Politicians shouldn’t meddle with housing market

This is probably the first housing editorial in The Province that most readers here can agree on.  Well, the headline any ways:

Politicians shouldn’t meddle with the housing market.

Imagine a world where the government didn’t meddle with the housing market.  There would be no CMHC insuring close to $600 Billion in mortgages, instead lenders would loan based only on their own assessment of risk.  There would be no HBP, no HOG. In 2006 there would not have been the rule change that allowed zero down 40 year mortgages with interest only payments for 10 years. After 2008 the CMHC wouldn’t have purchased $69 billion of mortgages off bank books.

But of course you’ve probably figured out that this Province editorial isn’t about that. No, this editorial is about someone suggesting we should levy a tax on vacant properties, likely the tiniest possible example you could find for ‘meddling’ in the housing market.

Wong is not alone in unfairly blaming foreign investors for Vancouver’s high housing prices. The reality is that real estate is a commodity whose price is set in a free market, appropriately, through the forces of supply and demand. No one has a “right” to own a house in a particular city or neighbourhood, and it’s about time that people like Wong and her COPE and NDP pals stopped promoting such notions, especially when it involves taking money from one group and giving it to another. You want a house? Work hard and buy one — or move somewhere cheaper.

Read the full editorial here.

 

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VanRant
Member
VanRant

I was talking with my doctor and he was having trouble buying a house so good luck to all those that makes less. And on the subject of government meddling, I will be happy to rid of CMHC for a trade off for politicians not to tax empty houses.

Mick Murphy
Guest
Mick Murphy

Chinese parents clash with striking Canadian teachers as school year fails to start

Websites linked to masked protesters disappear in wake of ugly scenes in Vancouver, as school year in British Columbia enters third week without classes

http://www.scmp.com/news/world/article/1593861/chinese-parents-clash-striking-canadian-teachers

Joe Mainlander
Guest
Joe Mainlander

“The reality is that real estate is a commodity whose price is set in a free market”
Wish that were true.

“”You want a house? Work hard and buy one”
Of course, parking your money in a concrete box downtown and have it inflate by double, without lifting a finger is okay.

Typical myopic boomer entitlement.

All you need to know
Guest
All you need to know

The FED just said interest rates will stay low for years to come.

I guess the trillion dollar bond market already knew that based on bond market yields.

kabloona
Member
kabloona
@4 Uhhh, actually that’s not quite correct: “Fed renews zero rate pledge, but hints at steeper rate hike path: By Michael Flaherty and Howard Schneider http://money.ca.msn.com/investing/news/breaking-news/fed-renews-zero-rate-pledge-but-hints-at-steeper-rate-hike-path WASHINGTON (Reuters) – The Federal Reserve on Wednesday renewed its pledge to keep interest rates near zero for a “considerable time,” but also indicated it could raise borrowing costs faster than expected when it starts moving. Many economists and traders had expected the U.S. central bank to alter the rate guidance it has provided since March, given generally improving data on the economy’s performance. But the Fed repeated its assurance that rates would stay ultra-low for a “considerable time” after a bond-buying stimulus program ends. In a statement after a two-day meeting of its policy-setting Federal Open Market Committee, it announced a further $10 billion reduction in its monthly purchases, leaving the program on… Read more »
taylor192
Member

Editorials like that are why the newspaper industry is dying. There is zero thought put into it, it is a rant I could read on any blog, for free.

@kabloona
Guest
@kabloona

The Billionaires of the world will not let the Bond, Equity, or Real Estate Markets crash….by raising rates.

No matter what a journalist or blog dwellers say. This type of editorial IS for people like yourself.

Bo Xilai
Member
Bo Xilai

#6, Taylor192… I completely agree. I can’t ever remember buying a local newspaper. When I want to know what’s really happening in Vancouver, I read Ian Young’s column at the South China Morning Post.

The Vancouver Sun and The Province are generally acknowledged as being VREB’s mouthpiece for a long time.

When you have no other industries to champion, you champion the only game in town – real estate.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

>The Vancouver Sun and The Province are generally acknowledged as being VREB’s mouthpiece for a long time.

the papers have thus far been more on the money than most of the people on this blog.

the mainstream media has done a good job.

of course it isn’t going to represent incorrect views of the radical fringe who seem to ALWAYS be wrong.

@Kabloona...
Guest
@Kabloona...

Are you the mysterious vote manipulator?!…in chunks of 10. 😉

housing manip
Guest
housing manip

housing manipulation is a tool of the global population police. The results show up in the vital stats. Want to know why Aboriginal birth rates are so high? Cheap to free housing.

Why are birth rates low for the squawkers paying market prices?
ie. because if they want to f$ck, fork over the dough, a debt life in perpetuity… the Expensive house.

It’s about your balls, and always is thus.. that, and your conceit of time value (willingness to debt), being of greater value than your neighbours.

interest rates
Guest
interest rates

Rates are carving out a bowl-shaped pattern, same as the 1940s, 1890 and 1830s.

http://static4.businessinsider.com/image/5267f89269bedd4c5f441810-857-400/screen%20shot%202013-10-23%20at%2012.25.29%20pm.png

How long will they stay low? Is it more like the 1830s, 1890 or 1940s?

Harry Wang
Guest
Harry Wang
Joe Mainlander
Guest
Joe Mainlander

Hmm, so we have 50 years before Van stops growing:

““It is a remarkable thing. We are witnessing the fastest change to human habitat ever seen. All over the world, countrysides are emptying while cities burst. Remarkably, as cities fill the average number of birth per woman shrinks. Thus, within the next five decades the average size of the world’s cities will double. Then they will likely stop growing, potentially forever.” Patrick Condon, 5! Five Crucial Decades of City Building.”

http://spacing.ca/vancouver/2014/09/08/ubc-urban-design-forum-5-critical-decades-city-building-nov-45/

flaneur
Guest
flaneur

vanderZalm was the topic then as it still is today, but no one would believe we are to follow Japan’s footstep.
http://cdn.static-economist.com/sites/default/files/imagecache/full-width/images/print-edition/20130406_FBC371.png

Japan has been doing it for the last 20 years.
It’s a bargain to get a mortgage loan @2.15% after putting 35% downpayment. Resident or non-resident, no distinction until he decides to sell, which is not going to happen soon.

I would be interested to hear insightful feedback from LostSoul and others who have found homes for their families. Kansai92 who bought in Calgary, have you sold yet.

Best place on meth
Member
Best place on meth

#2

“… the Canadian Alliance of Chinese Associations (CACA)”

Oh man, that is priceless.

@patriotz
Guest
@patriotz
In Vancouver, rich homeowners get richer Headline is questionable, but the article contains actual numbers and names, something not seen too often. Above from the previous thread regarding the top 1% of homes in Vancouver. I noted in your link they listed the top 10 valued home owners (LuLu Lemon’s Chip Wilson being at the top) and none of the top 10 were Chinese. Here is another article citing who owns many of the top 25 highest valued homes in Vancouver as of 2013 and there is only 1 Chinese name. Looks like HAM is a myth. Heck with 30% of Vancouvers population being Chinese you would expect more than 1 out of the top 25 being Chinese and at least 1 or 2 of the top 10. The latest purchase they claim was a member of the Wosk family.… Read more »
CrimsonDandy
Guest
CrimsonDandy

@13

> They said labour costs here were too high, sometimes sucking up 35 per cent of their operational expenses, and expressed frustration that there was not an easier way to bring over Chinese workers.

Wow… There’s no end to their gall.

paulb
Member

New Listings 214
Price Changes 76
Sold Listings 134
TI:15983

http://www.paulboenisch@gmail.com

UBC in Crisis Mode
Guest
UBC in Crisis Mode

This month Van West SFH sale is at a faster pace. Apparently more money is flowing into the region.

Half of China’s millionaires ‘plan to leave country within five years’, according to this “South China Morning Post” article, and Canada is the top choice:

http://www.scmp.com/news/china/article/1592975/47-cent-chinese-super-rich-want-leave-country-barclays-survey

( . ) ( . )
Guest
( . ) ( . )

#1

Take the doctor’s word with a grain of salt. Doctors, dentists, and teachers are notoriously bad with finances. They’re up there with football and basketball players of which 75% are broke within 5 years of retirement.

Ulsterman
Member

They said labour costs here were too high, sometimes sucking up 35 per cent of their operational expenses, and expressed frustration that there was not an easier way to bring over Chinese workers

…or frustration that is taking so long for BC to officially become a satellite of China.

I sympathize with their frustrations. Canadians’ fondness for human rights, labour regulations, health & safety, freedom of speech/association etc is just so tiresome. Come on Canada! Get with globalized program!

Corruption
Guest
Corruption

#22 “…or frustration that is taking so long for BC to officially become a satellite of China.”

It didn’t take that long. Haven’t you heard of FIPA?

Harper signed the country over to them two years ago, but couldn’t ratify with the backlash surrounding it once his secret deal became public. Well, the Cons made it official this week. B.C. is now a wholly owned subsidiary of Sinopec (and I’m only being slightly OTT when I say that).

Joe Mainlander
Guest
Joe Mainlander

“Barbara Yaffe: Attention shoppers: retail revolution headed to Vancouver”, Vancouver Sun

http://www.vancouversun.com/Barbara+Yaffe+Attention+shoppers+retail+revolution+headed+Vancouver/10212154/story.html#ixzz3DeOuRwmO

“Retail consultant James Smerdon says Vancouver’s retail market is changing. “Mid-market” retailers, like Sears, are doing poorly as the market continues to segment, with liquidators and dollar stores serving poorer people and luxury boutiques and snazzy department stores catering to the rich.”

That sums it up. The middle class is shrinking.

Insanity
Guest
Insanity
“Retail consultant James Smerdon says Vancouver’s retail market is changing. “Mid-market” retailers, like Sears, are doing poorly as the market continues to segment, with liquidators and dollar stores serving poorer people and luxury boutiques and snazzy department stores catering to the rich.” What a bunch of BS. People buy more stuff today than ever, regardless of income. Sears is long past its expired date. They have poor service, low end products and high prices. The only ‘snazzy department store’ in the whole of BC is the one Holt in Pacific Centre and it too tiny to be considered a department store. Vancouver doesn’t even have anything that could be called a snazzy department store like most US cities do. And for the dollar stores there are few in downtown and Vancouver proper. Yes luxury boutiques are here but those same… Read more »
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