tag:blogger.com,1999:blog-7123542260692860177.post3706665615636149072..comments2023-12-02T00:38:46.467-08:00Comments on House Hunt Victoria: Haven't you heard?HouseHuntVictoriahttp://www.blogger.com/profile/07456914359088891317noreply@blogger.comBlogger40125tag:blogger.com,1999:blog-7123542260692860177.post-54136005666261214702009-12-23T08:57:45.240-08:002009-12-23T08:57:45.240-08:00I've had a basement suite in my house in the p...I've had a basement suite in my house in the past and we would never have raised the rent for a great tenant. <br /><br />We only had a few different tenants, but everytime one would move out it was very stressful - we didn't care if we could get a bit more money for the suite, it was the unknown factor of not knowing who was moving into your house. <br /><br />Why in the world would you risk losing someone great (especially in your own home) for a potential problem (financial,noise, personality conflict, cleanliness, etc.) for an extra $25 per month?Oliveshttps://www.blogger.com/profile/04163996405544770241noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-87037891953311110762009-12-22T21:40:55.994-08:002009-12-22T21:40:55.994-08:00Nin-Vic, thank you for your input from the other v...Nin-Vic, thank you for your input from the other view. I like your information and I think what you are saying fits in with the general idea.<br /><br />1. There are different options for rentals.<br />2. People will pay a premium for better rentals... to a point.<br /><br /> That business landlords are a very different type of landlord to what is being talked about. Namely a business landlord looked at the income potential of the property versus the asking price. <br /><br /> The landlord that is being warned or scorned is the one that bought a house they couldn't afford, but added in $1500 a month in suite rental income to make it fly. <br /><br /> After reading this blog for a long while now, I'd say most people are not anti landlord nor anti real estate. They are just against the landlord auto increasing the rent not based on over all rental rate increases, but because they need more money to cover living.Inglishmagorhttps://www.blogger.com/profile/06512753372584425267noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-75768619729333213932009-12-22T20:44:23.065-08:002009-12-22T20:44:23.065-08:00As a landlord I find this blog amusing.
Many forge...As a landlord I find this blog amusing.<br />Many forget or do not know that the larger buildings (15-20+ suites) sell on an income basis and say may average ~$120-130k/door currently. So these landlords have HUGE cost advantages when compared to market priced condos and or basement suites in market priced houses run by small time landlords.<br /><br />A 2 bedroom that cost in theory $130k in a large building can always be renovated for say an extra $10,000 and for $140k compete with a basement suite or newer condo at only $1100 per month, often with hot water and or heating included in the older buildings.<br /><br />So the threat of a tenant to move out to cause some sort of "harm" to the landlord who raised their rent 3.2% is pretty insignificant as the landlord may be able to re-rent the suite to a higher bidder in the end. Who knows... Or if the price is reduced $50 per month ultimately the landlord is still in business and no where near financial hardship, unlike what the tenant who moved out may think.<br /><br />The CMHC statistics are for larger buildings anyways and do not measure the 1-2 unit buildingds/houses. I suspect the rate for these properties may be higher than CMHC's statistics but it is somewhat flawed to transpose the data to another type of property that may or may not be relevant.nin-vichttps://www.blogger.com/profile/17293893237165139868noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-49166620077852318502009-12-22T16:05:14.194-08:002009-12-22T16:05:14.194-08:00Bahahahaha!! HHV's post is soooo timely.
We...Bahahahaha!! HHV's post is soooo timely. <br /><br />We just found a new house to rent at a 30% reduction in rent over our current rental. <br /><br />I would call them comparable although it is a very slight downsize.<br /><br />We will loose the 4th bedroom (spare room) and single car attached garage that we currently have. In total we are loosing about 350 sq/ft of space. <br /><br />We are gaining double pane windows, insulation, a water view, a shorter commute to work, and a much quieter street. Plus it still has one of those old drive down basement garages that will work fine for the bikes (although not as handy as the separate garage). <br /><br />I would say that rents are currently running about $1 sq/ft -- at least for the houses I have been looking at. <br /><br />Our new place is discounted by 15%.Aaronhttps://www.blogger.com/profile/03507072299723016016noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-49348235019279236652009-12-22T12:01:12.332-08:002009-12-22T12:01:12.332-08:00lying off = laying off, but you knew that :)lying off = laying off, but you knew that :)Mr.4AMhttps://www.blogger.com/profile/06939742036749753862noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-61344312301210110342009-12-22T11:45:52.344-08:002009-12-22T11:45:52.344-08:00You always get the latest housing news on HHV.
...You always get the latest housing news on HHV. <br /><br />Expect a mortgage rate increase in a few days. Benchmark 5 and 10 year Canadian bonds are rising fast - 17 tp 20 basis points (bps) in a week. Take a look at how steep the yield curve has become over the last year. Big pressure for interest rates to rise.<br /><br /><a href="http://i50.tinypic.com/mlgnj9.png" rel="nofollow">Bond rates - click here</a>EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-39224887409735260222009-12-22T11:36:07.765-08:002009-12-22T11:36:07.765-08:00Vic, For a second there I thought you meant that t...Vic, For a second there I thought you meant that they sold out of all their residential units hinting at a "hot market", but it wasn't until I read an article explaining <a href="http://www.timescolonist.com/business/Dockside+project+hits+pause+button/2370149/story.html" rel="nofollow">the developer of Dockside Green sold 100% of his shares to Vancity, the credit union.</a><br /><br />I have to wonder, what's a credit union doing getting into real estate by the hundreds of millions, not to mention at near market peak?<br /><br />From what I've seen, Vancity has a knack for trying to get their hands in too many pies, only to then realize they aren't profitable anymore as was the case in 2007 when a new CEO came in and cleaned house by lying off some 2/3's of all their senior executives (yikes!).<br /><br />Can't wait to see their 2011 year end numbers after taking on 650 Million at Dockside.<br /><br />Mr.4AMMr.4AMhttps://www.blogger.com/profile/06939742036749753862noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-61950516544549822022009-12-22T08:56:21.298-08:002009-12-22T08:56:21.298-08:00Dockside Green developer sells out, what kind of s...Dockside Green developer sells out, what kind of signal does that send to the market ?Vichttps://www.blogger.com/profile/08986654555255579099noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-76373513826092729962009-12-21T21:58:55.777-08:002009-12-21T21:58:55.777-08:00Deja Vu - Flashback to 2008
Reuters - Canada'...<b>Deja Vu - Flashback to 2008</b><br /><br /><a href="http://www.reuters.com/article/idUSN1644088820080716" rel="nofollow">Reuters - Canada's Flaherty: no housing bubble</a><br /><br /><i>The Canadian government changed the rules for government-backed mortgages last week to avoid a U.S.-style housing market decline, even though the domestic market remains solid, Finance Minister Jim Flaherty said on Wednesday.<br /><br />Officials were concerned about a recent trend towards long mortgage amortization periods and low down payments, which prompted the rule changes, Flaherty said in a Calgary speech.<br /><br /> "There is no bubble in the Canadian housing sector, that has not been our concern," he told reporters after the speech.<br /><br />"Our concern has been a tendency for longer amortization period of 40 years and purchasers putting very little money down."<br /><br />The changes, due to take effect in October [2008], include ending government-backed mortgages with 40-year amortization periods, and a new requirement that buyers have a minimum down payment of 5 percent.</i><br /><br /><b>Jim is singing the same song now. Bears - 10% down 30 year amortization is just around the corner.</b>EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-71809936759092974242009-12-21T21:52:22.866-08:002009-12-21T21:52:22.866-08:00Yup, demand gets drawn forward, kinda like cash fo...Yup, demand gets drawn forward, kinda like cash for clunkers did with auto sales in the US. <br /><br />;-)<br /><br />By the way, thanks to Skeptic for the nice link to the Financial Post article, I hadn't read that one.kabloonahttps://www.blogger.com/profile/13589241009488655847noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-3110504049703403012009-12-21T21:26:58.482-08:002009-12-21T21:26:58.482-08:00Kabloona,
It's going to be like last year wh...Kabloona, <br /><br />It's going to be like last year where they cut back on the 0/40. There will be a run-up until the cut off and then a sharp drop as demand borrowed from the future has to be repaid.msrhttps://www.blogger.com/profile/16248691341290326597noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-9374192205847655192009-12-21T20:05:43.565-08:002009-12-21T20:05:43.565-08:00People who were vacillating will now be pressured ...People who were vacillating will now be pressured by their realtor to jump off the fence and grab that condo before their 5% down becomes 10% and they need $20k instead of the $10k they just got off their folks. The last act of this asset bubble is about to be played out, methinks....kabloonahttps://www.blogger.com/profile/13589241009488655847noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-46494136149630656452009-12-21T17:32:02.056-08:002009-12-21T17:32:02.056-08:00There is a lot of concern being expressed by local...There is a lot of concern being expressed by local mortgage brokers and RE agents after Flaherty's comments were reported. Globe and Mail says <a href="http://www.theglobeandmail.com/report-on-business/flaherty-warns-on-mortgage-rules/article1407223/" rel="nofollow">"Cure for housing market carries risk"</a><br /><br /><i>The housing market that led Canada out of recession is now so hot that Ottawa is talking about doing something to cool it off, a move economists say carries risks for the economy.<br /><br />Such a move would have to be done cautiously, economists say, because the real estate market touches all parts of the economy, and anything that caps its growth could also temper the recovery.</i><br /><br /><b>Not surprising - some people are not listening to Carney and Flaherty</b><br /><br /><i>Tougher requirements could price out first-time buyers such as 28-year old Michael Maynard, who are vital to a healthy market as they buy entry-level homes and allow others to trade up to larger and more expensive properties.<br /><br />The Oshawa, Ont., law clerk has been looking for a house with his wife Angela for most of this year. They intend to make a 5-per-cent down payment, which they managed to save while Angela was on a maternity leave.<br /><br />“If the requirement went up, I'd be out of the market right now,” he said. “There's no way. We'd cool our heels. We'd come back eventually, but there's no way we'd be able to stay in the market. And we want to take advantage of low interest rates, so that would be a shame.”<br /><br />Buyers like the Maynards, who rely on low down payments and extended repayment periods to afford their homes, are becoming more common. In a November report, the Canadian Association of Accredited Mortgage Professionals found 18 per cent of mortgages were amortized over more than 25 years – a gain of 100 per cent in two years.</i>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-33735108661856670572009-12-21T16:56:51.763-08:002009-12-21T16:56:51.763-08:00Financial Post put this article on their site a fe...Financial Post put this article on their site a few minutes ago...<br /><br /><a href="http://www.financialpost.com/story.html?id=2368295" rel="nofollow">Flaherty bombs on housing bomb</a><br /><br /><b>He has already missed the opportunity to defuse the real estate bomb at an early stage</b><br /><br /><i>Think of Canada's housing market as a ticking time bomb. Think of Finance Minister Jim Flaherty as the unlucky bomb disposal expert called in to deal with the problem.<br /><br />Flaherty is moving slowly - oh, so slowly - to snip a wire here and there in an attempt to defuse the mess. Problem is, the ticking is getting louder by the minute.<br /><br />If the bomb explodes, home prices could plunge. In the worst case, plunging prices could bring on an economic downfall such as the United States, Ireland and Spain suffered after their real estate markets collapsed.<br /></i>EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-34822555222378182322009-12-21T15:24:43.564-08:002009-12-21T15:24:43.564-08:00Flaherty (spit), should start by cleaning up his o...Flaherty (spit), should start by cleaning up his own mess, namely CMHC.<br /><br />CMHC, is a crown corporation that is out of control. If CMHC, had stayed with the policy of assisting first time buyers, then we would not have gotten into this mess.<br /><br />But instead, CMHC's mandate was increased to insuring bank profits, developers, recreational properties, apartment buildings; second and third homes. The banks could also extend the insurance to conventional mortgages. CMHC is now the largest holder of sub prime (high ratio) mortgages in the world. And you just wait until these mortgages are reset to higher interest rates when their 1,2 or 3 year term is up.<br /><br />I think we should garnish every politicians salary who were involved in this deception of the Canadian taxpayer. Also, I would seize their passports so that will not be able to get a job as a Harvard professor. <br /><br />So Joe, start practicing for your next job....<br /><br />"would you like fries with that"Johnny-Dollarhttps://www.blogger.com/profile/12950799399842707067noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-37384443469872847772009-12-21T13:37:39.460-08:002009-12-21T13:37:39.460-08:00I think we have to be prepared that Flaherty is ju...I think we have to be prepared that Flaherty is just giving lip service, and has no intention of popping the real estate bubble that is floating the economy. I think he is just passing the blame and trying to throttle the bubble just under popping level.omchttps://www.blogger.com/profile/11570216584047858772noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-84070590924977245142009-12-21T12:16:34.941-08:002009-12-21T12:16:34.941-08:00What kind of BoZo is this Flaherty (spit).
Does h...What kind of BoZo is this Flaherty (spit).<br /><br />Does he think that newlyweds Jonny and Jill are seriously considering anything he says? Do they even know who he is? All they want is a home, like all of their friends have gotten, because of the cheap credit Flaherty (spit) has provided. And now diamond Joe Flaherty (spit) says they can't have what their friends have!<br /><br />I think the New Foundlanders say it best.<br /><br />Blow it out yer arse Flaherty (spit)Johnny-Dollarhttps://www.blogger.com/profile/12950799399842707067noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-49267819756371534272009-12-21T10:15:27.234-08:002009-12-21T10:15:27.234-08:00Village,
Here is a clickable link to the G&M ...Village,<br /><br />Here is a clickable link to the G&M article you posted.<br /><br /><a href="http://www.theglobeandmail.com/report-on-business/flaherty-warns-on-mortgage-rules/article1407223/" rel="nofollow">Flaherty warns on mortgage rules</a><br /><br />CTV carried the interview with Flaherty on this subject. Here is a link.<br /><br /><a href="http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20091220/flaherty_mortgages_091220/20091220?hub=Canada" rel="nofollow">Flaherty considering measures to cool housing market</a><br /><br /><i>"If we see further evidence that there is excessive demand in the housing market or that there's an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action," Flaherty said on CTV's Question Period, which will air this week.<br /><br />He added that he's considering a few different options to cool down the housing market if it's deemed necessary.<br /><br />"The likely action we will take is to increase the size of the down payment from 5 per cent to a higher number, reduce the amortization -- bring it down from 35 years to something less," he said. </i><br /><br />I think this is a done deal - regulation changes are being prepared now. This can all be done without legislation. The government knows this will cool the housing market so they need to lay the groundwork for the announcement. This is the second time he has brought up this possible change to the rules in a week.EagerBuyer(Not)https://www.blogger.com/profile/02849067281638388070noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-3709611523563147652009-12-21T09:35:43.402-08:002009-12-21T09:35:43.402-08:00"ITS DIFFERENT THIS TIME"
And it is!
T..."ITS DIFFERENT THIS TIME"<br /><br />And it is!<br /><br />The Canada wide increase in rental vacancy rates is cause for alarm for the Federal Government.<br /><br />The low interest rate policy, while easing the depth of the Canadian recession is now having an adverse affect on rental housing.<br /><br />As more renters are leaving the rental market than those arriving as evidenced by rapidly increasing vacancy rate that has gone from half a percent to 1.4 in Victoria. The current low interest rates are, for the first time in a decade, having a negative affect on the real estate market.<br /><br />A vacant basement suite may not be the "mortgage helper" that it was in the past. And may not be seen by the lender as a "sure thing" when the lenders, with CMHC's approval, would apply 100 percent of the suite's income to the mortgage applicant's income.<br /><br />With the tighter accounting rules coming into affect on January 1, I can imagine CMHC reducing the allowable income from 100 percent back to 60 percent (what is was five years ago) and not insuring secondary (rental)residences, which again CMHC started to finance a half dozen years ago. <br /><br />CMHC's mandate was at one time "helping to house Canadians" that was dumped back in the mid 1990's when the government had instructed them to become profitable. CMHC became an underwriter, but with a massive difference. They did not have to report to stock holders and all of the debt instruments are backed by the Canadian government.<br /><br />In a nutshell, they were charged to make a profit, without accountability or responsabilty. And then given almost unlimited ability to insure mortgages without holding reserves that are mandatory of other underwriters.<br /><br />BAD, BAD, BAD<br /><br />Why should I, as a Canadian taxpayer, be insuring, at discounted rates, a person buying an eight suite apartment building?<br /><br />The simple answer is that I should not be. Either CMHC has to go back to its roots of helping Canadians buy their first home - or CMHC has to be privatized.Johnny-Dollarhttps://www.blogger.com/profile/12950799399842707067noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-13611480325954043992009-12-21T09:13:53.720-08:002009-12-21T09:13:53.720-08:00Anyone able to point me at a mortgage calculator t...Anyone able to point me at a mortgage calculator that includes CMHC, insurance and other costs? Lost the link to one I had, and most just include base costs not what I'm actually going to spend per/moth.<br /><br />ThanksVillagehttps://www.blogger.com/profile/01880618948392892946noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-60612837244955933062009-12-21T09:00:42.678-08:002009-12-21T09:00:42.678-08:00All talk, or legitimate threat? And how soon?
ht...All talk, or legitimate threat? And how soon?<br /><br />http://www.theglobeandmail.com/report-on-business/flaherty-warns-on-mortgage-rules/article1407223/<br /><br />As a potential FTB, I'd rather wait until after new requirements are imposed. Fewer people to compete with and more pressure on downward house prices as I see it.<br /><br />Maybe I'm missing something, but I don't see how this causes houses to cost more. Temporarily sure, but people can afford $X and those who need to sell will gravitate towards $X. Higher interest, shorter amortization and larger down payments all look like a good thing to me. I'd rather buy at a high interest rate, low principal then the reverse. Even if I am a current $5/35yr looking buyer. =)Villagehttps://www.blogger.com/profile/01880618948392892946noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-53466299780111969962009-12-21T08:26:09.370-08:002009-12-21T08:26:09.370-08:00Jesse
I have been both a tenant and a landlord, s...Jesse<br /><br />I have been both a tenant and a landlord, so I understand the situation from both perspectives. I have had tenants paint my living room dark blue, pile garbage 25 bags thick in the backyard, bring home puppies that pee on carpets, invite their best friend, boyfriend and the best friend's boyfriend to move in with them "just over the winter months" and I have covered the cost of four blazing block heaters. I had one tenant demand a rent reduction of 75% so he could pay off his Sears card and when I refused he threatened to hang himself in the bathroom. I then spent hours counselling him on the phone and finding him services to protect and stabilize him. <br /><br />I was a homeowner for 15 years but when I moved to Victoria I chose to rent for all the obvious reasons. I am not accustomed to being told I cannot have a pet, keep a garden, paint my livingroom etc. all of which I bear with gritted teeth because the house is not mine, so I must comply. <br /><br />My experiences with landlords since moving here have been humiliating and degrading. I have been duped into signing leases, paying for repairs to the property myself, I have got down on my hands and knees and done the repairs myself. I have weeded gardens, mowed lawns, cleaned carpets, weatherstripped, helped neighbors and listened to lonely landlord's family problems. I have also been accused of all manner of wrongdoing such as failing to keep the house spotless for prospective buyers, requiring 24 hours notice to enter the property, not allowing real estate agents access in the evenings, cultivating mould in window sills, changing locks and parking my car where it came in contact with a landlord's baseball bat (OK that was a suspicion that the police could not prove). <br /><br />So in fairness to tenants, I think it is a good idea to ask for references from landlords and if I am ever a landlord again, I will offer references up front. <br /><br />Please forgive my skepticism. I speak from my own experience. <br /><br />BTW, I see the google account on this computer is Yoshi and I do not understand how to change it to Bitterbear so I will sign,<br /><br />Respectfully yours<br />BitterbearUnknownhttps://www.blogger.com/profile/01340989027951361908noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-622023123772218962009-12-20T22:40:27.441-08:002009-12-20T22:40:27.441-08:00In this market why not ask for a landlord's re...In this market why not ask for a landlord's references? If you are a good tenant and aptly demonstrate this a rational landlord will see the value of having you as a tenant. There are landlord's who purport to offer a superior service. If they say this ask for proof. If they balk you know it's a lie. I've negotiated enough business deals to know both sides need confidence the other is a good fit for their needs and goals.jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-36491308332000653172009-12-20T22:30:45.794-08:002009-12-20T22:30:45.794-08:00Ooh this is fun. Can I play?
Dear tenant,
Get th...Ooh this is fun. Can I play?<br /><br />Dear tenant,<br /><br />Get the **** out of my place. <br />You're wasting all my bandwidth posting on that silly blog, and even though I've told you many times, you won't stop digging up the backyard to hide your gold bars. <br /><br />Best Regards,<br />LandlordLeo Shttps://www.blogger.com/profile/02951281972056927807noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-30672829421209954922009-12-20T22:28:32.766-08:002009-12-20T22:28:32.766-08:00yoshi I am not a landlord but I do take issue with...yoshi I am not a landlord but I do take issue with some of the conceit demonstrated in this post. From my experience trying to exert power over a business partner is fraught with danger and rarely ends well. HHV's ficticious situation has a subtext of contempt for landlords in general and writing a letter like that IMO shows there is more than just a small rent increase behind the desire to move.<br /><br />I am sure more wiley tenants will and should fight tooth and nail to avoid rent increases however never underestimate the degree of hubris alive in the market. I would bet that most landlords will believe they can replace a good tenant with their "above average" business skills and guile. We know on average they will fail but it is naive to think a landlord must succumb to a tenant's perceived upper hand.jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.com