New posts

The Decline of Vancouver.

Dec. 19, 2016, 3:36 p.m.
Posts: 6449
Joined: Nov. 19, 2002

I'm on the other end: responsible. All I see is the BC gov. giving me free money (below market lending) that will reduce the front loaded interest on my mortgage and make it possible to achieve 20% downpayment on my own. In the correct-use scenario, you avoid paying mortgage insurance, reduce mortgage interest, and pay back the loan instead of doing accelerated mortgage payments. My issue right now is getting 20% DP, not making monthly mortgage/strata/tax/etc payments; I already do that in the form of rent.

totally..I'm just saying the majority of people will probably end up in a shitty situation in 5 years, not everyone though. If this had come about a year sooner I'd probably keep my mouth shut, stick my down payment in the bank in a high interest savings account and roll with the tax-payers money for the first 5 years too, profit from the interest earned and pay back what I borrowed right away when the time was due. Free money. I'm guessing, but not sure, that they might have something that stipulates that if you already have the money for 5% down payment they won't lend to you; but who knows.

I don't know the answer to this, but will they lend you up to $37.5k to achieve 20% down? The wording makes it sound like it's only to get 5% down…Christies friends in insurance and big financial firms probably wouldn't be too happy to find out she invented a loophole that would allow people to skip out on mortgage insurance, save on interest etc but I might be mistaken. Curious to know if anyone knows the answer to that

Dec. 19, 2016, 3:47 p.m.
Posts: 955
Joined: Oct. 23, 2006

If someone was looking to get into a condo this Spring would there be any reason to take one of these loans if they already have a 20% down payment? Would there be overall savings on interest?

You'd be a fool not to take it.

Put it in GIC's and collect free interest, then pay it back in full when due in in 5 years. Oaken is offering 2.25% on 5 year GICs. The return without compounding is $4218.75, so will be even greater when compounding is taken into account.

So that greasy fucking Premier of ours is taking bare minimum of $5000 of taxpayers money for each of these transactions.

And who are the giving it to?

People who haven't managed to spend less than they earn for long enough to save a minimum down payment, to qualify for a mortgage with a payment that is more than they already spend on rent (at all time low interest rates).

These poor, hopeless, unfortunate souls clearly have nowhere else to turn than freehold home ownership in the most expensive place in the world.

Proviso: you must be willing to risk it all in the greatest bubble market in history (and believe 'this time is different'). But only if you buy insurance that is underwritten by all your neighbors, who clearly haven't had to sacrifice anything to raise their deposit and pay their own mortgage.

Thankfully official inflation rate is only 1.13%, otherwise property taxes and utilities would be going up by 4.5% and 8.93% respectively (spoiler alert - that's the real figure).

Dec. 19, 2016, 3:51 p.m.
Posts: 955
Joined: Oct. 23, 2006

I don't know the answer to this, but will they lend you up to $37.5k to achieve 20% down? The wording makes it sound like it's only to get 5% down…Christies friends in insurance and big financial firms probably wouldn't be too happy to find out she invented a loophole that would allow people to skip out on mortgage insurance, save on interest etc but I might be mistaken. Curious to know if anyone knows the answer to that

Easy, just put down 5% and save the rest for a year, then pay a lump sum on the anniversary of your mortgage with whatever you have left over. Or fuck it, spend it on furniture, a new car and holidays because you deserve it.

Dec. 19, 2016, 4 p.m.
Posts: 6449
Joined: Nov. 19, 2002

Easy, just put down 5% and save the rest for a year, then pay a lump sum on the anniversary of your mortgage with whatever you have left over. Or fuck it, spend it on furniture, a new car and holidays because you deserve it.

yeh but you don't get out of mortgage insurance that way. not enough loophole

Dec. 19, 2016, 4:26 p.m.
Posts: 955
Joined: Oct. 23, 2006

yeh but you don't get out of mortgage insurance that way. not enough loophole

Ah you're right. Not worth the GIC return if you have to pay a CMHC premium you'd otherwise avoid.

Dec. 19, 2016, 6:29 p.m.
Posts: 11911
Joined: June 4, 2008

Somehow I got through high school knowing how to differentiate an equation but never once did cost/benefit or rent/own analysis, let alone what P/E stands for (phys ed, right?).

There is philosophy behind teaching calculus.

If we are to teach the types of analyses you mention, I'd suggest we teach behavioural psychology for six years straight before we touch upon the belief we are rational actors.

Dec. 19, 2016, 9:26 p.m.
Posts: 0
Joined: Dec. 27, 2002

The wife is upstairs crying over real estate. Women want houses badly. In their DNA.

Any single house owning guys in the north shore looking for a woman? Low miles, minimum baggage. Pm for details

Dec. 19, 2016, 10:27 p.m.
Posts: 11911
Joined: June 4, 2008

Women want houses badly. In their DNA.

Women should only cook and serve us amirite.

Dec. 19, 2016, 10:46 p.m.
Posts: 1729
Joined: Nov. 23, 2002

Women should only cook and serve us amirite.

well see that's biased against same sex couples of the male gender.

Luck is what happens when preparation meets opportunity ~ Seneca

Dec. 20, 2016, 8:08 a.m.
Posts: 12813
Joined: Jan. 27, 2003

You don't qualify.

LOLASIA

Because of my 8 years of absence?

www.natooke.com

Dec. 20, 2016, 12:27 p.m.
Posts: 33665
Joined: Nov. 19, 2002

Because of my 8 years of absence?

I read that as "abstinence"…

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp

Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells

Dec. 20, 2016, 12:47 p.m.
Posts: 15158
Joined: Nov. 20, 2002

so how do the figures shake out for the rest of BC where lets say a 1st house might be 200K?

Dec. 20, 2016, 2:56 p.m.
Posts: 6449
Joined: Nov. 19, 2002

so how do the figures shake out for the rest of BC where lets say a 1st house might be 200K?

I think it'll just drive prices up across the province…this is what I see happening:

People living in lower mainland/southern Island/kelowna/wherever bubble get excited, think they can afford a first house because gov. is giving away free money. Buy expensive wine to celebrate soon to be home ownership.

Go to bank, realize that their incomes aren't even close to high enough to qualify for a mortgage on a high priced home in bubble zone.

Come home desperate and despondant; still in shitty rental bubble. Upstairs neighbours have a domestic later that evening, kids stamping around screaming, aspiring DJ neighbour pumping shitty drum n bass all night, or whatever. ok enough is enough.

They see a facebook post from their friends who just moved to whatever small town in BC out blasting powder turns without crowds, scroll back through pics from the summer and said friends were out gardening (actually have a garden!), swimming in the lake, living the life. Friends now own their own home, pay next to nothing for a mortgage compared to rent, their kid goes to some nice school and everyone at the coffee shop knows their name. Friends have made some connections in the community and mention that a job posting just opened up at the hospital/school board/whatever.

Couple starts looking at real estate in other small towns across BC that they never considered living in, drink bottle of wine, imagine themselves moving somewhere else. Hey, this could actually work!

Boom, real estate demand in small towns goes up across the board. Maybe not shitty small towns, but anywhere with even a few job prospects, cheap real estate and other families will go up.

I predicted this exact thing a little over a year ago, and house prices in this area have gone up $100-200k since then for the exact reasons I stated above. Most new families are coming to this area from the lower mainland, calgary, toronto because they couldn't afford a house where they moved from and even though RE was already pricey, its still a bargain compared to the city. Other small towns, like the one you live in XXX'er, will feel the same crunch. Property Values are on the decline in Vancouver, but have gone up almost every where else in the past year.

The New York Times even wrote an article about it last month:
With Flood of Urbanites, a Canadian Hippie Haven tries to keep it's mellow

Dec. 20, 2016, 3:15 p.m.
Posts: 15158
Joined: Nov. 20, 2002

I thot that scenario has been going on for some time in Nelson? which btw we call the "Smithers of the South"

Since we know Vangroovy is probably fucked for this program I was more thinking how much money would they get out of the program when say a 1st time buyer moves to interiour BC and buys a 200-300K starter house

yeah people come, its harder to make enough $$$ up here some jobs are seasonal, smart women with edumacations can't find men (seriously!) maybe things don't work out and they leave but the right people stay

Dec. 20, 2016, 3:46 p.m.
Posts: 900
Joined: Nov. 18, 2015

I've owned houses in two bubble cities (Toronto and now West Van) and the same pattern plays out over and over. The magnitude might be different, but the real estate gains on the periphery driven by a lack of affordability in the Cities, are the most vulnerable to market shocks.

I bet we see some weakness 2017 but I also bet that weakness, as a %, will be greatest on the margin. Longer term I bet real estate is at least slowly increasing through the entire lower mainland. Last years increase was nonsense- we are going to give a bunch of that back this year. It won't impact most.

Personally, I'm not selling in the next many years, or at least I don't plan to, so it's all a moot point. We do need a healthier real estate market and HIGHER SALARIES. It's hard to get people to move here despite it being, in my opinion, the best place in the world to live.

Had I have lived anywhere but Toronto where I made good dough off my house there I couldn't have moved here.

Forum jump: