What can go wrong?

stuck1-modified

You can’t buy a banana in Toronto without four bits in your pocket, but soon you’ll score a $750,000 house in Kelowna, or Langley or Nanaimo, with free government money. Yes, kids, the principle of 0% down is back – just in time to help keep properties from becoming affordable. Once again, government sucks. Then it blows.

Here’s the latest: staring at a looming election, BC’s ruling party has decided to play the real estate card. Again. After bringing in the Chinese Dudes tax, presiding over a sales collapse and a price rout, taking over the real estate industry, then allowing the vacant-condo levy in Vancouver, the Christy Clark government is about to give financially-retarded moisters free down payment gifts.

The bonanza is up to $37,500 to purchase a three-quarter-million house. No interest or payments for five years, then you can sell and pay it off, or stay and repay over 20 years. The bold idea is to allow people who have never shown enough discipline, incentive or intelligence to save to become homeowners and absorb up to $700,000 in debt. Nice work, Christy. This will assist young citizens in graduating from $1,500-a-month apartments into $4,000-per-month residences with debts that will grow more expensive with each renewal.

The great thing about the plan is that the kids will then join the mainstream of society, and feel included. No more of that unwanted freedom, mobility or choice. Just obligation, routine and overhead. Plus property tax. After all, if the government gives you the deposit and the bank gives you the rest, what can possibly go wrong?

debt-surge

As we all know by now, BC is obsessed with real estate. It’s a world-class fetish. The provincial government has turned into a giant real estate board now involved in micro-managing a market and holding up houses as the holy grails of life. “The dream of home ownership must remain,” said the premier, moist of eye and clasping her bosom, “in the grasp of the middle class here in British Columbia.”

Well, ironically, the premier and her panderers are doing exactly the opposite. What will ensure more BCers get to own houses will be things like Ottawa’s new mortgage stress test, the higher (not lower) down payments that CMHC’s lobbying for, and the interest rate tightening launched yesterday by the US Fed. By giving people without assets money to buy real estate, Clark creates artificial demand with public money, which will only negate the impact of measures intended to cool speculation, dampen sales and chill prices. Ditto Ontario’s bone-headed move lately to slash land transfer tax for newbies while jacking it on high-end houses. More demand. Limited supply. Less affordability.

Remember when we had 0% downs? Sure ya do. That was back when little F was the newly-minted federal finance minister and his boss talked him into zero-down and 40-year amortizations through CMHC. That move in 2007 helped usher in a period of frothy excess which led directly to this point – where a million bucks gets a crap semi in mid-town Toronto or a detached box in a distant suburb. And just try finding anything for less than seven figures in Vancouver.

The feds learned their lesson. Forty-year mortgages were banned. Ditto no-down-payment, government-insured loans. Then minimum downs were increased. Mortgage insurance costs increased. Lenders regulated more. Borrowers stress-tested. All for the goal of combating the debt-fueled, hormonal house lust that years of cheap rates, cheap bankers and cheap thrills had created.

You know what’s occurred. Consumer debt just passed $2 trillion for the first time. About 65% of that’s in mortgages, which have doubled since F made that memorable mistake. In Toronto 50% of all the people with new insured mortgages have loans equal to at least 450% of what they earn. It’s astonishing.

mortgage-debt

– Globe & Mail

Says blog dog Vern, looking in from Calgary: “If you figure that almost half of Torontonians have a 450% mortgage to income ratio (no less other consumer debt on top) and figure in taxation rates of at least 50% (all in) on that income, the MORTGAGE to Cash Flow ratio for any household has got to be near 10:1 (1000%) right now.

“If interest rates merely double (which aligns with long-term averages), that ratio becomes 20:1.  That means, people would have to divert 100% of all their cash flow to their mortgages for 20 years just to pay it off.  No maintenance.  No food.  No puppy chow.  No power.  No clothes.  Just mortgage payments.”

Well, this week US rates started to rise amid word they’ll do so again thrice in 2017. Meanwhile the economy remains lacklustre, commodity prices got another kick in the slats and the government’s shutting down the asbestos industry, while planning to legalize weed. Oh yeah, and BC is giving away down payment money to people without enough. So they can have more debt.

This morning I wondered what I might have to write about today. Silly me. Care for a banana?

205 comments ↓

#1 For those about to flop... on 12.15.16 at 5:22 pm

This is more of a B.C condo owners plan ,much more than it is a B.C homeowners plan.

House prices are coming down ,condo prices are going up.

More and more people are going to try and squeeze through the gap…

M42BC

#2 Steerage Bilge on 12.15.16 at 5:25 pm

Crazy stuff. People are nuts. What ya gonna do. So much misallocated capital hurts Canada though, just gotta try and shield yerself from these crazies..

#3 Sam Hughes on 12.15.16 at 5:27 pm

Too bad people can not count.
This is going to end badly.
Sunny days indeed

#4 Paradigm Change on 12.15.16 at 5:28 pm

After 10 years of sitting on the sidelines, this latest measure by the BC government has solidified my intent to buy now and not wait another 1-2 years as interest rates take effect.

How many times had posters cited that the government will not the market collapse? And how many times were they mocked by those saying that they have no control and that the bond market will determine the state of the market. Some even pointed out that zero down mortgages would given again if the market starts to correct, and they were sharply rebuked as ‘never again’ would that happen.

Guess what, those posters were right.

Well, suck and blow it is and has been for 13 years. Every measure brought in to cool the market only increased the values of the homes. This blog erupted in joy and glee over the past few months thinking that this time it was different – just as it did with each and every toothless measure brought in since 2008 that was supposed to make the market more affordable.

After a 13 year bull run, and a tiny drop in sales and prices over 3 months, which was wildly heralded as the coming demise of the the RE market, its clear that the game is back on!

The feds took out 5-10% of new buyers with their new stress test – the federal government taketh. And now the government giveth – 42,000 new buyers for BC and all will eagerly eat it up.

This latest move by the provincial government CONFIRMS that they will do whatever is necessary to keep the party going.

Rents going up and up in the hottest markets, either on par with or surpassing mortgage payments, and now renters have to wait many more years for the market to become more affordable.

Sorry folks, it will be many many many years for prices to drop enough to justify me sitting on the sidelines for so long, despite having all my eggs in a balanced and diversified portfolio with its annual 6% return.

For the first time in 10 years, I truly believe that the shifting market in Vancouver over the past few months was the beginning of the end. But I should have known that my hopes would have been dashed. The positions taken by many on this blog are like a big bloody jinx on the market – each time something gets celebrated, its premature, and the market moves up and up.

#5 bdwy sktrn on 12.15.16 at 5:30 pm

Premier Christy Clark said Thursday the government will provide a 25-year loan for a down payment to a maximum of $37,500 on funds have been matched by buyers.
————-
i think the buyers need the other 5%

#6 bdwy sktrn on 12.15.16 at 5:35 pm

assessment in the mail today for rural oceanfront island lot in howe sound – up 50% in one shot – basically land only.

#7 Ace Goodheart on 12.15.16 at 5:37 pm

RE: “Says blog dog Vern, looking in from Calgary: “If you figure that almost half of Torontonians have a 450% mortgage to income ratio (no less other consumer debt on top)”

That’s not what this means.

This means 1/2 of the new mortgages taken out in Toronto this quarter have this ratio. Not half of all Torontonians (most of whom actually rent) or half of Toronto home owners.

#8 Chris on 12.15.16 at 5:38 pm

The program announced by the B.C. government matches the down payment made by the buyer. From G&M article “Premier Christy Clark says the government will match the money first-time buyers put toward their down payments, up to a maximum of $37,500.”

http://www.theglobeandmail.com/news/british-columbia/bc-offers-interest-free-down-payment-loans-to-first-time-buyers/article33335499/

Still nowhere near a good idea, but not quite 0% down.

#9 God Help Us All on 12.15.16 at 5:43 pm

In the banner at the bottom of this weblog, there is a phrase, “the troubled future of real estate”. While I would have thought that the future had arrived and that trouble was upon us, thus negating the term “future”, no, I am wrong. It really can get worse.

#10 Penny Henny on 12.15.16 at 5:44 pm

You can’t buy a banana in Toronto without six bits in your pocket-Garth

Where do you shop whole foods?
I can buy a pound of bananas for 6 bits.

I can always count on people here to ignore the wheat and roll in the chaff. — Garth

#11 Penny Henny on 12.15.16 at 5:45 pm

Wynne will be carefully watching the response on this interest free loan on the DP.

#12 Northern BC on 12.15.16 at 5:46 pm

Called Cibc today to see if we could renew a few months early. I was offered 2.49 and told mortgage rates going up on Dec. 16.

#13 jess on 12.15.16 at 5:47 pm

Bank of Canada warns about huge mortgages, growing housing debt
Nearly half of new high ratio mortgagees in Toronto owe in excess of 450% of their incomes

CBC News Posted: Dec 15, 2016 11:37 AM ET Last Updated: Dec 15, 2016 1:05 PM ET

#14 Freedom First on 12.15.16 at 5:47 pm

Yes. We have no bananas today.

Christy Clark keeps pulling one boner after another.

#15 NoName on 12.15.16 at 5:49 pm

i remember paying 19c/lbs (40c/kg more or less) for bonita bananas a way back when i first arrived, bananas now expensive 1.50/kg, but on a bright note steel cheaper than qukumbers.

#16 Brian on 12.15.16 at 5:53 pm

This came up yesterday. Looks like decriminalising drugs has worked out well in Portugal 16 years ago. I’m no drug user but what we are doing is not working.

http://www.businessinsider.com/what-happened-when-portugal-decriminalized-all-drugs-2016-3

#17 UncleFester on 12.15.16 at 5:54 pm

Wow!!

I even put my hand over my mouth as I read the news piece.

#18 nubbers on 12.15.16 at 5:55 pm

Err, hang on. Presumably doubling the interest rate would not double the mortgage payments, as there is a component for repayment?

By my rough calculations (cheating using a mortgage calculator website), people would only have to not eat for about 15 years instead of 20. Or have I missed something?

#19 Simplyput7 on 12.15.16 at 5:56 pm

I think this is the end of the BC Liberals, even the NDP said affordable housing would have been a better use of tax payer money.

I can’t imagine the majority of voters who don’t qualify would vote for her May 2017, knowing that this handout could be abused by speculators.

#20 Lulu on 12.15.16 at 5:57 pm

Crusty Clark seen the sales been plummeted and price is crashing, so, she has to come up with something to make housing affordable and attractive again, then… there you go!! Plus its’ getting closer to the election, this is another political move from the province as well despite it’s shocking motive.

Soon enough if RE cooling all across the board just like our weather this year, T2 may bring back the 30-40 yrs long again just to make it affordable and attractive again. It’s chilling today, so as the market!

#21 crowdedelevatorfartz on 12.15.16 at 6:00 pm

BC Premier Christy Clark.
Proving once again that most politicians will suck and blow at the same time to get elected.

Election in 6 months in BC…..prepare for more unaffordable promises

#22 She did what? on 12.15.16 at 6:01 pm

Why would the provincial government possibly want to front cash to people who can’t save their own? Seriously. I’m not rich but if you can’t save 40k then you have problems. Kids today want to pick up where their parents left off. Insanity!

#23 Gift of stress, loss and dept on 12.15.16 at 6:01 pm

http://www.cbc.ca/news/canada/british-columbia/interest-free-home-loans-bc-1.3897832

ENCOURAGING MORE HOUSE HORNINESS BEFORE RE-ELECTION. BOO CHRISTY CLARK

#24 X on 12.15.16 at 6:02 pm

Mr. Morneau must be contemplating 10% down minimums again if the provinces are working against his efforts.

So…Nov. 1, 2016 TD had a 5 year closed for 2.59%, Dec. 15, 2016 it is 2.94%, after 3 more quarter point raises by the US Fed it could be over 3.70% in a year….historically still on the cheaper end of things…rates alone aren’t going to cool this market when BC is giving money for nothing and the chicks for free and Ont is giving land transfer tax refunds and first time home buyers tax credits….

#25 Penny Henny on 12.15.16 at 6:05 pm

“If interest rates merely double (which aligns with long-term averages), that ratio becomes 20:1. That means, people would have to divert 100% of all their cash flow to their mortgages for 20 years just to pay it off. -Blog dog Vern

I call bull and you know it Garth. Mortgage payment only goes up approx 30%

Not my words. Maybe you should go back to the banana analysis. Suited you. — Garth

#26 Fleabitten Monkey on 12.15.16 at 6:06 pm

Well VREU, guess things will continue their upward ascent or at the minimum stay where they are.

#27 MSM-Free Zone on 12.15.16 at 6:07 pm

“…..We must make sure it is easier for first-time home buyers to find their way into a really tough housing market right here…..Our B.C. government wants to be your partner, if you want to buy your first home.” – BC Premier Christy Clark.
_________________________

Oh, pullleaze, what a crock of self-serving B.S…..connect the dots and follow the money.

It’s no secret that the B.C. Liberal Party’s chief fund-raiser is real estate marketer Bob Rennie.

In fact, over the last decade, about $12 million of the B.C. Liberals’ corporate donations came from the real estate industry, more than double the rate of contributions from the next biggest donor sectors, mining and forestry.

Christy Clark is beginning to make Gordon Campbell, Glen Clark, Mike Harcourt, and Bill Vander Zalm all look like church choir boys.

#28 Penny Henny on 12.15.16 at 6:11 pm

I can always count on people here to ignore the wheat and roll in the chaff. — Garth

Is that something like curds and whey?

#29 Polls R Phake on 12.15.16 at 6:12 pm

Yup. Crusty Clark and her gang of thugs are vote buying all right and they are getting a two for one as most of the money will go to their biggest party donators – the condo developers.

Too bad for Crusty the people saw through that scheme in 90 seconds.

#30 Theo on 12.15.16 at 6:17 pm

Nothing like creating an indebted, marginally employed underclass with ample mind altering substances to avoid facing substantial political action.

Sounds a lot like what happened before the Qing Dynasty was overthrown.

#31 Derek on 12.15.16 at 6:18 pm

Two articles on CBC today :
– B.C. offers interest-free loans up to $37,500 to 1st-time homebuyers

and : Bank of Canada warns about huge mortgages, growing housing debt

Good job Ms. Clark, good job.

#32 penny on 12.15.16 at 6:22 pm

It won’t work. The meme has changed in BC. The peak for real estate has passed. That ship has sailed. Only the greater ones buying now.

#33 a man about a dog on 12.15.16 at 6:24 pm

What the Clark govt is doing is smart because they are appealing to millennials, realizing that this voting demograph is now in control (see T2).

Laughing at all the “financially retarded millennials” is like laughing at Trump. All well and good until they end up in the driver seat and then you get the “oh shit” moment, maybe we should’ve paid attention to what those people are struggling with. Oh well, live and learn.

#34 JSS on 12.15.16 at 6:32 pm

“Silly me. Care for a banana?”

Hey, now that we’re talking about bananas, I noticed that the price of bananas is up slightly this week.

#35 CL on 12.15.16 at 6:32 pm

Disgusting. i wish we would separate from this backwards country that’s headed for the toilet.

What a joke.

#36 RyYYZ on 12.15.16 at 6:37 pm

Canada’s, and in particular BC’s, politicians have really painted themselves into a corner. They engineered a housing bubble which has made a lot of people rich on paper, but poor in reality. If they let prices correct to something like natural values, they’ll be gutted at election time. But those same prices have killed affordability. Now they’re trying to have it both ways – astronomical house prices and affordability for new buyers. Good luck to us all.

#37 yorkville renter on 12.15.16 at 6:39 pm

thats not free money… everyone’s taxes paid for that… FFS.

#38 look at the bright side! on 12.15.16 at 6:42 pm

Just think what would happen in BC if not-so Krispy Klark had access to a printer and make currency with her face on it?

That woman would get in the chopper and drop paper with her face on it all across the Lower Mainland to get the minions to buy, buy, buy now or be priced forever!

Does she have no shame?

#39 Bob on 12.15.16 at 6:44 pm

“Care for a banana?”

I’m beginning to wonder more and more if this country is turning slowly into a banana republic….the politicians sure are moving us in that direction.

In all fairness, we voted for them and certainly enable them when they come up with these bonehead government policies.

#40 any significant housing correction is going punish... on 12.15.16 at 6:46 pm

the TSX.

fear mongering is fun

#41 rainclouds on 12.15.16 at 6:53 pm

I can only imagine how pleased Wild Bill and the Poodle must be with the latest breathless pronouncement from the imbecile Premier on the west coast pandering to her RE masters.

Disgusting

#42 InvestorsFriend on 12.15.16 at 7:00 pm

Okay, so it’s 2.5% down

Come up with 2.5% and they match it to meet the minimum 5%. Maximum is $37,500 which at 2.5% would be a $1.5 million house unless there is a cap.

#43 Capt. Serious on 12.15.16 at 7:01 pm

I have a banana story.
One day in Chicago, walking down the street, my wife pulls a banana out of her pocket, starts contemplating eating it. A homeless lady just appears beside us:
“Are you gonna eat that banana?” says the homeless lady.
“Cuz if not, IIII”mmm starvin! I’ll have your banana.”
Well, who is going to turn that down? Banana given away.

#44 InvestorsFriend on 12.15.16 at 7:03 pm

This will NOT Increase the demand for houses

I heard the BC finance minister say so on BNN (Shamefully, I do watch that channel sometimes).

Asked if this would just push up demand he said, no it will just allow some new buyers to come in who could not otherwise buy due to the barrier of not having a sufficient down payment. So there you have it, a new pool of buyers but the minister said it won’t increase demand.

#45 crowdedelevatorfartz on 12.15.16 at 7:04 pm

@#4 paradigm small change

Good luck with that.

Let us know how it works out as interest rates rise…..

#46 brian gunding on 12.15.16 at 7:05 pm

Maybe 100 year mortgages to spread out the debt lol

#47 EarlyWinter on 12.15.16 at 7:08 pm

wow…there’s just so many; that just don’t know.

kinda sad actually.

#48 Nero on 12.15.16 at 7:13 pm

Crispy, Crispy, Crispy…
Where’s mine?
Hmmm?

#49 Mean Gene on 12.15.16 at 7:16 pm

I bought a banana at Trader Joes for 19cents a couple weeks ago.

#50 Doug t on 12.15.16 at 7:17 pm

When is this going to end badly? People have been saying this for years now. I mean of course everything runs a certain time line supply/demand but hey a lot of people made a lot of money and a lot will lose which is usually how it plays out right – whatever.

#51 Self Directed on 12.15.16 at 7:17 pm

People! Don’t you know that Christy is campaigning right now and does not care how long it takes those new home buyers to pay off their home? She does not care if they default, either. This new plan just makes her look like she cares. Most people are stupid and think she is a genius.

I gotta leave this crappy town soon. Everything is too expensive. I will not vote for Christy.

#52 GFD on 12.15.16 at 7:27 pm

Perhaps the order to investigate actions of the provincial government would be right under circumstances. I am sure there are groups of people with special interests and deep pockets pursuing their own agendas. Clinton’s Foundation in Canadian version. Where do you make these complaints?

#53 jay on 12.15.16 at 7:29 pm

You didn’t think all those political contribution’s from the land developer’s and real estate industry to the BC Liberal’s was for nothing did you Garth. It’s payback time. http://vancouversun.com/storyline/how-much-does-the-real-estate-industry-influence-b-c-politicians

#54 Kristin on 12.15.16 at 7:37 pm

You’ve made a mistake in your post. Buyers are still required to save for a down payment. The B.C. Home Owner Mortgage and Equity Partnership program loan matches a down payment of up to $37,500, which means that in order to obtain that amount, a prospective homeowner must save $37,500. I’m not commenting on the merits of this program, but it does not permit a 0% down situation like you have suggested.

When Mom gives you the rest, it does. — Garth

#55 Smoking Man on 12.15.16 at 7:39 pm

Day-Oooooooo Bannana

https://youtu.be/6Tou8-Cz8is

#56 InvestorsFriend on 12.15.16 at 7:46 pm

Freedom 75?

Let’s see, finish university at 22, then go to law school or medical school or do an MBA or something employable like trade school. So, ready to work about age 25. Pay off student loans and party till 30.

Buy that house around age 30. Pay that off at age 55. Meanwhile there was really no money left for savings, or if there are any savings the kid (and you could only afford one) needs it for university.

Okay, now it’s time to kick those savings into gear.

Yeah, you should be able to retire around age 75 or 80.

#57 Blacksheep on 12.15.16 at 7:47 pm

Come on people, you’ve been played….

This was planned long before we ever heard mention of a 15% F.B.T.

Christy said: “I have an election coming spring 2017 and will get destroyed if the market corrects cause of this new tax!” but her handlers responded with: “No worries Christy baby, we’ve got an Xmas gift for you to give em, that will make the youngens all warm & fuzzie, come election time”

#58 Londoner on 12.15.16 at 7:47 pm

The BC down payment program is similar to a program we have in the UK called “Help to Buy”, where buyers can borrow up to 20% of their downpayment interest free for 5 years. As I said before, these governments don’t want house prices to come down. They want them to stay where they are until inflation has driven wages up to make the debt more affordable. Notice that the scenarios presented by both the BC and UK programs don’t include a scenario where the house is worth less then the original purchase price? That’s right. So what about that $2T in debt? No worries, we’ll inflate it away!

#59 Blacksheep on 12.15.16 at 7:48 pm

Paradigm # 4 said,

“This latest move by the provincial government CONFIRMS that they will do whatever is necessary to keep the party going.”

That’s why I bought back into RE almost three years ago, after bailing in 2008 to rent for 5 years plus (dumbass).

My repurchased RE value has doubled since then. Try that with any diversified portfolio.

Funny, this foolish blog thought it was going outsmart the ‘system’.

“Silly rabbit, Trixs are for kids”

https://www.youtube.com/watch?v=Z3ApTwWRQNw

#60 Aggregator on 12.15.16 at 7:51 pm

I told you. The Govt, CMHC, CBA and CHBA control the entire housing market. It's practically all socialized by you, the taxpayer. The only thing that will stop this profligate behavior is the bond market or some fat tail black swan.

#61 AGuyInVancouver on 12.15.16 at 7:53 pm

Christy never met a pandering opportunity she didn’t like. Nevermind that it is a disastrous policy guaranteed to cause price inflation in the condo market.

#62 Warren- the lagging indicator on 12.15.16 at 7:56 pm

Why is it so easy for people to veer off the line of truth so easily. It must be human nature or something. I know because I fight it all the time. Many of the nonsense comments on here serve to sway and confuse people. Try to be centered, reasoned and and unbiased and the truth will reveal itself easier. For example, as long as there are no major economic shocks in the near term, Canada will follow the Fed in raising rates at least once in 2017, your favourite preferred share index will rise 10 to 20 percent or so plus dividends, bond prices will fall with associated yields rising, and investors that get this will be happier. Oh yeah, housing values will most likely be falling by then also. This should all be clear to see unless of course, you are posting to deceive.

Ps- the possible shock that disrupts this is why you own bonds.

#63 Herm on 12.15.16 at 8:00 pm

Are you inferring that shutting down the asbestos industry is a bad thing?

#64 ajh on 12.15.16 at 8:00 pm

#38 look at the bright side!
“Just think what would happen in BC if not-so Krispy Klark had access to a printer and make currency with her face on it?”

http://ajh.ca/images/election%20dollars%20with%20rennie.jpg

#65 oopswediditagain on 12.15.16 at 8:04 pm

The program is also designed to stay under the 20% cap so that CMHC insurance covers the mortgage. In other words if the home is $200,000 and you wanted to put down $35,000. they would give you $4980. to stay under the cap.

https://homeownerservices.bchousing.org/housing-assistance/bc-home-partnership/bc-home-partnership-calculator.html

I’m honestly not convinced that this program is going to goose the market. They are catering to the lowest denominator in terms of credit worthiness and/or financial literacy. They still have to qualify for the mortgage.

The exceptions are fewer when the home ownership rates are at historic levels. If you couldn’t buy with the stimulus measures over the last 10 yrs. perhaps there’s a good reason why you are renting/living with mom and dad or ????

#66 pete on 12.15.16 at 8:05 pm

No more of that unwanted freedom, mobility or choice. Just obligation, routine and overhead.
————————————
Yep, it’s much easier to control people when they have no options.
If younger people want to ‘buy’ something they should be buying used Winnebagos and living in trailer parks. Up and move whenever they want.

#67 IHCTD9 on 12.15.16 at 8:07 pm

#19 Simplyput7 on 12.15.16 at 5:56 pm
I think this is the end of the BC Liberals, even the NDP said affordable housing would have been a better use of tax payer money.

—–

I used to think like that about the Libs, but then I remember Mcguinty taking the win after offering the Ontario voters a new stat holiday in the middle of February when it is -25 below outside. Then Wynnie gets a majority after fear mongering the public servants and barely 2 years later her approval rating is 15%

Never underestimate the shear stupidity of the [urban] voter.

#68 Londoner on 12.15.16 at 8:09 pm

#43 Capt. Serious on 12.15.16 at 7:01 pm

Why did your wife only contemplate eating the banana after she took it out of her pocket? If she had put some forethought into it she may have enjoyed the banana instead of giving it away.

What could provide more enjoyment than giving it to an unfortunate? — Garth

#69 DIVERSIFIED BALANCED RENTERS on 12.15.16 at 8:12 pm

ENJOY YOUR RENT INCREASES IN THE NEW YEAR AS WE HOMEOWNERS WILL BE BUYING NEW CADILLACS AND BEEEMERS WITH OUR NEW EQUITY.

MAY THE LORD HAVE MERCY ON YOUR RENTING SOUL.
GOD,I LOVE THIS COUNTRY.

#70 bigtowne on 12.15.16 at 8:14 pm

2017 the “carbon tax” will enter to enhance our well-being along with our much deflated currency and result in serious inflation. The West has been overwrought about the possibility of damaging deflation but in Canada we will be blessed with an onslaught no bank nerd or central bank wonk has witnessed in the past 25 years.

Remember Greece and “Austerity”…Canada is getting the austerity but it’s packaged as “carbon tax”. MSM is busy with celebrity and Kardashian tweets so we have to forgive their negligence in translating the Orwellian doublespeak.

#71 jay on 12.15.16 at 8:20 pm

Here’s a report on the bang up job our politician’s have been doing in creating wealth in our country.I guess this is the reason Chrusty has to help out with downpayments when people are making $15.00 hr.https://www.pressprogress.ca/cibc_report_canada_is_deteriorating_into_a_country_of_low_wage_part_time_jobs

#72 Fish on 12.15.16 at 8:20 pm

#43, why would the homeless lady want a banana, she really wants her money back from the realitor who she says took all her money, all she wants is her condo and her money which the realitor spent.

#73 The Dude on 12.15.16 at 8:24 pm

Foiled again? Pass the debt.

#74 KAC on 12.15.16 at 8:26 pm

So let me see if I can understand the logic.

We have supply and demand. Currently, in Vancouver, our supply is low but high prices and new taxes have killed demand in the $1 million plus SFH segment of the market while demand for sub $750K condos remains fairly strong.

So how does our government address affordability? Simple, increase the demand for the only part of the market that still has strong demand and low supply.

Huh? Sorry, I don’t get it.

#75 Ogopogo on 12.15.16 at 8:27 pm

To say that I’m utterly disgusted, sickened by Clark’s latest assault on the BC taxpayer in the service of pleasing the BC Liberals’ donors in the real estate cartel would be a gross understatement. What an epic farce! The filthy cabal of knuckle-dragging realtors (DA must be salivating into his bucket of swill) are no doubt rejoicing at this naked pandering to the BC electorate.

Eby needs to step up now and denounce this vile policy with everything he’s got, if the NDP has any hopes of winning this election.

Here’s what he’s said so far:

“Christy Clark’s early Christmas present to Bob Rennie won’t make homes more affordable, it will cause prices of the homes that qualify for this program to increase. It is not a solution to the housing crisis, it is more debt for the middle class, and more cash for Christy Clark’s B.C. Liberal donors,” said Eby.

http://www.bcndp.ca/newsroom/christy-clark-wants-families-go-more-debt-instead-fixing-housing-crisis

BC Libs need to be booted out of office at any cost!

#76 Smoking Man on 12.15.16 at 8:29 pm

Just LOVE how Trump is unhinging the climate alarmist loons and theives

http://www.zerohedge.com/news/2016-12-15/caught-tape-cali-governor-jerry-brown-goes-epic-climate-change-rant

#77 Smoking Man on 12.15.16 at 8:31 pm

#69 DIVERSIFIED BALANCED RENTERS on 12.15.16 at 8:12 pm
ENJOY YOUR RENT INCREASES IN THE NEW YEAR AS WE HOMEOWNERS WILL BE BUYING NEW CADILLACS AND BEEEMERS WITH OUR NEW EQUITY.

MAY THE LORD HAVE MERCY ON YOUR RENTING SOUL.
GOD,I LOVE THIS COUNTRY.
…..

Full moon tonight. Go get em cowboy.

#78 BS on 12.15.16 at 8:37 pm

Incompetent government. The only problem here is BC is our only other choice this Spring is the NDP.

#79 IHCTD9 on 12.15.16 at 8:42 pm

#4 Paradigm Change on 12.15.16 at 5:28 pm
After 10 years of sitting on the sidelines, this latest measure by the BC government has solidified my intent to buy now and not wait another 1-2 years as interest rates take effect.

How many times had posters cited that the government will not the market collapse? And how many times were they mocked by those saying that they have no control and that the bond market will determine the state of the market. Some even pointed out that zero down mortgages would given again if the market starts to correct, and they were sharply rebuked as ‘never again’ would that happen.

Guess what, those posters were right.
—-

Easy Guy, She’s out to grab votes, and she probably knows exactly which buttons to push. She is not out to save the BC housing market, she wants another round in the ivory towers.

If it works, she wins, and has to come good on her promise – I’d bet she even understands the implications of what’s she’s done somewhat.

Alas, the repercussions of her plan will not be felt during her next mandate, and she is betting that the YVR moisters are more than dumb enough to vote for her on this potential alone. I’d make that bet myself, it’s really only a matter of how many RE zombies still exist in YVR.

If there are enough house junkies to vote her back in, she’ll have a great stage for round three too, maybe an extension to the interest free period? Say to the end of her next term? She’ll have them all as hostages.

#80 RIL on 12.15.16 at 8:43 pm

I’m curious about an aspect of Ms. Clark’ beneficence. The Gub’t will want the $37.5K secured against the house as a first charge or by legislation create a super-priority for its claim. So the banksters will in effect have a subordinate and second mortgage. Will they lend less and impose higher borrowing costs? I would were I a lender and I am an SJW.

#81 Ignorance Is Bliss on 12.15.16 at 8:44 pm

I work the phones for one of Canada’s big banks. Lots of stressed-out people on the line these days….Christmas is not an easy time when you’re just scraping by. Had a guy yesterday say he was so stressed he was going to “blow his brains out”…not good.

On another note, my 19 yr old daughter (who rents a place near her university) had the landlord come in and complain about the recent hydro bill being way too high…”can you please make sure to turn out the lights, and don’t do so many loads of laundry, etc, etc”….I guess the landlord wishes she didn’t offer her place with utilities included in the price.

#82 Chris Spavins on 12.15.16 at 8:45 pm

I asked my real estate lawyer today what he thought might happen to prices in the TO market in the spring.

His reply was, ” The whole world is intoxicated on cheap
interest rates and the hang-over is coming.”

Best Regards,
Difficult to not be surprised

#83 I don't know on 12.15.16 at 8:52 pm

Garth, when will you realize that governments want to make it look like they are being prudent and controlling housing costs, but they actually want prices to be high and not fall from their lofty levels. They will do everything possible to ensure ongoing high housing prices.

#84 Maj on 12.15.16 at 8:53 pm

#8 Chris on 12.15.16 at 5:38 pm

It is zero percentage down when the over half comes from bank of mom and dad.

#85 davikk on 12.15.16 at 8:54 pm

US House crisis, Canada style. Interest free loan for down payment. Household debt has cracked the 2 Trillion dollar ceiling.

http://investmentwatchblog.com/us-house-crisis-canada-style-interest-free-loan-for-down-payment/

#86 Victoria Real Estate Update on 12.15.16 at 8:58 pm

The real news is that the depth of BC’s future (already in progress in some areas) housing market correction just got deeper due to Christy’s latest irresponsible move.

As I’ve said many times, making it easier for those with no money and poor credit to get into houses always backfires, no matter what.

Japan had 100 year mortgages. Their housing market crashed.

The US had lax lending standards which blew its bubble to approximately half the size of Canada’s today. Their housing market imploded.

Pick a country that had a bubble. Making it easier for the least qualified always ends badly.

When you are talking about a housing bubble, it’s never different. Same result every time. It won’t be different in Canada or BC. BC’s price decline will be, by far, the deepest of any province.

Christy’s latest bonehead move will, no doubt, be used by CMHC to help lobby for higher down payments in Canada. The feds will likely bring in measures to counteract the effects of the things BC and Ontario have done lately. They’re worried about the housing market imploding and taking the economy down. They don’t seem to realize that it’s too late to prevent a housing bubble from forming because we’ve already got one in Canada and it’s massive.

What they’ve already brought in will take it’s toll on prices. The market correction process has already begun in BC.

And… prices fall as rates rise.

#87 is that a banana in your pocket or are you happy to see me on 12.15.16 at 9:02 pm

BC GOVT BIPOLAR

#88 qwe on 12.15.16 at 9:06 pm

please don’t post inappropriate pictures as i like to browse this blog at work

#89 Andrew Woburn on 12.15.16 at 9:06 pm

Of course, if we could just make people live longer, they could carry 100 year mortgages.

“Using a new technique which takes adult cells back to their embryonic form, US researchers at the Salk Institute in California, showed it was possible to reverse ageing in mice, allowing the animals to not only look younger, but live for 30 per cent longer.

The technique involves stimulating four genes which are particularly active during development in the womb. It was also found to work to turn the clock back on human skin cells in the lab, making them look and behave younger.

Scientists hope to eventually create a drug which can mimic the effect of the found genes which could be taken to slow down, and even reverse the ageing process. They say it will take around 10 years to get to human trials.”

http://www.telegraph.co.uk/science/2016/12/15/scientists-reverse-ageing-mammals-predict-human-trials-within/

#90 Gasbag Boomer on 12.15.16 at 9:08 pm

Daylight come and me wanna go home!

#91 Maj on 12.15.16 at 9:09 pm

Will Christy’s plan make the marginalized millennials feel more marginalized. Free money for millennials who also get free money from parents. Why not free money for all millennials?

#92 Dorothy on 12.15.16 at 9:16 pm

#49 Smoking Man on 12.02.16 at 8:39 pm

The hillbilly band at the bar at seneca alighany playing copper head road.

A blond babe dancing a wierd and hypnotic country dance to it.. She got tiny feet.. We all know what means..
——————————
#59 Smoking Man on 12.02.16 at 9:15 pm

Why I wear shades in bars.. I’m a male heterosexual with big bug eyes. Rotten teeth and a bald head.
——————————

garth, can we cut some of this out?

#93 N on 12.15.16 at 9:17 pm

http://news.nationalpost.com/news/canada/a-scientific-analysis-of-just-how-damned-cold-it-is-in-canada

With so much more real estate to be explored in our Solar System, i’d say that Canada’s Real Estate is in serious trouble :-).

#94 InvestorsFriend on 12.15.16 at 9:19 pm

All 10% Returns are NOT created equal

A 10% return on $10,000 is nice but not overly exciting.

10% on $100,000 starts to get interesting for a lot of people.

And 10% on a one million dollar portfolio is enough to quicken the pulse of most working people. Anytime your portfolio starts to make more that your average government worker job pays, that is getting interesting.

It takes most people a couple of decades or more of dedicated saving and compounding AND it takes a good investment approach to work up to a portfolio of say mid six figures. (In fact most people are not in a position to even try to get there, perhaps only 25% of the population can realistically even try)

But if that mid six figures portfolio can be achieved then things start to get interesting quite quickly. The benefits of compounding can really start to be felt. It’s a warm feeling. What is that old saying? “It takes money, to make money”. There is truth to that.

#95 Debtslavecreator on 12.15.16 at 9:20 pm

CORRUPTION !

The lower income/lower price point buyers who cannot save in their own will now be helped so that they can voluntarily get into a lifetime of debt slavery with rates and taxes set to rise sharply and consume whatever shrinking take home pay remains
This might help inflate the lower priced home further making homes for lower income people harder to afford without even bigger mortgages
The sellers and developers made out like bandits
Idiot corrupt governments!!!

#96 Darryl on 12.15.16 at 9:22 pm

#11 Penny Henny on 12.15.16 at 5:45 pm
Wynne will be carefully watching the response on this interest free loan on the DP.
———————————————————————
Yup
That B’;ch will do anything to make up political clout to get to 18 % .

I cant believe what she has gotten away with during this term. Treason would be a word .

She has single headedly destroyed the near future of Ontario for her own EGO.

#97 Maj on 12.15.16 at 9:29 pm

Keeping young talent within expensive cities can be difficult:
http://www.cbc.ca/news/canada/toronto/housing-price-crunch-might-chase-talented-young-workers-out-of-toronto-roundtable-hears-1.3808945

#98 InvestorsFriend on 12.15.16 at 9:30 pm

Modern Advanced Mortgage Thoughts

Victoria Real Estate Update said:

Japan had 100 year mortgages. Their housing market crashed.

**************************************
We need more sophisticated and modern thinking. Why stop at 100 years? Just offer interest-only mortgages. Equivalent to an infinite amortization period.

As long as their is ANY house price inflation, equity still builds.

The banks are relieved from the bother of having to find a new borrower as old mortgages are paid down.

It will push house prices higher as the apparent increase in affordability is subsumed by higher house prices.

Existing home owners planning to eventually sell and downsize or rent should definitely support this.

Millennials will be easily duped into thinking this provides them with a new option and better affordability.

Mores houses will be built which is good for the economy and provides better shelter.

#99 GFD on 12.15.16 at 9:46 pm

Christi [email protected]: Buy a house for double price and get the second one for free.

#100 Smoking Man on 12.15.16 at 9:47 pm

The left getting slayed on social media. You screw up huge blame Russia, Putin did it.

Just absolute desperation last gasp of CO2 to prevent a climate denier white house designed to disrupt the electoral collage.

University will be purged of communist in the good old usa, about time.

Just envious losers that don’t know what scarface and hard work yields. They only see the mansions after ones been to hell and back risking everything to get it.

Trump is your president. No more participation trophies.

Welcome to the wild west of life… It’s not that bad.

#101 Mike on 12.15.16 at 9:50 pm

Canadian real estate won’t crash. Canadians are rich. They have high incomes…

#102 Wait There on 12.15.16 at 9:59 pm

This BC plan is a slippery slope. We know how that ends.

#103 acdel on 12.15.16 at 9:59 pm

Day-O, drinking the rum – Day-O, just do not what to say anymore. I had to fill up my glass after reading today’s blog!

#104 Smoking Man on 12.15.16 at 10:09 pm

#101 acdel on 12.15.16 at 9:59 pm
Day-O, drinking the rum – Day-O, just do not what to say anymore. I had to fill up my glass after reading today’s blog!
…..

“Tally me banana, day light come and I want to go home.”

I say we start a blog that requires a breathalyzer.
If you pass, can drive a car, no posts for you.

Shit that would yield the most creativity since Nictonites found this shit whole planet.

Whos in?

Being a drunk is so under rated. It has merets.

#105 Slinky on 12.15.16 at 10:15 pm

Frustrating.

This might very well keep prices up for another year or maybe even two. It’s a problem…

– Politicians getting donations from the real-estate industry.
– Politicians wanting votes

#106 Smoking Man on 12.15.16 at 10:27 pm

DELETED

#107 Randy on 12.15.16 at 10:33 pm

Deja Vu. Last time the B.C. real estate market took a dump in the late 80’s, I had an investment property. It took me over 15 years to get my money back.

#108 TRT on 12.15.16 at 10:38 pm

Don’t fight the FED.

Don’t fight Vancouver Real Estate!

I’m hearing through sources now that if prices go down in the next few years, the BC Liberals will FORGIVE these loans up to $37,500!!!

The condo and townhome market is going to catch fire now all at a time of record low inventory.

Now who runs this country?

#109 RIL on 12.15.16 at 10:42 pm

If I may. Turning from Ms. Clark’s re-election prospects to more pressing matters and whether or not the Norwegian Blue Parrot is dead or only sleeping. Statoil has abandoned us in NE Alberta and bailed on the oil sands openly expressing buyers’ remorse. Chinese SOE’s have been teary eyed about their profligacy up here as well ($15 billion for Nexen in ’12 ???).

With my dating history, you would think I could handle rejection but I have not found closure. Balm was applied by Statoil’s tweet to me stating that it was not me, it was their balance sheet.

#110 John Smith on 12.15.16 at 10:47 pm

Nothing short of inheriting a house would get me in the Vancouver housing market.

It’s the opposite of a good place to invest money. Buy high, sell low?

#111 Smoking Man on 12.15.16 at 10:50 pm

I diden’t go to an Xmass party tonight, my screen saver says, diversity, inclusion, accountability.

I’m a low life contractor, those contracting brains, heathens billing 300k a year are not allowed into to mix of FTEs barley making 40 k.

Lets not forget the lottery of TFW trying to out mind a Smoking Man.

Not going to happen, suck up’s and linked in is not on my screen. Deleted LinkedIn on my phone. Temptation to trash Branson too over wellming.

I drink alone, no one around. My imagination goes wild. Nice place to be.

I live in heaven…. No friends to have over, no freinds to go to…

Perfect life…..

https://youtu.be/_FrOQC-zEog

#112 Doug in London on 12.15.16 at 10:51 pm

What’s happened here reminds me of a joke I heard many years ago. A table is stuck in the door to the meeting room. One government bureaucrat is outside the door and one is inside and they are both struggling. Finally the bureaucrat on the outside says: wow, this is hard work pushing this table into the room! The one inside says: push it in? I’m trying to push it out! That describes what is happening here, an undecided government trying to do opposite things at the same time.

#113 Herb on 12.15.16 at 10:56 pm

#91 Dorothy,

no, because then this blog would be less pathetic.

#114 No Mercy on 12.15.16 at 10:58 pm

The Christy Clark move is unbelievable and plain dumb. Takes a Liberal from BC to prove how stupid you can be.

The BC Government is becoming a sub-prime lender. In 5 years the rates will adjust and all these poor soles will get hit. I guess BC Libs don’t care about that, just getting elected again.

RE prices in Vancouver will adjust ….

#115 Joe2.0 on 12.15.16 at 10:59 pm

I’ve been saying it for ages.
Too much money attached to RE.
The news sources pump it like oxygen.
The sheeple breath it in like air.
Garth you’ve never quite fathomed that.
They have a death grip on the consumers.

#116 Smoking Man on 12.15.16 at 11:02 pm

We are talking banana tonight.

https://youtu.be/hnP72uUt_pU

#117 Smoking Man on 12.15.16 at 11:09 pm

To my imperfect wife, from a man with huge falts.

To you babe. I hate that you read this pathetic blog now. Killing my Creativity.

But now that you do……

For you babe. You got to meet Dorothy. You guys would hit it off.

For you.

https://youtu.be/IEVow6kr5nI

#118 };-) aka Devil's Advocate on 12.15.16 at 11:11 pm

I don’t remember a year quite like this where when the real estate deal went to conveyancing there was concern, often proven justified, that the seller wouldn’t be able to clear title.

#119 Smoking Man on 12.15.16 at 11:14 pm

Been there done that.

Over rated. I blame myself for the leafs not wining the cup in Clark and Gilmore times.

God’s revenge on me.

https://youtu.be/tBu-ewMRhkA

#120 };-) aka Devil's Advocate on 12.15.16 at 11:19 pm

Watching World War Z.

A whole lot of credit Zombies out there fanatically gobbling up as much as they can.

Christy can’t let the markets correct and can’t let them reach irrational exuberance. What the hell is she doing messing with the markets anyway. Offering trinkets to lure the last fools in.

Kick the can down the road… Let somebody else deal with it. Awesome plan! Very Steward like… NOT!

#121 cramar on 12.15.16 at 11:19 pm

Pass the banana——but only if it is ripe!

When I read what BC is doing, I’m reminded of what David Graeber of the London School of Economics said on a BBC program. He is author of Debt: The First 5000 Years. He claimed that gov’t. policies are intentionally designed to guarantee most people are in debt. That way they can be more easily controlled and debt is the key for transferring wealth from the 99% to the 1%.

The sheep are not only getting fleeced, but being lead slowly to the slaugher without knowing it.

Ignorance is bliss!

#122 stage1dave on 12.15.16 at 11:20 pm

JHC, is this idiocy ever going to end? Almost choked on my Baconator when I saw this on the MSM this afternoon…

As I write this, the wife has Boston cranked in the background, so maybe I’m totally reverting to the 70’s, but “middle class” peeps looking at 750K houses?

Maybe I’ll just keep renting forever…feels a whole bunch better than pondering a payment on a 675K mortgage.

Speaking of the Seventies…

Graduate high school by 18: well, maybe…

Spend 10-12 years racing cars, playing guitar, chasing girls, annoying neighbours with loud music, starting business, waste tons of money on new vehicle payments…to impress girls.

Spend next ten years restoring cars you wrecked while racing them, play better guitar, (collect a few) keep on annoying neighbours with loud music, travel, expand business, keep chasing girls.

Next ten years, buy n sell a couple condos, blow the money on more cars to restore, (and wreck, or vice versa) concentrate on becoming musician instead of guitar player, keep traveling, turn yer various hobbies into paying gigs, start putting down roots. Business runs itself. Let girls chase you…

Over next half decade decide that roots suck and freedom rules; start selling cars (for stupid money) become a competent musician, sell guitars ya don’t play, (for decent money) live like yer 18 again (except WITH money) until you get married…business(s) keep running themselves. Discover Greaterfool.ca haha…

Holy crap! Well, thats the first 50-some years…and I still don’t spend much time thinking about “owning” housing; other than the convenience of being able to top out my amp or run up a nailhead with open headers…

Sign of the times, but I routinely run into 20-somethings that can talk about nothing else except “buying their first house”…sigh…if someone like me moved in beside them, their lawns would die.

Damn, Brad Delp had a great voice!

#123 Smoking Man on 12.15.16 at 11:32 pm

A crime against humanity in university. Being a white heterosexual male.. Sort of tall embarrassed about the bulge in the jeans.

Well I never went to school, where are the short Italians.

Bring it bitch, me and my pall. Jack D want to talk…

I’m going to bed.

Song for you dweep.

https://youtu.be/FGl5ReYunoY

#124 Mark on 12.15.16 at 11:35 pm

“#40 any significant housing correction is going punish… on 12.15.16 at 6:46 pm
the TSX. “

Not the experience in the 1990s. The TSX tripled (quadrupled including re-invested dividends). Housing prices fell decade over decade.

Sure, there was TSX stagnation for the first few years of house price falls/stagnation in the 1990s. Just like there’s been TSX stagnation over the past 3 years or so with house prices stagnating/falling. But eventually, if history is any indication, there will be a significant rotation away from housing, and towards other asset classes such as stocks as an outlet for the public’s speculative enthusiasm.

This BC plan is a slippery slope. We know how that ends.

Indeed. Christy Clark’s government really, really hates young people. Whether its trying to sell LNG offshore instead of using the gas to create sustainable industry in North America. Or this scheme to get young people to buy housing basically within earshot of the peak of prices.

#125 Smoking Man on 12.15.16 at 11:45 pm

When you smoke a real one knowing that the bozze hidden in the back yard won’t cut it, can’t take away the back hurt..

I hate arthritis.. I’m a hater.. Eat me lefties.

https://youtu.be/UIVe-rZBcm4

#126 Kilt on 12.15.16 at 11:48 pm

Seriously Garth, should the BC government be in the business of lending money for homes. Isn’t this what banks do? And what happens five years down the road when interest rates are higher and they now have to add $200 a month to their mortgage to pay this government loan back. The same people who are having such a hard time scraping money together for a down payment.
Kilt

#127 Smoking Man on 12.15.16 at 11:50 pm

The song you go out onto 39 street and James naked after a hot shower and you tried everything to kill the pain.

https://youtu.be/1l0xpkk0yaQ

Naked old basterd with ear buds and skin.

Gross

#128 Victor V on 12.15.16 at 11:59 pm

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/new-forecast-says-record-sales-for-2016-but-get-ready-for-house-prices-to-actually-drop-next-year&pubdate=2016-12-15

The Ottawa-based Canadian Real Estate Association, which represents about 100 boards across the country, says national sales activity in 2016 will rise 6.2 per cent from a year earlier to 536,700 and set a record in the process.

But 2017 will see a 3.3 per cent drop in sales and the average price of a home is expected to fall by 2.8 per cent to $475,900 after reaching a record $489,500 in 2016. The last time Canada saw a national home price decline was in 2008, although it was only 0.7 per cent drop.

#129 Barb on 12.16.16 at 12:01 am

B.C.’s Christy is doing stuff even the dumbest of NDP platforms would never advocate.

It’s almost becoming comical here in B.C.
Almost.

#130 Smoking Man on 12.16.16 at 12:06 am

Just fell face first into the snow bank.

Good night.

#131 chelsea on 12.16.16 at 12:07 am

I was totally shocked to hear what Christy Clark has dreamed up. What is she thinking? House prices HAVE NOT moved in some areas, and they have been re-listed in high prices right into Spring 2017. So, I don’t expect they will come down after this announcement. Clark is so two faced. For one one thing I am not voting Liberals nor NDP … probably back to the right wing …

BC is becoming a have not Province… it is getting harder and harder to live here … time to move out of B.C. forever.

Anyhow, cheers for a safe Christmas everyone.. and a merry, merry New Year … hope next year brings a positive outlook for all..

#132 acdel on 12.16.16 at 12:10 am

This poster from a different site describes it well:

Tim Smith
What planet do our legislators live on?
First of all, from the CMHC website:
“If the purchase price is between $500,000 – $999,999 a higher down payment is required. The minimum down payment is 5% of the first $500,000, and 10% of the remaining amount.”
So the down payment on a 750,000 home is actually a minimum of $50,000.

The largest purchase price you can get for $37,500 down payment is $625,000. This will incur a mortgage insurance premium of $21,150 and a mortgage of 608,650. Oh, but oops, you still have paid any legal fees and transfer tax if applicable.

I take this to mean since it says above “up to 5% of the purchase price”, that in the case of the 750,000 dollar home they reference above, you would have to come up with 12,500 of the down payment yourself. But they don’t say this because they want to maximize the PERCEIVED benefit to “the people”.

So you’re now in debt for 646,150 for a home valued at 625,000. And which bank exactly is going to provide this mortgage? Have they even asked if a borrowed down payment is ok, because it hasn’t been for the last 2 or 3 hundred years…

How does our provincial government not know enough about the rules to put out such an erroneous and misguided press release? Or do they, and they are just throwing it out there and letting the banks and CMHC be the “bad guys”.

Either way, it’s a despicable press release; either misleading or horribly erroneous and misleading. I demand better from my government, and I also demand better from the MEDIA who should be vetting these releases.

#133 Joe2.0 on 12.16.16 at 12:20 am

This is the final blow to some people I know that have held out for years hoping that common sense would succumb, only to realize that housing prices have doubled and now will likely continue to rise.
Screwed.

#134 IHCTD9 on 12.16.16 at 12:24 am

#94 InvestorsFriend on 12.15.16 at 9:19 pm
All 10% Returns are NOT created equal

A 10% return on $10,000 is nice but not overly exciting.

10% on $100,000 starts to get interesting for a lot of people.

And 10% on a one million dollar portfolio is enough to quicken the pulse of most working people. Anytime your portfolio starts to make more that your average government worker job pays, that is getting interesting.

It takes most people a couple of decades or more of dedicated saving and compounding AND it takes a good investment approach to work up to a portfolio of say mid six figures. (In fact most people are not in a position to even try to get there, perhaps only 25% of the population can realistically even try)

But if that mid six figures portfolio can be achieved then things start to get interesting quite quickly. The benefits of compounding can really start to be felt. It’s a warm feeling. What is that old saying? “It takes money, to make money”. There is truth to that.
——–

Indeed, I had that feeling last year, life gets faster as you get older so the number sneaks up on you – one of the few benefits of having a year fly by in what seems like a couple months.

Best advice I can give the young punks just starting out is pay yourself first, do so via an automatic withdrawal, and if ever your checking account seems to regularly contain more than it used to, siphon that excess off into the auto withdrawal instead of blowing it. We started at 200.00/month in our late 20’s and do 1000.00/month now mid 40’s as house is paid and incomes are higher.

But above all:

1. Start young, mid 20’s is ideal even if only 2-300.00/month
2. Avoid debt like the bubonic plague, and control your lifestyle expenditures.

Helpful to me also was being handy around the house and vehicles with repairs and maintenance. Combined age and mileage on our beaters is 25/480k, and our house is 146 years old so yeah, I’m saving thousands looking after these Rip Van Winkles myself.

FWIW, our income is ok, not big at all compared to many on this blog. Our success is largely because we structured our entire financial lives around a few priorities, one of which was saving/investing. Simple living, modest accommodations, low expenses, minimal debt (mortgage only, now paid). You don’t miss what you never had because the money never hit your wallet.

#135 Fish on 12.16.16 at 12:27 am

Ok, guys, let’s put our heads together, to stay alive,
Be calm, we can get past the ugly. I’m renting and because it’s the slow season I have a 200. rent decrease, this is good, now I have to wait to see where I’m putting my money for the new year.

#136 For those about to flop... on 12.16.16 at 12:39 am

For me ,this is all about market compression.

I thought compression could stop bleeding…

M42BC

#137 For those about to flop... on 12.16.16 at 12:47 am

I just put the houses together,I’m not important enough to get an invite to Christy Clark’s Real estate Investors Social Club.

Or RISC for short…

M42BC

#138 solo 604 on 12.16.16 at 12:50 am

#74 “So how does our government address affordability? Simple, increase the demand for the only part of the market that still has strong demand and low supply.”

Demand is strong, but large numbers of first-timer buyers were failing the new mortgage stress test. I recently talked to a top realtor in YVR and they said as many as 2/3 of offers by first-timers were failing the stress test. Realtors were miffed because their deals were falling through despite demand.

This new legislation is going to make a lot of YVR realtors and mortgage brokers happy.

#139 For those about to flop... on 12.16.16 at 12:54 am

Just got an angry email from Christy Clark saying I misrepresented her.

Apparently I made a mistake,and she corrected me.

New Opportunities Real estate Investors Social Club is what it is called.

NO RISC…

M42BC

#140 RIL on 12.16.16 at 1:07 am

Jeez. Coyotes defeat Leafs. Hogtown realtors should sign up for seminars in Phoenix.

#141 NEVER GIVE UP on 12.16.16 at 1:15 am

CONDO BUILDER: Christie, Please help us sell our languishing Condos and we will take you on as a no work board member when you retire from politics at big bucks!

CHRISTIE: Ok, I have an idea that will cost 130 million of OPM (other peoples money). Looking forward to retirement!

#142 Ponzius Pilatus on 12.16.16 at 1:19 am

People are dying like flies from Fentanyl overdoses on the Eastside of Vancouver and the rest of the Lower Mainland.
But Christy is intend of keeping the RE boom going, to please her Development buddies.
She knows dead people don’t vote.
Disgusting.

#143 paulo on 12.16.16 at 1:32 am

I doubt this hand out will translate into many sales or backstop the price correction underway in B.C.
it may in fact backfire. Taxpayers may be a bit peeved that
there goverment is handing out tax money like candy, especially after they receive there new property tax bills ..

what we need is less goverment interference and tinkering. and more prudent application of the existing rules how it is that as many as 50% of insured mortgages recently granted are to people with 4-5x debet to each dollar of income ,what ever happened to the 32-35% gds ratio?

#144 Bob dog on 12.16.16 at 1:34 am

The entire BC government should be held criminally responsible for what they have done to this province. Young BCers are entering the economy of a 3rd world economy. Every baby born in Vancouver in 2016 should consider Christie Clark a traitor and a terrorist.

#145 NEVER GIVE UP on 12.16.16 at 1:38 am

Rennie Marketing Systems contributed more than $329,000 to the B.C. Liberals from 2005 to 2015.

However, Rennie was outdone by others in the city’s real estate sector.

Integrity B.C.’s figures, based on Elections B.C. data, show that in the past decade companies under the corporate umbrella of Bosa Properties donated $726,000 to the B.C. Liberals.

Through webs of linked companies, Onni Contracting gave $464,000; Aquilini Group Properties and affiliates gave $582,000; K & T Properties donated $618,000; Concord Pacific Development contributed $666,000; Wesbild Holdings gave $685,000; Wall Financial contributed $459,000 and Polygon Homes donated $656,000.

Sickening! Vote the Bums out!

#146 Russ on 12.16.16 at 1:51 am

I went from appalling to applauding Ms. Christy.

What a gal.
I was afraid the opportunity to cash out the homestead was missed. But now my little acreage in Nanaimo seems even more valuable. It’s perfect for dreamer type moisters with no money but wanting a small farm plot, close to schools with a mortgage anchor… ’till death do they part.

I may retire sooner than expected.

#147 Russ on 12.16.16 at 2:01 am

In other news.
A while ago, climate change supporters were out in full force here labeling critical thinkers as “climate change deniers” as is common in MSM.

So I got to thinking… is this leftist trait of labeling a contrary position so bad?
How about suggesting that someone who supports the global warming/climate change narrative as being “it must be bad everywhere” as a “climate change stupider”?

Clearly, climate change is not bad everywhere. some areas will do quite well. that is where you should buy property now!

#148 Newcomer on 12.16.16 at 2:31 am

Human capacity for selfishness hasn’t changed much over the years. Christy is calling for the modern day equivalent of sacrificing children on the hilltop for the sake of a better harvest.

#149 Euro observer on 12.16.16 at 2:49 am

So instead of letting the prices correct to proper income multiples and make them affordable again the BC government decides to give away other people’s/taxpayers money as down-payments to people with no money in order to keep the prices unaffordable?

It kind of makes you feel good for not living in BC.

#150 pBrasseur on 12.16.16 at 6:37 am

The feds may think they have engineered a soft landing.

That’s not it, it’s a slow motion train wreck of the entire economy.

#151 Stock picker on 12.16.16 at 6:55 am

BC’s ethnic trades lobby must have reminded the Clark government of just how many jobs are at stake if the condo craze goes quiet …. hence the bail out….or is it really a big kiss to our youngsters….. one wonders.

If the Premier was serious about the kids well being she’d force them all to spend a summer at a financial institution where people talk about money math all day long and some of that reality might stick….like having to balance a cash drawer all day long. That might the kids wake up to the fact that one plus one doesn’t equal free.

At the same time a few hundred thousand should be xgiven an IQ test and sent over to securities exchanges
And taught how to pick stocks with the 37 grand. High school stock picking clubs are doubling and tripling their investments and without government interferance actually make smart investors.

I’m sure some old guys like me would take a dozen a piece and show them how to trade…and maybe create some millionaires. Right now our kids are financial imbeciles getting coerced into mortgages that serve only political actors and that has to change .

#152 DoomandGloomer on 12.16.16 at 6:58 am

Of course climate change is real.
The earth is 4.5 billion years old (give or take).
The climate has been changing for 4.5 billion years.
It will continue to change for another 4.5 billion years, and then it will continue to change, uhhhh…infinitely.
SO get over it.
You’re gonna die anyway.
The earth will survive.

#153 Victor V on 12.16.16 at 7:35 am

Bank of Canada warns about huge mortgages, growing housing debt: Nearly half of new high ratio mortgagees in Toronto owe in excess of 450% of their incomes

http://www.cbc.ca/beta/news/business/bank-of-canada-financial-system-review-poloz-housing-1.3897875

#154 Ronaldo on 12.16.16 at 7:58 am

“The dream of home ownership must remain,” said the premier, moist of eye and clasping her bosom, “in the grasp of the middle class here in British Columbia.”
——————————————————————
We now have the “British Columbia Dream”.

Shades of George Bush May 17, 2002

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

#155 crowdedelevatorfartz on 12.16.16 at 8:10 am

@#92 Dorothy
“garth, can we cut some of this out?”
******************************************

You’re not in Kansas anymore.
Close your eyes and click your heels
The bad people will dissappear.

#156 Ronaldo on 12.16.16 at 8:14 am

#5 bdwy sktrn on 12.15.16 at 5:30 pm

Premier Christy Clark said Thursday the government will provide a 25-year loan for a down payment to a maximum of $37,500 on funds have been matched by buyers.
————-
i think the buyers need the other 5%
—————————————————————-
In 1980 the B.C. Gov’t did something similar when rates were hitting the 14-16% range. They were offering (a limited amount of cheap 10% money) to first time home owners who qualified. My boss at the time was building a home (his first home) and he applied for the cheap cash and got it no problem because he didn’t need it. He could have used his own funds to build but why would he. He could just invest it and get 15% in a GIC. In the end, the measure helped very few and mostly the ones who didn’t need the help. This is the kind of goofiness our governments do.

#157 crowdedelevatorfartz on 12.16.16 at 8:15 am

The govt giveth “free” cash to first time buyers.
The govt take away …..cash from the owners.

http://www.google.ca/url?url=http://bc.ctvnews.ca/big-hike-in-assessments-coming-metro-vancouver-homeowners-warned-1.3192325&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjWm4uY5fjQAhVE4mMKHbyqC4QQFgg-MAc&usg=AFQjCNGaAF5VY0s3emBo6gEcS3XAjZCuFQ

One hope the home owning rubes will remember this in 5.5 months during the provincial election and boot Premier Vapid out on her derreire.

#158 Ronaldo on 12.16.16 at 8:23 am

#15 NoName on 12.15.16 at 5:49 pm

i remember paying 19c/lbs (40c/kg more or less) for bonita bananas a way back when i first arrived, bananas now expensive 1.50/kg, but on a bright note steel cheaper than qukumbers.
———————————————————
Compared to house prices, bananas are a bargain. In 1970 I could buy 10 lbs. for a buck. Today, they cost 8 times more. My first home back then cost 1/35th what it does today or 35 times more than it did in 1970.

#159 Ronaldo on 12.16.16 at 8:29 am

#20 Lulu on 12.15.16 at 5:57 pm

Crusty Clark seen the sales been plummeted and price is crashing, so, she has to come up with something to make housing affordable and attractive again, then… there you go!! Plus its’ getting closer to the election, this is another political move from the province as well despite it’s shocking motive.

Soon enough if RE cooling all across the board just like our weather this year, T2 may bring back the 30-40 yrs long again just to make it affordable and attractive again. It’s chilling today, so as the market!
————————————————————

Yes indeed. And watch what happens when posted interest rates get back up to where they were in 2008. The banks will start offering the ‘Prime minus’ mortgages again. They will keep this gig going for longer than we can imagine. Good thing the U.S. learned from their mistakes. We’re hooped.

#160 Ronaldo on 12.16.16 at 8:33 am

#22 She did what? on 12.15.16 at 6:01 pm

Why would the provincial government possibly want to front cash to people who can’t save their own? Seriously. I’m not rich but if you can’t save 40k then you have problems. Kids today want to pick up where their parents left off. Insanity!
———————————————————–
Insanity yes. Christy fully expects the bank of Ma and Pa to fund the other half from all those illusionary gains they have in their homes. Remember, she is the one that said she didn’t want to see people lose any of the equity they have gained and reason she wasn’t doing anything about the craziness that was going on in the Vancouver market.

#161 crowdedelevatorfartz on 12.16.16 at 8:38 am

@#147 DumbandGloomy
“The earth will survive.”
*******************************************

great,
a polluted toxic dustbowl with an acidifed dead sea spinning through the comos……

Methinks not exactly what God, Buddha, Allah or Jehovah had in mind ……..

#162 pBrasseur on 12.16.16 at 8:52 am

All sectors of the Canadian economy are now net borrowers, with governments and corporations this year joining households in spending more than they take in.

Business investment fell for an eighth straight quarter

http://business.financialpost.com/fp-comment/philip-cross-do-canadian-policy-makers-understand-how-alarming-it-is-that-their-stimulus-has-proven-an-utter-failure

The Trudeau-Wynne-Notley progressive axis in action. Duck and cover everyone!

#163 traderJim on 12.16.16 at 9:01 am

#147 Doom and Gloomer

Amen.

Yes the climate is changing. But the fear mongering is getting to hysteria levels. Reminds of of the ‘world’s running out of food hysteria’ and ‘the world’s running out of oil’ hysteria from years gone by.

And let’s not mention Y2K.

All of these ‘disasters in the making’ of course call for massive government intervention, destruction of corporations, moving back to the dark ages, and lots of money flowing to ‘green’ groups.

The sun is not going to die out this week, and technology has always proven successful in improving standards of living and lifespans, so no reason to think that will change. (Unless you’re the afraid of your own shadow type)

The answer to problems that come with progress is usually more progress.

#164 IHCTD9 on 12.16.16 at 9:12 am

#143 Newcomer on 12.16.16 at 2:31 am
Human capacity for selfishness hasn’t changed much over the years. Christy is calling for the modern day equivalent of sacrificing children on the hilltop for the sake of a better harvest.
______________

Good analogy lol!

#165 Dave in Kincardine on 12.16.16 at 9:43 am

Housing. If you have a hundred poker chips and you risk 10 it is no big deal if you are wrong but if you have 10 poker chips and you risk 10 then it seems devastating if you are wrong. I feel this is what the housing market is for young people. Conversely friends who had bought two years ago are sitting on a nice gain which makes you mad for waiting. Just torture the whole thing. Empathy abounds- been there done that.

#166 IHCTD9 on 12.16.16 at 9:43 am

#156 crowdedelevatorfartz on 12.16.16 at 8:38 am
@#147 DumbandGloomy
“The earth will survive.”
*******************************************

great,
a polluted toxic dustbowl with an acidifed dead sea spinning through the comos……

Methinks not exactly what God, Buddha, Allah or Jehovah had in mind ……..
________________________________________

Life flourished in the super global warming environments that existed millions of years ago. No ice at the poles at all. The global explosion of Phytoplankton is what caused the massive anoxic events that gave us oil today.
Dead oceans are nothing new, the proof is in your gas tank. Life carried on and only got better.

#167 Smoking Man on 12.16.16 at 10:27 am

What Can Go Wrong you ask?

Wow, You just know the globalists are not going to go quietly into the night, After years programming our kids to hate their flag and all the cultural marxism bestrode on us, nearly at the finish line. Boom Trump!

Obama accusing Putin of personally hacking Hilary and the DNC…

Now that it’s obvious they can’t turn the electoral collage votes, what’s left to keep power. 1) Kill Trump, then get ready for a civil war. Bad Idea.

How about starting a war with Russia,

My Tin Foil Fedora is calling a huge false flag before Trump is inaugurated, be vigilant, be safe.

#168 LL on 12.16.16 at 10:44 am

The art to create new slaves!

Go..go…go buy a house…it’s a must!
No debt no happiness (for who?)

Mom’s money has been replaced by government’s money.

#169 FOXnews BC on 12.16.16 at 11:10 am

Christy Clark, the devil in disguise.

#170 the Awakened One on 12.16.16 at 11:36 am

Dear Garth,

I thought on a post long past ago, you said something like…” this is the last time I’ll mention about banana…”

Why now ? Is my equation correct ?

Christie x RE x 37.5K = Garth’s blog + banana relapse!

This ain’t the last banana, is it?

#171 BC LIBS FOR LIFE on 12.16.16 at 11:46 am

JK….If someone has a petition against this please share. Tax payers money should not help subsidize the personal investments of individuals. Talk about misuse of public funds and dangerous market meddling that will likely cause further pain long term for those involved (or wanting to be) in the housing market. I don’t believe the government should meddle in this way but if so then they should also offer the same loan opportunity if I wish to get started with an investment in a business or other financial assets rather than a home.

#172 The Wet Coast on 12.16.16 at 11:47 am

Climate change is real. But, North Korea with Nukes is realer…I’ll stick with worrying about those things that will likely kill me.

#173 rainclouds on 12.16.16 at 11:48 am

Its official!

The entire business world is scratching their heads over the doltish move by the mouth breathers in Victoria.

Hopefully the metrosexual messiah’s finance minister imposes a region specific financial sanction to help protect the moisters from the imbeciles that are “helping” them.

https://www.bloomberg.com/news/articles/2016-12-16/loans-for-vancouver-down-payments-risk-fueling-canada-debt-binge

#174 jess on 12.16.16 at 12:07 pm

lookback

By Paul Kiel and Dan Nguyen, ProPublica, Updated Dec. 12, 2016

Below is a complete breakdown of the latest numbers in our bailout database. We’re tracking every dollar and every recipient for both the broader $700 billion TARP bill and the separate bailout of Fannie Mae and Freddie Mac.
The State of the Bailout

http://projects.propublica.org/bailout/list/losses
http://projects.propublica.org/bailout/list/index
============================
CIT Group Bank (Public)
NY net outstanding -$2,286,312,500
disbursed 2,330,000,000
dividends and interest $43,687,500
repayment $0
——–
Steve Mnuchin, has been nominated by Trump to serve as U.S. Treasury Secretary. That post also entitles Mnuchin to Chair the Financial Stability Oversight Council.
Mnuchin had made a windfall last year from the sale of OneWest Bank, problems emerged: “The U.S. Department of Housing and Urban Development opened an investigation into foreclosure practices in a division that handles loans to senior citizens.
=================
IndyMac’s failure, one of the largest in U.S. history, cost the FDIC between $8.5 billion and $9.4 billion as reported by CNN Money back in 2009.

one west bank what’s not to like!
debts of indymac bank …..> fdic…>sold to one west bank 2009
First mortgages were purchases @ 70% of the value heloc’s 58% of value FDICcovered up to 80-95% of the lossses (shared loss agreement 2019) due to foreclosure or short sale the loss is calculated on the original loan value

$1.6 billion in cash and renaming it OneWest Bank+ shared loan loss through the FDIC
Indymac Boys Get Sweetheart Deal
https://www.youtube.com/watch?v=ssl5yb7FewA

merger +one west
CIT now takes on the status of being a systemically important financial institution. What happens to the $2.3 billion it owes taxpayers?
https://www.bloomberg.com/news/articles/2016-12-13/mnuchin-s-reverse-mortgage-woes-blemish-record-of-treasury-pick

#175 Damifino on 12.16.16 at 12:11 pm

#160 Dave in Kincardine

“…if you have 10 poker chips and you risk 10 then it seems devastating if you are wrong. I feel this is what the housing market is for young people.”
———————————–

What the young people in BC will have is 5 poker chips issued by the Bank of Mom, another 5 issued by the Bank of Christy. A further 190 chips will be issued by the Bank of Whomever and secured by the Taxes of Everyone.

#176 For those about to flop... on 12.16.16 at 12:25 pm

When I first got here everyone told me that B.C stood for Bring Cash ,because of the costs associated with living here.

In the last decade or so I believe that Borrow Cash would be more apt…

M42BC

#177 LL on 12.16.16 at 12:27 pm

148 – victor v

Bank of Canada warns about huge mortgages, growing housing debt: Nearly half of new high ratio mortgagees in Toronto owe in excess of 450% of their incomes

Apparently Christy does not bother about it!

#178 communism on 12.16.16 at 12:45 pm

How do you control masses? You enslave them (here: debt), intoxicate them (here: legalize marijuana) and feed them propaganda (here: main stream media). An old communist trick. It’s just sad that so many fools can’t see this. Many will find out – unfortunately it’s already too late.

To all millennials and/or first time (potential) buyers – DO NOT FALL FOR THEIR TRICKS. Do what you have to do to stay out of it, you’ll end up better off in the long run. What those gov idiots are doing now (i.e. handing out “free” $$$) is beyond criminal.

On another front:

http://www.nationalobserver.com/2015/10/15/news/canada-revenue-agency-landlord-avoiding-taxes-offshore-havens

https://www.thestar.com/news/world/2016/12/13/canada-revenue-agencys-landlord-stashed-money-in-offshore-tax-havens.html

#179 PracticalTreeHugger on 12.16.16 at 12:45 pm

#161 IHCTD9 on 12.16.16 at 9:43 am

Dead oceans are nothing new, the proof is in your gas tank. Life carried on and only got better.

_______

Which lives, though?

#180 Euro observer on 12.16.16 at 12:52 pm

https://ca.finance.yahoo.com/news/how-does-a-minimum-basic-income-work-and-who-pays-for-it-134004982.html

#181 Bark on 12.16.16 at 1:11 pm

“The dream of home ownership must remain”

I think as a culture we need to rethink what home ownership really is.

We don’t truly own our homes if a banks have equity in them. Pseudo owning a home with a huge burden of debt to pay off should not be our dream. Wild Bill has taken measers that are a step forward for anyone with the dream of real home ownership (no debt). But this free debt offer puts BC two steps back.

Savers are the Charlie Browns of the Canadian economy. Their hard saved dollars are just as good as someone elses leveraged debt money and they compete for the same prize, all the while they are lucky to collect 1% interest to loan their money to the bank.

If the debt bubble ever bursts the savers will have their day, but everytime it looks like it might happen Lucy pulls the football away with more terrible economic intervention.

#182 ccc on 12.16.16 at 1:17 pm

Not a milenial here but just wondering why so surprised by watching the youth behaving in a similar way to their parents did? So used to blame investors (with or without reason) and their lack of financial knowledge. Yet, the 2008 financial crisis was triggered by reckless lending of Wall Street financial institutions which ended up bailed out by the moisters and their parents (without public consultation btw) and continue running the show as of today. And before you call me a commie notice this criticism has come from hard core capitalists such as Jim Rogers and others.
Yes many young investors are clueless but make no mistake about their lenders…

#183 JayCee on 12.16.16 at 1:18 pm

This new BC interest free loan sounds awfully familiar. I seem to recall there was this thing called a “subprime mortgage” in Trumpland that duped people into buying houses that they couldn’t responsibly afford, and only to realize the cost of carrying the debt would increase over time (in this case a step function in 5 years). That didn’t work out too well, did it?

#184 LL on 12.16.16 at 1:56 pm

173

How do you control masses? You enslave them (here: debt), intoxicate them (here: legalize marijuana) and feed them propaganda (here: main stream media). An old communist trick.

Right on!
And if you are too smart communism system send them in mental institution!

#185 "expert" on 12.16.16 at 2:12 pm

#173 communism on 12.16.16 at 12:45 pm

How do you control masses? You enslave them (here: debt), intoxicate them (here: legalize marijuana) and feed them propaganda (here: main stream media). An old communist trick. It’s just sad that so many fools can’t see this. Many will find out – unfortunately it’s already too late.

====

You clearly have zero clue about Communism.

In Communism there was very little credit available to create debt, at times there was hardly any private property allowed. Practical “Communism” started with nationalization of private property, including real estate, which in return was reassigned (usually split with other tenants) as a rental unit that the original owners started to pay rent for the new owner, the government.

Communist governments had stronger punishment for drugs than the most Republican US states.

You prove that you are controlled by your own uninformed stupidity.

#186 Rexx Rock on 12.16.16 at 2:24 pm

DELETED

#187 NoName on 12.16.16 at 2:39 pm

before i go all bananas, just one more banana thing, study from 1967 5 monkey, one banana and cold water.

2min
https://www.youtube.com/watch?v=mMHQkk0ebXk

#188 Polls R Phake on 12.16.16 at 2:57 pm

#167 The Wet Coast on 12.16.16 at 11:47 am
Climate change is real. But, North Korea with Nukes is realer…I’ll stick with worrying about those things that will likely kill me.

___________________________________________

Yes you are right. The climate in North America has changed to where 50% of it is now below zero. Keep paying your global warming carbon taxes in BC suckers.

#189 Deplorable Dude on 12.16.16 at 3:09 pm

Nice little 2.5% pop to ZPR.TO this week. Now I’m only about 15% down on that one…..not complaining about the 5% yield though.

#162 Smoking Man…..’Kill Trump’

Wouldn’t joke about that one……I think it’s a serious possibility now….

Soros’s Purple Revolution is failing….

Post Election Protests (aka Riots) – Failed.
It was Russia – Failed
Bullying/Threatening Electors – hopefully failing on Monday
It was Russia….again – Failing again….

#190 crowdedelevatorfartz on 12.16.16 at 3:09 pm

@# 161 IHCTD9
Funny, in the last 4.5 billion years there wasn’t any
man made plutonium or plastic or oil refined goo to gum up the works.

I agree all the other “extinctions” and global warming were based on nature.

This one is man made.
PoTAYto PoTAHto
Doesn’t really matter to the Rhinos, Giraffes, Elephants , Monarch Butterflies, etc. etc. etc .facing a man made extinction.
Gone is gone.

Cant wait to see what kind of world it is where the only “wild” animals are cockroaches and blue arsed dung swarming flies………
And the only “humans” spawn 3 headed babies

Awesome.

#191 For those about to flop... on 12.16.16 at 3:19 pm

Hey Bdwy Sktrn,did you see the new listing in your hood?

The realtor listed it as Broadway Street as opposed to Broadway Avenue.

The realtor is worth every penny…

M42BC

#192 bdwy sktrn on 12.16.16 at 4:27 pm

The realtor listed it as Broadway Street as opposed to Broadway Avenue.
————————
actually i think it is neither.

always listed as just ‘broadway’

MEC
130 West Broadway
Vancouver, British Columbia
V5Y 1P3

————–
off to cozumel tomorrow, i won’t miss van’s bitter cold!

#193 Tired 40 year old on 12.16.16 at 4:31 pm

Garth,

For us who have waited and read from the sidelines of this for five years, who are eligible for this crazy loan – what is your advice?

Do we watch it all crash and burn or do we take out the loans, get ourselves out of renting hell and into modest apartments, and pay off the interest free loan in one fell swoop with our saved down payment money that is now invested (alongside other funds) in five years?

As a single woman with an average salary, I’m renting a (comparatively) great place in a great neighbourhood with a decent landlord for below market rent. I’m near transit. I have a dishwasher. I’m not in a basement. My cat is grandfathered under my new landlord (though when she goes, that’s it for pet companionship). I have hardwood floors and lots of space – but despite this the pipes still squeal, the heating is unreliable, and it takes me two weeks to get major repairs (such as a working fridge) completed. But, it took me three moves in five years to find a decent rental near transit – and I think I’m still very lucky to have found this rental unicorn apartment. I generally like my rental but I don’t want to deal with the extra chaos it entails when I’m a senior citizen.

I had student loans that were given to the bank in the 90’s at 11%, so I understand crazy interest rates (paid off 20k in three years in the 90’s by working two jobs — I’m a double major fine arts grad, but I was lucky to find a career and work that paid a decent wage)

And now Vancity is telling me #NottoGiveUp and the government is giving folks who have no credit or savings are being handed a temporary piggy bank.

I’ve just been offered a new job with a double digit salary boost here in Vancouver, so I’m not leaving but I wish I felt more certain about what I should be doing in the next five years. This is so frustrating.

I guess that renting for the next five years is still the wisest thing to do?

#194 Tudval on 12.16.16 at 4:49 pm

This blog… you said it, not me, pathetic! I mean you’re giddy the government ‘banned’ 40 year mortgages, but you advocate infinite mortgages (aka renting)???

You like some government intervention, but not others, why don’t YOU run for office, become the government, then you do as you please (apparently it’s how it works)?

Or like me, just hold the only one line that works: they should just stay out of the market. Not only does that works for the markets, but if you send all those bureaucrats to do some real work, instead of constantly butting into somebody else’s (private) business, can you imagine the bump in productivity?

#195 Self Directed on 12.16.16 at 4:56 pm

This new Christy deal is 100% funded by the tax payer and fully insured by CMHC (the tax payer). The only thing the new buyer stands to lose if the housing market collapses is a measly $37,500.00, max.

By today’s standards, $37K is loose change.

I seriously doubt dangling this carrot will entice even your average “first time buyer” millennial because if you have some basic smarts, you know this is PEAK MARKET! There will be no money to be made in the Condo/Townhouse market in BC. You’d be a fool buying and expecting any equity increases.

But this won’t stop Christy from using early Frankenumber data come April to sell the voter just how brilliant she is at “Keeping the Dream of Home ownership alive.” All she’s trying to do is pour some gas on a fire that was almost out. As long as it appears to burn bright during the election, she wins.

Sorry Christy, if you cared about your voter, you would stand shoulder to shoulder with Bill Morneau and advocate higher down payments, and tell your voter to be responsible and wait. But I guess you can’t take credit for his work, can you? Instead, you are selling “The Dream of Home Ownership”, much more liberating. Where as Bill is BAD for trying to bring housing prices back to earth.

#196 SeeB on 12.16.16 at 5:11 pm

IHCTD9 on 12.16.16 at 9:43 am

“Life flourished in the super global warming environments that existed millions of years ago. No ice at the poles at all. The global explosion of Phytoplankton is what caused the massive anoxic events that gave us oil today.
Dead oceans are nothing new, the proof is in your gas tank. Life carried on and only got better.”

—————————————————————-

Yeah, and the “life” you mention during that age built huge permanent cities on the coasts and needed land to cultivate food.

You really think the parameters for life today are even remotely similar to the parameters of the Paleocene-Eocene Thermal Maximum?

Also, those adaptations to the new crappy environment will take millions of years. You may believe you are immortal, but I promise you you’re not. Believe me.

You’re very likely right that “life” will continue on. But the real question is whether human life will continue on, and if it does, what that might look like.

#197 Patiently Waiting on 12.16.16 at 5:16 pm

Sad that most people can’t do even simple math. Even if they qualify to borrow the entire $37,500 (which most will fall short of), the interest saved over the 5 year period will only amount to a pittance (+/-) $5,000 at current mortgage rates. Pocket change compared to what prices could drop as they have started to do since the introduction of the Foreign Buyers Tax … sheshhh…

#198 maxx on 12.16.16 at 5:18 pm

#28 Penny Henny on 12.15.16 at 6:11 pm

“I can always count on people here to ignore the wheat and roll in the chaff. — Garth

Is that something like curds and whey?”

No, more like the reason why the spider gets its own way.

#199 };-) aka Devil's Advocate;-) aka Devil's Advocate on 12.16.16 at 5:25 pm

Different levels of government, different agenda (not that they know what the **** their doing).

Stress Test… FTB Down Payment Loan

WTF!!!

Does this make ANY SENSE ?!? Of course it doesn’t.

A bit of advice to our illustrious leaders: Ignore the market. It will take care of itself once you get you grimy meathooks out of it. Equilibrium can not be achieved when you keep introducing imbalances.

Wake up and smell the coffee. You aren’t saving or helping anybody. The market WILL correct eventually and there will be casualties and consequential damage. Get over it. We NEED to let that happen so we can move forward.

Stop kicking the an down the road.

The Donald is looking pretty good right about now. Kevin, oh Kevin… think it’s time you toss your name in the ring Mr. OLeary. };-)

#200 LL on 12.16.16 at 5:26 pm

#179

In Communism there was very little credit available to create debt, at times there was hardly any private property allowed. Practical “Communism” started with nationalization of private property, including real estate, which in return was reassigned (usually split with other tenants) as a rental unit that the original owners started to pay rent for the new owner, the government.

That’s true..in communism system you share everything (or almost)and no easy credit available as today.
We have to create a new name/appellation for the system we live in.

#201 };-) aka Devil's Advocate;-) aka Devil's Advocate on 12.16.16 at 5:27 pm

Different levels of government, different agenda (not that they know what the **** their doing in the first place let alone their colleagues).

Stress Test… FTB Down Payment Loan

WTF!!!

Does this make ANY SENSE ?!? Of course it doesn’t.

A bit of advice to our illustrious leaders: Ignore the market. It will take care of itself once you get you grimy meathooks out of it. Equilibrium can not be achieved when you keep introducing imbalances.

Wake up and smell the coffee. You aren’t saving or helping anybody. The market WILL correct eventually and there will be casualties and consequential damage. Get over it. We NEED to let that happen so we can move forward.

Stop kicking the an down the road.

The Donald is looking pretty good right about now. Kevin, oh Kevin… think it’s time you toss your name in the ring Mr. OLeary. };-)

#202 mouldyinYVR on 12.16.16 at 5:42 pm

#185 – Broadway is just ‘Broadway’ (not St. or Ave.) Broadway runs in place of a 9th Avenue…..

#203 For those about to flop... on 12.16.16 at 6:32 pm

#196 mouldyinYVR on 12.16.16 at 5:42 pm
#185 – Broadway is just ‘Broadway’ (not St. or Ave.) Broadway runs in place of a 9th Avenue…..

///////////////////////////
I’ve been here for sometime, and I know a lot of people that refer to it as an avenue.

That’s why people unofficially call it Broadway Ave ,because it runs east to west like all the avenues.

That and the fact as you stated it takes the place of ninth avenue…

M42BC

#204 Anna on 12.16.16 at 6:44 pm

Somehow BC got this data and decided that we should add more extremely low interest loans

http://www.cbc.ca/news/canada/british-columbia/interest-free-home-loans-bc-1.3897832

#205 bill on 12.17.16 at 1:03 pm

#197 For those about to flop… on 12.16.16 at 6:32 pm
North Arm Road , Bodwell road , Ferris road , Wilson road
are what Vancouver streets respectively?
http://vancouverstreetstories.com/histor-of-south-vancouver/