Oh look, free money! Should we leave it on the table?

Should property taxes be higher for non-primary residences?

“The dark houses in West Vancouver are so prevalent on some streets that Mayor Michael Smith worries about how his community is functioning.

He would like to see a heavy tax on houses that are used as investments or secondary residences, just like the $20,000 a year he pays in taxes for his vacation house in Kauai, Hawaii.

“As a society, we need to decide whether homes are for people and families or whether they’re investments,” Mr. Smith said. “If it’s not your principal residence, you should pay more in tax. The best way to stop this is to make it punitive.”

In Coquitlam, residents are also noticing dark condos in the new high-rises around the city centre. But Mayor Richard Stewart said it is not seen as such a bad thing.

“We raise taxes to pay for city services and, if someone is paying taxes but not consuming services, most people don’t have a problem with that,” he said.

Is it good enough to collect a standard property tax from some one who doesn’t live in a community or should politicians jump to take extra money from people who can’t vote them out?

Read the full article here.

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Shut It Down Already
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Shut It Down Already

The system is already punitive in that you’re laying for services that you do not use. Anything more is just jealousy.

Shut It Down Already
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Shut It Down Already

“Paying for services that you do not use”, obviously.

Vanco
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Vanco

It will never pass the legal challenge.

Why don’t they find more useful things to do with their time?

StupidityCheck
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StupidityCheck

Shut It Up Already,

The point isn’t whether or not they use services. They are keeping needed housing stock out of circulation and creating serious problems for residents.

paulb
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http://www.paulboenisch.com

Oracle
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Oracle

Migrant crisis getting ugly in Europe. Most news out of there censored.

I’ve called all my contacts back in India and told them to join the migrants if they’re desperate in need of a better life.

I may even start a movement to offer refugee status for the 20 million or so of my people suffering under a billion Hindus in India.

Gonna start tomoro. If Trudeau takes in the Syrians, he better take in the Sikhsbwhobare suffering as well.

Bear Vancouverite
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Bear Vancouverite
@crikey from previous thread: Prices dropping 50% from today’s prices becoming $830k-1.05M would probably be right around the 2009 mark. I know bears from 2006 who have basically waited 9 years for prices to make sense – are you telling me that after holding out and paying rent for almost a decade they can look forward to paying MORE then what they refused to pay 9 years ago? What’s worse, at $830k that is certainly higher than 300x rent that Patriotz got by buying last year, and there’s no sign of any pending crash at all. If prices rise for another 1-2yrs a 50% crash would probably yield $1-1.2M homes on the West side, still unreasonable for any family making less than $200-300k income. That basically means anyone having bought in 2008-2010 made the right call, and anyone buying from… Read more »
Bear Vancouverite
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Bear Vancouverite

Sorry – above should have read 200x rent.

tedeastside
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tedeastside

so the most efficient city is one with no people..according to that Mayor Stewart …vancouver is on its way there anyway,

hey my girl SamanthaB how many winter jackets do u need to wear in vancouver these days..at least 5 probably …how are those vancouver urban elites, did you go snow shoeing then sit on a park bench and look at some trees and drink coffee…..what a cosmopolitan city, vancouvers urban elites are more like Villagers that wish they lived in a real city

bullwhip29
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bullwhip29

Canada has tools to cope with overheated housing market: Bernanke
http://www.theglobeandmail.com/report-on-business/economy/canada-has-tools-to-cope-with-overheated-housing-market-bernanke/article27226247

and if anyone has somehow forgotten, this is how everything unravelled south of the border while he was manning the fort…
https://www.youtube.com/watch?v=9QpD64GUoXw

HAMster
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HAMster

#7
So then prices should decline by even more than 50%.

space889
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space889

@GreenSalad – Maybe you should have read and research the article you posted, rather than just the headlines.

In fact, reading just the comments show that the author is totally blowing BS about the so called citizenship score thing.

http://www.computerworld.com/article/2990203/security/aclu-orwellian-citizen-score-chinas-credit-score-system-is-a-warning-for-americans.html

Also, if you want to paint China as some sort of facist state then China absolutely sucks compared to US, where there have been confirmed cases of people’s private phone calls from years ago being recorded and still archived by NSA. Or even Britain where the MI5 has thousands of naked photos of individuals taken by their laptop cameras that were hacked and remotely controlled by MI5. Look it up. By comparison, China looks to be abosutely rank amateurish. But I guess since US & UK are elected, all these privacy invasions and monitoring are all A-Ok right?

space889
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space889

For the Aussie baby formula news, why wouldn’t people just buy directly from the manufacturer? Instead of at already a big mark-up from supermarkets? and it’s not like foreign baby formula makers like Nestle aren’t already huge in China. The prices in China is about 2x to 3x price here, which is true.

This reminds me of that story about Bellingham Costco where Cdns are fighting over pallets of milk, and causing hour long line up at gas stations, much to the disgust of US members who want US Citizen only hours.

space889
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space889

@crikey – are those links you posted for SFH or condos/TH? Cuz I’m talking about SFH detached housing, not tiny condos/TH. If there is a SFH detached on West Side for under $1M then I would really like to cuz I would pay $1M for that in an instant, even if it is a teardown.

space889
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space889
I think people who are buying $4M, $5M, $6M+ houses isn’t going to really care whether they are paying $30K, $50K, or even $100K in property taxes, and that isn’t likely to going to deter them from buying and keeping the property vacant. Since bears love to talk about opportunity costs, the opportunity cost of a 50% down payment (foreign buyer) on a $5M mansion is roughly $5M * 50% * 1.5% = $$37.5K / year lost in safe GIC interest. Safe to say that if you can swing a $5M house then you are probably going to get higher return than 1.5% GIC rate. So if the buyer don’t care about at least $38K in lost income, I doubt another $50K in property tax is going to make much of a difference. As for places like Surrey, Coquitlam where… Read more »
space889
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space889

hmmm….seems like we are expecting 3000 refugees, not 867 as posted in the last thread….

So how many on team BPOM are stepping up to help out?

https://vreaa.wordpress.com/2015/11/11/overpriced-housing-challenges-our-capacity-for-compassion/

Bear Vancouverite
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Bear Vancouverite
@space #14 “@crikey – If there is a SFH detached on West Side for under $1M then I would really like to cuz I would pay $1M for that in an instant, even if it is a teardown.” I don’t think you’re being rational here. A few years ago some bears on the blog (and I believe you probably as well) were ridiculing $1M crack shacks. Such posts were upvoted by a LOT of participants. Today a $1M crackshack is an instant buy?? This just illustrates my point further. We need a MUCH greater than 50% drop to bring prices back inline. In fact, at the beginning of this year StudipityCheck or someone else calculated we need a 63% drop, I am sure today we need an even higher one. At this point I personally suspect a 50% drop for… Read more »
elvince
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elvince
Taxing investments at a different (read: higher) rate isn’t a solution. If someone buys a condo as an invesment, then renting it so it is occupied should be the goal for that investor. Take a REIT for example. They can own up to thousand of units (they usually call them “door”), but live into none of them. If they’re all rented, what’s the problem? And believe me, vacancy rate is the bane of all RE investor, so it’s not like they’re not trying to rent them. It would be especially bad, as the REIT would either pass on the tax bill to the renter (which would effectively just become a tax break for homeowner, contributing to higher house prices) or sell the building piece by piece and leave the BC market. There is no easy way to exclude legitimate REITs… Read more »
elvince
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elvince

@Bear Vancouverite: In a NORMAL market 120X rent is a normal multiple, actually kind of low given our current interest rates. I wouldn’t expect it anytime soon in Vancouver. That something they add to the water will prevent anything remotely rational west of the rockies.

vangrl
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vangrl

#7

Any bears that had invested in Stocks from 2009 till now, will have a lot more money to put down, plus lower interest rates.

southseacompany
Member
southseacompany

“Rising interest rates could mean losses for the bond market, experts say”, Toronto Sun

http://www.torontosun.com/2015/11/12/rising-interest-rates-could-mean-losses-for-the-bond-market-experts-say

“Bonds have long been the safe and steady ballast of an investment portfolio, but as interest rates appear set to rise, investment advisers say there are risks ahead.”

“As expectations have increased that the U.S. Federal Reserve will start raising interest rates, bond yields have ticked higher and that means the same bond prices have headed south.”

southseacompany
Member
southseacompany

“Economists Overwhelmingly Expect Fed to Raise Interest Rates in December”, Wall Street Journal

http://www.wsj.com/articles/economists-overwhelmingly-expect-fed-to-raise-interest-rates-in-december-1447340397

“There is near-unanimous agreement among private forecasters surveyed that the Federal Reserve will begin raising short-term interest rates next month after holding them near zero for seven years.”

southseacompany
Member
southseacompany

“Monetary policy: Do ultra-low interest rates really damage growth?” The Economist magazine

http://www.economist.com/blogs/freeexchange/2015/11/monetary-policy-0

“IT’S ONE of the fundamental lessons of any introductory economics course: lower interest rates, when all else remains equal, leads to higher levels of investment. But today, after several years of near-zero interest rates and only modest increases in investment to show for it, some economists are claiming just the opposite.”

Vanco
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Vanco

@ 20

ahhh. the mythical and magical stock market that solves all your woes.

I hope you are kidding, but somehow I doubt it which is even more scary.

With the effect of leverage, primary home exemption and the rapid rise of Vancouver RE prices, the bears who invested is even further behind by this time. Never mind most study show the average retail investor badly trails the market, due to their poor decision on entry and exit. which, btw, is not very difficult from bears’ decision to eschew housing.

Shut It Down Already
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Shut It Down Already

Remember Short ‘Em High?

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