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No Bubble To See Here – Part 4 – The Amortization Effect

No Bubble To See Here – Part 4 – The Amortization Effect

The Amortization Effect   Each year from 2008 through 2010 the Federal Government reduced the maximum amortization as follows.   Purchases with less than 20% down –from 40–35 years, then 35- 30 and finally 30–25 years where it remains today.   Purchases...
No Bubble to See Here – Part 3 – Sustainability

No Bubble to See Here – Part 3 – Sustainability

Are Vancouver real estate values sustainable? Short Version Yes. Easily. Long Version No doubt that question may seem laughable to some. The thing is, depending upon one’s age, this question has seemed laughable to many for decades. Perhaps the question worth asking...
No Bubble To See Here – Part 2 – Accepting Appreciation

No Bubble To See Here – Part 2 – Accepting Appreciation

  Accepting Appreciation   If you are offered a bottle of water for $2.00 just after breakfast, you will likely say no thanks. Perhaps you’re not that thirsty and you will have time to grab one later. Besides, there is lots of water around.   If a few hours...
No Bubble To See Here – Part 1

No Bubble To See Here – Part 1

Short version: There is no bubble. There is increasing demand and decreasing supply. The media want to sell newspapers, hence one inflammatory theory after another. Shadow this, foreign that, dirty money, etc. Factors, but marginal and not market-moving themselves....
Playing With House Money

Playing With House Money

SHORT VERSION How much of the current record-setting price gains are self perpetuating? That is, ‘I just got paid $100,000.00 over asking, so now I too will pay $100,000.00 over asking… maybe $120,000.00 over’. It’s ‘found money’ – easy come easy go. LONG VERSION For...
Myths, Analysis, and Emotion in Vancouver Real Estate

Myths, Analysis, and Emotion in Vancouver Real Estate

Short Version Emotion drives our real estate market, but should it go unchecked? There is no metric for emotion. Emotion does not always equal logic. Interest rates play a small role in real estate pricing. Foreign buyers play a small role in real estate pricing....
Property Transfer Tax Changes

Property Transfer Tax Changes

Property Transfer Tax Changes Short Version There are no changes to the first-time home buyer exemption limits (with the exception of point #2 which includes first time buyers). All buyers (first-time buyers and repeat buyers) are now exempt from PTT on purchases of...
Subject Free? Perhaps Not.

Subject Free? Perhaps Not.

Subject Free? Perhaps Not. Short Version: Stellar credit, tremendous equity, and strong documented income are not enough to guarantee financing approval. The lender must approve of the property as well – and there is more than simply value reviewed. Lenders reserve...
The Big Short – Not a Canadian Story

The Big Short – Not a Canadian Story

The Big Short – An American film about American finance.   Many Canadians, particularly those in Vancouver and Toronto where real estate is spoken of like a sport, will gravitate to the film The Big Short over the coming weeks. It is an adaptation of an excellent...