$500 Million for Affordable housing

The BC government has announced that they will fund $500 million of affordable housing projects in the province using money brought in via property transfer taxes and the new foreign buyer tax.

Real estate related taxes are now the single largest revenue generator for the BC government, surpassing the 1.2 billion from gambling and all individual resource industry taxes.  In fact, when you combine all resource industry taxes the cumulative figure only exceeds real estate tax income by a few decimal points.

The BC real estate economy is possibly the finest example of a perpetual motion machine in existence. Taxes raised via real estate goes into buying and building more real estate. Win-win!

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Its_the_ALR_stupid
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Its_the_ALR_stupid

Excellent documentary video on the current real estate situation in China. Fraud, misallocation of capital, etc. on a scale the size of, well, China.

http://www.aljazeera.com/programmes/101east/2016/09/china-economy-160913081105227.html

Newcomer
Member
Newcomer

It’s interesting how the journalist talks about the slowdown in the overall economy as pervasive and consequential, which is not the narrative in most papers.

Sellnoworbepricedin4evah
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Sellnoworbepricedin4evah

Thank you for posting this.

Bag it and tag it
Member
Bag it and tag it

Recent data out of China shows large recent increases in homes prices which seems very counter intuitive due to the economic slowdown. This video seems to have an explanation for this. It seems it’s likely a common practice to falsify sales certificates to show, for example, a $300K purchase as a $400K purchase so that they can get a $280K loan. This circumvents the 70% LTV requirement. In this example, less than 10% DP is required.

Bag it and tag it
Member
Bag it and tag it

http://www.bloomberg.com/news/articles/2016-09-19/china-home-prices-rise-in-more-cities-in-august-as-sales-gain
I think it’s very likely the recent spike is due to the kind of falsification mentioned in my previous post…

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

On a tangential note, one of the takeaways I got from the video was a reminder that not all Mainlanders are bad people. I was particularly moved by the woman who offered lunch to the journalist and his crew despite her financial distress.

I know there is a lot of hostility towards Mainlanders due to the likes of Kenny Gu – well deserved I would add – but let’s remember that the large numbers of douchebag 1%’s who end up in Vancouver are not representative of the entire country’s population.

JayTor
Guest
JayTor

I want to tour these ghost cities!

Combat roach
Guest
Combat roach

Lol… how these two words became synonyms, China – Fraud?

southseacompany
Member
southseacompany

“Poloz signals delay in interest rate increase as economy struggles”< Globe & Mail

http://www.theglobeandmail.com/report-on-business/economy/poloz-signals-delay-in-return-to-higher-rates-as-economy-struggles/article31964961/

"Bank of Canada Governor Stephen Poloz is warning that a move to raise interest rates will likely be delayed again as the Canadian economy struggles to gain traction in a slow-growth world."

Bbbbb
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Bbbbb

he’s bought out by RE/bank/complex.

Bbbbb
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Bbbbb

more corruption here than ‘3rd’ world

JayTor
Guest
JayTor

I wonder how history will treat idiots like Poloz.

bullwhip29
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bullwhip29

SCMP: Sold in 2013, why was this home counted as an August 2016 sale by Vancouver’s real estate board?
http://www.scmp.com/news/world/united-states-canada/article/2021095/sold-2013-why-was-home-counted-august-2016-sale

bullwhip29
Guest
bullwhip29
Vancouver vacancy tax to include secondary units used for Airbnb The Canadian Press Published Tuesday, Sep. 20, 2016 4:29PM EDT Last updated Tuesday, Sep. 20, 2016 4:33PM EDT http://www.theglobeandmail.com/news/british-columbia/vancouver-empty-homes-tax-to-include-secondary-units-used-for-airbnb/article31971833/ Vancouver’s proposed empty homes tax will include secondary units being booked full-time on the vacation rental website Airbnb, with the maximum fine for people who evade the levy set at $10,000. New details of the tax emerged at city hall where council voted to move forward with public consultation despite staunch opposition of three councillors from the centre-right Non-Partisan Association. Coun. George Affleck called the tax a “bureaucratic nightmare,” while Coun. Elizabeth Ball said the proposal was frightening seniors who may have had to leave home to care for a sick loved one, for example. Mayor Gregor Robertson dismissed their concerns as “fear-mongering” and says the process for enforcing the tax… Read more »
YVR
Guest
YVR

Air BnB and empty home as a pied de terre is done in Vancouver. You can tell by the 10s of millions Air BnB is currently spending on advertising they know it. We can all think of loop holes to try to avoid the tax but it is a lot easier to just sell. The market is going down anyway so why hang on and take your chances on massive taxes and fines plus the hassle all for a low yield on a declining asset. There will be a massive rush to the exits in Spring when everyone figures out what is going on.

yvr2zrh
Member

Does this mean that foreigners who have their Vancouver “Pied a Terre” are subject to the vacancy tax? If not – then this tax has no teeth. If so – be ready for the 10,000 units to come to the market pretty quickly.

bullwhip29
Guest
bullwhip29
this is exactly what this tax is supposed to be for. if i was leveraged up the ying-yang with several rental condos/apts I would be pretty concerned right now. i think starting next year this category of RE in particular will be even harder to sell than it already is and now renting out for top dollar just became more challenging too. the only loophole i think someone in your example could exploit would be to stage a fake rental with an associate or family member complete with paperwork, monthly rent cheques and the like. it will be a pain in the ass, but surely there will be a big market for someone willing to arrange services like these. i think properly orchestrated, someone would wind up paying just a fraction of what the vacancy tax may end up being… Read more »
yvr2zrh
Member
There is going to be a need that the unit is rented to a “Tax Resident” much like the unit is used as a “Permanent residence”. Supported by rental agreements, and SIN’s of the tenant to support the tax filing being made from the address. This is a pretty easy tax to catch people on if you must be using it for a rental, AirBnB is not considered rental, and the property is not allowed to be essentially a secondary residence. This would torpedo Coal Harbour as so many of these are just there basically empty. However – the outcome of this tax would be very desirable in that you would seriously re-populate the city and possibly push the market values of properties down as owners sell instead of becoming landlords. I personally would never buy a property there if… Read more »
bullwhip29
Guest
bullwhip29

secondary properties rented out on airbnb will not be tax exempt. owners would likely run into all kinds of roadblocks operating a “licensed” commercial business out of a strata property or even a detached home where it is not zoned for this. for that matter, there are restrictions on the number of rentals allowed in many buildings, so it will be interesting to see how things unfold

bullwhip29
Guest
bullwhip29
Vancouver to launch public talks on empty homes tax Matt Robinson Published on: September 20, 2016 | Last Updated: September 20, 2016 1:21 PM PDT http://vancouversun.com/news/local-news/city-of-vancouver-to-ask-public-about-empty-homes-tax Stiff fines would await those who tried to skirt an empty homes tax in Vancouver, city staff told councillors Tuesday. A $10,000 penalty – the maximum fine the city can issue – is the tool staff could use to enforce their proposed annual tax on homes that are not being used as principle residences. That was among the new details staff offered councillors before asking for the green light to take the idea out to residents in a $220,000 public consultation process this fall. Vision Vancouver and Green Party councillors supported the idea, but members of the Non-Partisan Association stood in opposition. Last week Mayor Gregor Robertson plugged an annual tax of as much… Read more »
Just me
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Just me

This would be an enormous shock to the system: “Extradition treaty could see Vancouver homes owned by Chinese government”

http://www.inews880.com/syn/112/222711/222711

It would put an immediate hand to the use of Vancouver homes as a safe-deposit box: not more bank-secrecy means no more storing of dirty money. The Vancouver market would feel it, big time!

YVR
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YVR

Just another reason for them to sell NOW and get there money to safe harbour. Nobody is going to wait to see if this happens. If I was Chinese I think the message would be clear. You are no long welcome here. If you stay you will pay.

Madashell
Guest
Madashell

Michael Ching and the likes must be crapping in their pants as we speak.

Raincity
Member
Raincity

Class-action lawsuit filed against B.C.’s foreign buyer property tax
Chinese student leads court action, demanding repayment of all money paid by foreign national home buyers
By Eric Rankin, CBC News Posted: Sep 19, 2016 8:09 PM PT Last Updated: Sep 19, 2016

Raincity
Member
Raincity
bullwhip29
Guest
bullwhip29

Savers must adjust retirement plans amid low interest rates: Poloz
http://www.cbc.ca/news/business/poloz-low-interest-rates-1.3770695

squeak
Member
squeak

Ooh, that looks really good on the headlines.

But.

Considering the blatant disregard and denial of a very serious housing situation in Vancouver/surrounds, that has been going on for over a decade, what makes the political leadership all of a sudden do this spinning? So what are you doing behind the scenes now to distract us with this “bone” thrown at us?

Im not going to say “it is too little too late”, even if it is.

My statement is “I don’t believe a word of it”.
Dear Christie, your time of being trusted is long gone. We had it with your antics.

Serious honest leaders would have dealt with this at least a decade ago, seriously.

HAMster
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HAMster

I remember not too long ago Christy said if you can’t afford Vancouver then move to Ft. St. John, and de Jong called people who complain about real estate prices a bunch of “whiners”. I am voting NDP.

Best place on meth
Guest
Best place on meth

That was Coleman, unless De Jong said something along those lines as well.

http://www.news1130.com/2016/05/26/housing-minister-whining-critic/

HAMster
Guest
HAMster

I stand corrected. It was Larry, not Moe…

Madashell
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Madashell

“The Bank For International Settlements (BIS) Warns That A Major Debt Meltdown In China Is Imminent”
http://theeconomiccollapseblog.com/archives/the-bank-for-international-settlements-warns-that-a-major-debt-meltdown-in-china-is-imminent
Perhaps this is why there is so much money is coming into Vancouver RE.

Combat roach
Guest
Combat roach

To stop dirty money from China coming, stop people from China coming, simple as it gets and it can be done quickly.

bullwhip29
Guest
bullwhip29

unfortunately like we saw in 2008, the crooks running the show will do the opposite instead of nipping it in the bud. will delay the inevitable by allowing the very same activity that got us into the mess in the first place (or risk a major meltdown on their watch)

Best place on meth
Guest
Best place on meth

The other problem with this is that 2900 lucky people will get into an affordable rental, while all other renters get nothing.

Hey Krusty, how about a renters tax credit so everyone gets a small break?

That would be a better use for $500 million rather than funneling it over to her developer donors.

Combat roach
Guest
Combat roach

If the city provides land, $500M is a quite considerable amount to be spent on construction of the new rental housing objects.

YVR
Guest
YVR

There are tonnes of vacant lots in downtown Vancouver that were donated by Concord Pacific (as part of the development approval) that have been sitting vacant for 5, 10 and 15 years. I assume these lots will be used for this social housing. It is good. Most people would rather have a social housing building than a vacant lot.

patriotz
Member

“If the city provides land, $500M is a quite considerable amount ”

What do you mean “the city”? That figure is province wide. Roughly that’s $6M for every provincial riding in BC.

bullwhip29
Guest
bullwhip29

yeah, that’s a big IF imho…

no one will want developments like this in their neighborhoods and putting housing in sketchier areas will be frowned upon by all concerned. only in a town like this will freeloaders get away with complaining about what’s handed to them on a silver platter… boggles the mind

tim
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tim

Fuck you and your classism. You don’t deserve to call yourself Canadian.

tim
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tim

Sorry I might have misfired. This whole subject has me ready to start building a gallows

would-be buyer
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would-be buyer
Best place on meth
Guest
Best place on meth

Don’t worry, they’re not getting the pipeline.

This is juicy though:

“the release came just before a top Chinese official was set to visit Canada. And it coincided with the agreement to negotiate an extradition treaty and to give Chinese officials some access to Canadian immigration files so certain Chinese nationals could be sent back to China.”

CanNeverThinkOfAGoodName
Member
CanNeverThinkOfAGoodName

What kind of access to which files? How are the files chosen to which they will have some access?

Newcomer
Member
Newcomer

Buying up a thousand or so units is sure to keep things affordable almost as effectively as giving people extra money to hand over to developers did.

Madashell
Guest
Madashell

Sarah Macdonald of CTV tweets: “Christine Duhaime, a lawyer specializing in money laundering, says she’s received death threats. Told she’ll be killed for taking on a case.”
This money Laundering through real estates is getting out of hand, Justin and Canada have to take it seriously.

Combat roach
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Combat roach

Any special forces and anti-terrorist units should be able to trace those threats and eliminate the source. This isn’t joke given the amount of money involved that easily dwarfs narco business.

Madashell
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Madashell

“Concerns first reported by The Province in August 2015 that Vancouver’s property market is at risk of being flooded with dirty cash were confirmed after a six-month review by Fintrac, Canada’s anti-money laundering agency.”
http://vancouversun.com/news/local-news/real-estate-scams-need-high-tech-attention-say-vancouver-and-canadian-experts

HAMster
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HAMster

The cockroaches will stop at nothing, even murder, to launder their dirty money out of corrupt China. It is sickening that Canada lets this happen.

Diadora
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Diadora

I suspect the two people murdered in Renfrew Heights may have to do with dirty money or money laundering gone bad. Exhibit A: house was purchased with cash two years ago by SE Asian.
http://globalnews.ca/news/2947544/2-bodies-discovered-in-east-vancouver-home/

Best place on meth
Guest
Best place on meth

It’s Layla Yang’s Harbin mafia at work.

Oracle
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Oracle

NDP set to lose the next election because some morons gonna vote Green and split the vote.

Greens gonna get a lot of MSM time. Hahaha.

Just like last election. When will the tree huggers learn to vote strategically?

Best place on meth
Guest
Best place on meth

NDP should put in a good word for the conservative party and send over some very large donations.

chilled
Member
chilled

Some might even say that, federally, the Bloc PQ & Greens are the main factor that ruptured what was an envied and functional Parliamentary System Canada once had. The Greens certainly kept Harper in office than would have occurred otherwise, but hey, I digress.

Oracle
Guest
Oracle

I looked at the ridings. If not greens last election and If 80% of green vote went NDP, then NDP would have won last election.

chilled
Member
chilled

“Affordable Housing”

Translated for the working middle class taxpayer > “NO-SOUP-FOR-YOU-TODAY!!!!!”

Best place on meth
Guest
Best place on meth

Krusty’s developer friends and donors will be very pleased with this announcement.

Combat roach
Guest
Combat roach

More than 800 immigrants mistakenly granted U.S. citizenship because fingerprint data was missing

“The report does not identify any of the immigrants by name, but Inspector General John Roth’s auditors said they were all from “special-interest countries” — those that present a national security concern for the United States — or neighbouring countries with high rates of immigration fraud. The report did not identify those countries.”

And we yet playing PC shit and keep in Canada those criminals that got citizenship on the fake passports. Chinese dude “the forger”, will be soon out from a jail and get back to business presumably.

http://news.nationalpost.com/news/world/more-than-800-immigrants-mistakenly-granted-u-s-citizenship-because-fingerprint-data-was-missing

UBC in Crisis Mode
Guest

Where is the money from? As there is no foreign buyers (only foreign money) the 15% foreign tax has no effect, as $5 millions houses on Van West are still selling.

Oracle
Guest
Oracle

PR people already here funnelling money in.

1 house per family. Tax the 2nd homes. Immigration set to soar so this only action.

CRA should do their job. People owning 4 homes and declaring they all their residence. Close or tax this fraud.