Hot American Money?

If you’re looking for someone to blame for high house prices (anyone but locals!) you’ve got a new scapegoat: Americans.

The Province has an article saying the falling CAD means that US buyers are responsible for the biggest surge in the local market over the last year.

Asian buyers make up about 60 per cent of foreign buyers of Metro Vancouver real estate, according to a story published by the Financial Times on Good Friday.

But buyers from the U.S. accounted for the biggest surge in the Vancouver market in the past year, the story said.

The article also said the Vancouver market is unique because record prices seem to have little impact on buyers’ enthusiasm.

Read the full article here.

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Oracle
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Oracle

Thought I’d repost this:

“Quebec Immigrant Investor Program a Flop… It’s about time… Quebec government benefits and BC is left to deal with the after-effects…”

—>. No need to use the investor program anymore. International student programs do the same thing now. Send Chinese son or daughter to a career vocational school with 2 year program. Then child applies immigrate permanently via express entry. Slam dunk.

Meanwhile, dad buys child million dollar home to study in. Mom comes over as extended 10 year visas are allowed, then everyone lives happily ever after.

Why go thru the hassle of a Quebec investor program. No need. Everyone from India around me is doing this now.

space889
Guest
space889

Vancouver RE is considered bulletproof and so far it’s been right…the market hasn’t had a fall in what? 25 years+ now?

I do see some properties languishing on the market but seems like the market in general is still hot.

space889
Guest
space889

@Oracle – Christy is doing everything she can to expand the program – from reserving spaces in university, to creating schools in China with BC cirriculum, expanding foreign students presence in elementary adn secondary schools, it’s basically sell, sell, sell! Get as many as we can in our schools at huge fees. Pretty soon, good secondary schools will be reserve spaces for foreign students just like UBC and SFU now. What the f*?!

I get that it is a money maker for the province and all, but seriously, you do it as a side profit business, not replacing or squeezing out the local students who should have first priorities.

space889
Guest
space889

btw, a whole block and half on 41st Ave from Cambie to the church just east of Cambie have all been sold as land assembly. The realtor I’m sure some posters on this forum will be happy to know is NOT Michelle Yu. Looks like a big condo development is coming to that corner.

If the condo market is in a glut or stalling then I doubt the developrs would have shell out probably $25M+ for all those properties. The pace of condofication doesn’t looking to be slowing at all.

patriotz
Member

@2: “the market hasn’t had a fall in what? 25 years+ now?”

Six years actually, the bottom of the 2008-9 downturn was six years ago.

patriotz
Member

The article also said the Vancouver market is unique because record prices seem to have little impact on buyers’ enthusiasm.

Can we nominate this for the Stupid Journalism Award? In all bubble markets, record prices have little impact on buyers’ enthusiasm. That’s why bubbles happen.

vangrl
Member
vangrl

“Foreign buyers are most attracted to Vancouver’s westside and West Vancouver, he added. “And that pushes everyone out to markets like East Van and North Vancouver.”

See, Paul agrees with me!

Anyone that doesn’t believe that a fire in one area will spread to surrounding areas is out of touch.

space889
Guest
space889

@patriotz – The crash in Oct 2987 was 22% in a single day and largest on record, yet it considered to be just a blip in the 20Y US stock bull market from 1980 to 2000. So, I would place the 08 “crash” in the same category and don’t consider that period to be a separate bear market but rather just a blip in the ongoing bull market.

space889
Guest
space889

BC Government is eliminating the traffic courts and moving to a 3 steps admin system for tickets disputes. Cops no longer have to show up for the hearings now.

I’m guessing this is going to result in a lot more traffic tickets being written and handed out.

Tiger
Guest
Tiger
YLTNboomerang
Member

I found it interesting that when Apple selected which stores would carry their tremendously overpriced “edition” gold iWatch, the Canadian locations chosen were…Toronto and Montreal. Ha, good ol’ world class Vancouver didn’t make the cut, ha ha ha

Canada
— Toronto: Eaton Centre
— Montreal: Sainte-Catherine

United Kingdom
— London: Covent Garden, Regent Street, Selfridges

Australia
— Sydney: George Street
— Brisbane: MacArthur Chambers
— Melbourne: Southland (Cheltenham)

France
— Paris: Carrousel du Louvre, Opera, Galeries Lafayette

Germany
— Berlin: Kurfurstendamm
— Munich: Rosenstrasse

Hong Kong
— Festival Walk
— International Finance Centre (IFC)
— Causeway Bay

Japan
— Tokyo: Isetan, Ginza, Omotesando
— Osaka: Shinsaibashi

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

@YLTNboomerang

so apple thinks vancouverites are going to make wise buying decisions and not get the gold watch?

crikey
Guest
crikey

@#12
Yes, just like Apple thinks Downtown Eastside residents are going to make wise buying decisions and not get the watch. Your argument is rock solid. 😉

Yunak
Guest
Yunak

@11

Canadian locations chosen were…Toronto and Montreal. Ha, good ol’ world class Vancouver didn’t make the cut, ha ha ha

It actually makes sense. Local Chinese will buy gold iWatch through their schemes (China, black market, fakes) and the rest of Vancouverites mostly don’t have money anyway for such bling.

Son of Ponzi
Guest
Son of Ponzi

#14
you’re right.
Like the fake brick houses in Richmond.
For them, if it looks real, it is real.
The “Face” is everything.

space889
Guest
space889

@Tiger – what do you think the maintenance cost will be for a that castle? Castles are not known to be cheap for maintenance, never mind to bring it into the modern age.

vangrl
Member
vangrl
Soo, I just went for a walk on 4th and I ran into that Wes Side realtor that I e-mailed a few weeks back. I thanked him for answering my e-mail and we chatted for awhile. He said it’s just insane right now, that before it used to be Chinese outbidding Canadians by about 20%, and now it’s Americans outbidding Canadians & then Chinese outbidding Americans. BUT, he did also say, now is definitely NOT the time to be buying, especially if they plan on living there for less than 10 years. He said, as many of us have said, that it just feels too crazy & panicky, with people just jumping in at over asking and no inspections etc… He said that it’s only detached that feels panicky, but apartments have done a little better this year than the… Read more »
space889
Guest
space889

@vangrl – So you are saying this guy is saying that Americans are coming up here and wanting to spend $2M for a knockdown? When they can get a real mansion in US for that amount??

Sorry but that just don’t really pass the smell test. I can’t see why Americans would want to invest in Van when they can simply buy in Seattle, especially if they got $2M+ to throw around.

StupidityCheck
Guest
StupidityCheck

18: Can you understand why a Vancouverite will pay $2M for a place they could rent for $4k instead? Bubble mentality is not rational.

vangrl
Member
vangrl

#Space.

I actually agree with you on this. I can’t believe Americans are interested in buying here, despite our low dollar. It doesn’t make any sense to me. The friends that I have that have moved to the States in the last decade have no interest even visiting here anymore.

That’s just what he said to me. There is “now” interest from Americans as well as Chinese. He did say that the West Side was definitely dominated by Chinese buyers.

Maybe realtors have been told to deflect the issue away from Chinese? who knows.

Bo Xilai
Member
Bo Xilai

#3 space889, there a reason why UBC’s nickname is

University of a Billion Chinese.

vangrl
Member
vangrl

It would appear to me that America thinks Canada is in trouble, mostly because they basically say that everyday on the news.

I just can’t imagine what part of the States these people are in that would think buying in an overheated market in a Country who’s dollar keeps falling is a good idea?

Especially after they’ve witnessed 1st hand what happens when Real Estate gets Bubbly…

Yunak
Guest
Yunak

@vangrl

He said it’s just insane right now, that before it used to be Chinese outbidding Canadians by about 20%, and now it’s Americans outbidding Canadians & then Chinese outbidding Americans.

Perhaps those are American Chinese, buying second homes to be closer to the new motherland once BC becomes China?

vangrl
Member
vangrl

#23 haha ya maybe

“The condominium market is the biggest target for Americans,” says James Upton, an estate agent at RE/MAX Crest Realty Westside. “Condominium prices haven’t kept pace with single-family homes, and that’s made the sector ripe for investment, especially when you consider that a stronger US dollar takes about a third off the price.” Long-time local residents are also boosting sales of condos, adds Upton. “They’re selling their homes for very high prices and then downsizing to condominiums.”

http://www.ft.com/intl/cms/s/0/80837826-d24a-11e4-ae91-00144feab7de.html#axzz3WrMxpUFU

well I realize that the last part of that quote completely contradicts another news story that was just put out but…

patriotz
Member

@24: “Condominium prices haven’t kept pace with single-family homes, and that’s made the sector ripe for investment”

Amazing the absurd things these guys say. Condos haven’t gone up as much as SFH, so that makes them a good investment?

“a stronger US dollar takes about a third off the price.”

At CAD = USD .80, (e.g.) CAD $400K = $320 USD

That of course is one fifth off. This clown can’t even do simple arithmetic.

Do you think anything these people say should be taken seriously?

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