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Athens · Mar 22, 2012, 02:45 AM

Vancouver is now going to setup a rent bank for those that cant make rent, people can borrow money to pay rent.

This just awes me.

Vancouver considers rent bank - News Hour - Videos | Global BC

Mac Write · Mar 22, 2012, 03:26 AM

Same as PayDay loan they will be trapped for life.

turtle777 · Mar 22, 2012, 08:34 AM

It's only a temporary thing, until the Vancouver housing bubble bursts.

-t

SSharon · Mar 22, 2012, 09:58 AM

Originally Posted by Mac Write

Same as PayDay loan they will be trapped for life.

The video explains that at least here you might get some financial advice to help you long term. The payday loan places charge crazy interest and take advantage of people. If this is nothing more than an official payday loan with a limit on the amount of interest why is that such a bad thing?

mduell · Mar 22, 2012, 12:06 PM

This is just propping up the rich building owners demanding inflated rents. Time to burst that bubble rather than continue to inflate it.

Originally Posted by SSharon

The video explains that at least here you might get some financial advice to help you long term. The payday loan places charge crazy interest and take advantage of people. If this is nothing more than an official payday loan with a limit on the amount of interest why is that such a bad thing?

Who's going to eat the losses?

Athens · Mar 22, 2012, 12:51 PM

Originally Posted by turtle777

It's only a temporary thing, until the Vancouver housing bubble bursts.

-t

Ya that's not going to happen until Asia goes broke.

olePigeon · Mar 22, 2012, 01:53 PM

My apartment raised my rent by over $400. So I looked around on Craigslist and found someone renting an entire 3 bed 2 bath house for the same price they wanted for my stupid apartment. Includes a gardener so I don't even have to mow the lawn. The previous tenants left a nice propane BBQ, washer, dryer, and a brand new refrigerator. So I don't even have to buy appliances.

On top of that, he charges month-to-month. So I can leave whenever I want. He'll also deduct from my rent any improvements I make on the home. The first thing I'm going to do is rip out the carpet (there're hardwood floors underneath!) and give the floors a good sanding and finish. It's going to be awesome. Also has a huge backyard with a vegetable garden.

Moving this weekend. Screw apartments.

Edit: Forgot to mention that he's looking to retire and might sell the house to me, which is a double bonus.

SSharon · Mar 22, 2012, 01:57 PM

Originally Posted by mduell

This is just propping up the rich building owners demanding inflated rents. Time to burst that bubble rather than continue to inflate it.

Who's going to eat the losses?

Who eats the losses with the payday loans? Granted they make more income by charging much more for their services, but they probably also have a higher default rate. I'm sure there is a sweet spot in the middle.

I do agree that this may encourage overly high rent, but I don't know how many vacancies there are to speculate on whether those would put enough downward pressure on prices.

turtle777 · Mar 22, 2012, 02:13 PM

Originally Posted by Athens

Ya that's not going to happen until Asia goes broke.

Oh, I didn't know we're that close. Hard landing ahead.

-t

Athens · Mar 22, 2012, 02:16 PM

Its intended as a one time loan so some one does not lose there apartment in a bad month, that has to be paid back with in 2 years. As for raising prices, rental rules here dont allow for more then 4-5% increase per 12 month period and the vacancy rate through out the region is at 2-4%. price pressure, land value and foreign investment are the largest factors. When some rich person from China offers $400 000 above asking price on a property it results in the asking price of every one around that to go up. Asia is parking its money here in real estate, that has had a massive effect on housing prices. What you would buy for $100 000 in Denver would go for $900 000 to $1.4 Million here.

This is what $900,000 gets you REALTOR.ca -Property Details V938165 and its no where special

mduell · Mar 22, 2012, 03:27 PM

Originally Posted by olePigeon

On top of that, he charges month-to-month. So I can leave whenever I want.

Also he can raise rent any time he wants, after you've gone to the hassle of moving in?

Originally Posted by olePigeon

Edit: Forgot to mention that he's looking to retire and might sell the house to me, which is a double bonus.

Wouldn't a retired person want to keep the income-producing asset?

Originally Posted by SSharon

Who eats the losses with the payday loans? Granted they make more income by charging much more for their services, but they probably also have a higher default rate. I'm sure there is a sweet spot in the middle.

Payday loans charge an interest rate based on their default rate. I suspect this Vancouver-run bank will have political interference to charge lower rates.

Athens · Mar 22, 2012, 05:07 PM

could be no interest rate. Its the city that is planning on running this bank thing.

Eug · Mar 23, 2012, 12:29 AM

I was just in Vancouver. On the way downtown from the Airport, the taxi driver showed me a newly built place with a big modern house. Big lot, but he thinks it's "just" a quarter acre, and it was on Granville St. - very busy.

It went for $18 million. Unsustainable as far as I'm concerned.

That said, the government is trying to cool the fires driving up prices, so that could limit a burst. Eventually the market will revert to the mean, but the question is if it will just implode suddenly, gradually drop moderately, or else flatten out so that gradually inflation catches up with nominal pricing.

Originally Posted by Athens

This is what $900,000 gets you REALTOR.ca -Property Details V938165 and its no where special

That's a teardown price - land value. Too high yeah so frothy/bubblicious, but otherwise the house itself is completely irrelevant.