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its possible, but people here are brainwashed into thinking housing is the best asset ever. Letting them foreclose so you can declare bankruptcy against the now unsecured judgement debt works. And you would be talking about people with no other assets the creditors could come after in bankruptcy.
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Aug 24, 2019 20:17
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If I was in that situation I would declare bankruptcy immediately. Who cares if you can’t get a car loan for a few years? All the money you’d be spending on debt servicing for a decade to get back to square one would add up quick.
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Aug 24, 2019 21:40
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That's what the whole point of bankruptcy is about. Once you lose a home you will probably have a bunch of R9/I9 marks on your credit which is just barely one step above bankruptcy so might as well go for the full discharge and just rent it out for a few years until it drops off the credit report.
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Aug 24, 2019 22:14
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Exactly, and you know a guy who knows a guy that bailed then you do it too. Just like everyone makes money flipping so you have to buy to not be stupid. Maybe we see the flipside. See what a recession will cause when money laundering isn't as prevailent.
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Aug 25, 2019 07:35
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Don't forget that its actually fairly easy to get credit after you declare bankruptcy - lenders suddenly like you since you aren't able to declare bankruptcy again for many years. (also, all your debt is gone, so those payments are gone, and generally you've got better cash flow again)
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Aug 26, 2019 05:23
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I pay all my bills near instantly (no mortgage so just LoC/Credit Card) but wonder if banks would like me more if I dragged things out and sucked some more interest out of me. I wonder what the ideal customer looks like. Someone whose chronically late and only makes the minimum payment on everything but simultaneously somehow never defaults?
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Aug 26, 2019 13:02
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CRISPYBABY posted:I pay all my bills near instantly (no mortgage so just LoC/Credit Card) but wonder if banks would like me more if I dragged things out and sucked some more interest out of me. I wonder what the ideal customer looks like. Someone whose chronically late and only makes the minimum payment on everything but simultaneously somehow never defaults? It's a myth that lenders (at least traditional ones) like people who pay lot's of interest. Many lenders use different scores to determine credit worthiness: -FICO(people know as the credit score) measures how late you are on payments. Also if you are close to the limit on revolving debt when you get it checked again. Tells us the history of your mistakes with your debt. -TUBS score(transunion bankruptcy score). This most people havent heard of and we don't explain that if their credit is poo poo that this is reason cause it just confuses them. This measures how much debt you have open and where the balances are compared to the limit. It tells us the chances poo poo will go wrong. The analogy I use is to compare it to is those plate spinner guys. FICO tells us how many times he's dropped a plate. TUBS tells us if he has set up so many plates that even if they have't dropped yet that it's becoming inevitable. Credit card companies love people that pay early and use the card like crazy cause they sit back and collect the fees from the vendor and have no risk. People who have been paying lot's of interest are a sure sign things are going to go sideways eventually, or they are just poor money managers.
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Aug 26, 2019 16:49
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Ah, cool. I forget just how much money gets raked in from vendor fees.
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Aug 26, 2019 17:14
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Oh hey the final phase of the Shannon Mews project is done. Let's have a look to see whose selling.... oh well that's a lot of people who aren't very happy with their purchase. https://twitter.com/FIVRE604/status/1165392106489204736?s=20 BTW it is RACIST to suggest that there's any connection at all between these sellers.
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Aug 27, 2019 17:47
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CRISPYBABY posted:Ah, cool. I forget just how much money gets raked in from vendor fees. I can understand how Canadian and Australian banks make money off rewards cards since they are mostly terrible - it's hard to find rewards better than 1%, and from what I understand merchant fees range from 1-3% for Diamond Platinum AMEX Discover. In the US, though, there are rewards cards with up to 5% cash back (albeit usually on specific categories), so they must be losing money on some transactions. Of course it still makes sense for retailers to offer branded cards and such, but otherwise as usual it seems like there's stiff competition in the US and gently caress all in Canada. Anyway, if you're buying something from a merchant you like use cash or debit if you can. Otherwise, gently caress 'em. e: there's also that amusing story of people making money by buying crates of gold dollar coins from the US mint with rewards cards and depositing them to pay off the bill. It's not possible anymore and was also a very bad risky idea in the first place, but apparently it did work. Precambrian Video Games fucked around with this message at 19:50 on Aug 27, 2019 |
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Aug 27, 2019 19:47
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The Canadian mint was selling commemorative coins at face value for a while, I remember reading about someone who got a few round the world trips worth of air miles by buying them and depositing them.
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Aug 27, 2019 20:05
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eXXon posted:e: there's also that amusing story of people making money by buying crates of gold dollar coins from the US mint with rewards cards and depositing them to pay off the bill. It's not possible anymore and was also a very bad risky idea in the first place, but apparently it did work. It wasn't even gold dollar coins. It was just dollar coins. The US Congress and Mint had recognised, like literally everybody who visits the US from another country, that one dollar bills make absolutely no sense. But, the Federal Reserve who actually distributes money is a separate entity from the Mint, and refused to put them into circulation themselves. So the only way the Mint could try to get them into circulation was to incentivise people to order them directly So they minted dollar coins, and to help get them into circulation, offered to ship them for free. And then people abused the gently caress out of that to get credit card points. There's a blog post somewhere about some guy who had to get a dolly to carry all the coins to the bank to deposit, and basically permanently alienated his local bank branch staff, while also costing the Mint far more in courier fees than he ever made back in credit card points, but it worked for him. And now the Mint charges you shipping if you want coins. Also dollar coins are a non-starter in the US because the Fed won't buy them from the Mint anyway.
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Aug 27, 2019 20:41
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https://twitter.com/mortimer_1/status/1166476400179572736?s=21
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Aug 29, 2019 18:12
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Yeah, we'll see how the courts respond to the argument that they should get their money back because their money laundering scheme failed. In other schadenfreude, https://openhousing.ca/2019/08/27/scores-of-vancouver-condo-flips-headed-for-a-loss/ This is a good one: code:https://www.rew.ca/properties/R2395421/1904-1835-morton-avenue-vancouver-bc quote:On the water in English Bay!!! Absolutely the best location in Vancouver. Spectacular 2 bedroom with 2 full bathrooms, 1505 square foot. sub-penthouse. Jaw dropping views to the west and to the east. A near perfect renovation with approximately $700,000 spent on completely rebuilding the suite. There just isn't another apartment like this on the market. State of the art home automation system including fully automated blackout blinds and window shades. Fabulous quality including Carrera tile, Gaganeau appliances etc. Attention to detail featuring thoughtful built-in top of the line cabinetry and mill work. It doesn't get any better. No foreign buyer tax no property purchase tax. This property is not leasehold it is freehold/co-op. 2nd parking spot rented for $30 per month There are a couple of things going on here. a) OK, the $700K in renos were probably completed before the 2016 purchase, but if not, then they're looking at more like a $1.4M loss (not counting holding + transaction costs). If that's the case, they'll be lucky if they get back half of what they put in. b) "No foreign buyer tax no property purchase tax." This building is a weird rich-people co-op, so loopholes its way through the foreign buyer tax. Not mentioned is that the prospective buyer has to pass an interview with the co-op board to persuade them that they'll actually live there. They can't be that selective, though, since the current owner is obviously a flipper.
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Aug 29, 2019 19:48
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The Breaker posted:The court filing says that Chen’s real estate agent, Robin Fu, entered into an agreement on Aug. 3, 2017 that called for the defendant to pay the agent’s brokerage a 4.255% commission on the first $100,000 and 1.1625% on the balance of the purchase price. The developer is alleged to have moved the due date repeatedly, but I don't see how the buyer's failure to understand a contract in English, or inability to move money out of China, is something for which she has a remedy against the developer. tagesschau fucked around with this message at 20:07 on Aug 29, 2019 |
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Aug 29, 2019 20:03
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This is another good one. I think it was a few months ago we were talking about how terrible being in a two-property strata would be. Well how about this? https://www.rew.ca/properties/R2392165/3090-kings-avenue-vancouver-bc quote:RARE OPPORTUNITY! For a 50% freehold interest of this desirable property in convenient Vancouver location. Walking distance to 29th sky train station, schools and recreation facilities. Spacious 2nd floor unit & loft with a large deck and panoramic views of the North Shore mountains and Vancouver cityscape. You will enjoy this well cared for home for years to come. It has been extensively renovated over the years and the rooms are large and comfortable YOU ARE PURCHASING 50% of the whole property which consists of 2 separate living accommodations. Each owner has exclusive use of their designated unit as stipulated in the Co-ownership Agreement.
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Aug 29, 2019 20:15
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Lead out in cuffs posted:Yeah, we'll see how the courts respond to the argument that they should get their money back because their money laundering scheme failed. You know who hates openhousing.ca? Steve Saretzsky, monetary policy skeptic and realtor celebrity.
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Aug 29, 2019 20:49
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Keep driving the price down. This is a good start.
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Aug 29, 2019 21:11
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Lead out in cuffs posted:Not mentioned is that the prospective buyer has to pass an interview with the co-op board to persuade them that they'll actually live there. They can't be that selective, though, since the current owner is obviously a flipper.
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Aug 29, 2019 22:28
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Lead out in cuffs posted:This is another good one. I think it was a few months ago we were talking about how terrible being in a two-property strata would be. Well how about this? DailyHive had this one in one of their articles being all "it's almost 50% under assessed value!!!!!" and got absolutely called out by everyone going "yes you are buying 50% of it it's actually being sold above assessed"
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Aug 29, 2019 22:35
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"Two property strata" is how all duplexes worked in BC up until like, 2012 IIRC and probably makes up a majority of existing duplexes. There effectively no other way to do it until party-wall agreements were changed in 2012
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Aug 30, 2019 22:42
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A lot of the ones that were making people anticipate awful things were the 2 member stratas where one was the house proper and the other was the coach house over the garage (or garden suite.)
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Aug 31, 2019 03:15
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ocrumsprug posted:A lot of the ones that were making people anticipate awful things were the 2 member stratas where one was the house proper and the other was the coach house over the garage (or garden suite.) Yeah that sounds no bueno
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Aug 31, 2019 17:26
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Is Justin Trudeau as  as a Obama?
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Sep 4, 2019 19:48
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Obama was worse but Trudeau is way more embarrassing.
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Sep 4, 2019 20:11
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Obama didn't set up housing debt traps in Canada, so he wins this round.
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Sep 4, 2019 21:02
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I ask because I just saw this https://www.youtube.com/watch?v=cDPeXoQUrbI He came off as Obama but if he actually had a super majority his entire term.
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Sep 4, 2019 21:25
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yay we're famous e: he's not our obama, he's our trump cause all the dumbest canadians vote for him no matter what he does.
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Sep 4, 2019 21:27
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Rob and Doug Ford are much better candidates for a "Canadian Trump" than Trudeau. Maybe Scheer if he gets in with 40% of the popular vote.ocrumsprug posted:Obama didn't set up housing debt traps in Canada, so he wins this round. The Liberals have been pretty dumb with their policy of adding more fuel to the fire, but it was the Tories who introduced the 40-year, zero-down mortgages that got us into this mess in the first place.
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Sep 4, 2019 23:49
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Lead out in cuffs posted:Rob and Doug Ford are much better candidates for a "Canadian Trump" than Trudeau. Maybe Scheer if he gets in with 40% of the popular vote. I was mostly commenting on him just asking questions in the wrong thread.
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Sep 5, 2019 00:31
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ocrumsprug posted:I was mostly commenting on him just asking questions in the wrong thread. Oh yeah, fair enough. That's kind of his gimmick. To bring this back on topic, does anyone know what the specific deal is with 99%/1% partial ownership? Like, what specific taxes is this meant to evade, and is it a legal or illegal loophole? A friend of mine is renting a room in a South Burnaby investment house that just got sold, and I pulled the title deed to find out who the new owners are. It turned out that the landlords (who lived downstairs) weren't the actual old owners, and the old owners had the student-with-99%-share / rich-dad-with-1%-share thing going on. It seems to be a fairly common thing.
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Sep 5, 2019 01:30
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Lead out in cuffs posted:Oh yeah, fair enough. That's kind of his gimmick. Try tweeting Ben rabidoux about it. I'm sure he'd be interested.
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Sep 5, 2019 01:59
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I wonder what it's going to take before the government finally de-privatizes housing to make it affordable.
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Sep 5, 2019 03:48
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punk rebel ecks posted:I wonder what it's going to take before the government finally de-privatizes housing to make it affordable. Nothing short of revolution. 
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Sep 5, 2019 06:21
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Lead out in cuffs posted:Oh yeah, fair enough. That's kind of his gimmick. Often it's a condition of financing that the lender wants a rich person to secure the mortgage so they have to be on title but the beneficial ownership of the property is the poor kid.
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Sep 5, 2019 08:10
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Mantle posted:Often it's a condition of financing that the lender wants a rich person to secure the mortgage so they have to be on title but the beneficial ownership of the property is the poor kid. Oh yeah that makes sense. According to the title deed info, the house was bought on a mortgage, then refinanced five years later. I'm guessing they also used the first home buyer's incentive for the student (their occupation on the title deed was listed as "kitchen helper"). OK, so I jumped down the rabbit hole and paid for some of the other documents to figure out what happened. 2011 -- original purchase, 100% in the student's name $1,103,000 2016 -- title transfer to give dad 1% ownership, so they can take a $1.85mil reverse mortgage at prime+6%  2019 -- sold for $1,620,000 to the new owners; new owners have a mortgage from TD for $1M at prime+10%  So looking at this strictly as an investment, the first buyers made about a 6% annual return on the place ... except there were also transaction fees, plus interest on the mortgage, plus property tax. They *were* renting the place out, but they cannot have been getting more than a few thousand a month from that. My rough guess is that they weren't much ahead of inflation. And the new buyers make no sense at all -- they're buying a property after the market peak, using a mortgage with 15.8% interest. Even if that's on a 10-year amortization, that's still another $1M in interest.
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Sep 5, 2019 21:15
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LMFAO, prime + 10% from TD. And here I thought my 6% rate was tough.
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Sep 5, 2019 21:57
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How is prime +10% even legal holy poo poo
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Sep 5, 2019 22:38
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ocrumsprug posted:LMFAO, prime + 10% from TD. For a mortgage that is.
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Sep 5, 2019 22:56
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Purgatory Glory posted:For a mortgage that is. I had to renew my mortgage in the fall of 2008 when it looked like credit itself might collapse, but a month before rates went to zero and everything was wonderful. live and learn
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Sep 5, 2019 23:53
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