Ellen's Got Real Estate Tips
More Humour From British Columbia
B.C. takes ‘hard look’ at non-resident real estate tax. Premier says idea is fraught with challenges, but a ‘really good idea’ Vancouver Sun January 18, 2016
"The private sector does not operate on a charity basis". OH YES IT DOES. The Government via CMHC underwrites the loans with little regard to risk while the Bank of Canada controls interest rates and mitigates banking system risk. The housing bubble in Canada (and globally) has been encouraged and promoted by the "charity" bestowed by government onto the private sector in the biggest credit creation in history.
The value of credit today is make-believe and not a result of a free market.
ITEM: Canadian banks earn $96 million a day in 2015, TheStar.com December 3, 2015.
I would say that's a happy charity.
It does however demonstrate the similar energetic move of the Vancouver housing market to the underlying commodities that go into creating housing. It's also is a reflection of what people (investors) will pursue with great energy until they decide otherwise. In this case commodities topped in 2008 with the $147/bbl crude oil peak and then continued their descent in 2011 working the right side of the Eiffel Tower collapse into our current commodity bear market with enough energy to begin deflating other financial assets.
The Vancouver housing bulls have yet to capitulate, but developers are trying to get ahead of the curve before they do. "B.C. real estate developer proposes ‘no down payment’ on Port Moody condos". Snippet below from Global News January 12, 2016.
Townline Homes Inc. is offering what it calls a “historic” zero per cent down offer on its development in Port Moody. By offering to sell one- and two-bedroom units at The Strand development for at least eight per cent under market value, it says the difference will be considered a down payment by the Canada Mortgage and Housing Corporation (CMHC). The only conditions are the buyers must make under a certain amount and promise to live in the unit for at least two years. Keep Reading
David Stockman: The World Economy Is Heading Into Epochal Deflation
SNIPPET from the above interview with David Stockman in August 2015 during the first major break down in paper assets:
China is falling apart... China is the most lunatic pyramid of credit and speculation in human history... capital is now fleeing the swaying towers of the China ponzi... it's over... the central bank driven credit economy is over...
History, Charts & Curated Readings
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'