- ONE YEAR ANNIVERSARY SURVEY
- THE ‘YEAH BUT’ STORY – BEING POSITIVE ON BC?
- QUESTIONS, QUESTIONS, & QUESTIONS
- THE NEW FIRST TIME BUYER LOAN – GOOD OR BAD?
- INTEREST RATES – UP OR DOWN?
- IT WOULD BE FUNNY IF IT WASN’T SO SAD
- WHY DO WE LET THEM?
- A LAWYER’S THOUGHTS ON REAL ESTATE – NEW PODCAST
LATEST OZ BUZZ PODCAST
OZ BUZZ MOVER AND SHAKER PODCAST – Ozzie Jurock talks to Tony Spagnuolo, The Spagnuolo Group of Real Estate Law Firms bcrealestatelawyers.com – How to buy a property – properly! Tony was born and raised in Vancouver, and currently resides in Burnaby. Married in 1991, he and his wife have three children. Tony graduated from Simon Fraser University in 1985 with a double major degree in Business Administration and Economics, with a core concentration in marketing and finance. He graduated from the University of Victoria Law School in 1988 and has been a member of the Law Society of British Columbia since 1989. See ozbuzz.ca for more Ozzie Jurock columns and interviews.
Listen to the Podcast
OZ BUZZ 1-YEAR ANNIVERSARY SURVEY
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QUESTIONS, QUESTIONS & ANSWERS
Q: I loved your ‘Yeah Buts’ story that Michael Campbell offered. So, has the market bottomed now?
A: Not sure which market you are talking about? The United States bottomed 6 years ago, in Ottawa sales are up 7% and prices are up 4% (never ever went down). Further Montreal sales are up 7% and prices are up 6%, Toronto sales are up 16% and listings are about even with last year. Surprisingly Calgary sales are up 4% and lists are down 12%. As well Edmonton had its best month in the last 8. That leaves Vancouver. Vancouver sales are down 6.5%, listings for single-family homes are marginally higher (still 50% higher in condos) but anecdotally there are many lights at the end of our tunnels. The absolute bottom is hard to predict, but it will come…
Q: In September there is a new first-time buyer programme. Is it any good?
A: Depends on where you sit on government handouts days before an election. Essentially our government will give first time buyers 5% on used and 10% on new home purchases (or more) up front and claws it (and more) back when you sell at a profit. (Yes, it will take a share of any profit.) However, it will also – percentage-wise – participate in any losses of its share. Details are just emerging … will talk more after I see them.
Q: You mentioned an inversion of the bond yield rate, presaging a recession? I don’t get it.
A: Bond rates have dropped like a stone this month, yet only last November all pundits predicted record new interest rates and thus high yields. Currently rates have dropped, and the 3-month rate is inverting to the ten-year bond rate, which is an inversion. Some say that an inversion presages a recession. Whether or not this means a recession now is still too early to tell. (Look up David Rosenberg – who believes we are in a recession already.)
Q: I find your comments on interest rates very interesting. So, are you in the lower interest rates camp as well now?
A: I never argue with the market. The world’s central banks last year decided that they had to raise rates – balance their books – which the US started last summer. The outcome was a crash in the stock market in December and we never have seen such a total reversal of central banks standing ever. As I put in a previous Oz Buzz, fear reigned, and rates now will likely be lower. In Europe the ECB announced it will NOT raise rates until next summer.
There were several other questions on interest rates and negative rates. Currently there are $11 TRILLION(!) dollars yielding negative interest rates in the world (probably 25% of all outstanding capital). Imagine: 25% of the world’s banks and institutions want you to deposit your money AND you pay for the privilege so that they can lend it out at a profit. That is not normal! In Germany that rate is now -0.3%.
Q: Why do banks do better in a rising interest rate environment?
A: Banks can charge more to their clients without paying the investors/savers more. They always win!
Q: How do I calculate the taxes payable on a property transfer and other taxes in BC?
A: Go to the BC Real Estate Association website and use their calculators: http://www.bcrea.bc.ca/taxapp/ Type in your purchase price … it will calculate taxes for you.
WHY DO THEY DO THAT?
When you’re watching a show or movie and an ad for another show, movie, sporting event floats along the bottom and OVER TOP OF THE SHOW I AM WATCHING. Soon ads will take up half the screen (they already do at golf!). HOW CAN THEY DO THAT? BECAUSE WE LET THEM!
IT WOULD BE FUNNY IF IT WASN’T SO SAD
How do you like TV ads on this or that medicine for ten seconds, followed by 30 seconds of disclaimers. It may cause bleeding, ulcers, headaches, death, etc. but at least you won’t have a runny nose.
Why do they do that? North America is a litigious society. The ad tries to cover all bases … no matter how ridiculous it is. Buy this pill and you may die!
Assignments abound throughout the Valley – some examples:
- Maple Ridge: 1 bed and den with 1 parking 628 square feet listed for $359,000, motivated seller will take $285,000 which will cover 3% assignment fee and real estate commission.
- Maple Ridge: 1 bed and den with 1 parking, 628 square feet listed for $348,000 motivated seller will take $290,000.
- Nanaimo: Pre-sale in Nanaimo Turnkey cashflow presale condos in high growth Nanaimo. Water views. One bedroom starting at $263,900 – 5 mins to the waterfront, 15 min walk to town centre
- Richmond: South Steveston: 2 bed, 3 full bathrooms and den, park facing townhouse with two side by side underground stalls, park view, new hardwood floors, over-height ceilings. 1500 sq.ft of townhouse living. Now for $929,900 with recent price reduction.
- Alberta: Edmonton: 1,200 sq. feet, 360,000 plus make offer. First class luxury development with all the bells and whistles. No rental restriction, No Air BNB restriction, and of course … Alberta, no land transfer tax and no rent control and no speculation tax
- Bonneville, Alberta – Brand new lakeside home, 2 bed, 2 bath, 1255 sq./ft $399,900
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WANT TO PARTICIPATE?
Go to www.realestatetalks.com – Some 2,500 members (47,009 posts) talk real estate. Ozzie created this bulletin board in 1998!
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OZZIE’S YOUTUBE CHANNEL
You can watch all videos and podcasts on my YouTube channel at https://www.youtube.com/jurockvideo. It is a great way to check on what I said 10 years ago.
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HAVE A QUESTION OR COMMENT?
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LIVE LIFE LARGE
We attract what we think about
What we want, we attract
What we love, we attract
What we fear, we attract
What we want with passion, we attract faster.
I attract the essence of that to which I give thought
What I want, I attract
I will be clear about what I want
I focus on what I want
I will grow into my future best!
Look up all of my “Grow into your future best” cards at: www.commitperformmeasure.com
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