02-13-2014, 04:35 AM
OK... first off... I am new here. Can I get input/opinions on this?
I have been searching websites for Data or even mention of how the new Herb Laws will impact Canadian Real Estate.
Not a partaker myself just observing the impact.
Is this one of those things not mentioned or simply not on anyone's radar?
The new laws were announced in Colorado and Washington State ... and quietly rolled out in Canada last Sept.
Note the date of the Article.
http://o.canada.com/news/health-canada-m...marijuana/
The price of property with 'grow parameters' dropped 20-40% over the next month in Oct 2013 and are just sitting there.
Things like:
Backs onto Crown Land, Remote, Private, Securely Fenced, Barn with 220 Power, Well or Water Rights, Fly In.
Along with the 25 year Mortgage, Banks are now requiring proof of Income to re-up a mortgage.
That means all the people that are 'Employed in the grow grey market' and the guys that had money laundering down payments on those million plus ranchettes no longer qualify.
Do a search of bank/court ordered sales in your area.
A lot of hot money went into presale condos and Developing Property when cash payments sent up red flags to the tax guys.
What happens when the cashflow drops or stops, when all that under the table non taxed income stops pumping the economy?
We have a couple of hundred plus Wineries in the Okanagan, like Berry farms on the coast.
They are so overbuilt but it has been a great way to launder cash.
Cars, Meals, Furniture, Health Clubs, Travel, Recreation, they have all been greased by Cash Flow.
I find it interesting how sales of things like Organic Food, Collector Hobby items, Clothing and Construction/Reno Materials, Pricy Pets have dropped.
When a market corrects it always overcorrects on it's way to the mean reversion.
How are people going to cover a million Dollar Mortgage on Reported taxable wages?
I go check Statscan and they show areas in the South coast that average $30-$60 G reported incomes...and average $400-$800G homes.
How are they going to re-qualify for mortgage renewals with their debtloads?
In the 80's rural property went down to 10% of the highs and stayed there. Houses were 18-25%. Rec Property was 15%.
It became a Cash only market as you could not get a loan.
Anyone old enough to remember what Vancity did then?
This is going to be orders of magnitude worse I think.
JMO
I have been searching websites for Data or even mention of how the new Herb Laws will impact Canadian Real Estate.
Not a partaker myself just observing the impact.
Is this one of those things not mentioned or simply not on anyone's radar?
The new laws were announced in Colorado and Washington State ... and quietly rolled out in Canada last Sept.
Note the date of the Article.
http://o.canada.com/news/health-canada-m...marijuana/
The price of property with 'grow parameters' dropped 20-40% over the next month in Oct 2013 and are just sitting there.
Things like:
Backs onto Crown Land, Remote, Private, Securely Fenced, Barn with 220 Power, Well or Water Rights, Fly In.
Along with the 25 year Mortgage, Banks are now requiring proof of Income to re-up a mortgage.
That means all the people that are 'Employed in the grow grey market' and the guys that had money laundering down payments on those million plus ranchettes no longer qualify.
Do a search of bank/court ordered sales in your area.
A lot of hot money went into presale condos and Developing Property when cash payments sent up red flags to the tax guys.
What happens when the cashflow drops or stops, when all that under the table non taxed income stops pumping the economy?
We have a couple of hundred plus Wineries in the Okanagan, like Berry farms on the coast.
They are so overbuilt but it has been a great way to launder cash.
Cars, Meals, Furniture, Health Clubs, Travel, Recreation, they have all been greased by Cash Flow.
I find it interesting how sales of things like Organic Food, Collector Hobby items, Clothing and Construction/Reno Materials, Pricy Pets have dropped.
When a market corrects it always overcorrects on it's way to the mean reversion.
How are people going to cover a million Dollar Mortgage on Reported taxable wages?
I go check Statscan and they show areas in the South coast that average $30-$60 G reported incomes...and average $400-$800G homes.
How are they going to re-qualify for mortgage renewals with their debtloads?
In the 80's rural property went down to 10% of the highs and stayed there. Houses were 18-25%. Rec Property was 15%.
It became a Cash only market as you could not get a loan.
Anyone old enough to remember what Vancity did then?
This is going to be orders of magnitude worse I think.
JMO