tag:blogger.com,1999:blog-7123542260692860177.post8056080049916493073..comments2023-12-02T00:38:46.467-08:00Comments on House Hunt Victoria: Two thoughtsHouseHuntVictoriahttp://www.blogger.com/profile/07456914359088891317noreply@blogger.comBlogger62125tag:blogger.com,1999:blog-7123542260692860177.post-31047463734843212672008-10-08T14:15:00.000-07:002008-10-08T14:15:00.000-07:00HHV thanks for the input, while everyone is acting...HHV thanks for the input, while everyone is acting like chicken little I'm a kid in a candy store.<BR/><BR/>Im going to see what the rest of the week brings, with the rate cut and all. I will probably take the dive into some financials, some blue chip value next week. I am going to hold off on the oil/commodities for a few weeks to months, though SASK. POTASH looks sugar coated at just over $100. <BR/><BR/>My biggest enemy, analysis paralysis.Robert Reynolds - HMR Insurancehttps://www.blogger.com/profile/10939128478955272061noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-71795874377729560082008-10-08T09:02:00.000-07:002008-10-08T09:02:00.000-07:00Metaldwarf,look at the fundamentals of bank stocks...Metaldwarf,<BR/><BR/>look at the fundamentals of bank stocks. RBC and TD are two very luring buys. These guys will get through these times and come out much stronger. If you are buying to hold longterm, pick a price to earnings point you're happy with and snap up some shares.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-44397022384413760252008-10-07T20:15:00.000-07:002008-10-07T20:15:00.000-07:00Wow markets continue to get slammed. I opened a tc...Wow markets continue to get slammed. I opened a tc waterhouse account yesterday, I have a few grand sitting in waiting to buy in. I have an itchy trigger finger but I don't think the bottom is in yet. everything looks like such a good buy, but I am thinking of going into both small cap and large cap value. Commodities look pretty juicy though too. <BR/><BR/>This is all outside my regular RSP contributions. Anyone got any "HOT" fund picks?Robert Reynolds - HMR Insurancehttps://www.blogger.com/profile/10939128478955272061noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-75338039375958644352008-10-07T14:17:00.000-07:002008-10-07T14:17:00.000-07:00presidents choice financial (yes the supermarket n...presidents choice financial (yes the supermarket no-name brand) has a no fee chequing account that pays 3.75% and no lock in.<BR/><BR/>pcfinancial.caRobert Reynolds - HMR Insurancehttps://www.blogger.com/profile/10939128478955272061noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-32650487580768093632008-10-07T12:57:00.000-07:002008-10-07T12:57:00.000-07:00best GIC rate (without stretching out your term TO...best GIC rate (without stretching out your term TOO long) i've found currently (if you are over 57)<BR/>is 3.92 for 1 year-- with interest paid MONTHLY --at Canadian Western Bank (CDIC covered) <BR/><BR/><BR/>same product at a slightly lower rate if you're not 57 yet-check CWB websiteAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-59968047206943785432008-10-07T12:39:00.000-07:002008-10-07T12:39:00.000-07:00Here is some information if you are interested in ...Here is some information if you are interested in GICs and Term Deposits:<BR/><BR/>- Make sure what you are buying is covered by CDIC insurance<BR/><BR/>- Do not walk into a bank and buy a GIC without knowing what you can get from a GIC broker or investment broker (TD Waterhouse, RBC Action Direct etc.)<BR/><BR/>- Stay within the CDIC limits of 100K per account type (personal, RRSP, joint)<BR/><BR/>- Compare rates and terms. Posted bank rates are low and you need to shop wisely.<BR/><BR/>Here are some links of interest:<BR/><BR/><A HREF="http://www.cannex.com/canada/english/" REL="nofollow">Posted Bank Rates</A><BR/><BR/><A HREF="http://www.wjrhind.com/TermDeposits-BestRatesSheet.htm" REL="nofollow">GIC Broker</A><BR/><BR/><A HREF="http://dir.rbcinvestments.com/pictures/account-ds.publisher/gicrates_en-1.pdf" REL="nofollow">RBC Investments (pdf)</A><BR/><BR/><B>Disclaimer: I am not for or against GICs - this is just information for those interested</B>Rogerhttps://www.blogger.com/profile/08266466833259484873noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-65325846902586113612008-10-07T12:10:00.000-07:002008-10-07T12:10:00.000-07:00I'm not an expert on GICs, but I can tell you that...I'm not an expert on GICs, but I can tell you that banks are aware that the best way to save their butts is to hang on to client depositors/savings accts, and what better way to get scared investors to stick around than to get them to move out of the mutual funds, but into another locked in "safe" type of investment such as a GIC?<BR/><BR/>Ask questions, <A HREF="http://www.royalbank.com/products/gic/index.html" REL="nofollow">not all GICs are equal</A>. In fact some are linked to now declining stock market indexes... so the "Guaranteed" part in "GIC" is NOT a guarantee of a return on your ivestment, but rather a guarantee that it is invested - which is basically meaningless. <BR/><BR/>Where exactly does the bank invest your money so that they can return a profit to you via the GIC? Ask them questions! And if the answers are opaque, either the advisor isn't well informed or even the details are opaque to them, in which case - walk away. <BR/><BR/>Overall GICs are considered one of the safer investments, but these days "safe" and even "guaranteed" are words you can't just trust without digging into details. GICs are not safer than Tbills, gold or cash. They are however supposedly safer than bonds. <BR/><BR/>I googled for an asset class chart showing the different types of assets and their associated risk level and return potential, but I couldn't find any with GICs in them. I have however seen them at banks before, on desks of financial advisors. Understand what risk level you are getting into and remember not all GICs are created equal, and if the rate of return is higher than all other GICs make sure it is not intertwined with stock indexes.<BR/><BR/>Good luckAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-57830505530815354862008-10-07T11:47:00.000-07:002008-10-07T11:47:00.000-07:00"After the election, will the rates go higher?Or t..."After the election, will the rates go higher?<BR/>Or to combat severe recession, will they go lower?"<BR/> <BR/>yes. (lol)<BR/><BR/><BR/><BR/> It's impossible to call anything beyond today-altho the giant throbbing brains have all run to the "lower rates" side of the room-for now, but its hard to imagine how numerous countries all racing to the bottom rate-wise is going to do anything about the basic "credit crunch" problemAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-81772495356540564022008-10-07T10:10:00.000-07:002008-10-07T10:10:00.000-07:00anon 6:39 wrote:Roger, would you mind explaining w...anon 6:39 wrote:<BR/><BR/><I>Roger, would you mind explaining what the combined difference is to a FTB. Potential $50,000 drop in price to date on a $500,000 home and a change in interest rates from P-.8 or P-.9 which is what was offered last fall to P+1 (almost a 2% difference.)</I><BR/><BR/>House prices are falling and that is good news for future first time buyers (FTB) not current owners like yourself. Why should a patient FTB buy now when they can buy for less in the near future? <BR/><BR/>What about interest rates?? Yes they have gone up recently and that is another good reason to stay on the sidelines for a while. The BOC will be lowering short term rates before long and the variable mortgage will trend down from today's level. Also a mortgage broker will find assist buyers find a lender that wants less than prime +1. <BR/><BR/>Fixed rates will also drop before long because the spread between 5 year Canada bonds and 5 year fixed mortgages is abnormally high due to the credit crunch. Once the crunch eases fixed rates will drop to normal spread levels.<BR/><BR/><I>I have a 4.35% 5 year fixed mortgage coming due in about a year and I think I might look to re-write now before rates get silly. I'll see what the bank will offer.</I><BR/><BR/>I guess you have to do what makes you sleep at night. If it was me I would be waiting for rates to come down from current levels and renew next year. If you are renewing see a mortgage broker and you will get a better deal than going into your friendly banker.Rogerhttps://www.blogger.com/profile/08266466833259484873noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-84731780228427189892008-10-07T09:07:00.000-07:002008-10-07T09:07:00.000-07:00Oak Bay? here is one MLS #251528First listed $699k...Oak Bay? here is one MLS #251528<BR/><BR/>First listed $699k, sold in Oct 2008 for $545 after 40 days. <BR/><BR/>Market price on Oct 2009, $300K, or, you give a number.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-11000593218004269522008-10-07T06:39:00.000-07:002008-10-07T06:39:00.000-07:00Roger said:But Mr. 4 AM what is a FTB supposed to ...Roger said:<BR/>But Mr. 4 AM what is a FTB supposed to do now??<BR/><BR/>- after Oct. 15 CMHC requires 5% down. <BR/>- no more 40 year amortization means bigger payments every month or a smaller mortgage<BR/>- fixed rates have jumped .35% in the last few weeks<BR/>- now variables have jumped from 4.15% (prime-0.6) to 5.75% (prime+1)<BR/><BR/>Answer: Wait patiently. <BR/><BR/>Average and median Victoria prices have dropped 5 months in a row and that was before the recent credit freeze and stock market crash. This is only Act 1 - Scene 5.<BR/><BR/>Roger, would you mind explaining what the combined difference is to a FTB. Potential $50,000 drop in price to date on a $500,000 home and a change in interest rates from P-.8 or P-.9 which is what was offered last fall to P+1 (almost a 2% difference.)<BR/><BR/>I'll do my own math later, but I'll gurantee you it's not in anyone's interest. <BR/><BR/>I have a 4.35% 5 year fixed mortgage coming due in about a year and I think I might look to re-write now before rates get silly. I'll see what the bank will offer.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-63659093735194793972008-10-07T00:40:00.000-07:002008-10-07T00:40:00.000-07:00To answer the question about GICs: what do you thi...To answer the question about GICs: what do you think will happen after the election on October 21, 2008 - the next time the Bank of Canada is set to make a decision on rates?<BR/><BR/>After the election, will the rates go higher?<BR/><BR/>Or to combat severe recession, will they go lower?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-73752766239614825032008-10-06T21:49:00.000-07:002008-10-06T21:49:00.000-07:00Anyone care to comment on how GIC rates will move...Anyone care to comment on how GIC rates will move going forward?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-47225446280376267822008-10-06T21:48:00.000-07:002008-10-06T21:48:00.000-07:00Mr.4AM,What is your view on GIC rates going forwar...Mr.4AM,<BR/>What is your view on GIC rates going forward?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-49948424447936786142008-10-06T19:01:00.000-07:002008-10-06T19:01:00.000-07:00But Mr. 4 AM what is a FTB supposed to do now??- a...But Mr. 4 AM what is a FTB supposed to do now??<BR/><BR/>- after Oct. 15 CMHC requires 5% down <BR/>- no more 40 year amortization means bigger payments every month or a smaller mortgage<BR/>- fixed rates have jumped .35% in the last few weeks<BR/>- now variables have jumped from 4.15% (prime-0.6) to 5.75% (prime+1)<BR/><BR/><B>Answer: Wait patiently. </B><BR/><BR/>Average and median Victoria prices have dropped 5 months in a row and that was before the recent credit freeze and stock market crash. This is only Act 1 - Scene 5.Rogerhttps://www.blogger.com/profile/08266466833259484873noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-1366938305615102502008-10-06T18:23:00.000-07:002008-10-06T18:23:00.000-07:00That's priceless. Thanks for sharing that. For tho...That's priceless. Thanks for sharing that. For those of you still wondering, we were forcasting 30+% drops here in Victoria real estate <B>BEFORE </B>this financial tsunami hit wall street.<BR/><BR/>Now I'm hearing stories here and there of people wondering when they can retire.<BR/><BR/>And given so many baby boomers have all their wealth in a declining home value, guess what they will be doing in about 6 months from now? SELL SELL SELL!<BR/><BR/>If that's not convincing enough, <A HREF="http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2008/10/let-the-games-b.html" REL="nofollow">mortgage interest rates are climbing</A>, REGARDLESS of any potential upcoming rate cuts to save wall street. If you own a home and are not wanting to sell even if you lose 30%+ of its value and haven't locked for 5 years yet, I strongly recommend you do. As per link above, TD is increasing variable rates to prime + 1%. When was the last time you saw that?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-46839523863224282008-10-06T18:07:00.000-07:002008-10-06T18:07:00.000-07:00In case some of you didn't see this wonderfully ti...In case some of you didn't see this wonderfully titled story in the Vancouver Sun today...<BR/><BR/><A HREF="http://tinyurl.com/4ryx7z" REL="nofollow">I bought a house at exactly the wrong time </A><BR/><BR/><I>Not long ago, I was addicted to real-estate blogs. More precisely, I was fixated on what you might call the Internet's real estate disaster genre: HousingPanic.com, HousingDoom, FlippersInTrouble and, my favourite, ICan'tSellMyHouse.<BR/><BR/>I didn't own property, you see. I yearned to buy. Yet I thought the West Coast prices way too high....<BR/></I><BR/><BR/>The reporter goes on to say that he did buy a house in 2007, and at first it went up, but now he's back to where he started, and anxiously following the market and financial news. Unfortunately, he then calls up Bob Rennie for an opinion on the market - I guess he didn't learn anything from reading bubble blogs!Murielhttps://www.blogger.com/profile/01373029701619220293noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-66173068878230303532008-10-06T14:59:00.000-07:002008-10-06T14:59:00.000-07:00"Why else are small houses in Oak Bay and Fairfiel...<I>"Why else are small houses in Oak Bay and Fairfield starting to turn up sub $500k?"</I><BR/><BR/>I'm thinking it's because they're only worth about $300K in reality... but hey, I've been wrong before :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-39577635137217203062008-10-06T14:19:00.000-07:002008-10-06T14:19:00.000-07:00womp - we'll see some drop-off in inventory, but t...womp - <BR/><BR/>we'll see some drop-off in inventory, but to counteract that, we'll also see some extremely old inventory going into next year. Some of those sellers are going to be getting desperate to unload their places.<BR/><BR/>Why else are small houses in Oak Bay and Fairfield starting to turn up sub $500k?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-84429199625552571392008-10-06T12:58:00.000-07:002008-10-06T12:58:00.000-07:00Looks like we're a hair away from 5000 listings ag...Looks like we're a hair away from 5000 listings again. <BR/><BR/>Wouldn't it be something if not only was there no "spring market" in 2008, but there was no winter dropoff in inventory either....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-55145904707712299182008-10-06T12:54:00.000-07:002008-10-06T12:54:00.000-07:00Hmmm... 70K reductionNew condo market future??Hmmm... 70K reduction<BR/><BR/><A HREF="http://img171.imageshack.us/img171/5072/menziesyk1.png" REL="nofollow">New condo market future??</A>Rogerhttps://www.blogger.com/profile/08266466833259484873noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-39434237760809512062008-10-06T12:38:00.000-07:002008-10-06T12:38:00.000-07:00Wow, check out Edmonton's free-fall.According to t...Wow, check out Edmonton's free-fall.<BR/><BR/>According to this article:<BR/>http://tinyurl.com/4f9tkc<BR/><BR/>"Edmonton bungalow fell <B>11.8 per cent</B> "<BR/><BR/>"Two-storey houses dropped <B>13.8 per cent</B> year-over-year"<BR/><BR/>"A standard condominium tumbled <B>18.8 per cent</B> from last year to $216,667."<BR/><BR/><BR/>Anyone know how accurate this is? Those numbers seem pretty profound...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-90856665722974316032008-10-06T09:02:00.000-07:002008-10-06T09:02:00.000-07:00I just heard a radio ad for the Ovation (condo con...I just heard a radio ad for the Ovation (condo conversion @ Esquimalt & Admirals) offering 0 down/4.5% "extended" until Oct 31st.<BR/><BR/>I thought the cut-off for 0 down mortgages was the 15th?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-41951495281608019672008-10-05T15:43:00.000-07:002008-10-05T15:43:00.000-07:00Cab driving anon.Thank you very much for those 2ti...Cab driving anon.<BR/><BR/>Thank you very much for those 2tidbits. Very interesting to get the feel from the street.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-28679681210564740342008-10-05T06:53:00.000-07:002008-10-05T06:53:00.000-07:00That looks like a pretty accurate commentary on V...That looks like a pretty accurate commentary on Victoria to me.Anonymousnoreply@blogger.com