Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Opinions Please
02-13-2014, 04:35 AM,
#1
Opinions Please
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
Reply
02-13-2014, 09:10 AM,
#2
RE: Opinions Please
Waiting for a reply here is like waiting for someone to settle into the stall next to you so you can BUM some paper. Big Grin
OK... how about discussing how THIS will impact Real Estate?

http://www.huffingtonpost.com/dr-douglas...89611.html
More Data
http://grounds-mag.com/golf_courses/grou...sick_golf/
Reply
02-13-2014, 11:17 AM, (This post was last modified: 02-13-2014, 11:18 AM by Skook.)
#3
RE: Opinions Please
Or, watching paint dry? Welcome to VanPeak, Nola.

Be patient. You're raising some interesting questions that need some time to think about. As well, posting here at VanPeak is not a full-time job - we all have interests, demands and lives beyond the forum. And, most importantly right now at least for me, the Olympics are on - just watching our men's first hockey game - and they won. Go, Canada, Go!!
Reply
02-13-2014, 06:29 PM,
#4
RE: Opinions Please
They didn't stand a chance...
We have pout...pout...pouteen!
http://youtu.be/tMCOInQ0KKE
Reply
02-20-2014, 06:50 PM,
#5
RE: Opinions Please
MORE...
http://www.doctorhousingbubble.com/canad...te-canada/
Reply
03-07-2014, 11:28 AM, (This post was last modified: 03-07-2014, 11:30 AM by ice-queen.)
#6
RE: Opinions Please
You are really asking 2 questions here which are unrelated.

1) the issue of changing the rules on small medicinal marijuana operations to full scale commercial operations. Not sure what or how that is connected to the laws changing in Colorado/Washington? I do not believe they are connected. The market has built up to a point that is profitable for main stream business to make a profit. So the gov will allow this and save $ on policing bc big business can do as it likes so long as they pay their taxes and contributions.

2) Minister of F continually claims to be pre-empting a housing bubble with his wonderful policies. He, rightly knows we have a bubble but cannot do much for fear of elections. So he does tiny little things to make it look like he is doing *something*. When a correction happens, he will point to these actions as proof he has done his job. Changing the rules on showing income (hadn't heard that one), reassessing the value of the home, and the increase in CMHC fees are those things. They won't deflate bubble...maybe slow the progress a bit...

my quarter for what it is worth...
Reply
04-08-2014, 11:48 PM,
#7
RE: Opinions Please
(03-07-2014, 11:28 AM)ice-queen Wrote: my quarter for what it is worth...

Thanks for the input.... I have been keeping tabs and outside of the lower mainland.
Prices have hit the wall... They seem to be just hanging there...
6 months, 8 months, a price reduction or two.
There are bumps that tend to equalize themselves out.
Like... In Kelowna, there are a lot of guys from Ft Mac install their families in the okanagan.
Then they commute by rotation back from camp.
We saw a lot of that in the 90's also.
I used to go up to the new neighbours and tell 'em...
Watch your marriage guys... The stats on the high brow hill were that within 2 years, 72% of them got divorced.
So yes, there are a bunch of Transplants but they do very little but churn the waters and support Real Estate Agents.

It is interesting how people change.
Outsiders used to come in and buy a ranchette or 7-10 acre orchard. Or a 10 acre vinyard.
There are over 100 large sized ones in rge valley and the auctions have starter. Kind of like Blueberries in the Lower mainland.
We have a friend with a $600G house on a 1 acre lot. Has every kind of fruit tree, grapevines, garden plot imaginable. Updated 14 yr old house with shop.
The question they get asked the most is... "How hard would it be to install plastic turf?"
They want to party on their rotation, not do yardwork.
They are the only ones pulling 10 G a month to make the mortgage.
Going to be interesting when all those boomers go to cash out their property pensions.
There is no demographic coming up for them.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)

Contact Us | Vancouver Peak | Return to Top | | Lite (Archive) Mode | RSS Syndication