Just like London, Stockholm & New York

So are we ‘world class’ yet?

Despite not making it onto lists of the worlds most economically powerful cities, Vancouver is finally being compared to London, Stockholm & New York and we come out on top!

Swiss bank UBS has named Vancouver the city with the worlds riskiest housing bubble:

UBS said Vancouver prices were unaffected by the financial crisis in 2008 and continue to rise despite weakening commodity prices.

“Over the last two years, the housing market has gone into overdrive due to strong demand for local properties among foreign investors and a loose monetary policy,” the report said.

“Currently, house prices in Vancouver seem clearly out of step with economic fundamentals, and are in bubble risk territory.”

Hot on the heels of Vancouver are London and the Swedish capital, Stockholm. The report stated that, with the exception of Milan, low interest rates in the euro zone have pushed all the European cities reviewed into bubble territory.

Read the full article over at CNBC.

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Diadora
Guest
Diadora

Its official now, we are part of China as cities across the Canada raise the communist Chinese flag in celebration of the 67th anniversary of their national day. Heave help us.

Raincity
Member
Raincity

I’ve been walking thru Holt Renfrew for the last several years. Tons of HAMs shopping with Chanel bags, LV bags…but now I have seen far less HAMs shopping. They are scared of spending all that black money, because they know whats coming!!!

trackback

[…] –Mayor: foreign buyer tax too little, too late –Opinions? Share them with the city. –Canadians, Aussies and Kiwis in same trap –Bigger bubble than London –AirBn…waitwhataretherulesagain? –Housing Crisis? Blame Canadians. –Skook blogs again! Bowen and Coast stats –Millenials: No Retirement for you! –Correction to be painful. – […]

Oracle
Guest
Oracle

You guys have no hope ever of having living in a detached home. And you guys still can’t get your finger around the cause.

It’s population growth stupid! The highest per capita rate in the world and mostly all going to 2 cities. Until you acknowledge that reducing immigration is your only solution, you guys are going to be on this blog a long time until you are homeless.

1 million more people here in the next 15 years or so. They want a detached too. They can live in a townhome with 8 others. Can you?

You guys are doomed until you all realize the root cause of this madness.

mls watch
Guest
mls watch
Combat roach
Guest
Combat roach
Disgruntled condo owner
Guest
Disgruntled condo owner

Much as I like Mayor Robertson for his stance on housing, the same old ludicrous comment: “Whether it was going too far is the big question. But we needed something to cool the market.” SERIOUSLY??? TOO FAR???

Oracle
Guest
Oracle

Absolutely agree. The next year or so will be the last time to get a detached home even in the valley.

Kim
Guest
Kim

602 618 W 45TH AVENUE-3br/3ba for 3 million. Over 1600 per sq foot. Listed for months on end.
New listing
311 6198 ASH STREET – 2 br/2ba for 868K. About 860 per sq foot. This is back to 2011 prices.

They are literally right across the street from each other. Who wants to buy into the casino? Bid up folks.

Combat roach
Guest
Combat roach

Both condos can’t be over 500$ per sqft to come even closeto something that would make sense for a local citizen with very high income earned locally, but most likely much less than that. We live in fantasy.

Boombust
Guest
Boombust

Why the HELL would anyone buy a condo? Especially now? When price declines gain more velocity, they’ll be the worst “investments” out there.

Oracle
Guest
Oracle

They’re not going to gain velocity. Rents are going up as we speak. It is that which will gain velocity.

Where you going to house the 1 million people expected to come to Vancouver. ?

Boombust
Guest
Boombust

The place on Ash will set the new comp for that area…down she goes!

Shut It Down Already
Guest
Shut It Down Already

In 2011 you could buy nice 2 bed condos for $650/foot or less. Condo prices were flattened for quite some time.

Its_the_ALR_stupid
Guest
Its_the_ALR_stupid

“Condo prices were flattened for quite some time.”

Correct. Which is another reason why condos are not terribly overvalued right now, despite what many would like to believe without looking at actual data.

Oracle
Guest
Oracle

Absolutely agree. People on this blog are underestimating the amount of people moving here.

Rents are gonna skyrocket because foreigners can live 4-5 per condo while they wait to get PR.

Shut It Down Already
Guest
Shut It Down Already

Indeed. Rents have also increased significantly. What was $2200/month (using a 2 bed condo as an example) in 2011 is now $3000.

Anybody expecting or claiming 5 years of price reversion in a month is delusional.

Best place on meth
Guest
Best place on meth

Anyone claiming $3000 is normal for a 2 bed condo is a worthless snake oil salesman.

Oracle
Guest
Oracle

Foreign students living 4-5 per condo

paulb
Member

New
174
Price Change
60
Sold
116

TI:10093

http://www.paulboenisch.com

Combat roach
Guest
Combat roach
Billybonger
Guest
Billybonger

Thanks HAMster:-)

And yes, I think the lesser informed are slowly awakening to the new reality.

Oracle will probably still be stuck in his paradigm though, for a while longer. He guzzled long and hard on the kool-aid while it was flowing like crazy, and he’s hitched his get wealthy hopes to the real estate train. Like a lot of other people. He got caught up in the hype, and without basic math skills to protect himself, he bought into the hype, whole hog. Lock, stock and barrel.

When the party ends, there is always at least one person left standing with a gazed look in their eyes.

bullwhip29
Guest
bullwhip29

some more funny business…

Large police presence at historic Gabriola Mansion in Vancouver
http://globalnews.ca/news/2973118/large-police-presence-at-historic-gabriola-mansion-in-vancouver/

bullwhip29
Guest
bullwhip29

Richmond MP and lawyer named in fraud lawsuits filed by Chinese immigrant investors
Sam Cooper
Published on: September 28, 2016 | Last Updated: September 28, 2016 11:00 PM PDT
http://vancouversun.com/news/national/lawyer-named-in-fraud-lawsuits

bullwhip29
Guest
bullwhip29
FULL TEXT: Richmond MP Joe Peschisolido has been named in lawsuits filed by three Chinese immigrant investors, who allege he allowed money submitted to him in a legal trust to be wrongfully taken by a Vancouver immigration consultant accused of a $6.9-million fraud scheme. Paul Oei was accused of the fraud on Monday by the B.C. Securities Commission. Oei and Lai are clients of Peschisolido’s Richmond law firm. The substance of the allegations against Peschisolido and his firm predate his election to Parliament in 2015. Oei and his wife, Loretta Lai, are active in federal and provincial Liberal fundraising circles. Oei and Peschisolido have been photographed together at multiple political events and fundraisers. The Commission accused Oei of using a number of companies to “perpetrate a fraudulent scheme” to bilk investors. The agency alleges investors who kicked in a total… Read more »
Combat roach
Guest
Combat roach

Those good fellas, Oei and Peschisolido… sounds like did mentoring and business knowledge transfer.

bullwhip29
Guest
bullwhip29

and even more signs infrastructure all over gr vanc was just slapped together haphazardly despite tax payers footing one bloated bill after another…

Combat roach
Guest
Combat roach

Sorry but we had to support extended families and other cousins let alone all those low-income families living with children in poverty at the Westside and Richmond.

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
Whistler or Bust?
Guest
Whistler or Bust?

The bust is now trickling down to the uninformed. I am hearing people talk of a slow down or gasp a small correction. There are a lot less braggarts at the water cooler these days.

My greater fool friend who “won” a bidding war less than 6 months ago in East Van is strangely quiet. This was the same person who said a tax would be a good thing because it would be done with and remove the uncertainty of it happening or not.

Oh oh
Guest
Oh oh

My cousin bought in Renfrew May 2016 bidding war paid 250 over. ….I guarantee you if he had to sell today bye bye 250000$

JJQA
Guest
JJQA

Realtor I spoke with a few days ago was like watch everything is going higher in March, he was trying to convince us that this is the best time to buy.

HAMster
Guest
HAMster

I heard two guys at work today and the one was advising the other guy who wants to buy that the market will “stabilize” soon. LOL. The guy giving the advice is big into property investment. The news is starting to hit the masses.

Boombust
Guest
Boombust

I remember people spouting off about being a part of “The Millionaires Club” just a few short months ago. Duh.

Boombust
Guest
Boombust

…and you’re right. Most of them are strangely “quiet” these days.

bullwhip29
Guest
bullwhip29

the rollout of the tax did nothing to remove uncertainty. if anything it makes one question if further changes are coming re. foreign tax in other jurisdictions, changes to the tax rate or outright rug pull to buyers/sellers post election if tax is rolled back (or some other silly measure)

southseacompany
Member
southseacompany

“Canadians, Aussies and Kiwis trapped in ‘commodity bust, housing boom’ cycle and the unwinding is going to be painful”, Financial Post

http://business.financialpost.com/investing/canadians-aussies-and-kiwis-trapped-in-commodity-bust-housing-boom-cycle-and-the-unwinding-is-going-to-be-painful

“Canada is not alone in having its central bank backed into a corner, forced to warn about the dangers of high debt and hot housing markets, while powerless to change interest rates as a commodity bust weighs on the economy. “

Billybonger
Guest
Billybonger

Yes Oracle, immigration booming, housing and rents going up up up, blah blah blah.

Suppose listings will get sucked down to 7,000 by month end also.

Your prediction. Let’s see what comes. You stated it with such verve only a few weeks back, so confident were you.

Oracle
Guest
Oracle

Your IQ is showing.

HAMster
Guest
HAMster

140 ?

Best place on meth
Guest
Best place on meth

That’s the mumber of immigrants flooding into Vancouver every hour.

Just me
Guest
Just me
From the Guardian article “But Pittar believes the story of ordinary, middle-class investors is more significant than that of China’s globe-trotting, Ferrari-driving elite. “What we read in the newspapers is always about the very wealthy Chinese who come and buy a £5m, £10m, £15m property. But the middle class is key. How big is the middle class? It could be 120 million. We tend to think it’s probably closer to 150 million. “Once they’ve got somewhere to live in China, the reality is that the domestic market is quite expensive, so that’s why they are looking more for international opportunities. Like anyone who wants to preserve their wealth, diversification is important.” Predictions that a new wave of investment from mainland China is on the horizon will stir further debate over the measures British politicians might use to protect local home… Read more »
Just me
Guest
Just me

‘This is just the start’: China’s passion for foreign property

https://www.theguardian.com/cities/2016/sep/29/inside-china-passion-foreign-property-investment-uk

From the UK Guardian:
A huge new wave of Chinese investment in overseas housing may be about to flow into the global market. In Hong Kong, Tom Phillips meets the salesmen who market British property to mainland China

UBC in Crisis Mode
Guest

Flipper alert:
Now asking $11,780,000: 1896 Westbrook Cres.

http://www.realtylink.org/prop_search/Detail.cfm?MLS=R2102793&REBoards=All&From=MLS

Sold data:
18/Aug/2013 $5,000,000
02/May/2015 $6,100,000

Boombust
Guest
Boombust

Too funny!

Combat roach
Guest
Combat roach

Funny… a question is, if that would even sell now for what is paid on 02/May/2015 $6,100,000?

bullwhip29
Guest
bullwhip29

bigger question, “homemaker” or “student”?

diadora
Guest
diadora

Wow, almost double and with only one 8 in the price!

Just me
Guest
Just me

“The Political Consequences of China’s Financial Emigrants”

http://thediplomat.com/2016/09/the-political-consequences-of-chinas-financial-emigrants/

This is a must read for all.

/dev/null
Member
/dev/null
So, with the new AirBnB rules that the city has proposed, am I right that this is where we are going? Secondary residence: -if empty, taxed -short term rentals (i.e. AirBnB) are illegal -long term rentals are A-OK Primary residence: -if empty, taxed -short term rentals (of basement, laneway) are A-OK if you get a license and pay tax on income (similar to hotel tax) -long term rentals are A-OK Is that right? So for the wily investor with a secondary residence, you either need stupid-renter-pays-your-mortgage or you leave it empty and the empty tax eats a bit into your juicy profit from capital appreciation? And by not proving to the city that its your primary residence CRA could now know and want their pound of flesh when you sell to realize those juicy profits. For the primary residence, you… Read more »
patriotz
Member

You seem to be off on a number of points. Short terms rentals are allowed only for one’s primary residence. They are not allowed for secondary units such as basement. Also I don’t think the proposed vacancy tax applies to primary residence.

bullwhip29
Guest
bullwhip29

conventional basement is not a secondary unit so short term rental would be allowed (as it would be if a room upstairs was rented out). if, however, you own a duplex, 3-plex or home with a coach/laneway house you are up $hit creek as these secondary units have different physical addresses

Hyper-mega-Bull
Member
Hyper-mega-Bull

You are confused. There is the current law and there is the proposed law. The proposed law is more permissive on short term rentals.

http://vancouver.ca/doing-business/short-term-rentals.aspx

YVR
Guest
YVR

Except the new law will have much larger penalties and enforcement. An AirBnB that is not a principal residence and/or not licensed will be classified as a vacant house. That immediately gets a 2% per year property tax increase ($20K per million property value). Failure to declare and license an AirBNB will get a higher tax rate (more than 2%) plus a $10K fine for each offence. The nice part about property taxes (which this is) is they are paid first above mortgages and mortgages require property taxes to be paid in full. How many people want to take their chances on this. If caught they will pay up $30K as a start or be foreclosed. Easier to just sell or rent it monthly.

Hyper-mega-Bull
Member
Hyper-mega-Bull

Maybe you haven’t been paying attention but income tax and capital gains are routinely dodged at a scale so massive that the wealthy suburb of richmond appears to be the poorest in the province.

So I’m not sure where your faith in new rules and taxes comes from

YVR
Guest
YVR

It will be like shooting fish in a barrel for thecity to collect these taxes. AirBnB seems pretty concerned that is why they are spending millions on advertising to try to keep it going. AirBnB is done.

Hyper-mega-Bull
Member
Hyper-mega-Bull

Replied to wrong post.

/dev/null
Member
/dev/null

Thanks for the clarification. I thought a basement suite in a house the owner is living in could be a short-term rental, and that a primary residence empty for >9 months a year would be taxed.

patriotz
Member
Hyper-mega-Bull
Member
Hyper-mega-Bull

Currently short term rentals are completely banned except for licensed bed and breakfasts. The law makes short term rentals less strict.

Assuming people want to be legal. But Vancouver is a Chinese city and in Chinese cities only fools follow the rules. As you can see by the number of AirBnB rentals currently in the system.

I’m just wondering how long until bribery becomes common.

/dev/null
Member
/dev/null

Sure, but you have to advertise a rental right? That makes it harder to hide from the city, and AirBnB isn’t stupid enough to facilitate hiding the address.

Some people (of all races) will try to cheat the system. I’m only wondering if this will make it less likely, by shining some light on things. Going from “playing dumb” about the law to actively lying (or bribing) to avoid it is a bit of a step for many people. The city just has to be collecting data – the CRA can be the enforcer. If people aren’t scared of CRA they’re stupid.

Hyper-mega-Bull
Member
Hyper-mega-Bull

Short term rentals aren’t currently allowed and they are advertised on AirBnB.

The city of Richmond has a childhood poverty rate of 24%. I assure you that they are not scared.

You are deluding yourself and desperately seeking anything that will damage the housing market to the point of creating your own reality.

Patiently Waiting
Member
Patiently Waiting

It is kind of funny how AirBnB has screwed things up for some shady people who’ve flown under the radar for a long time.

Oracle
Guest
Oracle

100 families a day are coming to Vancouver. Those Airbnb units will be full in 10 days.

Funkeymonkey
Member
Funkeymonkey

Correction 107 people a day.

/dev/null
Member
/dev/null

Families moving to Vancouver will stay in an AirBnB? Maybe I’m missing your point…

Combat roach
Guest
Combat roach

I assume only loaded families are coming. They don’t give visa if a family doesn’t have at least a couple of millions $ to get settled in Canada, right?

HAMster
Guest
HAMster

Chinese bus-ted in Richmond: Now English language also required at city bus shelters, on benches.
http://vancouversun.com/news/local-news/chinese-bus-ted-in-richmond-now-english-language-also-required-at-city-bus-shelters-on-benches

Pushback against the Chinese takeover of Richmond is getting stronger.

Combat roach
Guest
Combat roach

It is about the time. Accordingly and logically any signage and any publicly exposed or distributed material (advertisements, coupons, pamphlets, etc.) must follow. This initiative must be thoroughly implemented and enforced hence future can be merciful to our generation.

southseacompany
Member
southseacompany

“Canadians are just $200 away from being overwhelmed by debt, new survey finds”, Financial Post

http://business.financialpost.com/personal-finance/debt/canadians-are-just-200-away-from-being-overwhelmed-by-debt-new-survey-finds

“More than half of Canadians are now within $200 of being unable to handle their monthly costs, a new debt survey shows.”

southseacompany
Member
southseacompany

“Why Interest Rates Won’t Get Back to Normal Until at Least 2025”, Time Money

http://time.com/money/4511949/interest-rates-return-normal/

“It could take a decade or more for savers to get real relief.”

southseacompany
Member
southseacompany

“Commonwealth Real Estate Bubble Sends Debts To Dizzying Heights”, Better Dwelling

https://betterdwelling.com/commonwealth-real-estate-bubble-sends-debts-to-dizzying-heights/

“Curious how so many of your friends are purchasing million dollar homes? If you’re located in Canada, the UK, Australia, or New Zealand – massive amounts of debt might be the reason. As incomes fail to increase as quickly as home prices, people are borrowing to make up the difference. This has led households in the Commonwealth to assume some of the largest debt loads in history”