Monthly Archives: February 2009

Will Inflation make a Comeback and How Will it Affect Vancouver Real Estate?

Stimulus packages coupled with ultra low interest rates are attempts by national governments and central banks to reflate economies around the world. If these efforts are successful (I think they will) I think inflation will be an issue in 2-3 years in Canada. I think elected politicians and to a lesser extent central bankers will find it very difficult to stop priming the pump once things improve.

I think changes in the Chinese economy will also push up inflation as we move forward. A 2007 Report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has said inexpensive Chinese exports have kept inflation around the world in check. As China develops though, the cost of China’s labor becomes more expensive, pushing up costs for the huge amount of simple products it exports around the world.

How does this relate to Vancouver Real Estate?

Inflation will cause prices and rents in Vancouver to increase while fixed rate mortgages locked in before inflation hits will decline in real and nominal value at an accelerated rate. Equity will increase at an accelerated rate for those with fixed rate mortgages.

Variable rate mortgage holders would see their rates and possibly payments rise in line with Bank of Canada rate increases to combat inflation.

If inflation does re-appear it will be very interesting time in the Vancouver Real Estate Market.

I’d love to hear everyone’s thougths!

More Justification of Stimulus and What Should We Do Instead?

Hi All,

I recently posted on the stimulus pacakges being enacted around the world and it generated alot of conversation, which is great and I thank all those who participated.

I shot a video justifying my position and I’d like to share with you. I’d also like to hear what people who oppose the stimulus packages think should be done to deal with the financial cirsis we find out ourselves in.

I look forward to your comments!

Walking Away from a Pre-Sale in Vancouver

*** PLEASE NOTE *** I am not a Lawyer and I am not Giving Legal Advice ***

Thinking of walking away from a pre-sale?

Before you do anything, talk to your lawyer, next talk to your Realtor, and then TALK TO THE DEVELOPER!

Some developers may have programs in place to help those who are having issues completing. The only way to find out is to ask!

The following could happen if you don’t complete:

1) You could get sued by the developer. Even if you win, you still have to pay the costs of defending yourself and we all know lawyers don’t come cheap.

2) You could lose your deposit.

Make sure when you buy something you can pay for it!

I’d love to hear your thoughts on this topic.

Mourning Carlos n’ Buds, 1372 Seymour Street Downtown Vancouver Development Site and Urban Garden

Who misses Carlos N’ Buds?!?

This Vancouver Tex-Mex Icon used to be situated on what is now the Onni development site at 1372 Seymour and 555 Pacific in Downtown Vancouver. 1372 Seymour Street is now a City of Vancouver Urban Garden that is part of a new City program to give developers a tax break for keeping vacant development sites as urban gardens.

According to the City of Vancouver development proposal for 1372 Seymour Street, Onni is planning on building a 33 story tower on this plot of land plus a child care facility. The link above has has the full development proposal with great drawings and pictures of where the building will be situated on the on the lot and what it will look like.

Tough to say when Onni will break ground on this one. A very well informed contact has told me that for Onni is saying that if its not out of the ground now, it won’t be coming out for some time…

I’d love to hear your thoughts!