Thursday, January 29, 2009
a) take this blog in a new direction
b) put it out of my misery
c) continue on lamely
d) ignore it (and I have been...)
However, I am still vacillating like a wind vane. So, in the interim, I will post some scary movies that require little effort on my part. I will concretise things eventually.
Thursday, January 22, 2009
CBC.ca had an unscientific poll (results pictured above) indicating that a whopping 64% were always against the Games Being Played. Are CBC readers more knowing than National Post readers? Are they more prescient than The Province readers? More cynical than The Sun readers? Who benefits?
That leads me to this;
I heard rumours of a possible criminal investigation around the whole Olympic Village debacle. There were a whole lot of "resignations" of City money people in City Hall since the municipal election. I have never had any doubt that there would be shenanigans around the Olympics. There are always shenanigans when billions of dollars are floating around.
So, those pre-sale flippers that thought that they can just walk away from their deposits and contracts are in for a surprise, the developers are suing for specific performance, and such, and will be flogging such units for what they can (25%-40% off to start...). The contract breakers will be on the hook for the difference, plus costs.
"...now many people who put down deposits at the market's peak are obliged to take possession of properties they don't want and can't finance because of tumbling values." link
Jayne sent me an e-mail with a link to this story. (thanks Jayne)
The Second StagePaul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions.
Another Real Estate Crisis is About to Hit
By PAUL CRAIG ROBERTS
For a picture of the US real estate crisis, imagine New Orleans wrecked by Hurricane Katrina, and before the waters even begin to recede, a second Katrina hits.
The 1,120,000 lost US retail jobs in 2008 are a signal that the second stage of the real estate bust is about to hit the economy. This time it will be commercial real estate...
Things are getting wilder every day.
Has it been foggy, or is it just me?
Sunday, January 18, 2009
A Vancouver real estate developer is making an unprecedented move to offer a liquidation sale of $350 million worth of its condominiums throughout the Lower Mainland.There goes the neighbourhood. Pity the fools who bought at full price. I caught a brief news clip, and the condo "owner" was flipping out. The poor bastidge probably thought that he would be selling at a tidy profit in a year, and now his condo is worth at least 20% less. This flo development is more like an ice floe that people were cast off on to perish.
The marketing strategy by Onni Group of Companies is aimed at selling off hundreds of condos in its inventory.
About 375 unsold condominiums in cities such as Richmond and New Westminster will be offered at 20 to 40 per cent off...
In my not-so-humble opinion, the suckers buying at the sale prices will also be finding that they have bought depreciating assets. Then comes the earth quake that will literally put them underwater.
After a 20 hour "emergency session" of the Legislature, Vancouver has received the go-ahead to borrow the money to finish the Millenium (Under) Water fiasco. You, nor I, will be consulted. That will be at least $456 million, and the latest is that it could be as much as $750 million. The limit imposed by the Leg. is to be found somewhere between the Sea and the Sky. In other words, there is no limit. I don't know about you, but I don't think that a billion dollar decision should be made after 20 hours of deliberation. I know that my own head is not very clear after an hour of debate, let alone 20 hours. The silver lining is that the City of Vancouver can borrow the money at "around 4%", while the developer (and us since September) pays 11%. So how is it good that I can borrow money cheaper than you, to cover your arse?
Who did the 52% that voted for the Olympics think was going to pay for this? Who got a Senate seat? Why do we have to have a 60% majority to have proportional representation, but only a 51% majority to put on a party for the rich, that costs us untold billions - directly and indirectly - disrupts our city and lives for 7 years, fuels an RE bubble that sucks in tens of thousands of slogan-addled believers into a lifetime of servitude to own a decaying, poorly built, and over-priced condo.
After 21 years in Vancouver, I have finally had enough. I don't want to pay for this. I'm going to buy a windmill, some hens and a rooster, hand tools, ammo, seeds, some goats, a few dogs, a few friends, a ukelele, an electric 4X4, 99 bottles of beer, buy a lease, build a sod house, learn to love potatoes, trade them for corn liquor, trade that for tobacco, trade that for dental floss and boots, and maybe a paper clip. What? You think that's crazy talk?, Yeah, well, real estate never goes down, you know.
This is going to be one of my last posts here, I think. I still have some photoshops that I just have to do, and a few comments to make, but let's face it, RE is dying an ignoble death. There is no joy or fun in that, and I am over taken by other, more pressing things. I just don't have the time to put in a decent effort anymore, and I'm just embarrassing myself now. Grin.
Sunday, January 11, 2009
So, you've probably heard by now that Vancouverites are the last bagholders on the Millenium(Under)water development - AKA "The Athletes' Village". A billion bucks. $2000 more debt for every man, woman and babe-in-arms in Vancouver. Say, I don't remember having the option to vote against that when I voted against the Olympics, and the $175 million in capital expenditures. Ah well, never mind, they/we can sell the 500 unsold condos after the Olympics, things will really take off then, right? Our calling card has been sent to the world, and we have ARRIVED!
Oh, and the $150 million for security, that we all knew was laughable, is now admittedly north of a billion $. That will be an extra $750 per Vancouverite to cover our share.
This really is TBPOE... to get screwed.
In other news: Alberta lost 16,000 jobs last month - the worst losses of any province. Wipe that smug smile off of your face Calgary. (By the way, have you finished paying for your Olympics yet?)
That's just the way it is these days.
Tuesday, January 06, 2009
Grack! I, and the fambly have been sick as dogs...and you thought I didn't love you anymore... I'm still pretty sick, but the miniature ME is more settled, so I have a few minutes.
Did you hear about the guy who is renting condos from flippers, and hiding behind the RTA (Residential Tenancy Act) to rip off the condo "owners"? Seems that this snake on the property ladder is leasing condos from "accidental" landlords, renting them out to foreign exchange students, pocketing all of the cash, and telling the "owners" to go frag themselves. Ouch! Can you imagine? Rennie Robots, who were more than bold, bought pre-sales, that they then had to complete on. Faced with $3600/month mortgage payments, they desperately lease them out for $1800+/month to some scammer who re-rents them for $2400+/month, and pockets all of the cash. OMFG! The hairball, as interviewed by CBC, says that he only refuses to pay rent to landlords who "harass (him)".
The cops say that they can do nothing, because it is difficult to prove "intent to defraud". Flippers in Paradise, indeed... Rule of Law, indeed!
Landlord: Uh, Mr. Jones-Smith-Brown, your rent cheques have bounced for the last 6 months, and my bank is freaking out on me because I am behind on payments. They are threatening to foreclose!
Mr. Snake-On-Your-Property-Ladder : Quit hassling me man! I'm never paying you now!
So, how about those City services? Snow removal? Pshawww! The City's plan is to wait for the rain. Get out of your car and take public transit!
"Ooops! Sorry! The buses can't run because one of the two plough operators is onMy sister-in-law observed a City truck driver, with a plough, and a hopper full of sand and salt, snooze on her quiet corner for over two hours.
holidays, and we can't afford to pay over-time".
I saw the first taxi cab on my street in three weeks last night. He got stuck. I went out with a shovel to help him.
ICBC reports a 30% increase in claims since this weather has started. My question is; how many hundreds of millions of dollars in property damages, personal injuries, lost productivity, etc., has the City's lack of response cost the citizens of this city? I heard Raymond Louie last week going on about how this is a "40 year event". Horse shoes! This is the second year in a row, and is a building trend. Climate change is upon us (forget about the Global Warming BS, Climate Change is the reality).
And, all of a sudden, our Federal Transportation Minister is concerned about the 2010 Games, and how we will deal with it if it snows. We will get 4 more trucks. Yee haw!
I could go on, and I will, but is this really The Best Place on Earth? Hummph!