Real estate isn’t really a race issue

Nice response from Sandy Garossino to last weeks Allen Garr column “Blaming Chinese For High House Prices in Vancouver Is Racist”.

When I raised concerns over the impact of international transactions during the civic election campaign, the response was overwhelming and full-spectrum from across our entire community, because the problem is universal.

It was notable how concerned Canadian Chinese Vancouverites are about this difficult issue, and how optimistic and imaginative some of their solutions are. Many in this community, such as Susie Joe Dooner, expressed grave concern about the exodus of gifted young people they have seen—their own friends and family leaving their home city and province in despair of having a future here.

And it was this community which also expressed concern that our local real estate and development industry bears some responsibility for its aggressive marketing to foreign investors. Some cautioned that the scale of the potential market poses real hazards to a small city like Vancouver.

It is profoundly inaccurate to represent the public reservation about unregulated international capital in our housing market as having a racial bias, when the concern is universal.

Read the full letter over at the Courier.

I wonder why we don’t have a foreign owner property tax structure like Florida and other places that charge a premium to non-resident owners (regardless of what their race or country of residence is).  It would raise more money to pay for city expenses, take some of the tax burden off residents and best of all the only people who would complain about it can’t vote!

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trash crash alert
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trash crash alert
In my view, CMHC made a critical error by providing insured mortgages on the ‘land’ component of real estate. They should have only insured the ‘building / shelter’ component, better yet, no CMHC at all. This would have helped to avoid inflated land values which are ripe to be obliterated in value just like the wind blowing in. Land is pure speculative. Further, we would have had better built houses with much lower land component valuations rather than all this cardboard synthetic glue houses with big box store appliances and finishings with photocopy floors. It gets better with Royalty – some guy dressed as a King trying to sell photocopy products with advertisements during Canuck hockey games. No CMHC, no King but rather 2 inch real hardwood floors in most houses. Instead, modern Canadian residential construction insured by government mortgages… Read more »
Laibach
Member
Laibach

@jumpin in:

MLS® V937950 just went $30,000 below asking.
Time is ripe for low ball offers, I guess.

It is mind boggling that there are still sick people out there who would shell out 670K for such crap. I`d have to live there only if it were a punishment.

http://www.homes.com/listing/162547973/998_E_30th_Av_VANCOUVER_BC_V5V_2W3

M-
Member

@Anonymous: They’re probably only choosing globally-important major cities to look at. Vancouver, globally, isn’t that important. We’re just not a big player.

Scott
Guest
Scott

@M-: Yep, look at the original Knight Frank report they reference. It’s about the top desireable global cities for the super rich, Vancouver doesn’t place on that list as much as it might suprise some. Comparing Vancouver to somewhere like New York or Paris is like comparing salt-spring island to Martha’s Vineyard.

Best place on meth
Member
Best place on meth

@Anonymous:

#25, Vancouver is only popular with fleeing mainland Chinese.

The rest of the world doesn’t give us a second thought.

mortageslave
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mortageslave
I sold my condo in May 2011 and have been renting since. It was a 5 year old building with leaks coming from the copper pipe joints like weekly….I believe this issue is common with the cheap copper joints they buy to cut costs. Anyways, I have been looking for a larger place and found a few speculators. One was an girl around 30 on 60th ave in South Van. She had bought a 1800sq/foot house with a shity 2 bedroom downstairs that a crackhead wouldn’t rent (asking $800). The upstairs although small was decent 2bd for 1200. We inquired about renting the upstairs in May but she stated that they needed renters for April (this was around mar 25th) as they had mortgage payments to make. Another place yesterday on 49th/main sold for around 619k a month or two… Read more »
WFT?
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WFT?
I spent the long weekend in Seattle. We spent most of our time at Seattle Center – the name of the area where Expo ’62 was held. The former Expo lands are now home to the Space Needle, Pacific Science Centre, the Chidren’s Museum, the Experience Music Project (in a Frank Gherry designed building), various other children’s theatres, balley and dance groups, there is a beautiful park and a super fun waterpark/fountains which feature huge jets of water in sinc to rock n’roll music and even bollywood hits. http://www.seattlecenter.com/ Comming from Vancouver, it is an amazing place for the entire community to come and halve fun and enjoy the fruits of a successfull city. What did we in Vancouver get out of footing the bill for the Olympics and Expo 86? Condos for speculators to gamble with. And this is… Read more »
kman
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kman
This argument of whether or not foreign asian buyers are the bubble problem or not is a bit silly. Foreign money being used to speculatively buy up real-estate in Vancouver and Toronto is clearly part of the picture (The house I’m currently renting in south surrey is a brand new McMansion special complete with crappy workmanship and an overseas owner who I’ve never met and who speaks no english). The only debate is the degree of impact overseas buyers have on prices vs. (or combined with) all the other factors that are also helping to push up prices. If we assume the two primary factors are affordability and supply&demand, then foreign money will increase demand and therefore prices. But I think affordability is much more impacted by the domestic factors (CMHC policies, low interest rates, two income families, etc…) The… Read more »
Laibach
Member
Laibach

@Best place on meth:

Vancouver is only popular with fleeing mainland Chinese.

…and it is popular not because of the mountains and schools but popular because it is an easy entry without scumbag background check. And also the spineless and impotent environment that let them get along with their shit like hospice, car racing, slavery, people smuggling, tax evading, etc.

Anonymouse
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Anonymouse

@Facts: “You have had 25 plus years of “statistical evidence” of Chinese capital conceivably driving prices up. Take a look at any REBGV graph.”

THAT’s your evidence? Seriously? Who voted this nonsense up?

Laibach
Member
Laibach

@WFT?:

Comming from Vancouver, it is an amazing place for the entire community to come and halve fun and enjoy the fruits of a successfull city. What did we in Vancouver…

During the Vancouver’s world fair, this legacy building with the adjacent Plaza of Nations were designated as the BC Pavilion. An international parade of flags stood where they are today. In fact, not much has changed around here for more than two decades.

Right now, the structure houses the Edgewater Casino which is operated by Paragon Gaming, a Las Vegas based company.

http://www.flickr.com/photos/rayvaneng/5333198605/

Anonymous
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Anonymous

@Facts: “You have had 25 plus years of “statistical evidence” of Chinese capital conceivably driving prices up. Take a look at any REBGV graph.”

THAT’s your evidence? Seriously? Who voted this nonsense up?

______

Its called correlation….

Even when accounting for the declining interest rate environment in all of Canada, Vancouverites started to pay a premium for RE at the exact time there was (and continues to be) a flight of capital from HK…

And while correlation does not necessarily mean causation, there is statistic evidence (ie a huge increase in HK capital and rising prices) that shows foreign capital has a significant impact…

Seems everyone else was bright enough to pick up on that…

patriotz
Member

@Ridiculous:
“investment creates no value”

Complete nonsense. If it were true we would all still be living in caves. Even Marx and Lenin were more correct.

My guess is that you don’t understand the difference between investment and speculation.

Anonymouse
Guest
Anonymouse

@Anonymous:

“And while correlation does not necessarily mean causation, there is statistic evidence (ie a huge increase in HK capital and rising prices) that shows foreign capital has a significant impact…”

Rising real estate prices are correlated with lots of other things. You just chose one that appeals to you. Hand waving doesn’t count as statistical evidence.

You might as well try and claim that high prices are being driven by the (increasing) average downtown building height, or some other such nonsense.

Anonymous
Guest
Anonymous

@WFT?: ….What did we in Vancouver get out of footing the bill for the Olympics …

A $10,000,000,000 payment hangover.

yvr2zrh
Member

Um . . . Where are the sales today? Have they all gone on strike now? Also – – Listings are way way up for the week. We are now starting to get quite a negative trend for both decreasing sales and increasing listings. Wait until the PaulB numbers in a couple hours – – Today has been very poor. Also the updated month-end projects whould now be showing decreases over last year.

Anonymous
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Anonymous

@kman: “The bottom line is if you can afford $2500/month on a mortgage and right now that means you can get a $900000 mortgage”

Not sure which branch of the Bank of Fantasy Land you’re using but even with the lowest variable rates, longest terms, and bi-weekly payments, a $0.9M mortgage would cost you $3600/month.

Anonymouse
Guest
Anonymouse

@jumpin in: “MLS® V937950 just went $30,000 below asking.”

Average selling price is usually below average asking price – even when prices are increasing. Chipman has been regularly posting these stats for a long time, and an average of 2-5% below asking seems quite normal.

southseacompany
Member
southseacompany

“Economists discuss Vancouver housing bubble: Near future doesn’t include sudden correction”
By Elizabeth Wilson, REW.ca

http://www.vancourier.com/Economists+discuss+Vancouver+housing+bubble/6449123/story.html#ixzz1rs9OpJK6

Another impartial news item from the Van Courier. REW.ca = Real Estate Weekly.

/dev/null
Member
/dev/null
@zrh2yvr: Um . . . Where are the sales today? Have they all gone on strike now? Also – – Listings are way way up for the week. We are now starting to get quite a negative trend for both decreasing sales and increasing listings. Easily explained. It’s the weather and hockey. Sales just a smidgen low [last week | today | next week] because the weather has been [colder | no different | hotter] than normal, and nobody buys a house when it’s like that. Also, [past|current|future] sales [have been | are being | will be] delayed because the playoffs [weren’t | are | won’t be] underway, and of course that will change the behavior of all the spring home buyers. Also: Chinese people. Spring is a great time to buy. Spring! Like, right now! Everyone is doing it… Read more »
Patiently Waiting
Member
Patiently Waiting

I love how its all these rich white guys (Garr, Beasley, Scam) screaming racism.

Garr also has a conflict of interest as he sits on the boards of Vancity Credit Union and Citizen’s Bank. As a professional journalist it would’ve been ethical of him to mention that. He also seems to lack the kind of balance you should expect of someone who has actually taught journalism.

Of course, you know all these rich white guys are heavily invested in real estate. Too bad there isn’t a requirement for all real estate commentators to come clean of their interests.

Real Housewives of Surrey
Guest
Real Housewives of Surrey

As the future Prime Minister of Canada will say..

“By Golly Gosh, ve must cut back thees imygraytion veddy veddy much”

pipewrench
Member
pipewrench

buyers are moving on

“In the last year, he added, more than 50 percent of his showings in the range of $4 million and up were to Chinese buyers. His percentage of Chinese clients rose to 60 in the price range of $7 million and up, and to 75 for homes costing $10 million and up.”

WHAT? people can buy somewhere else !
Vancouver better hope that our dollar collapses because that is all that is going to save her from the mass exodus of investment capital. The ATM’s are about to turn off and the bill is in the mail.

paulb.
Guest
paulb.

New Listings 333
Price Changes 140
Sold Listings 103

TI:16736

http://www.laurenandpaul.ca

paulboenisch@gmail.com

good-format
Guest
good-format

Projected sales for April is 2,733
Projected inventory (before expiration at the end of month): 18202