which someone takes the risk to find a higher price in a short specified period before delivery (I.e. Close out their position). There is a simple reason: housing is too important to society to treat it like commodities traded on the CME. It’s important to a) the economy, with the side effects currently being epic debt loads by young people and this guaranteeing lower future consumption, and b) to stability of the population, in which young people (as you mentioned) are leaving the city, among other social problems (I.e. Stunted personal development).

Choosing between policies that will lessen the incentive for investors/realtors to speculate on housing vs the status quo, the former is a superior choice, in my opinion.

#102 NotAGreaterFool on 03.19.16 at 12:25 am

What about realtors not adhering to the (FinTRAC) laws and the real estate council overseeing this having lax controls and enforcement?

http://www.theglobeandmail.com/news/national/vancouver-housing-market-vulnerable-to-money-laundering/article29285770/

Like the law or not, it is being broken which breaches the public’s trust on the profession and industry. Self inflicted by the industry.

Since the industry is not transparent maybe it’s time T2 added some new laws to further regulate.

#103 A Canadian Abroad on 03.19.16 at 12:51 am

Sorry Garth, I just don’t agree…

So let me DELETE my own post for you.

#104 observer on 03.19.16 at 12:51 am

Just another photo opp for Christy.

He LNG and all the BS she flings around is all meaningless.

Its simple Regulate the Real estate industry like they do with the financial industry. Problem solved.

Follow the same regulations and don’t let crea over see their own people.

All people working in the industry must be license. Not unlicensed family members. If they get caught doing BS then is the licenses member who has to be responsible.

Manditory jail time, huge fines and restrictions and lost of licenses.

Some of these critters are running the show like Bernie Maldoff.

#105 bdy sktrn on 03.19.16 at 1:51 am

back from a week on the sunny mexican tropical coast yesterday just in time to hit the warm sun in van. everyone in a good mood. nice.

the east van rocket ride remains in afterburner mode.
seems prices in the hood went up 100k while i was gone.

the big fire i mentioned last week has the remaining burnt out shell up for 2m . (but it’s a 50′ lot)

also 2m ask for a reg 33′ lot w a decent older 3plex on it (not as nice a what my buddy sold for 1.05 a few years back)

checking out the immediate ‘hood i saw a flood of new supply hit the market that was not there a week ago. 2 of which i know the current or previous owners.

of a whopping FIVE new signs i’ve noticed today, 3 are already sold, and the other 2 had open houses today.

there is NOTHING easier or faster than unloading a house here(still). nothing

i guess kahlid, the brilliant bastard, made another million this week. prob more than mark has made in his total career so far. khalid is a genius if he is holding any more than 5 van lots. if it’s 20 he’s up probably 5m since the quote came out

#106 My dog has issues on 03.19.16 at 1:52 am

” I travelled in much the same way that other people stayed still-it was the way of life that suited me. As for purpose and goals in life, I didn’t have any. Purpose sounded too single-minded for me, too restricted by fixed ideas. I preferred to be flexible. Also I rejected the concept of goals and ambitions; they implied success or failure. I wasn’t interested in measuring myself against others or competing with them”

William Dampier

#107 bdy sktrn on 03.19.16 at 1:54 am

oh, and the heck with the harley, i’m getting one of these once i finish painting the boat bottom next week.

https://www.youtube.com/watch?v=_crOZT3DbxQ

#108 bdy sktrn on 03.19.16 at 1:58 am

other ideas….

Virtual Reality is coming on strong. time to make $$$ putting 3d hot sexy women into the brains of young horny bucks.

I’m going to scan all the strippers at no5 orange for my VR app and licensing.

#109 Rabbit One on 03.19.16 at 2:08 am

> The recent BC budget wiping away land transfer tax for most first-time buyers was a case in point. You don’t make housing more affordable by subsidizing people to buy in. Duh.

Agreed Garth.

Same thing, in Vancouver, more and more densification plans executed, (micro suite, High rise, Redevelopment), properties are getting less and less affordable.

What has to happen is opposite of densification = spread the liveable, commutable development and reliable transportation systems in Greater Vancouver and surrounding area.
(+ decent job pool)

#110 Brazil ex-pat on 03.19.16 at 2:58 am

but but but….there is no data

#111 bdy sktrn on 03.19.16 at 3:13 am

#49 Victoria Real Estate Update on 03.18.16 at 8:49 pm
# 38 Move On VREU

Perhaps you haven’t seen this chart.
——————-
that’s not a chart, it’s a pile of vomit.

vic is on fire it seems, even with all your warnings

#112 bdy sktrn on 03.19.16 at 3:35 am

#52 ww1 on 03.18.16 at 9:08 pm
—————
yes incorrect.

simple logic fail. no html rqd.

in a new batch new posts usually come up in reverse order till the batch is done. during this time a comment # can change. they all end up in the correct order when the batch is complete. simple and rather obvious.

#113 Kahlid on 03.19.16 at 3:40 am

WANTED : Newer , low hours 15-25 seat private jet. My collection of rare tigers just keeps growing!

Holy [email protected] I’m RIIIIIIIIIIIIIIIICH!

#114 bdy sktrn on 03.19.16 at 3:54 am

So posts that are held back and later released get inserted into the middle of the page where they disrupt the numbering system and may be missed by people just watching the bottom of the page.

Then watch the whole page. Like, what else do you have to do? — Garth
———————–
chrome will drop you to the new post/number by default when you refresh the page.

#115 Love my Kia on 03.19.16 at 3:59 am

#5 Read

The real reason is people are preparing for an influx of foreign students with big money.

The PCTIA agency that regulates private career schools in BC is being folded into a new agency called PTIB under the Ministry of Advanced Education. There is a huge backlog of schools that are set to open in the next 18 months.
Christy knows exactly what she is doing. And there is stuff she doesn’t want you to know.

Metro Vancouver’s student population is expected to soar by about 50,000 over the next 18 months. In addition to this, 10 year visitor visas can be secured by parents of these students.

Students from overseas don’t attend these schools to get a 2 year culinary diploma only to work as a chef after paying $40,000 tuition. I won’t post the real reason for attending these schools for politically correct reasons.

For the parents, it offers an alternative to the Immigration Investor Program at a fraction of the price.
*********************************
I work in post secondary in central Canada and we also have many international students in our system. We have set limits on how many we can support, but it helps to sustain us in an area where there is a lot of out-migration and challenges to our budgets. That being said, we do have recruiters who travel the world seeking out students, not the other way around.

#116 Give us this Blog our daily Garth on 03.19.16 at 4:06 am

#60 Ian M

Absolutely right, it can’t continue like this too much longer. But deficit spending (coming) is going to keep consumer confidence high, and as long as GDP stays above zero and interest rates remain low, this madness WILL CONTINUE. Remember big bubbles burst violently when they are stretched thin….this one has more room to grow. Rent and wait it out.

#117 jane 24 on 03.19.16 at 4:23 am

How to Cool Van RE

1. Ban assignment clauses because they don’t pass the smell test. Imagine how you would feel Garth if this happened to you and you only found out on day of close.

2. Tax heavily all empty property yearly as I know that Asians hold them empty as a ‘used’ condo is worth less than a ‘never lived in one’. I used to live out East so know this is a cultural fact.

3. Increase the non-resident tax on RE profits from 25% to 50%.

4. Add a speculation tax of 50% on all RE owned by anyone for less than 2 years.

Results – end of problem. Houses will revert to being homes and BC communities will strengthen and grow with actual people living in them. Problem is that no-one has the guts to do it as everyone is now in the Ponzi game.

#118 Mark on 03.19.16 at 5:55 am

“One thing is for sure, Garth’s “rule of 90” is nuts. By his metric, I would be selling my paid for Toronto house, and renting. Why would I pay $2500 per month + utilities to rent a house, when I already own one?”

If your Toronto house is hypothetically “worth” $1M (ie: you could sell it tomorrow for $1M), you would be stupid to only accept $2500 per month in imputed rent.

Why? Because $2500/month becomes closer to $1500/month once you include depreciation, property taxes, property insurance, and imputed property management to the equation. $1500 * 12 = $18,000/year. Its trivial to buy a portfolio of diversified dividend paying stocks paying more than that as an explicit after-tax cash yield, and if you use GAAP earnings, the same portfolio has a yield of 3X (ie: an E/P of 6.7%).

An old school chum of mine teaches in a public school in Van city. when he started there abooout 15 years ago, 20% of the kids were of Asian origin. Now it is aboooout 80%. I doubt it was all immigration, I assume that the Asian population reproduced, something us stupid white folk are to precious to do.
1.5 kids in the family, single parents, abortions, nobody wants to ruin their girlish figures, give up holidays in the sun, get seen driving a minivan, or spend time changing diapers.

Sounds about right. A good rule of thumb I’ve found these days is that the more educated, the fewer kids. This is quite in contrast with the situation of the past, where it was doctors who would often have the huge families and “station wagons” on account of being wealthy and intelligent enough to prolifically reproduce. Doesn’t bode well for the future of society at all when our best breeding stock has basically given up.

A very good friend of mine, had a miscarriage on her first pregnancy (not an uncommon occurrence), and immediately demanded that her husband get himself neutered so it would never happen again. He agreed and got the snip-snip. Bizarre, eh?

#119 Ace Goodheart on 03.19.16 at 7:33 am

“Because it probably means your entire net worth is in one asset. — Garth”

True, but so what? The asset is a house, that we live in. It costs almost nothing to live here. Utilities and property taxes are around $5000.00 per year all inclusive. No mortgage = no payments, no interest.

I don’t view a house as an asset, I view it as a place to live. I don’t care what it’s worth, I’m never selling it. I do my own repairs. Houses are cheap to fix if you don’t involve contractors. A lot of the materials I use are reclaimed – ie, free, materials that are readily available due to all the old houses currently being demolished in the neighbourhood. I managed to rebuild a badly spalled double brick wall using bricks from a neighbouring house that was partially demolished for “renovations”. 100+ year old bricks, just dumped in a bin at the side of the road.

Owning your house is not really a “one asset strategy”, it’s more an opting out of the crazy game. This system which is set up by the banks and the government, to keep people working. People have these huge loans and mortgages, with 25 year payment plans, and they have to work full time to keep up. That means interest for the banks, and taxes for the governments. It’s a game, that’s all it is. And if you are paying interest and income tax, you are losing the game. Badly.

#120 Papa Bear on 03.19.16 at 8:09 am

I know the statistics don’t match up to the whole “Asian buyers” fear, but do they include recent Canadians of Asian descent or Permanent residents who got a bucket of money sent to them from family abroad? I bet that’s a larger portion and flies under the radar since they aren’t technically foreign buyers.

The why would you care? Because they’re not white? — Garth

#121 Smoking Man on 03.19.16 at 8:38 am

Huddled in the corner with fellow smokers.the joggers make a big arc around us and peel into Starbucks

The smokers all hung over bragging about how much they lost last night.

I need a coffee so I walk into Starbuck with an un lit cigarette dangling from my mouth.

Wow this is what life must be like living with leprosy.

Dedicate this day to the most perfect hangover.

#122 Bottoms_Up on 03.19.16 at 8:45 am

#60 Ian M on 03.18.16 at 9:36 pm
—————————–
Come to Ottawa, same house half the price. Lots of selection and time to make up your mind too.

#123 Bottoms_Up on 03.19.16 at 8:49 am

#49 Victoria Real Estate Update on 03.18.16 at 8:49 pm
———————————–
I think the bottom for victoria is higher than you might think. Victoria has always had some demand from retirees across Canada, so if housing dips there, that gives them an entry point. Think of it like a stock, with a solid floor price, with value investors circling.

#124 crowdedelevatorfartz on 03.19.16 at 9:22 am

@#60 Ian M
“this is not sustainable”
++++++++++++++++++++++++++++++++++++

The only way the lunacy will stop is when people like you stop bidding ……….

#125 crowdedelevatorfartz on 03.19.16 at 9:29 am

@#98 The most Obnoxious Man in the world

Sorry but someone already beat you to that name….

aka bdy skytrn

#126 crowdedelevatorfartz on 03.19.16 at 9:35 am

@#112 Kahlid

You’re lookin for a USED corporate jet?

I thought you were rich?

1st lesson for the pretentiously neuveau riche….
If ya wanna be a Play-yah, you’ve got to lay down that black American Express card for one of them there shiny new G7’s…… but you keep pretending while you fly the skies in used seats that Warren Buffet, or The Donald already farted in and keep believing you’re “rich”.

#127 nobody on 03.19.16 at 9:47 am

I too want a Lear Jet but don’t have $10M so I propose banning Bombardier from selling to foreigners. That way the price will drop and people on average income will be able to afford them.

#128 Chinese guy on 03.19.16 at 10:13 am

Garth, I bet most of your clients are Chinese these days. That’s why you don’t like when people criticize their “legal” invasion.

Actually, it’s simpler. I just hate bigots. Go away. — Garth

#129 Rick on 03.19.16 at 10:22 am

With regards to Realtors putting “for sale” signs up. I would call the police and demand that trespassing charges be placed.

If that did not work, I would file a small claims suit; I would win.

Nuff said.

#130 Penny Henny on 03.19.16 at 10:27 am

I just figured it out.
VREU is Mark’s sister!

#131 jimbomexburger on 03.19.16 at 10:30 am

Garth, get me out of this

Help, am permanently stranded down in Cancun and can’t afford to buy back in to the Scarberia(scarce-beer-area) real estate dream……Send lawyers, guns and money…oh yeah and my Jimmy Buffer records and Hawaian shirts

#132 Fine wild roasted gonads on 03.19.16 at 10:51 am

It’s earth hour day….Please join us in Calgary as we tell Butts and the T2 gang to stick it where the sun don’t shine and turn on all the lights and power up every thing this evening.

Butts what a guy. Destroyed Ontario. Hellbent on doing same to Canada now.

#133 OttawaGuyRenting on 03.19.16 at 11:17 am

I know the statistics don’t match up to the whole “Asian buyers” fear, but do they include recent Canadians of Asian descent or Permanent residents who got a bucket of money sent to them from family abroad? I bet that’s a larger portion and flies under the radar since they aren’t technically foreign buyers.
———————–

Ya like dude… I am sure the pubs were full of people complaining when my Scottish family sent “cousins” and “brothers” with pockets and bags full coins and their cheap labor over here to start dairy farms.
From upper state New York to Ottawa valley in the mid 1800s my family brought tons of old country money and labour here.
Maybe Garth Recalls the Farming boom in those years? Hahahaha
He probably wrote a book on it

Veiled racism doesn’t suit you or anyone

#134 Shirley valentine on 03.19.16 at 11:23 am

#120 Smoking Man on 03.19.16 at 8:38 am
Huddled in the corner with fellow smokers.the joggers make a big arc around us and peel into Starbucks

The smokers all hung over bragging about how much they lost last night.

I need a coffee so I walk into Starbuck with an un lit cigarette dangling from my mouth.

Wow this is what life must be like living with leprosy.

Dedicate this day to the most perfect hangover.
xoxoxoxoxo

The great smokey alien beast of a stud rises from the ashes yet again!! A true Phoenix. A full day of slaying commies and teachers lies ahead. The book. The book. Hope you got good material for the book at least!! Party on.

#135 jess on 03.19.16 at 11:34 am

Congratulations Adele Ferguson who has been named Australian Journalist of the Year and been awarded the Melbourne Press Club’s Gold Quill.”an outstanding feat of investigative journalism”.

The stories triggered the resignation of 7-Eleven’s Australian founder and chairman, high-level inquiries and big compensation payouts.

A joint investigation into 7-Eleven stores by Four Corners and Fairfax Media has found systemic: underpayment of wages ,doctoring of payroll records exploited and intimidated workers who are often are international students who if complained threatened deportation.Doctored time sheets and rosters, store financials with possibly understated wage bills, store reviews and explosive documents relating to payroll compliance from head office are further evidence that something is deeply rotten within the 7-Eleven Australia empire.
=
It has sought to pin blame for wrongdoing on those franchisees but the testimony of a whistleblower from head office, former workers from stores around the country, a consumer advocate who has lobbied head office for over two years, and the damning opinion of the Fair Work Ombudsman paints a bleak picture of what it is like to work in one of the 620 franchise stores.
The picture is painted in the words of these experts along with evidence here.
http://www.theage.com.au/interactive/2015/7-eleven-revealed/

#136 jess on 03.19.16 at 11:38 am

homogenized stories?
APRA talks about how it stopped ‘loose banking’ practicesRead more: http://www.afr.com/real-estate/apra-talks-about-how-it-stopped-loose-banking-practices-20160318-gnm2fu#ixzz43LyV13q1

Mr Lew said. “Foreign investment has pushed prices a lot higher.” And an extended period of low interest rates had pushed house prices up substantially.
http://www.afr.com/business/billionaire-solly-lew-says-some-house-price-bubble-dangers-loom-20160318-gnlrz4

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11608130
…” the QDII2 – the Qualified Domestic Individual Investor programme – mean that people in six cities across China will be able to invest as much as half of their assets overseas.”

#137 Belinda on 03.19.16 at 11:38 am

In addition to an assignment clause being included in the real estate contract, there should be a mandatory section where the seller must tic/check mark and initial that they “know, understand and approve” of the assignment. Maybe, this can be a step towards a solution.

Then you need to initial every clause. — Garth

#138 White Crock BC on 03.19.16 at 11:41 am

The $85,000 is then taxed as income at their marginal rate. — Garth

I’m sure that gets reported to the CRA…. LOL

Just like the vast majority of people who rent out basement suites.

Income is income. Of course it’s reportable. — Garth

#139 Ronaldo on 03.19.16 at 11:45 am

#106 bdy sktrn on 03.19.16 at 1:54 am

” oh, and the heck with the harley, i’m getting one of these once i finish painting the boat bottom next week.

https://www.youtube.com/watch?v=_crOZT3DbxQ

So much for needing a helicopter to commute from the Fraser Valley once you sell your 2 million dollar crack shack in Vancouver.

#140 Ronaldo on 03.19.16 at 11:49 am

#104 bdy skytrn

”of a whopping FIVE new signs i’ve noticed today, 3 are already sold, and the other 2 had open houses today.”

Smart ones are cashing in.

#141 Fine Wild Roasted Gonads on 03.19.16 at 12:04 pm

More turnout the lights nonsense from our minister of climate change.

https://twitter.com/ec_minister

Why would you celebrate turning out lights when of course the harnessing of energy from fire to LEDS was done with lights blazing creating wealth, growth and advancement that gives us the modern world. What a bunch of idiots

Of course this idea comes from Butts buds at the WWF..

How do you like your electricity rates Ontario.. lower standard of living coming to Canada coast to coast thanks to T2 gang with Butt pulling the strings of the puppet.

#142 Not Tonight Honey on 03.19.16 at 1:19 pm

#123 The Time To Buy Is Now In YYC on 03.18.16 at 2:01 pm
#113 Not Tonight Honey on 03.18.16 at 11:46 am

IMHO, it seems to be dependent on the neighbourhood. Altadore sellers seem to be delusional about the value of what they’re sitting on. Similar homes in Capitol Hill or Bowness are selling at a decent discount to the SW infill neighbourhoods.

I presume that it is the Altadore sellers you’re speaking with who are sticky with the prices. They’re also likely sitting on more cash than the sellers in other hoods. I would honestly encourage you to look in the NW. Not deep NW, but just cross the river. There is great value to be found.

Our sale was not private, though as I mentioned previously it seems the seller’s realtor just removed the listing rather than marking it sold in the MLS system. Sneaky…….

================================

Thanks Time To Buy, appreciate your reply & sound advice. Sorry, I wasn’t sure if you were the same chap as previous.

I think you’re right on point & couldn’t agree more!

(Sneaky realtor indeed….)

We shall keep on keeping on with our due diligence. Thanks to this pathetic blog I’m a whole lot more sane and informed about making real estate decisions!
Time is on our side (I hope).

Have a super weekend!
NTH

#143 Diana on 03.19.16 at 1:32 pm

I hate small screens. Corrected post: I don’t much care for our premier, but I have to agree with her here. A contract must contain an offer (between seller and purchaser), acceptance (I agree to sell and you agree to buy) and consideration (show me the money). Why should the purchaser be allowed to amend the contract before the completion date and not the Seller. We do not allow a seller to sell their property to a person willing to pay more than their original buyer. This is done in the UK and it is called gazumping. Do we want that here? If not, we need a fair playing field. The buyer should not be able to sell his interest to a person the owner/seller did not agree to sell to, the same as the Seller is not allowed to sell to a different purchaser.

#144 Karlhungus on 03.19.16 at 1:49 pm

Edmonton gained 25,000 jobs last year, sorry no melt

#145 @ #132 OttawaGuyRenting on 03.19.16 at 11:17 am on 03.19.16 at 2:16 pm

said “Veiled racism doesn’t suit you or anyone”.

Oh please! You’re assuming the poster isn’t Asian. The race card lines don’t work anyways these days.

#146 Andres on 03.19.16 at 2:24 pm

I feel like a key plot point a lot of people are missing is that under ‘normal’ conditions many of the people complaining would have been priced out of the market anyway.

#147 liqudincalgary on 03.19.16 at 2:33 pm

there already is a law, that requires capital gains tax be paid, if the property is not your principle residence for at least a year. non?

#148 Brazil ex-pat on 03.19.16 at 2:42 pm

CKNW in Vancouver has closed it’s comment section because people are so pissed off that Vancouver is now the “foreign money laundering capital of the world”. Many many professionals calling in saying “yes – absolutely its foreign money” realtors, bankers, inspectors, store owners. People calling in saying the banks are not reporting anything to CRA about the billions pouring in from China where you can only “legally” wire out 50K a year.

But there is no data right?

Because unless you are the govt or Cameron Muir of the VREB – regular plebs don’t count.

CKNW closed comments because it had enough from bigoted morons. Like you. — Garth

#149 Brazil ex-pat on 03.19.16 at 2:48 pm

DELETED (anti-Chinese)

#150 Fleurdelys on 03.19.16 at 2:52 pm

I think there is something overlooked in all this Vancouver and Toronto real estate madness

Booth cities are now not attractive for anyone who has a job offer under 70k

70k it’s an average pay… This will have a huge impact in the long run. Companies are not longer able to attract work for from other regions… In Montreal with a lower salary you can have an amazing house/condo to live in… Vancouver and GTA companies are already not longer competitive (I see jobs advertised for MONTHS)

#151 LP on 03.19.16 at 3:04 pm

#142 Diana on 03.19.16 at 1:32 pm

…A contract must contain an offer (between seller and purchaser), acceptance (I agree to sell and you agree to buy) and consideration (show me the money). Why should the purchaser be allowed to amend the contract before the completion date and not the Seller.
***************************
That’s a slant I hadn’t thought of. Good for you for raising that query.

#152 liqudincalgary on 03.19.16 at 3:07 pm

Bobs ur uncle on 03.18.16 at 7:19 pm
“I thought she was fetching when I used to be on her radio show”

And this is related to your topic how exactly?

=========================================

back-handed compliment

#153 liqudincalgary on 03.19.16 at 3:13 pm

everythingisterrible on 03.18.16 at 7:44 pm
Im not a Christie fan, but the fact is Realtors provide the price assessments and push/pressure their clients into undervalued deals so they can turn around to sell and pocket the difference. Never forget Realtors don’t have your best interests in mind, they’re only working for the deal and commission. Volume is the name of the game. You’re giving that Reeltor* cartel of slime balls way too much credit Garth. If an agent encouraged or advised me to accept an offer then sold for more months later for more , I think I have a legitimate reason to be pissed off.

Ignorant comment. The listing agent is not the buyer. — Garth

========================================

even more ignorant, is ignoring the fact that realtors DO have a fiduciary duty to their client

#154 paul on 03.19.16 at 3:22 pm

#136 Belinda on 03.19.16 at 11:38 am

In addition to an assignment clause being included in the real estate contract, there should be a mandatory section where the seller must tic/check mark and initial that they “know, understand and approve” of the assignment. Maybe, this can be a step towards a solution.

Then you need to initial every clause. — Garth
———————————————————-
Face it the sellers get what they want, know what they sign. Lets see they sell for 2 million suppose to close in Six months. Values drop 10% the buy wants a 200k abatement on the price and the seller says you are nice new Canadian and drops the price!! LOL

#155 acdel on 03.19.16 at 3:25 pm

#141 Not Tonight Honey
#123 The Time To Buy Is Now In YYC on 03.18.16 at 2:01 pm
#113 Not Tonight Honey on 03.18.16 at 11:46 am

————————————————————

I noticed the new infills in Capital Hill are not selling nearly as quickly as the existing homes. A year back they sold within days. I friend of mine who lives in Silver Springs purchased a second home and tried for a third but it did not even make it to showing. It sold that quickly; anything under 500k withing 10 min from downtown, is selling quickly.

#156 Victoria Real Estate Update on 03.19.16 at 3:25 pm

#94 Move on VREU

Please find the exact quote that shows me talking about which direction house prices have gone in recent months.

You won’t be able to do that.

So you’ve lied.

You have zero credibility. Any credibility you had is gone.

This is typical of you “I’m not a realtor” realtors. You add nothing of value to Garth’s comments section. All you seem capable of doing is falsely accusing others and repeating the propaganda of the local real estate board and other real estate agents.

What name will you post under next?

#157 Victoria Real Estate Update on 03.19.16 at 3:28 pm

#129 Penny Henny

That was intelligent. Perhaps it’s better if you don’t post
any comments – there’s less chance of exposing your level of intelligence.

#158 Victoria Real Estate Update on 03.19.16 at 4:01 pm

#122 Bottoms_Up

There is no evidence to support your claim that retirees from outside of Victoria have had any positive effect on house prices in Victoria at any time.

If retirees from outside of Victoria did have a price boosting effect then prices in Victoria wouldn’t have fallen 15% or more from 2010 to 2014 while prices in other Canadian cities skyrocketed higher.

The difference between my comments and yours is that I back statements such as the one you made with facts. You don’t.

This is how you gain or lose credibility.

At least we know what to expect from you in the future.

#159 WalMark of Sadkatoon on 03.19.16 at 4:04 pm

Hey Mark,

Just curious. What do you do for a living?

u can google his linkedin profile and browse through his message board posts. he’s unemployed. unfortunately not hard to see why when u go through it all. somewhat sad

#160 TurnerNation on 03.19.16 at 4:31 pm

Loblaws is being sneaky these days. A red sign with Sale and the price stuck onto the shelf all over the place. Prices did seems reduced to me so lift up sale tag and discover price is same as regular shelf price.

Also many specials where you must buy two of each item to receive it.

Not sure what is their strategy but I’m not fooled.

#161 Mark on 03.19.16 at 4:42 pm

“u can google his linkedin profile “

Wow making it up as you go along. Pretty sad that Garth actually lets you comment here. And my comments here, and elsewhere are generally very well respected. And certainly miles ahead of you in truth and in grammar.

“This is typical of you “I’m not a realtor” realtors. You add nothing of value to Garth’s comments section. All you seem capable of doing is falsely accusing others and repeating the propaganda of the local real estate board and other real estate agents. “

As Upton Sinclair (and probably many others) one said, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

I don’t blame, as individuals, people in the RE sell-side for exaggerating a lot of things as they clearly have. In a last ditch attempt to save their skins. But at some level, their industry has a responsibility to society not to ruin families with unsustainable debt, not to ruin the economy by inducing capital misallocation, and not to engage in the sort of race baiting as they have with the implied “Asians with money” narrative that’s been concocted.

#162 TurnerNation on 03.19.16 at 4:55 pm

Hmm Loblaws must be third-generation owned by now. Look what the grandkids did to Eatons, Bombardier. Keep and eye on Rogers.

Well the one good thing the Scion Galen’s Spoke Club near me. Know many members and attended their events there 5 or 6 times already this year. On first name basis with bartender. Summer patio hurry up.

In Dollarama (first gen) we trust.

#163 maxx on 03.19.16 at 5:09 pm

#3 Mark on 03.18.16 at 6:30 pm

….”Only problem is, the Realtors with their bizarre claims of higher prices have lost so much credibility that the damage to their long-term reputations may very well be irreparable.”

Were the lot of them to be flushed down the proverbial toilet, the world would quite suddenly find a remarkably quick ability to live without them. Interfering and grossly overpaid – all of them.

#164 fiduciary duty on 03.19.16 at 5:16 pm

#151 liqudincalgary on 03.19.16 at 3:13 pm

everythingisterrible on 03.18.16 at 7:44 pm
Im not a Christie fan, but the fact is Realtors provide the price assessments and push/pressure their clients into undervalued deals so they can turn around to sell and pocket the difference. Never forget Realtors don’t have your best interests in mind, they’re only working for the deal and commission. Volume is the name of the game. You’re giving that Reeltor* cartel of slime balls way too much credit Garth. If an agent encouraged or advised me to accept an offer then sold for more months later for more , I think I have a legitimate reason to be pissed off.

Ignorant comment. The listing agent is not the buyer. — Garth

========================================

even more ignorant, is ignoring the fact that realtors DO have a fiduciary duty to their client

—-

It looks like Garth does not recognize or acknowledge this duty at all, for whatever reason. It would not fit his narrative anyway.

Fiduciary is implied, of course. That’s how you get a license. Another ignorant comment. — Garth

#165 lee on 03.19.16 at 5:16 pm

I don’t think young people understand real estate debt. They think if they earn $60,000 that paying $3,500 a month for a condo is easy/smart. After all, $3,500 times 12 is only $42,000. A cheap $450,000 condo will put them back monthly about $2,000 for a mortgage, $350 for taxes, $600 for maintenance (because they have to live downtown), and about $300 to $400 more for utilities and media, plus a hundred a month for a phone. Of course the $60,000 only nets them about $40,000. And this is for a cheap condo. It usually takes a few years to realize this is getting them nowhere with an asset that does not appreciate. I think it’s time youth starts to do in Toronto what they are doing in Vancouver. Moving away. Who is going to fill up the ACC during Raptor games? Guys like Garth?

#166 third generation on 03.19.16 at 5:20 pm

160 TurnerNation on 03.19.16 at 4:55 pm

Hmm Loblaws must be third-generation owned by now. Look what the grandkids did to Eatons, Bombardier. Keep and eye on Rogers.

—-

This process was described by the German writer, Thomas Mann in his outstanding novel: Buddenbrooks: The Decline of a Family.

https://www.goodreads.com/book/show/80890.Buddenbrooks

#167 acdel on 03.19.16 at 5:28 pm

Since cauliflower is off topic now; I thought that as an Albertan I purchased two bottles of French Ketchup just to show solidarity to our Eastern tomato farmers.

Why I posted this, who know’s, maybe Smoking Man is rubbing off on me! :)

#168 Trumpism on 03.19.16 at 5:29 pm

#146 Brazil ex-pat on 03.19.16 at 2:42 pm

CKNW in Vancouver has closed it’s comment section because people are so pissed off that Vancouver is now the “foreign money laundering capital of the world”. Many many professionals calling in saying “yes – absolutely its foreign money” realtors, bankers, inspectors, store owners. People calling in saying the banks are not reporting anything to CRA about the billions pouring in from China where you can only “legally” wire out 50K a year.

But there is no data right?

Because unless you are the govt or Cameron Muir of the VREB – regular plebs don’t count.

CKNW closed comments because it had enough from bigoted morons. Like you. — Garth

—-

This exchange is the exact demonstration of the raise of Trump.

The establishment is unwilling to open a dialogue about issues that irritate the public, using power of authority and the tactic of personal ridicule, character assassination , instead.

Hardly. Catering to willful ignorance is a social cancer. It should be carved out, defied and squished wherever extent. I once believed ‘the people’ are always correct. Silly me. — Garth

#169 Fine Wild Roasted Gonads on 03.19.16 at 6:02 pm

From the Butt dude that pulls T2’s strings.. and they are gonna tax everyone’s ass…. who they hell elected these wonder brains.. earth hour – hey lets turn out the lights and celebrate the dark ages.

Gerald Butts [email protected] 1h1 hour ago

Gerald Butts Retweeted Trevor Tombe

No. Climate change. And carbon pricing is a big part of the solution, but it’s not a silver bullet.

Gerald Butts [email protected] 3h3 hours ago

Public awareness normally precedes widespread action. Snarky westerners: #EarthHour reaches 1B or so members of a public you’re not part of.

#170 Siva on 03.19.16 at 6:04 pm

I don’t know, what do I know about it. All I know is what’s on the Internet – Donald J Trump.

#171 Trumpism on 03.19.16 at 6:08 pm

#166 Trumpism on 03.19.16 at 5:29 pm

#146 Brazil ex-pat on 03.19.16 at 2:42 pm

CKNW in Vancouver has closed it’s comment section because people are so pissed off that Vancouver is now the “foreign money laundering capital of the world”. Many many professionals calling in saying “yes – absolutely its foreign money” realtors, bankers, inspectors, store owners. People calling in saying the banks are not reporting anything to CRA about the billions pouring in from China where you can only “legally” wire out 50K a year.

But there is no data right?

Because unless you are the govt or Cameron Muir of the VREB – regular plebs don’t count.

CKNW closed comments because it had enough from bigoted morons. Like you. — Garth

—-

This exchange is the exact demonstration of the raise of Trump.

The establishment is unwilling to open a dialogue about issues that irritate the public, using power of authority and the tactic of personal ridicule, character assassination , instead.

Hardly. Catering to willful ignorance is a social cancer. It should be carved out, defied and squished wherever extent. I once believed ‘the people’ are always correct. Silly me. — Garth

This, of course, is based on the belief that one is the appointed judge to decide what constitutes “willful ignorance”, “social cancer” and how to deal with it.

Brings same end result as believing “the people’ are always correct.”

Silly. Both.

My blog. My rules. Suck it up. — Garth

#172 Bottoms_Up on 03.19.16 at 6:49 pm

#156 Victoria Real Estate Update on 03.19.16 at 4:01 pm
——————————–
Ooops, you got me. Victoria is not, and has never been, a retirement destination.

#173 acdel on 03.19.16 at 7:06 pm

One can either consider Greater Van and perhaps GTA as the greatest accomplishment in Capitalism; buy low sell high for the lucky; or desperation, fear, and hope for the better for many.

For all that are quick to to blame foreign money; sure there is alot of that but why not, if one see’s an opportunity to better oneself as many of us would then why would you not? Will it do Canada any good overall, not likely, Vancouver is lost, so why bother? Unless you have the means to buy now and sell quickly to make a a quick profit.

Garth pointed out a few blogs ago on how many young bright individuals are leaving for exactly that point on the cost of living. If this is the country we want, make the most of each opportunity, truly, who doesn’t, human nature after all, then why all the complaints.

Personally I do not like it, but this is where we are heading, the more free trade we sign the less we can compete, then again, if we do not sign them how do we compete. Look what is happening in the States, if Trump is elected and he does tear up the free trade agreements then it is not looking good for us.

Eastern Canada has no issues purchasing oil from countries that could care less about environmental standards, do not allow women to drive or vote (that may have changed, not sure), and cut the heads off people for standing up to democratic views or much less.

The standard of living we live here is going to change drastically in the years to come. Especially if these stupid partisan provincial leaders and strong vocal environuts (who are the biggest pathetic, condescending, hypocritical, people out there). I am all for less pollution and clean air but target the real countries that could care less as opposed to one like our that actually absorbs more carbon then it contributes.

Forest are on the upswing on this planet.

http://www.theglobeandmail.com/opinion/we-are-making-the-globe-greener/article26147272/

Interesting times ahead, buy low, sell high and get out!

#174 crowdedelevatorfartz on 03.19.16 at 7:17 pm

CKNW ?
Seriously?

The “once mighty” ‘NW has fallen from the #1 spot in prime time AM radio ( a postion it held for decades) to 4th because of its dreadful pro liberal partisan “news” reporting, massive budget and staff cuts and a lousy program manager.

‘NW…. a sad shadow of its former self with the redneck crowd that still clings to a bygone era…….

#175 eddy on 03.19.16 at 7:28 pm

@mark.

Gta?
Im in the market.
In TO virtually every new listing is holding back offers and selling over your imagination.
but wait theres more.
The practice can be see in barrie, niagara falls too.

#176 Ace Goodheart on 03.19.16 at 7:34 pm

There is an interesting “truth” to all of this nonsense with B.C. realtors and assignment clauses and the like. Realtors use a standard form agreement of purchase and sale for house sales. They view it as a biblical document, unchangeable in any way, controlled by higher powers, and something that has to be used every time a house is sold.

This is of course all crap. You can sell a house using a hand written document you have drawn up with a couple of lawyers and the purchaser and seller.

What really needs to happen, seeing as houses are now being traded as securities, is that purchasers and sellers should be hiring lawyers, and not realtors, to negotiate and complete their sales for them (it would actually be cheaper, as the average realtor taking 2.5% on each side of the transaction, is making hundreds of thousands of dollars more on the sale than are the lawyers who actually conduct it).

There needs to be a line drawn in the sand as to where the lawyers have the power and where the realtor’s power stops. Otherwise you have the situation where a realtor is telling a lawyer they can’t change an assignment clause in a sales contract, that the lawyer’s seller client doesn’t like, because the contract is written in stone and can never be altered. This is the stupid leading the well informed.

For people selling houses, that would mean that an agent sells the house, and the lawyer takes care of the rest. That is the way it should be. We can all see what happens, when real estate agents are allowed to play “lawyer” and do more than just sell houses.

It is not pretty.

Time for you to stop typing and do some research. Vendors and buyers engage lawyers, not real estate agents. — Garth

#177 rainclouds on 03.19.16 at 7:38 pm

This is how money is moved into the country on the sly.

http://www.antimoneylaunderinglaw.com/2015/08/structuring-how-moving-funds-from-china-to-vancouver-is-exactly-how-columbian-drug-lords-move-their-money.html

The larger question is:
how much of this is taking place?.
why do we not know?

The lack of credible data covering many aspects of this RE market is quite simply pathetic and points to a complete abdication of “leadership”

It’s a market, not a government program. — Garth

#178 Ace Goodheart on 03.19.16 at 7:41 pm

Oh and for people who think that contract flipping and shadow buying is OK in a housing market, I think that you are nuts. I fully agree with the B.C. premier’s decision. This looks exactly like what an unregulated stock market would look like.

You can’t fully see the brutal danger in what is going on, because right now prices are going up and up and up.

Imagine what happens, when prices start going down. Then you have agents left with contract flips that they can’t move off, and the inevitable “pump and dumps” will begin. Innocent people will be left holding the bag as agents clear out unprofitable “investments”.

The whole situation makes me very angry. It is an unregulated commodity market. The sooner it is regulated, the better.

You don’t quite grasp it, do you? — Garth

#179 Victoria Real Estate Update on 03.19.16 at 7:46 pm

# 170 Bottoms_Up

I’ll repeat what I said: there is no evidence or facts to support your claim that retirees from outside of Victoria have had a positive effect on house prices in Victoria.

If you find evidence then you’ll prove me wrong.

Saying that Victoria is a retirement destination proves nothing.

#180 Bottoms_Up on 03.19.16 at 7:54 pm

#174 Victoria Real Estate Update on 03.19.16 at 7:46 pm
———————————
I’ll use Garth’s phrase, you don’t quite grasp it do you? Buyers create demand, which no doubt has a “positive” effect on Victoria real estate prices. Whether that is to increase prices or buffer them in a soft market, doesn’t matter. Victoria has an inherent draw of retirees. And actually, with a robust GTA market, that only increases the likelihood an interprovincial retiree from that area can afford to settle in Victoria.

#181 maya on 03.19.16 at 8:03 pm

126 nobody on 03.19.16 at 9:47 am
I too want a Lear Jet but don’t have $10M so I propose banning Bombardier from selling to foreigners. That way the price will drop and people on average income will be able to afford them.
____________
Lear Jet is not a necessity, but a decent house based on average income of a middle class family is…
your analogy is just immature

Shelter is a necessity. A house is not. — Garth

#182 jess on 03.19.16 at 8:13 pm

Four More Whoppers about LNG in British Columbia

The real facts behind Christy Clark’s rosy claims.

By Andrew Nikiforuk, 16 Mar 2016, TheTyee.ca

#183 Rainclouds on 03.19.16 at 8:20 pm

It’s a market, not a government program. — Garth

True enough.
Although the stock market isn’t a government program either yet there is oversight and credible data.

And options trading. — Garth

#184 Smoking Man on 03.19.16 at 8:22 pm

Getting ready to turn on every light and appliance at 8:30 in celebration of earth hour.

#185 gut check on 03.19.16 at 8:33 pm

#166 Trumpism on 03.19.16 at 5:29 pm

This exchange is the exact demonstration of the raise of Trump.

The establishment is unwilling to open a dialogue about issues that irritate the public, using power of authority and the tactic of personal ridicule, character assassination , instead.

*************

you’re exactly right.

Despite what you wish, this blog will not seek the low common denominator. I will trash it before that happens. — Garth

#186 Ace Goodheart on 03.19.16 at 8:39 pm

RE: “Time for you to stop typing and do some research. Vendors and buyers engage lawyers, not real estate agents. — Garth” – they engage them AFTER they have already negotiated the contract that governs the sale of their house. I am saying, hire them before. No lawyer would allow an assignment clause in an agreement of purchase and sale, if he or she had control over drafting of the contract (which they never do).

RE: “You don’t quite grasp it, do you? — Garth”

Yup, unfortunately I do. As I said, it makes me very, very angry.

#187 acdel on 03.19.16 at 8:40 pm

#182 Smoking Man

I’m in, and do not feel one bit guilty about it; if you do not like it, then F*** O**!

#188 Fine wild roasted gonads. on 03.19.16 at 9:02 pm

#182 Smoking Man on 03.19.16 at 8:22 pm
Getting ready to turn on every light and appliance at 8:30 in celebration of earth hour.
—-
Fantastic. You’re a beauty. Thanks from oilberta. Butts is insane.

#189 Brazil ex-pat on 03.19.16 at 9:20 pm

Meanwhile in Brazil…..which is very similar to Canada with its corruption and ruling “govt working” class……and poor everyone else.

https://theintercept.com/2016/03/18/brazil-is-engulfed-by-ruling-class-corruption-and-a-dangerous-subversion-of-democracy/

#190 Brazil ex-pat on 03.19.16 at 9:24 pm

Hardly. Catering to willful ignorance is a social cancer. It should be carved out, defied and squished wherever extent. I once believed ‘the people’ are always correct. Silly me. — Garth

+++++++++++++++++++++++++++++++++++

Since when have “the people” ever had a voice in our phony democracy that caters to one “oh powerful” OZ master called the PM?

#191 Siva on 03.19.16 at 9:30 pm

Question: Who do you consult on foreign policy

Trump: I am speaking with myself because I have a very good brain and I say lot of things. I know what I am doing. My primary consultant is myself.

#192 ww1 on 03.19.16 at 9:35 pm

#112 bdy sktrn
yes incorrect. simple logic fail. no html rqd.

in a new batch new posts usually come up in reverse order till the batch is done. during this time a comment # can change. they all end up in the correct order when the batch is complete. simple and rather obvious.

===============================================================

Not quite. Tracked the posts tonight while working on other things.

Sometime between 9:12 PM and 9:17 PM (EDT) a “new” post from “Frank” was inserted in position #5 in the comments. At that point, the new comments were numbered at #188 !

This is more than a reverse order batch release – Frank’s post was submitted at 6:35 PM – almost three hours before it appeared in the comment section. Who is going to notice it there or benefit from “Frank’s” wisdom?

Garth has suggested “Then watch the whole page. Like, what else do you have to do? “. So I did. As I really have nothing else to do and I just don’t want to miss anything “important” from the blog dogs.

Occasionally the blog’s spam filter sidelines a post. Occasionally I rescue such comments. — Garth

#193 Trumpism on 03.19.16 at 9:36 pm

#190 Siva on 03.19.16 at 9:30 pm

Question: Who do you consult on foreign policy

Trump: I am speaking with myself because I have a very good brain and I say lot of things. I know what I am doing. My primary consultant is myself.

—-

A lot like the slogan “My blog. My rules. Suck it up.”

#194 acdel on 03.19.16 at 9:45 pm

Thanks Garth, good blog!

Good evening all!

#195 Lobster Man on 03.19.16 at 9:48 pm

Here is another example of why “Thou shall not own mutual funds”:

http://www.theglobeandmail.com/globe-investor/investor-education/how-a-tax-friendly-rbc-fund-became-a-tax-headache-for-investors/article29298743/

#196 gut check on 03.19.16 at 10:08 pm

@ Garth, re:
#185

Despite what you wish, this blog will not seek the low common denominator. I will trash it before that happens. — Garth

**************

you misunderstood, I think.

I was agreeing with the poster’s assessment of the reason for the rise of Trump, not suggesting that you change your m.o

#197 you're fired on 03.19.16 at 10:09 pm

#193 Trumpism on 03.19.16 at 9:36 pm
#190 Siva on 03.19.16 at 9:30 pm

Question: Who do you consult on foreign policy

Trump: I am speaking with myself because I have a very good brain and I say lot of things. I know what I am doing. My primary consultant is myself.

—-

A lot like the slogan “My blog. My rules. Suck it up.”


my favorite 3 quotes from trump-
we have to rebuild
it has to be majestic
i saw the jumpers from my office tower on 911

Trump is Rockefeller Owned and a Shill for the CFR
https://www.youtube.com/watch?v=WHb5vFVq9GY&app=desktop

#198 Bottoms_Up on 03.19.16 at 10:41 pm

#192 ww1 on 03.19.16 at 9:35 pm
———————
What would Garth have to gain from delaying that post? What are you trying to prove? And it did contain the “s” word which may have filtered it out initially.

#199 Smoking Man on 03.19.16 at 10:57 pm

#197 you’re fired on 03.19.16 at 10:09 pm
#193 Trumpism on 03.19.16 at 9:36 pm
#190 Siva on 03.19.16 at 9:30 pm

Question: Who do you consult on foreign policy

Trump: I am speaking with myself because I have a very good brain and I say lot of things. I know what I am doing. My primary consultant is myself.

—-

A lot like the slogan “My blog. My rules. Suck it up.”


my favorite 3 quotes from trump-
we have to rebuild
it has to be majestic
i saw the jumpers from my office tower on 911

Trump is Rockefeller Owned and a Shill for the CFR
https://www.youtube.com/watch?v=WHb5vFVq9GY&app=desktop
…………

We are all owned. My wife has the keys to my zipper, she also has a knife set she bought on late a late night infomercial just in case I get out of line.

#200 fleabitten monkey on 03.19.16 at 11:01 pm

#95 Move on VREU –
I live in Vancouver and I’m originally from Victoria. Moved to Van about 12 years ago. Seriously “Vancouverization of Victoria”? Really? Only in Victoria’s delusional little head and I do mean little. Victoria is a beautiful little town in places and I say town for a reason. Vancouver has 110pct over Victoria in terms of everything from scenery, business, culture, lifestyle. You name it Vic will never hold a candle to Van. What u r seeing there is simply as low supply situation. Certainly correct to say that there are those In van selling here and moving to vic with lots of cash to spare and can afford the bidding wars in vic because of equity they are realizing in van. To say that is a trend to sustain a market to be the next van is pure speculation and hope in vain by a few. Victoria will never be Vancouver and nobody moving there or living there would ever want it to be.

#201 Smoking Man on 03.19.16 at 11:01 pm

#187 acdel on 03.19.16 at 8:40 pm
#182 Smoking Man

I’m in, and do not feel one bit guilty about it; if you do not like it, then F*** O**!
……….

The lefties talk about how macro aggression hurts them, crocodile tears. While they bring on Maximum aggression against straight white males.

I hate em.

#202 Mark on 03.19.16 at 11:11 pm

Imagine what happens, when prices start going down.

Prices *are* going down. We don’t need to imagine. We’re already seeing it.

Then you have agents left with contract flips that they can’t move off, and the inevitable “pump and dumps” will begin.

Already happening. See that quote of “Khalid” that I trot out a few times a week from the G&M article. Sitting on “15 to 20 houses”.

Innocent people will be left holding the bag as agents clear out unprofitable “investments”.

More like the speculators. Not innocent people. That’s why “Khalid” admits to being scared to death in the article. Its not ordinary unsophisticated “Joe Sixpacks” buying in the Vancouver marketplace these days. Its not even the youngsters with more credit than brains, as even the banks aren’t really extending credit to those types. What you’re seeing in Vancouver (and Toronto) is classic pump and dump. Hype generated by the speculators in a desperate last ditch attempt to distribute their inventory to whatever few remaining suckers exist before prices deteriorate any further.

#203 Ronaldo on 03.19.16 at 11:15 pm

#199 Smoking Man on 03.19.16 at 10:57 pm

”We are all owned. My wife has the keys to my zipper, she also has a knife set she bought on late a late night infomercial just in case I get out of line.”

Remember Lorena?

http://www.usmagazine.com/celebrity-news/news/lorena-bobbitt-woman-who-cut-off-husbands-penis-in-1993-speaks-out-2015911

#204 Smoking Man on 03.19.16 at 11:20 pm

DELETED

#205 Okanagan Man on 03.19.16 at 11:25 pm

VREU, you argue that Victoria isn’t a retirement destination thereby contributing to demand for Real Estate, but provide listings from US cities thousands of miles away as comparators? Yes you are the logical one…

#206 delayed approval on 03.19.16 at 11:25 pm

#198 Bottoms_Up on 03.19.16 at 10:41 pm

#192 ww1 on 03.19.16 at 9:35 pm
———————
What would Garth have to gain from delaying that post? What are you trying to prove? And it did contain the “s” word which may have filtered it out initially.

Generally speaking, a delayed approval significantly decreasing the visibility and impact of a post, since users tend to skip to the post where they left off at the last visit.

#207 acdel on 03.19.16 at 11:33 pm

#201 Smoking Man
#187 acdel on 03.19.16 at 8:40 pm
#182 Smoking Man

I’m in, and do not feel one bit guilty about it; if you do not like it, then F*** O**!
……….

The lefties talk about how macro aggression hurts them, crocodile tears. While they bring on Maximum aggression against straight white males.

I hate em.

———————————————-
What I hate is not who they target but the hypocrisy of their views; whether they are white, black, red, purple or pink or whatever, I do not care about race or so called colour, or political views.We are all human beings. The one’s I cannot stand are “do as I say, not what I do or think” seriously, screw off hypocrites..

#208 ww1 on 03.20.16 at 1:05 am

#192 ww1 on 03.19.16 at 9:35 pm
———————
What would Garth have to gain from delaying that post? What are you trying to prove? And it did contain the “s” word which may have filtered it out initially.

====================================

I do not believe i have ever said (or in any way implied) that Garth would have anything to gain by delaying a post.

This tiny interlude in the flow of hysteria about HAM and YVR/YYZ house prices was more to understand how the posting process works.

Seems like fair notice that some piece of wisdom that you spent time composing and then editing to perfection might get buried deep in a bunch of previous posts that have already been read by people following this forum. And now we know that’s likely to happen if you trigger the spam filters by using certain base anglo-saxon words.

I’m not proposing Garth invest any energy in fixing this. Or explaining it. It’s his blog to do what he wants. I’m just noting that one’s little pearls of wisdom might not end up where one might expect.

#209 Sharon Tone on 03.20.16 at 1:48 am

What a politically correct misdirection Clark’s announcement is, what a joke. Meanwhile the money laundering problem being washed through Vancouver real estate is setting off international alarm bells. Oh Well, don’t want to say anything about our foreign nationals to upset local sensibilities, eh?

#210 NEVER GIVE UP on 03.20.16 at 7:24 am

GARTH: How would you like it if you pushed the button on your stock sell program and Questrade could give you a price and wait a day or so and flip your stock for more before paying you.

If they dont get more then they just let your order go through. If they get a buck more they pocket the profit with no risk.

Well this is similar to what realtors were doing in Vancouver.

Realtors would have committed to a price for the property and sell an assignment days later.

Realtors therefore would be in violation of the reason for their work which would be to maximize the sale price to the seller.

Realtors being insiders to the market, the seller would always (98% of the time) lose out.

You say it is a rare occurence.

Knowing the aggressive nature of the game it would occur as much as it would be possible.

The seller would not even know it was going on until they found a new buyers name on the final sale.

The realtors were flipping the property before closing and avoiding paying the transfer tax as well.

Good Law Christie, even though I do not respect that government.

Bad analogy. Sell stock, get your price and the buyer can sell again whenever he wants. With assignments the vendor gets what they agreed to, and unloads the risk. This is a non-issue and Christy just punked you. — Garth

#211 NEVER GIVE UP on 03.20.16 at 7:33 am

Congratulations Garth!
Your Blog is on the radar of the Chinese (fire) wall!
It is really hard to get your page to show.

Your capcha provider did not load in China numerous tries even with a VPN.
That is where it usually stopped.
I am not sure your blog would load if the capcha program was not a factor.

I tried for 2 weeks to get your blog and was successful a couple of times and only in Tier One cities.

#212 Ace Goodheart on 03.20.16 at 8:50 am

RE: #210 NEVER GIVE UP:

That is exactly what I was trying to say. It’s insider trading, plain and simple. There are different rules in the Stock Market for insiders. Good move by B.C. government to control insider trading by real estate agents.

Of course it’s not insider trading, since there’s no insider information in an open market-driven real estate trade. The buyer accepts risk and the seller offloads it for a pre-determined amount of money. So many people here have no idea what they’re commenting on. And Christy Clark is banking on that. Otherwise she’d look as dumb as her supporters. — Garth

#213 Ace Goodheart on 03.20.16 at 9:02 am

Re: #202 Mark: “What you’re seeing in Vancouver (and Toronto) is classic pump and dump. Hype generated by the speculators in a desperate last ditch attempt to distribute their inventory to whatever few remaining suckers exist before prices deteriorate any further.”

This may be true. It would be nice to see the end of it. From what I can see this latest real estate frenzy has cost us many nice old houses (watching as half my neighbourhood gets bulldozed and demolished to make way for “McMansions”) and also created yet another credit bubble with all the usual ugly effects of said bubbles.

And I’d like to see my house’s value STOP rising. I mean, I want to live here, and I can’t keep affording endless property tax increases, because people keep building McMansions in my neighbourhood, that they don’t even intend to live in. Sheesh…..

#214 Mirror Mirror On The Wall on 03.20.16 at 9:06 am

#211 NEVER GIVE UP

China calls them traitors, executes them when they catch them stealing. And there is a lot to steal, remember the old expression of ‘if I could have a dollar from each Chinese person’. Garth insists it’s racist to ask any questions about the legality of their fortune, and welcomes them with open arms in Canada, unlike those smelly Syrian Muslims who don’t have any money and therefore are not worthy of coming here (just ask the Sun or National Post). Because to some, mostly conservatives, money is the absolute measure of human worth. Nobody with lots of money could possibly be evil for sending their kid to buy Ferraris and live it up in Vancouver when their fellow countrymen back in China struggle to get indoor toilets or electricity. We’re all just being jelly and racist, dontcha know. Conservatives are now lecturing the rest of us on morality, lol. A cynic might be tempted to say conservatives resented the emancipation of the various races, and of women, and now they can finally hoist the progressives by their own petard. Oh, social equality is the only way to be, right? Well then you better be prepared to bid for housing with Chinese millionaires and billionaires, who inexplicably got rich in an actual literal communist country. What, you don’t agree? You’re not a RACIST, are you? Hehehe damn progressives, check mate, hoisted by your own petards.

Of course Garth will quietly delete this because he’ll take it as a personal attack instead of honest criticism and a chance at retrospection. The mirror, as he tells us, is the hardest thing to face.

Garth if you don’t like the heat, get out of the kitchen. You love to bring up the most charged political topics and then act like a paternal autocrat lecturing us children on the way of the world. You can’t possibly say you didn’t expect some pushback to your opinions. I mean you have a comments section, right?

The overwhelming drivers of an unaffordable housing market are cheap money, greed and a bottomless appetite for debt on the part of people who have turned real estate into a grossly-leveraged, speculative play because saving and investing is too hard. Sleazy realtors and a clutch of foreign buyers are the shiny objects politicians and the media focus on because the other factors are too ingrained for most people to see, let alone admit. If you wish to turn me into another topic distracting you from your own world view and unfulfilled expectations, go ahead. Changes nothing. — Garth

#215 Garth looking foolish lately... on 03.20.16 at 9:11 am

DELETED (anti-Chinese)

#216 Mirror Mirror On The Wall on 03.20.16 at 9:15 am

Introspection not retrospection.

#217 Daisy Mae on 03.20.16 at 9:20 am

#160: Re Loblaws, “Not sure what is their strategy but I’m not fooled.”

********************

Save-On (Patterson Group) inflates all their prices. If you play their silly little game and produce your membership card, you’ll get the product at regular price — the price you’ll find at all the other supermarkets. People ARE easily fooled.

#218 hope & ruin on 03.20.16 at 9:38 am

#160 TurnerNation on 03.19.16 at 4:31 pm
Loblaws is being sneaky these days. A red sign with Sale and the price stuck onto the shelf all over the place. Prices did seems reduced to me so lift up sale tag and discover price is same as regular shelf price.

Also many specials where you must buy two of each item to receive it.

Not sure what is their strategy but I’m not fooled.
__________________________________

I worked in a grocery store in high school. Over 10 years ago. This is not a new practice.

#219 AfterTheHouseSold on 03.20.16 at 9:43 am

Meanwhile, back in Ontari-owe, Kathy continues on her stupidity roll. Higher electricity costs (again), auditor generals report be damned!

http://business.financialpost.com/fp-comment/ontarians-just-signed-up-for-more-expensive-unreliable-electricity-they-dont-need

#220 Mirror Mirror On The Wall on 03.20.16 at 10:28 am

“The overwhelming drivers of an unaffordable housing market are cheap money, greed and a bottomless appetite for debt on the part of people who have turned real estate into a grossly-leveraged, speculative play because saving and investing is too hard.” – Garth

I absolutely agree! But don’t you see that those Canadians who are whining about housing prices, like the #donthave1million folks that you love to disparage, are NOT wishing for a home in order to strike it rich, they just want to own a place to live in the city that they work in, which is in contrast to those that see housing as a safe place to park money, either because they’re ignorant of real investing or because the money might be hot and needs to escape its origins and preserve value.

You steadfastly refuse to see housing as anything other than a commodity, you say the desire to own a home outside of your rule of 90 is folly, you say the rational thing to do is treat homes like bushels of wheat or kilos of copper, allow “options” (assignment clauses) because hey, it’s not like housing has any social value that might be important to our country. It’s not like owning a home means putting down roots and becoming a part of a community on a long term basis, hugely important to the human condition and a fairly low level on Maslows pyramid.

You keep saying young folks should be mobile, and rationally they should be out of necessity, but most don’t want that. Most don’t want to be travelling semi-transient labour, even if they have advanced degrees and could command large salaries if they gave up having a long term partner who also wants to have a career and not date long distance.

As much as you love to shit on millennials, the reason our housing market in general and in Vancouver in particular is so important today is because millennials are SO MUCH ALIKE prior generations, not because they are different.

I would be willing to bet that you Garth were a little different from the mainstream of your generation, and the majority of your contemporaries did not share your view of the world quite the way the status quo today does. Something to consider. Millenials as a whole might be very different from you but they are a lot like most Canadians your age used to be.

It is indeed a noble pursuit to poke fun at stupid in the hope they will take advice and stop being stupid. But if you’re poking fun at human nature, you will never change that. And people will resent you for it.

The people treating housing like nothing more than an investment and whiny millennials who wish to own are two groups with very little overlap, and you talk like they’re the same.

Truth is we don’t know for sure how much of an effect foreign money has in BC, because we don’t have definitive data and going by last names in Canada means nothing. But there probably is an effect, and that effect bumps up into a largely inelastic demand from locals that love Vancouver. Thus, with pricing being determined at the margin, even if 5% of sales are foreign that could double prices.

My rant was about the hypocrisy of those that cry “racist”. I have no problem with someone named Chan, but I prioritize the need of newly married Canadian couple Mr and Mrs Chan to buy a home over the need of comrade Chan from Guangdong to move his money over here. We can worry about the right of foreign capital to have mobility once all our working people, of whatever ethnicity they happen to be, have a chance to own their home.

Few people are legitimately anti-foreigner. They’re just pro-Canadian. If we were to lock the door on unlimited foreign property ownership, it’s not an act of hate but an act of love. After all, you lock the door to your house not because you have the people outside, but because you love the people inside.

Thank you, Mr. Trump. I expected more of the enlightened, morally-superior, ethical and globally-aware new generation. Turns out you’re just like us. Disappointed. — Garth

#221 Fine Wild Roasted Gonads on 03.20.16 at 10:32 am

Carbon tax time…

Justin Trudeau [email protected] 12h12 hours ago

Tweeting about #EarthHour is one thing. Tuesday, we’ll put words into action with a budget that builds a clean economy for Canada.

#222 crowdedelevatorfartz on 03.20.16 at 10:32 am

@#218 hope and ruin.

Yup. “bait and switch”.

I’ve also noticed that since Sobeys purchased Safeway the selection of meats has plummeted and the price has risen exorbitantly.
Welcome to the new reality.
A cheap Canadian buck means our produce is snapped up and shipped out……

Oh well, I needed to lose 10lbs anyway.

#223 Scott on 03.20.16 at 11:12 am

Smokin man walked into a Starbucks with a smoke dangling from his lips. Wow,what a rebel! Sure a lot of Hunter S. wannabes on this site.

#224 Bottoms_Up on 03.20.16 at 11:18 am

#206 delayed approval on 03.19.16 at 11:25 pm
—————————–
Worried about decreased visibility on an anonymous blog? Silly.
Plus word on the street is that most people that come here are here for Garth’s words only.

#225 analytical minds on 03.20.16 at 11:29 am

#211 Mirror Mirror on the Wall

The overwhelming drivers of an unaffordable housing market are cheap money, greed and a bottomless appetite for debt on the part of people who have turned real estate into a grossly-leveraged, speculative play because saving and investing is too hard. Sleazy realtors and a clutch of foreign buyers are the shiny objects politicians and the media focus on because the other factors are too ingrained for most people to see, let alone admit. If you wish to turn me into another topic distracting you from your own world view and unfulfilled expectations, go ahead. Changes nothing. — Garth

cheap money
– suck it up… worry about things in your own control

greed
– suck it up… worry about things in your own control

bottomless appetite for debt on the part of people who have turned real estate into a grossly-leveraged, speculative play
– suck it up… worry about things in your own control

because saving and investing is too hard
– maybe it is… worth a comprehensive analysis, including required investment in time, education, availability of leverage, etc.

because the other factors are too ingrained for most people to see, let alone admit
– suck it up… or fight the headwind, the comprehensive analysis above would not hurt to decide

If you wish to turn me into another topic distracting you from your own world view and unfulfilled expectations, go ahead
– the poster’s “unfulfilled expectations”, “world view” is emotionally driven, useless speculation, distraction from the issue at hand

#226 carbon tax - traffic lights on 03.20.16 at 11:39 am

Carbon tax time…

Justin Trudeau [email protected] 12h12 hours ago

Tweeting about #EarthHour is one thing. Tuesday, we’ll put words into action with a budget that builds a clean economy for Canada.

—–

[email protected]

Mr PM… start building clean economy by mandating cities to optimize traffic lights… In Toronto traffic lights are purposely slowing traffic, driven by the hypocritical ideology to force people to use public transportation.
The short-sighted ideological morons actually cause burning more fuel, wasting money, polluting air…

No carbon tax – until optimizing traffic lights in Canadian cities @GreenWaveCarbonTaxRevolt.

#227 delayed approval on 03.20.16 at 11:48 am

#224 Bottoms_Up on 03.20.16 at 11:18 am

#206 delayed approval on 03.19.16 at 11:25 pm
—————————–
Worried about decreased visibility on an anonymous blog? Silly.
Plus word on the street is that most people that come here are here for Garth’s words only.

No worry… just hook us up with your secret source to “word on street”.

#228 Ace Goodheart on 03.20.16 at 1:58 pm

RE: “Of course it’s not insider trading, since there’s no insider information in an open market-driven real estate trade.” – Garth

There are different types of insiders. You will see whenever you register for a direct investing account, they want to know if you’re a broker, or if you otherwise sell or trade in stocks for a living. There are special rules for people who do that. Reasoning for these rules is easy: these people can “game” the market because they work there and they know things that the public doesn’t know.

Same for real estate: the agent knows how many buyers there are for a particular house, knows what they are willing to pay and knows how motivated they are. The seller doesn’t know this. They have no direct connection to the buyers. They are being told that they are getting the best price for their house, and they are being lied to.

The agent involved is “gaming” the market as an insider. You can’t do this with stock trading. If you are buying and selling stocks on behalf of third parties, there are insider rules you have to follow.

Now, thankfully, you can’t do this with real estate either. B.C. Premier’s law has made it so that an agent is just doing his/her job, which is getting the best price possible for a property, for his/her client. I mean, these agents actually represent on both sides of the deal, having a fiduciary relationship to the buyer AND the seller, and meanwhile they are gaming the whole thing, shadow selling to related third parties, while pretending to represent the interests of the buyer and the seller at once.

The above is nuts. Ideally, we need a “two agent” rule, and yes, any profits the agent makes off of shadow or contract flipping, belong to the original seller.

Ridiculous, absolutely ridiculous. If stock brokers tried this, they would all be in prison.

Likely one of the most ill-informed comments here in months. — Garth