wisdom
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Posts posted by wisdom
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They like debt with warrants. You can play both sides that way.
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bump - how are these doing in this market?
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This may be a reason. Thomas cook plc going into bankruptcy.
Another Indian company king & Cox is also struggling in the travel industry.
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Not all the demand is real in a bubble. Once the demand corrects there will be plenty of supply. Those who thought they needed to own 5 homes will add to the supply when prices drop and the asset has negative cashflow. Just a matter of time.
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First Home capital and now Laurentian uncovers misrepresentation on mortgage applications. Lying on mortgage application is systemic in Canada.
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But this is Vancouver we are talking about. It is so special that the natural beauty and warmer winters make your mortgage payments. One does not require income/cashflow. All one needs to do is borrow more and you make money. Others will never understand.
And yes, we are running out of land up here in Canada - population 36 mil and the 2nd largest country. No other city/country has such density.
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http://www.cbc.ca/news/business/osfi-mortgage-rules-1.4358048
Mortgage rules tightening further - would be interesting to see how this impacts an already slowing market.
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If I recall correctly the past peaks have been at 7%. US might have peaked at 5% in 2008. Canada is over 7%.
Is it 8% or 12%? Doesn't really matter.
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Vancouver is struggling - SFD sales are tough and often have no bids. But condos in Vancouver are still selling for the moment but the clock is ticking on them as well. Not sure what the bulls are referring to.
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buyer-who-walked-away-from-real-estate-deal-ordered-to-pay-360k
Interesting precedent.
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Piramal -
https://en.wikipedia.org/wiki/Piramal_Group
In particular, he was referring to Ajay Piramal - https://en.wikipedia.org/wiki/Ajay_Piramal
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Everything I have been saying about the Vancouver market hitting newspapers now. Looks like the next year or so will be interesting:
This is a 2 part report. Interesting and finally some decent journalism. Even if it is too late.
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More revelations on how Canadian lending works.
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Chuck Prince said it best - you have to dance while the music is playing.
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Based on this ruling, CRA is going after the buyers here if the seller did not pay taxes in Canada. Not sure what impact this precedent will have. It is very interesting!
This purchaser got hit with a $600,000 bill.
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The feds will run into this next year. At this time the objective is to avoid the foreign tax. They will run into CRA when they file taxes for 2017 in early 2018.
A lot of them are amateurs and in some cases the funds are being invested in the locals names.
It has gotten to a level where individuals doing this are not sophisticated or have a good grasp of things. They are just seeing the fees they can earn.
The rich foreigner walking in and picking up several properties could be someone pooling funds overseas and bringing them over and leveraging the real estate to earn returns. Capital gains have been a bonus.
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The new way around foreign tax in Vancouver is using private equity or hedge funds.
Locals (amateurs) are setting up companies with 75% voting shares owned by locals or alternatively partnerships. Foreign investors set up holdco's in other provinces which in turn own the local companies or are limited partners.
Any local who is able to raise funds overseas is getting into this game. The locals do provide personal guarantees. Either they will be wiped out when this ends or they will have built up enough assets overseas to walk away.
Locals take a salary plus 20% of all income - which essentially is 2 +20%. Doesn't get any easier - use investors funds, leverage it up at the banks and collect fees and you are rich. If it goes bad, the banks are left holding the bag.
Any property that is cash flow positive is being targeted driving everything to zero or negative. At that stage, they increase the equity portion to make the numbers work to allow them to still use leverage. It is beautiful to watch.
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Same here
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Above 80% is required but you can get it for lower amounts.
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This is the typical belief system in Canada. You don't need cash flow because houses always rise. Why bother with cashflows? Borrow larger amounts and keep bidding asset prices higher so everyone can borrow even more.
It is a beautiful thing. If only the rest of the world could figure this out we would all have limitless funds.
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What you guys are describing has been the norm in Vancouver. The fact it has arrived in Toronto could mean that this is the end game.
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If there is full disclosure and things get exposed I believe well respected FIs and their employees will be shown to have looked the other way and even done the same.
Or we can keep kidding ourselves that Canadian banks have the secret sauce that allows people to keep borrowing more for each dollar earned.
War risk between China and India is increasing dramatically
in General Discussion
Posted
One should not look at the incident in isolation.
PLA started building up troops in the Galwan valley after 40 odd years and this happened. Coincidence? This is most likely a plan by CPC to distract its population and create support for the CPC amongst all the economic hardship.
The same is being experienced by countries from Taiwan, Vietnam to India. The only difference was that Indians responded unlike the smaller countries.
The deal on HK has been thrown out. In diplomatic circles you see the wolf warrior policy in play - from Canada to Australia. This is all part of the larger plan for China to dominate the region and show it's power.
CPC feels the time has come to take its position in the world and have things happen their way. The question to consider is whether they have calculated correctly or will the world respond if they upset enough countries.
That will define what the next few decades look like.