BC, opinion, politics, prices

Mayor warns property prices put Vancouver economy at risk

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59 Comments

The mayor has released a statement reiterating his support for a house-flipping tax saying that without some sort of action the Vancouver economy is at risk:

Gregor Robertson says recent reports and recommendations from banks, organizations, real estate boards and economists has made it clear to him that it’s time to deal with Vancouver’s sky-rocketing real estate prices or the city’s economy could suffer.

On Sunday he released a statement amplifying his support for a house flipping tax as a measure to reduce speculation and a luxury sales tax to help, “rein in the excesses of Vancouver’s housing market.”

“First and foremost, housing needs to be for homes, not just treated as a commodity,” said the statement.

Read the full article over at the CBC.

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OPENHOUSEMASSACRE

Priorities is housing but in Vancouver – Nude protesters speak out against removal of bus stop near Wreck Beach

http://globalnews.ca/news/2743616/nude-protesters-speak-out-against-removal-of-bus-stop-near-wreck-beach/

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southseacompany

“It’s not ‘if,’ it’s ‘when’ Vancouver’s housing bubble bursts”, BNN

http://www.bnn.ca/Video/player.aspx?vid=883607

“Concerns about Vancouver housing are mounting as the average price of a detached home in the city tops $1.5 million. Vancouver-based CCEC Credit Union’s CEO Ross Gentleman says the market is in a bubble. He joins BNN to discuss this, how concerned he is about foreign buyers and why intervention is needed now.’

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david

Now that they’re (finally!?) past the self-serving ‘Denial’ stage, let the self-serving ‘Festival of Finger Pointing and RRRSS Covering ‘ begin !!

Huzzah!!

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southseacompany

“Morneau to testify before Senate amid calls for action on housing”, BNN

http://www.bnn.ca/Video/player.aspx?vid=885561

“David Rosenberg, Chief Economist and Strategist, Gluskin Sheff + Associates discusses his outlook for Canada’s hot housing market and the potential impact of government intervention.’

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southseacompany

“US economy improving but timing of interest rate hike is unclear: Federal Reserve Chair”, Global News

http://globalnews.ca/news/2744412/us-economy-improving-but-timing-of-interest-rate-hike-is-unclear-federal-reserve-chair/

“Federal Reserve Chair Janet Yellen indicated Monday that the U.S. economy is improving but remains defined by so many uncertainties that it’s unclear when the Fed should resume raising interest rates.”

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bullwhip29

BIV: High prices pushing people from city core to where the action is
https://www.biv.com/article/2016/6/high-prices-pushing-people-city-core-where-action/

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Ulsterman

One concern i have for the newer readers of the bear persuasion is not to take any comfort in bearish predictions from posters you may admire or think sound clever or well informed. They’ve all been totally wrong for years. This market is irrational but may stay that way until you’re totally priced out. When you think “OK, it’s SO high now this really must be the end,” stop thinking that. It can and based on history probably will march higher – at your expense. Many here also read Garth Turner’s blog. Some re-posted one of his posts from 2009 when he was predicting doom for Canada Day 2011. For the bulls it must make very amusing reading. Excuse the weird formatting: Canada Day, 2011. Gas is $1.42 a litre, and a five-year mortgage hovers close to 8%. Effects of… Read more »

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888888

Garth Turner is wrong because he doesn’t believe foreign buyer’s are driving up the cost of housing, so all of his prediction’s will continue to be wrong until he wake’s up to this fact .

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Slava

Garth Turner is a has-been, who has apparently lost touch with the facts and reality.
He is a money manager that uses his blog to advertise his “credibility” in order to boost his business. End.

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Newcoomer

Ulsterman is right in pointing out that bears could well continue to be wrong. Real estate could continue to appreciate at this rate so that, in 5 years time, the average SFH is worth over 8 million dollars, or more than twice the lifetime earnings of the average Canadian family. I’m not being facetious, while the scenario is unlikely, like most things, it is possible. Prices might also remain fairly stable, adding a few percent a year for the next thirty years. It is possible that, in future, all over the world, only the elite will own, and that ordinary people will spend 50 or 60% of their income on rent, for shitty little places. That’s the way it used to be as recently as 100 years ago. Historically, it’s the norm. It is also possible that Vancouver will become… Read more »

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888888

That’s why we need to get rid of Chrusty and all of her car salesmen and realturd friend’s out of office.

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888888

Now the Chinese getting ready to bring their own worker’s over to build their project’s .Now let’s see our government in action.http://www.cbc.ca/news/politics/china-mining-ambassador-investors-infrastructure-1.3619228

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patriotz

“only the elite will own, and that ordinary people will spend 50 or 60% of their income on rent, for shitty little places. That’s the way it used to be as recently as 100 years ago.”

Yes but back then, buying was a good deal cheaper than renting, so this transferred wealth from the renters to the elite. Which way does the wealth go when renting is cheaper than buying?

In fact, the reason the elite got out of this business was that the availability of financing to ordinary people drove up prices relative to rents, which made other investments more attractive.

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Newcoomer

Excellent point!

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Combat roach

Wars happen in the meantime…

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LS in Arbutus

At my kid’s school I know of 4 families selling houses and moving out of the city, 3 within the last 2 days. One to Ontario, one to Squamish, one to LA and one to Bowen Island… think they got the memo about peak prices?!

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888888

Even Britain is tired of all their housing problem’s they’re trying to get out of the EU. Canada will be the only country to allow offshore investor’s to buy their country. Chrusty are you alive or is that Bob Rennie’s hand up your rear end. https://www.brexitthemovie.com/

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Combat roach

She had degenerated into corrupted Chinese business-politician, physically and mentally, hard to go back.

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vangrl

what’s with the trading range? appears to be a 8500 listing ceiling. My bet is we beat it this week

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paulb

New
425
Sold
261
TI:8420

http://www.paulboenisch.com

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space889

Actually, don’t we already have a house flipping tax? Non-primary residences are subject to capital gain tax, and primary residences that’s been occupied for under 1 year is also subject to capital tax.

How about enforcing the existing rules first before adding more rules that will never be enforced?

And frankly a property tax surcharge on residential homes owned by non-tax filing Canadian citizens is also pretty hard to dodge and easier to collect too I think.

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Catface3

Here’s a scary report I stumbled over. Ross Kay Realty was featured as a guest on the Linda Steele show a few weeks ago. Here is the report link – http://www.rosskay.com/vancouvers-ponzi-scheme.html

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bullwhip29

as i said…Enron…err… make that Enwong

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888888

Everybody is starting to get wise to China. https://mishtalk.com/2016/06/06/alarm-bells-ring-over-nuclear-protectionist-trade-option/#more-38214

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Combat roach

Who cares, those young and educated Canadians aren’t meant to be the future, at least not in Vancouver. This is what Vancouver future is…

http://cdn3.i-scmp.com/sites/default/files/styles/980×551/public/2013/10/18/ngkjfdsglkjfdslkgjsfd.jpg?itok=OdBjouWW

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ostritch

Nice tits. And I don’t mean hers.

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MLS watch

Vancouver on the news in Paris (France) tonight: the city is being sold to Chinese millionaires (50,000 of them) and the population is upset.

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Combat roach

Sooner or later some crisis will be a catalyst. “Chinese Millionaires” will get shoved out with the shitty pitchforks onto cargo aircrafts send by PRC to Richmond.

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888888

Get ready Chrusty you’re going to be famous all over the world now. Famous for how incompetent you are.

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space889

Incompetent?? Winning an election everyone said she will lose is incompetent? Looting the province and screwing over millions of local citizens she swore to serve, all so her corp buddies can make maybe extra hundreds of millions of $$, and still voters hating the opposition more than her is incompetent?

Frankly, she’s looking like a political genius. Can’t say the same about the trashy moronic racist bears on this blog who’s been wrong for 8 years+ & counting?

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AngryLemming

Touche!

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xyf

Space, you seem to like hanging around with us. Somehow you’re different?

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funky monkey

Do people in Paris know where Vancouver is?

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space889

O’Leary: Don’t count on wealth transfer staying in Canada

and what he thinks about all the tax proposals on RE to curb foreign $$$.

http://beta.bnn.ca/video/o-leary-don-t-count-on-wealth-transfer-staying-in-canada~885201

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space889

How a tsunami of inheritances could ease Canada’s housing market pain

http://beta.bnn.ca/talent/how-a-tsunami-of-inheritances-could-ease-canada-s-housing-market-pain-1.502366

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bullwhip29

as has been covered in prev threads, this is not a source of new money nor is the figure they are tossing around easy to verify/measure. after reading about this freakshow market 24/7 consumers are being spoon this sweet tasting pabulum to sooth their nerves somewhat. hey. if people cant make it on their own, they can always sleep at night knowing grandma and grandpa will kick the bucket soon.

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space889

Wealth is wealth…heck, if grandma and grandpa kick the bucket and they get a free house, well I doubt they will sell or complain. Choosing the right parents is 1 of 2 most important decisions a person makes in their life.

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Chinabuyeverything

I doubt they will complain. But they definitely will sell.

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Newcoomer

Is this the one that says the housing market will be saved by a tsunami of people leaving the housing market?

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space889

Canadian homeowners using Airbnb to curb mortgage costs

http://www.bnn.ca/News/2016/6/7/Canadian-homeowners-using-Airbnb-to-curb-rising-mortgage-costs.aspx

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bullwhip29

Vancouver’s ponzi-like “economy” is largely dependant on an ever growing real estate industry and to a lesser extent, tourism and service related industries catering to affluent visitors. Pulling the plug would put 1000’s of over leveraged Vancouverites in the same predicament as many Enron employees (who had all savings tied up in co shares) when the whistle was finally blown on that scam.

http://www.trinity.edu/rjensen/theory/00overview/EnronWhitewing.jpg

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bullwhip29

Vancouver parents buy property for young children to secure a future foothold
http://www.vancourier.com/news/vancouver-parents-buy-property-for-young-children-to-secure-a-future-foothold-1.2271651
.
https://minimumwagepaige.files.wordpress.com/2015/03/bank.png

“According to a 2015 survey by private mortgage insurer Genworth Canada, 40 per cent of first-time homebuyers in Vancouver had help from their parents, compared to 22 per cent in the rest of Canada.”

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space889

Next target for the bears after Chinese $$ leaves and house prices still not going down.

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bullwhip29

just like the japanese in the 80’s, the chinese have no one to sell to if they wanted to exit this market. pretty soon they’ll own every space on the monopoly board and then what? a slew of houses for sale for X million dollars and no bids. game over. thanks for comin’….

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Combat roach

They can keep exiting in China. Can they keep selling among themselves? It can run for decades if not centuries gave the numbers. An infinite Ponzi scheme that runs on the foreign soil until entire nation over multiple generations experiences the “foreign ownership”. Our BC whorehouse should be able to accommodate such orgy given the mindset and aspirations.

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space889

Uhm….once you own all properties on the Monopoly board, you win! Not to mention the steep rent increases when you have a monopoly and starts putting up houses and hotels.

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bullwhip29

monopoly? no one is being forced to stay here. prices can not go to infinity either. there is no “greater fool” than the chinese investor. after they’ve bought everything up, who buys from them?

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tedeastside

what a shallow shithole vancouver is…in America people invest in their kids education

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Shut It Down Already

They have to. It costs a fortune to get an education there and most come out of college with crippling debts. Some have no choice but to join the forces, as they’ll often pay down the student debt (up to $65K) of those who sign up.

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tedeastside

SFU and UBC tuition is more than Florida State

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Shut It Down Already

I thought you were talking about America, not Florida. Anybody can cherry-pick. Florida State only barely makes it into the top 100.

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CanNeverThinkOfAGoodName

Rank is not what the cost of a university education is based on. Some of the most highly ranked have the lowest tuition.

Also, there are many different rankings based on different qualities a university can have.

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CanNeverThinkOfAGoodName

My Above@ Shut It Down

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xyz

Whereas the middle class used to move toward productivity and jobs, like the River Rouge complex, they’re now barricaded from the most productive places by housing costs. So they’re moving toward cheap housing, instead. Tighter land-use regulations in rich metros pushed up housing values, according to the Harvard economists Peter Ganong and Daniel Shoag. Expensive housing in productive metros priced out the middle class and created “segregation along economic dimensions, with limited access for most workers to America’s most productive cities,” they wrote.

http://www.theatlantic.com/business/archive/2016/05/how-america-lost-its-mojo/484655/

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Hyper-mega-Bull

he’s been on the wrong side of this issue for too long, and he thinks that passing the buck is going to fly?

nope. he’s done.

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