tag:blogger.com,1999:blog-7123542260692860177.post3271639006554297316..comments2023-12-02T00:38:46.467-08:00Comments on House Hunt Victoria: CMHC insured mortgages are sub-primeHouseHuntVictoriahttp://www.blogger.com/profile/07456914359088891317noreply@blogger.comBlogger71125tag:blogger.com,1999:blog-7123542260692860177.post-43767744731389582312011-01-31T17:59:49.996-08:002011-01-31T17:59:49.996-08:00I want to getting so curious about this mortgages....I want to getting so curious about this mortgages. I have read a lot good and bad things about it and Now I am very interested to learn more about it. Thank you for this post.<br /><br /><a href="http://www.unlockequity.ca" rel="nofollow">Reverse Mortgages Canada</a>aldrin jameshttps://www.blogger.com/profile/05295858705462657707noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-72495973248217504942010-03-18T00:04:47.116-07:002010-03-18T00:04:47.116-07:00Thanks for the information. I am very glad for thi...Thanks for the information. I am very glad for this valuable information.<a href="http://www.bestratesbc.com/" rel="nofollow">mortgages in BC</a>Unknownhttps://www.blogger.com/profile/09418634603493670105noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-42414747839485475332010-01-21T22:40:36.667-08:002010-01-21T22:40:36.667-08:00The Beginning The working life is already tough en...The Beginning The working life is already tough enough, but the worries of being out of work was even tougher. The unsecured working environment have prompted me to search the internet for an alternative source of extra income so that I could learn how to Make Money Work for me and be Financially Independent. I listed down a number of Free Internet Business Opportunity Ideas while researching ways how people earn money online while working-from-home.......<br /><br /><br />www.onlineuniversal.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-55096540041271533152009-11-21T11:03:40.199-08:002009-11-21T11:03:40.199-08:00The "union hall."
Phhht.
Credentialist...The "union hall." <br />Phhht. <br />Credentialist.Art Vandelayhttps://www.blogger.com/profile/06564450756839952495noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-22069458323930063162009-11-20T11:27:35.770-08:002009-11-20T11:27:35.770-08:00"Essentially skilled tradespeople aren't ..."Essentially skilled tradespeople aren't going to drop their prices to the point were they are making $20/hour." <br /><br /><br />That depends on how hungry they are after the crash and if their EI has run out. What job is a guy going to go into on short notice that makes over $20 an hour with no experience or training ? <br /><br /><br />This usedvictoria story is getting lame. If thats where you're looking no wonder you find nothing but shleps. Maybe try the union hall,thats where the "real" trades guys work thru,but then will have to pay the going rate.Unknownhttps://www.blogger.com/profile/15441084043712102653noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-7212628333303452052009-11-20T11:23:28.678-08:002009-11-20T11:23:28.678-08:00"If no one is buying, then that $350k lot is ..."If no one is buying, then that $350k lot is going to be forced to drop in price. And like you said, you might have to build cheaper houses and leave out the luxuries, but houses will still be built when prices come down."<br /><br />I don't know how many times I will repeat this but there is very little lot inventory in Victoria. I paid $200,000 for a lot in Cordova Bay more then 10 years ago when at the same I bought an older 2500 sq/ft home for myself in Fernwood for a bit less! I could have bought a very nice home in Gordon Head for $260,000 - $280,000. Even the subdivision in View Royal past the General Hospital small lots were going for $110,000-$140,000 and that was like 12 years ago. A rancher on Scott Street (close to Hillside Mall) sold for $142,000 on a 5500 sq/ft lot back in late 1990s. My point is that land has always been very expensive in Victoria relative to price of homes. <br /><br />The cost of developing a building lot in Victoria is astronomical. Municipalities use to help out. I had to pull a sewer off an adjacent street for two homes I was building in 2004 at a cost of $56,000; however, Langford picked up $36,000 of the cost. Good luck getting $1,000 out of them now. <br /><br />There are currently 5 lots for sale in Victoria on MLS with the lowest price being $472,900. There are a few more in Sannich but some require you use their builder (they give you the lot for a reasonable price but they gouge you on the building side).<br /><br />The only way lot prices will drop significantly in Victoria is if home prices fall to the point where it is cheaper to buy an old home, tear it down, and build.Markohttps://www.blogger.com/profile/08315282480144281935noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-29484496921692765002009-11-20T10:52:26.050-08:002009-11-20T10:52:26.050-08:00Those following the economic news know that the &q...Those following the economic news know that the "economic recovery" is not going as forecast. The Bank of Canada and US gov't predictions were too rosy and even Obama is talking about a dip back into recession.<br /><br />What about BC? The Liberals are far too busy selling the Olympics to focus on the economy. But in a little over 3 months that party will be over and it will be time to tally up the expenses and face the bill. Once the PR switch promoting BC and the Olympics has been turned off economic reality will be pushed to centre stage.The Liberals passed special legislation to delay the budget until the Olympics are over. The budget will be presented on March 2 and you can bet it will be a doozy. <br /><br />Weak economic recovery, final Olympic bill, BC government cutbacks, HST and perhaps increased interest rates will have an effect on house prices.<br /><br />2010 - Year of the BearEagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-43454243858594899832009-11-20T10:18:07.900-08:002009-11-20T10:18:07.900-08:00Lot prices will come down if people can't affo...Lot prices will come down if people can't afford them, same as houses.<br /><br />If no one is buying, then that $350k lot is going to be forced to drop in price. And like you said, you might have to build cheaper houses and leave out the luxuries, but houses will still be built when prices come down.Leo Shttps://www.blogger.com/profile/02951281972056927807noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-79537410916599887922009-11-20T10:18:06.555-08:002009-11-20T10:18:06.555-08:00Garth Turner was in town last night and posted his...Garth Turner was in town last night and posted his comments on the Victoria real estate market today.<br /><br /><a href="http://www.greaterfool.ca/2009/11/20/bubble-columbia/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+GreaterFool+%28GreaterFool.ca%29" rel="nofollow">BC - Bubble Columbia</a><br /><br /><i>Actually the large crowd was friendly for a city epitomizing real estate delirium, and which I miss few opportunities to ridicule. <br /><br />Meanwhile affordability levels are flashing red. It now takes 7.4 times the average income in Victoria to buy the average home – seriously unaffordable by international standards, and far worse than the height reached by US real estate just before the crash. Just imagine what even a 2% rise in mortgage rates over a year or two would do to a market like that. Victoria is also a relatively small place of about 80,000, and an urban area of about 330,000.<br /><br />But I do worry for those people who fall victim to the mass psychology of insular markets, reinforced by <b>uncritical and myopic local media</b>. What has happened in Britain or the US is always just a few lousy weeks away.</i><br /><br />The Times Colonist did not cover the event. They have been too busy writing glowing RE pumper articles to prop up falling real estate advertising revenues.EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-20693069624248225562009-11-20T09:36:18.637-08:002009-11-20T09:36:18.637-08:00"How is it that in tons of other markets a ho..."How is it that in tons of other markets a house that costs 500k to build in Victoria will get built for 250k? If houses really cost 500k to build in, say Halifax, then no one would own a house."<br /><br />Find me a decent ready to build lot in Victoria for under $350,000 and than find me one in Langford for under $240,000. I just paid $6,000 for sewer connection along with $11,000 in "fees" to Langford. Once you spend this kind of money on land you have to build a bigger and better house. Jacuzzi tub, glass shower, hardwood floors, high-end appliances, granite in kitchen and bathrooms etc. <br /><br />I've been to Halifax and you are comparing apples to oranges. For example, this brand new home 1542 sq/ft is $289,900. I could EASILY build this for $100 sq/ft (no Jacuzzi, no granite, cheapest stainless steel appliances money can buy, no garage etc.)<br /><br />1542 sq/ft x $100 = $154,200 and I'll take a flat $25,000 construction management fee so $179,200. All you have to do is find a building lot in Victoria for $100,000 and you are set! <br /><br />If you take identical houses, take away the value of the land, building costs differences are not large as people would suggest.<br /><br />"It's not really about hourly wage."<br /><br />I agree, most tradespeople work on a contract based off an estimate. The reason I use hourly wage is because it is easy to quantify. Essentially skilled tradespeople aren't going to drop their prices to the point were they are making $20/hour. I am talking about real tradespeople here not guys on usedvictoria.com calling themselves carpenters. There people are ovepaid at $12/hour.Markohttps://www.blogger.com/profile/08315282480144281935noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-39581761072542438972009-11-20T09:28:51.490-08:002009-11-20T09:28:51.490-08:00The average age of Victoria tradespeople is also a...The average age of Victoria tradespeople is also a lot older than most people think. Many will simply retire (if they can) or sell their businesses to younger more ambitious people. <br /><br />I know of many tradespeople who are currently either working less than they did a year ago (in hours/week) or are working for less money. <br /><br />It's not really about hourly wage. It's about total bill they can get from clients. It's more competitive out there than a year ago and their are firms outbidding one another for jobs driving prices down. My anecdotes are reno side of business.HouseHuntVictoriahttps://www.blogger.com/profile/07456914359088891317noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-75696443088958552172009-11-20T08:56:02.819-08:002009-11-20T08:56:02.819-08:00"The thought that everyone in construction wo..."The thought that everyone in construction would rather leave than work for cheaper is totally bogus. Not like there are a billion easy jobs out there that you can just hop into."<br /><br /><br />Agreed, there are few carpenters,roofers,electricians etc that will toss away 4 years of training and years of experience to go start some new venture as a techy type or some big business dude. Most trades guys are in the trades because thats what they like doing,they are blue collar guys, not office boys. Maybe anecdotally a few do something different but overall I bet the percentage is very small. <br /><br /><br />The only reason there may be a temporary shortage is because of the large projects that have been happening the past few years which histrorically was a rarity in this town.Unknownhttps://www.blogger.com/profile/15441084043712102653noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-4423763762980800292009-11-20T08:24:13.939-08:002009-11-20T08:24:13.939-08:00@Don't
"The goal for these builders is to...@Don't<br />"The goal for these builders is to get the maximum profit."<br /><br />Duh. The goal for everyone trying to eek out a living is the same. You make it sound like that's a bad thing. Only a complete idiot would sell below market value just because they happen to be saving costs somewhere.<br /><br />However I don't agree with Marko's view that construction costs won't fall. Of course they will. How is it that in tons of other markets a house that costs 500k to build in Victoria will get built for 250k? If houses really cost 500k to build in, say Halifax, then no one would own a house. <br /><br />The market has been high for a long time, so everyone adjusts their rates to take full advantage. When that is no longer possible, they will be forced to adjust their rates down again to keep their jobs. The thought that everyone in construction would rather leave than work for cheaper is totally bogus. Not like there are a billion easy jobs out there that you can just hop into.Leo Shttps://www.blogger.com/profile/02951281972056927807noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-77485352567809947572009-11-20T07:55:18.223-08:002009-11-20T07:55:18.223-08:00Personal bankruptcies continue to soar
The numb...Personal bankruptcies continue to soar <br /><br /><br />The number of bankruptcies rose 44.8 per cent for the 12-months ended Sept., 2009, according to the Office of the Superintendent of Bankruptcy Canada, an agency of Industry Canada.<br /><br />During the latest month for which data are available the number of bankruptcies increased 29.1 per cent from the prior month.<br /><br />The volume of consumer bankruptcies rose 47.4 per cent during the 12 months ended September, while increasing 29 per cent from September over August.<br /><br />Businesses have faired well with the volume of bankruptcies falling 0.4 per cent during the past 12 months, although on a month-over-month basis they rose 31.6 per cent.<br /><br />The number of bankruptcies increased during September over August in the agricultural, forestry and hunting sector, construction, manufacturing, retail, waste management and the professional, scientific and technical group.Unknownhttps://www.blogger.com/profile/15441084043712102653noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-80025754420473919862009-11-20T00:42:36.496-08:002009-11-20T00:42:36.496-08:00"2 unit apartment building"
Was that a ..."2 unit apartment building"<br /><br />Was that a typo? Is 2 units actually considered an apartment building down there?Chickinvichttps://www.blogger.com/profile/15439471247805303810noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-87496648485710505632009-11-19T23:28:53.757-08:002009-11-19T23:28:53.757-08:00In the US the FHA is akin to the CMHC. They must ...In the US the FHA is akin to the CMHC. They must have been reading the CMHC press releases extolling their achievements. The FHA recently decided to expand their lending policies.<br /><br /><a href="URL%20of%20target%20site" rel="nofollow">New York Times - Easy Loans in Expensive Areas </a><br /><br /><i>SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.<br /><br />A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary.</i>EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-32736908362067119892009-11-19T22:42:11.159-08:002009-11-19T22:42:11.159-08:00People, you don't have to wait for the real es...People, you don't have to wait for the real estate market to correct. It's been correcting steadily for 2 years in Canada already. Don't believe me? Check out <a href="http://www.chpc.biz/images/OCT09-Value_Gold.jpg" rel="nofollow">this chart</a> ;-)<br /><br />Mr.4AMMr.4AMhttps://www.blogger.com/profile/06939742036749753862noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-41354467205451975602009-11-19T22:37:49.370-08:002009-11-19T22:37:49.370-08:00Here's our real estate market in one picture. ...Here's <a href="http://www.chpc.biz/images/OCT09-Conservative-Values.jpg" rel="nofollow">our real estate market in one picture</a>. <b>Warning:</b> You may end up having nightmares that include Stephen Harper for a few days.Mr.4AMhttps://www.blogger.com/profile/06939742036749753862noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-26512488744138054112009-11-19T18:28:55.524-08:002009-11-19T18:28:55.524-08:00So the market over here was correcting prior to th...So the market over here was correcting prior to the economic crisis. Moderate analysts were calling for around 30%.<br /><br />I see no reason that the economic fundaments have changed. The market will go back to where it was supposed to be before it was manipulated by the government, except now they have borrowed the future buyers out with the silly low rates. It could be worse because of this.<br /><br />There is one thing I, unfortunately, agree with that half wit bubbles; prices. I too think that house prices are at least as high as the previous peak. Look at the stats and you will see many more houses have been selling in cheaper neighbourhoods. That is why the averages and medians are down still. Overpriced garbage that has been on the market for years is now selling.omchttps://www.blogger.com/profile/11570216584047858772noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-30977389691033980702009-11-19T17:36:53.520-08:002009-11-19T17:36:53.520-08:00Marko,
Won't we be able to see trends form? I...Marko,<br /><br />Won't we be able to see trends form? It's not like it will turn on a dime overnight? Personally, until I see 3 months or more of consistent movement up or down I'd hesitate to call anything top or bottom. <br /><br />Until rent vs own costs in Victoria are more in line, I will continue to realize the value in renting. Right now, there is very little value in owning, just a whole lot of risk with very little upside in view.HouseHuntVictoriahttps://www.blogger.com/profile/07456914359088891317noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-80101578730754577932009-11-19T16:51:03.561-08:002009-11-19T16:51:03.561-08:00I really don't encourage anyone to buy right n...I really don't encourage anyone to buy right now. In my opinion, you have nothing to lose by waiting out the next year to see what happens.<br /><br />Where I think people will get burned is waiting too long if the market does correct. I think a lot of bears will get caught waiting for a 30-40% correction and pass up on a possible smaller correction; however, I don't think it will exceed 15%.Markohttps://www.blogger.com/profile/08315282480144281935noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-74309747001222035082009-11-19T16:05:41.063-08:002009-11-19T16:05:41.063-08:00I don't think Marko is missing or misleading a...I don't think Marko is missing or misleading anything. He stated that if things crashed he would move on. He also stated that he he sees risk and has no exposure to the market. Sounds like me when the last downturn hit. I found greener pastures and never came back. <br /><br />In the downturn you will find some trades working for $20/hr (or some where close), but for cash while they get their next step lined up.omchttps://www.blogger.com/profile/11570216584047858772noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-83515821476469593172009-11-19T15:57:22.269-08:002009-11-19T15:57:22.269-08:00I really have noticed a change in attitude from th...I really have noticed a change in attitude from the realtors in the releases lately. Idiots like bubbles beat the drum and built up a huge asset bubble. Now we are seeing multiple articles at the G&M and financial post to do with risky real estate and how it will hurt our economy. So now Muir is saying that there will be a glut of listings in the spring and "pent up demand" is ending, so everything will be ok.<br /><br />Kepp moving folks, no bubble here, nothing to see see.....<br /><br />Idiotsomchttps://www.blogger.com/profile/11570216584047858772noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-91653666281741100602009-11-19T15:48:49.098-08:002009-11-19T15:48:49.098-08:00marko misses the point that the other 51 % of thos...marko misses the point that the other 51 % of those who do have a mortgage will be controlling the price as it crashes as they are the ones in hock.<br /><br /> The different stages of what time those people bought in and how long their denial lasts will define how fast and severe it will happen. I expect one nasty move down when rates start up. Bernake is not too far away from pulling a surprise 25 or maybe half a point hike to try and save the US dollar. <br /><br />Once that happens the cards are off the table and the media alarm bells will be ringing so loud the CMHC/VREB will have to have a day off in mourning along with some group counselling sessions.Unknownhttps://www.blogger.com/profile/15441084043712102653noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-26627961625541948662009-11-19T14:56:00.829-08:002009-11-19T14:56:00.829-08:00Here is a Globe and Mail article about the effect ...Here is a Globe and Mail article about the effect of rising interest rates.<br /><br /><a href="http://www.globeinvestor.com/servlet/story/GAM.20091118.RMORTGAGES18ART1944/GIStory/" rel="nofollow">THE RESET RISK - Easy money, eager buyers. What happens if rates go up?</a><br /><br /><i>While home buyers have been pulling the housing industry out of a slump with their enthusiasm, there is growing concern that today's price gains, fuelled by cheap money, may be setting the stage for a different sort of crisis two to five years from now when their mortgages reset at higher rates.<br /><br />These homeowners could be forced to put their houses on the market and sell them for less than they paid, dragging down prices everywhere.<br /><br />"It's a safe thing to say that interest rates tend to move higher a lot faster than they move lower," said BMO Nesbitt Burns chief economist Doug Porter. "And there is always an outside risk that we could end up with more of a global inflation problem than many are predicting and rates could rise dramatically."</i><br /><br /><br />Take a look at the example at the end of the article.EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.com