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scoobydoo
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Food for thought....

Sat Jul 18, 2015 9:14 am

http://www.theglobeandmail.com/report-o ... e25558615/
The aforementioned policies (or lack of policies) have made existing homeowners incredibly wealthy, while most everyone else is permanently priced out of the market. This wealth hasn’t been created – it’s been transferred from the future to the present. Robust wealth is created through business and innovation. As our stagnant job market shows, we are not becoming wealthier – and with leagues of young, educated people leaving the city, it is on a path of decline. We have mortgaged its future, and the future of younger generations, to pad the coffers of today’s property owners.

Vancouver’s housing crisis has been directly caused by government policy, and now that an entire generation has been priced out of the market, we’re being told to deal with it – it’s the free market. That term, “free market,” has become meaningless in the process – invoked when it benefits the wealthy and powerful, and completely circumvented when it doesn’t.
Lots of interesting thoughts. The last two paragraphs sum it up nicely.
 
eyesthebye2
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Re: Food for thought....

Sat Jul 18, 2015 5:02 pm

"scoobydoo"

Vancouver’s housing crisis has been directly caused by government policy,
government policy on what? Finance? immigration? So many government factors at play.
Governments are powerless to step in and control the runaway trains in Vancouver and Toronto. If they alter policy for just two cities of
the entire country they'll be effecting the whole for the sake of the few.
I think they've just decided to let the ball roll
 
scoobydoo
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Re: Food for thought....

Sat Jul 18, 2015 9:10 pm

Did you read the article? It's explained there.
 
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WhipMaster
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Re: Food for thought....

Sun Jul 19, 2015 6:07 am

That article is "right on the money". :shock:
It's a rigged game. Canadians are sold out by gov't policy. Thanks for posting. :D
Hoo~Cudda~Not~Nod~ed????? :-)
 
tdma800
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Re: Food for thought....

Sun Jul 19, 2015 10:53 am

that article was written by a hater lol
 
scoobydoo
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Re: Food for thought....

Sun Jul 19, 2015 1:21 pm

Governments are powerless to step in and control the runaway trains in Vancouver and Toronto. If they alter policy for just two cities of
the entire country they'll be effecting the whole for the sake of the few.
It's interesting you say that. You've often stated that markets are local, which I 100% agree. You've also alluded to the fact that there are factors at play in the Vancouver market, and to a lesser degree in Toronto, that are not affecting other cities in the country. If the government, whichever level, targets one of these items, then one could assume that the rest of the country would not be affected. Therefore, altering specific policy would not have the broad impact that you imply. Yes...no?
I think they've just decided to let the ball roll
That is painfully obvious and which at least the provincial government has no problem admitting. Heaven forbid they do anything that would negatively affect RE values. After all, owners seem to have the same sense of entitlement that non owners are accused of having. That's my paper profit, don't touch it.
that article was written by a hater lol
It's all a matter of perspective, isn't it? Let the free market reign.
 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:26 pm

That article is "right on the money". :shock:
It's a rigged game. Canadians are sold out by gov't policy. Thanks for posting. :D
+1

That article was spot on.

The CMHC madness, our "emergency" interest rates, and ill conceived mortgage terms have all conspired to create this huge and probably temporary distortion whereby so many people have leveraged cheap loans into homes which they really cannot afford. I fear that the inevitable unwinding could be catastrophic for our economy in general and for many recent buyers in particular. This is not a situation to be celebrating.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:27 pm

that article was written by a hater lol
Or perhaps just a realist.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:29 pm

Did you read the article? It's explained there.
Based on his usual posting style it appears that ETB doesn't really read full posts, he just scans them, misses or misinterprets large sections and then opines. :roll:
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
tdma800
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Re: Food for thought....

Sun Jul 19, 2015 1:30 pm

 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:36 pm

Governments are powerless to step in and control the runaway trains in Vancouver and Toronto. If they alter policy for just two cities of
the entire country they'll be effecting the whole for the sake of the few.
It's interesting you say that. You've often stated that markets are local, which I 100% agree. You've also alluded to the fact that there are factors at play in the Vancouver market, and to a lesser degree in Toronto, that are not affecting other cities in the country. If the government, whichever level, targets one of these items, then one could assume that the rest of the country would not be affected. Therefore, altering specific policy would not have the broad impact that you imply. Yes...no?
I think they've just decided to let the ball roll
That is painfully obvious and which at least the provincial government has no problem admitting. Heaven forbid they do anything that would negatively affect RE values. After all, owners seem to have the same sense of entitlement that non owners are accused of having. That's my paper profit, don't touch it.
that article was written by a hater lol
It's all a matter of perspective, isn't it? Let the free market reign.
I think a growing number of the more morally responsible owners are starting to see the dangers of the social division which this current imbalance is already causing. Many also don't like seeing their children being priced out of the city.

Seeing one's property value increase can be pleasing, but not if you are eventually forced to live in a gated community or a fortified condo tower. The results of extreme inequality can be seen in failed states like Mexico. Not for me thanks, I'd rather just see my RE values just keep in line with general inflationary trends, it's safer!
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
scoobydoo
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Re: Food for thought....

Sun Jul 19, 2015 1:44 pm

I think a growing number of the more morally responsible owners are starting to see the dangers of the social division which this current imbalance is already causing. Many also don't like seeing their children being priced out of the city.
I agree. I'm not comfortable with where things are heading. It's unfortunate that governments only look at policy in terms of four year periods. What should we do that will get us elected, or re-elected in some cases. All this is short sighted and, in my opinion, is not positive for the longer term. It reminds me of a particular small South Pacific nation that I have had business dealings in the past. Everything is done for today with no vision for sustainability.
 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:47 pm

I just read the article but I didn't see any references to "hate", or any negative inferences either.

Personally, I like to see very expensive properties in nice neighbourhoods, but they should be exceptional properties, not run-down old crack shacks in rough areas. What really bothers me is the fact that a young well educated couple with professional status cannot afford a very modest old home, even in a very shabby neighbourhood. I do believe that, in the absence of massive wage inflation, the current prices are unsustainable - and that is scary!
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
Geyser
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Re: Food for thought....

Sun Jul 19, 2015 1:49 pm

I think a growing number of the more morally responsible owners are starting to see the dangers of the social division which this current imbalance is already causing. Many also don't like seeing their children being priced out of the city.
I agree. I'm not comfortable with where things are heading. It's unfortunate that governments only look at policy in terms of four year periods. What should we do that will get us elected, or re-elected in some cases. All this is short sighted and, in my opinion, is not positive for the longer term. It reminds me of a particular small South Pacific nation that I have had business dealings in the past. Everything is done for today with no vision for sustainability.
We appear to be on the same page. Currently, nothing which the government can influence will be allowed to seriously dent property prices until after the election, then all bets are off.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
eyesthebye2
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Re: Food for thought....

Sun Jul 19, 2015 2:39 pm

"scoobydoo"

It's interesting you say that. You've often stated that markets are local, which I 100% agree. You've also alluded to the fact that there are factors at play in the Vancouver market, and to a lesser degree in Toronto, that are not affecting other cities in the country. If the government, whichever level, targets one of these items, then one could assume that the rest of the country would not be affected. Therefore, altering specific policy would not have the broad impact that you imply. Yes...no?
sure, that would be immigration. But it's not that other cities don't have it - it's the degree to which Vancouver and Toronto swallows up new Canadians.
I don't see the Federal gov't changing their goal of 250K new immigrants/year...and a good chunk of those will still be coming to Vancouver and Toronto

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