Vancouver renters help pay homeowner taxes

If you own a small run down million dollar house in Vancouver, let’s take a moment to thank the renters who help pay for some vital services, like the new first time buyer loans and the homeowner grant, the cap of which has just been raised to 1.6 million.

“This is a remarkably lousy policy,” said Thomas Davidoff, head of the University of British Columbia’s Centre for Urban Economics and Real Estate. “You’re going to take money from people who don’t own homes and give it to people who own homes. That seems to be a step exactly in the wrong direction if the dominant issue is affordability.”

Read the full article over at Bloomberg.

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[…] –BC Gov to spend $1.2 billion on homeowner assistance? –BC Housing supply hits highest level in decades –Detached avg sales price down 22% year over year. –Prices to drop 8.5% in 2017 –Or 50 to 80% drop from peak? –Downgrade of CIBC, Genworth & Home Capital – […]

AtomicFrog
AtomicFrog
3 years ago

Here are few issues that could move the housing supply demand needle in 2017: On the supply side: 1. If the BC NDP wins the election in May, they are unfriendly to business and rich people. So, a lot of local companies will move their headquarters to other cities, resulting in job losses for local ppl. With most ppl locking their mortgage into record low rates, the only way to force owner to sell a house is a life changing event such as loss of employment (and cannot find sth comparable), or divorce. The NDP may even hike the 15% foreign buyer tax just to please their supporters (the #donthaveamillion group), further suppressing the Chinese foreign money from entering the housing market in Metro Van. 2. Lots of condo that are currently under construction; they are set to hit the… Read more »

Donald T
Donald T
3 years ago
Reply to  AtomicFrog

are you ndp? you seem to know them more than they know themselves.

bullwhip29
bullwhip29
3 years ago

Vancouver Park Board rejects motion to shut down community warming centres
http://www.cbc.ca/news/canada/british-columbia/vancouver-park-board-rejects-motion-to-shut-down-community-warming-centres-1.3933887

>>> time for the nimbyists to plant some more evidence…

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  bullwhip29

You think all the needles across the entire city, specifically those discovered in areas frequented by children, are planted? You’re delusional if so.

It’s unfortunately the case that many users don’t give a shit – either about themselves or who else they might harm.

The city and the province have absolutely failed to address this crisis despite pouring billions of dollars into it.

bullwhip29
bullwhip29
3 years ago

B.C. government assistance to homeowners could balloon to $1.2 billion in 2017
http://www.metronews.ca/news/vancouver/2017/01/13/bcs-focus-on-homeownership-benefits-comes-with-a-cost.html

No Money Down
No Money Down
3 years ago

Zolo Stats for Vancouver Detached Y/Y
Average Sale Price -22%
Number of Sales -65%
Number of Active Listings + 44%

https://www.zolo.ca/vancouver-real-estate/trends

Oracle
Oracle
3 years ago

http://www.cbc.ca/beta/news/politics/renter-housing-benefit-1.3933577

If Trudeau goes through with this, it should be an income based program. Not a wealth based one as most programs are not.

Benefit directly to the renter. Landlords will be outed. Will have to declare income.

southseacompany
southseacompany
3 years ago

“Federal Reserve Shows Greater Unity on Path for Interest Rates”, Wall Street Journal

http://www.wsj.com/articles/federal-reserve-shows-greater-unity-on-path-for-interest-rates-1484266801

“Federal Reserve Chairwoman Janet Yellen is starting the year leading a central bank largely unified in expectations of a gradual series of interest-rate increases, though they aren’t hinting when they are likely to move next.”

southseacompany
southseacompany
3 years ago

“Canada’s Job Market Is Booming…If You’re 55 Or Older”, Better Dwelling

https://betterdwelling.com/canadas-job-market-booming-youre-55-older/

“The employment in the 55+ segment grew more than any other single segment to 3.11 million – an increase of around 2.83% year over year. This category also brought with it 105k more jobs, or roughly 49% of all growth.”

patriotz
3 years ago

Well that’s putting a nice spin on it. How about a headline that tells the real story:

“An increasing number of boomers cannot afford to retire”.

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  patriotz

Retiring at 55?

Just me
Just me
3 years ago

Ever wonder why there has been a slowdown in Vancouver since last April? Here is the answer, simple and compelling.

https://www.bloomberg.com/news/articles/2017-01-13/pboc-said-to-step-up-yuan-curbs-with-banks-told-to-balance-flow-ixv9p5oq

The tightening started last winter and has become stricter every month since. Canadians would welcome the money with open arms, of course. All self righteous and judgemental, but happy to cash in…

YVR
YVR
3 years ago
Reply to  Just me

Wow, the directive given yesterday took effect 10 month ago?

The directions, given verbally on Wednesday, require the lenders to show at the end of every month that the amount of outgoing yuan matches the sum that comes in

Oh wait I guess not. Those months had the largest outflow in history.

The equivalent of a net $309 billion left China via yuan payments in the 11 months through November, set for the biggest annual outflow in data going back to 2010.

Just me
Just me
3 years ago
Reply to  YVR

(1) Yesterday was the last step in a long sequenc of tightening measur s. So, no, yesterday was just the icing on the cake. It started much earlier.
(2) Do you perhaps know what last November outflows would have been if no curbs were n place. Ever thought thy could be twice as large?

Deny if you want. After all many people hav been denying Chinese influenc for the best of the past decade.

Newcomer
Newcomer
3 years ago
Reply to  Just me

It’s not just a case of random denial. The numbers don’t work.The actual numbers are the opposite of your argument. The more money left China, the lower Vancouver prices went.

Oracle
Oracle
3 years ago
Reply to  Newcomer

Right. LMAO.

If they put it in real estate, they can be outed. So laying low for a while. But $$ still illegally leaving China and the people doing it are by definition called “crooks”.

But you already know all this so this post was directed at others here and not you.

Just me
Just me
3 years ago
Reply to  Newcomer

You are delusional. I was like you a few years ago. Then I finally accepted the truth.
You will get there one day.

Newcomer
Newcomer
3 years ago
Reply to  Just me

It seems to me like you are talking about a leap of faith in the same manner as a religious conversion. I would rather have my financial opinions be fluid and based on data. If you have data to support a specific argument, I would like to see it. But if you are suggesting that we ignore the data and blindly accept an argument as a faith proposition, I think you are selling to the wrong crowd. That is no more appealing than “real estate always goes up.”

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  Newcomer

Meanwhile Canadians mortgage debt increased as did the home ownership rate.

Just me
Just me
3 years ago
Reply to  YVR

Just to be clear, the largest recorded outflows of money from China were in January and February 2016.
Check you numbers

Oh NO
Oh NO
3 years ago

Quick way to lose half million or more….

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMjZCSw==

What were they thinking????

No Money Down
No Money Down
3 years ago
Reply to  Oh NO

And current sales/listings are commonly 15% below the July 1 assessed value…

Oh NO
Oh NO
3 years ago
Reply to  No Money Down

That Special could very well only bring 1.2 later this year….. bye bye 1 mill

Oh NO
Oh NO
3 years ago
Reply to  Oh NO
Confucius
Confucius
3 years ago
Reply to  Oh NO

Yeah but it’s “Totally livable”.

bullwhip29
bullwhip29
3 years ago
Reply to  Oh NO

this will be torn down and replaced with the standard cookie cutter fare maxed out for rental income + laneway house

Bubble
Bubble
3 years ago

Who said foreign money is gone? Van West today’s sales:
1. 4028 W 16TH AVENUE, Dunbar, listed $2,099,000,49 days
2. 4085 W 14TH AVENUE, Point Grey, listed $5,488,000,7 days
3. 4410 W 2ND AVENUE, Point Grey, listed $5,180,000,50 days

Bag it and tag it
Bag it and tag it
3 years ago
Reply to  Bubble

what did they sell for?

vangrl
vangrl
3 years ago

4028 W 16th – sold for $109K under last list, and $208K under original list
4085 W14th – sold for $428K under
4410 W 2nd – sold for $180K under last list, and $388K under original asking price

vangrl
vangrl
3 years ago
Reply to  Bubble

“Only 2 detached sales this month in West Vancouver. China’s ban on capital outflows for real estate working?”

Steve Saretsky, Realtor

hmmm

vangrl
vangrl
3 years ago
Reply to  vangrl

wait….. one is West Van and other Van West

No Money Down
No Money Down
3 years ago
Reply to  Bubble

How do you know it was foreign money?

bullwhip29
bullwhip29
3 years ago
bullwhip29
bullwhip29
3 years ago
Bear Vancouverite
Bear Vancouverite
3 years ago
Reply to  bullwhip29

I wonder if the real estate deals handled by this firm are on hold now, or have fallen through and the inventory is back on sale, or if they will suddenly come back on sale in the near future.

Newcomer
Newcomer
3 years ago
Reply to  bullwhip29

A couple dozen more of these and it will feel like a bust.

bullwhip29
bullwhip29
3 years ago

HAM to buy this entire 19th century “canadiana” village in Quebec?
http://globalnews.ca/news/3178577/quebec-historic-village-for-sale/

paulb
paulb
3 years ago

New
125
Price Change
14
Sold
30

TI:6734

http://www.clivestevepaul.com

Oracle
Oracle
3 years ago

BPOM got some good posts with actual data here. Keep up the good work even though we are at odds most of the time.

southseacompany
southseacompany
3 years ago

“‘Greater Vancouver House Prices to Fall 8.5% in 2017′” Boomberg with video

https://www.bloomberg.com/news/videos/2017-01-12/-greater-vancouver-house-prices-to-fall-8-5-in-2017

“‘Greater Vancouver House Prices to Fall 8.5% in 2017’Phil Soper, President & CEO, Royal LePage joins Danielle Bochove to discuss his outlook for Canada’s housing market this year.”

Combat roach
Combat roach
3 years ago

This could be said for Vancouver too…

Tillerson says China should be barred from South China Sea islands

https://www.yahoo.com/news/trump-secretary-state-nominee-china-denied-access-south-002043309.html

Newcomer
Newcomer
3 years ago
Reply to  Combat roach

I didn’t realize Vancouver was accessing the sea islands.

Combat roach
Combat roach
3 years ago
Reply to  Newcomer

You got it, it doesn’t. This is rather China accessing Vancouver by acquiring the land, rising the flags, forcing Chinese signage, celebrating Mao, etc…

http://m.scmp.com/news/world/united-states-canada/article/2017766/vancouver-fans-mao-zedong-gather-sing-his-praises

Newcomer
Newcomer
3 years ago
Reply to  Combat roach

Yeah, I got the first time. I was just trying to be funny.

Oracle
Oracle
3 years ago
Reply to  Newcomer

Can you please post relevant stuff rather than retorting everyone?

Newcomer
Newcomer
3 years ago
Reply to  Oracle

Yes, I will do that, when you buy a condo.

What are you waiting for? People want to know.

You explain many things to us. Can you explain why you don’t buy a condo in Surrey right now?

Oracle
Oracle
3 years ago
Reply to  Newcomer

Admin: now doesn’t this call for an IP ban??

bullwhip29
bullwhip29
3 years ago
best place on earth
best place on earth
3 years ago

here we go again, the fear-mongering crowd is out in full force from hibernation.

Spec
3 years ago

Love how various vested groups are engaging in some CYA. http://www.cbc.ca/news/canada/british-columbia/royal-lepage-report-q4-2016-1.3932424

As the math teacher says, “show your work”. How (other than rectally) was that 8.5% derived?

patriotz
3 years ago
Reply to  Spec

It’s what I call “predicting the past”. Just project the last few months over the next year. Since RE cycles move so slowly you’ll be right about 90% of the time.

Superfly
Superfly
3 years ago
Reply to  patriotz

Also known as Aftcasting.

Abdul Lahazi
Abdul Lahazi
3 years ago

http://www.news1130.com/2017/01/12/generation-x-exodus-survey-finds-want-sell-home-leave/

“Potentially losing 40 per cent of the management age population in the city of Vancouver could have serious implications for the future of Vancouver’s economy,” warns Chris Fair, president of Resonance Consultancy.

Vancouver: no families, no children, no workers, no hope.

Newcomer
Newcomer
3 years ago
Reply to  Abdul Lahazi

Have no fear, falling populations are great for correcting house prices.

Yunak
Yunak
3 years ago
Reply to  Abdul Lahazi

All those, in the meantime accumulated, housewives, homemakers and officials can take a crash course and quickly become managers. They already know business quite well and language isn’t a big deal anyway…

Yunak
Yunak
3 years ago

Condo King Bob Rennie’s abdication as chief Liberal fundraiser raises questions

https://www.biv.com/article/2017/1/condo-king-bob-rennies-abdication-chief-liberal-fu/

bullwhip29
bullwhip29
3 years ago
Reply to  Yunak

being done for optics reasons only. no doubt he’ll remain involved in a big way. first time buyer loan program has his fingerprints all over it

ostritch
ostritch
3 years ago
Reply to  bullwhip29

Not really. Krusty is just doing what the dogs are baying for. Cut off the top end, help the kids into the low end.

Bag it and tag it
Bag it and tag it
3 years ago
Reply to  bullwhip29

yup…all optics. Once in bed always in bed

bullwhip29
bullwhip29
3 years ago

Higher mortgage rates? They’re already here, and they hurt Rob Carrick The Globe and Mail Published Thursday, Jan. 12, 2017 12:21PM EST Last updated Thursday, Jan. 12, 2017 12:21PM EST http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/higher-mortgage-rates-theyre-already-here-and-they-hurt/article33595514 We’re starting to get a picture of what mortgage rate increases do to household budgets. If you’re buying an average-priced home in Vancouver, the increase in five-year fixed-rate mortgage costs over the past two months could add up to something like an extra $1,824 a year; in Toronto, you’re looking at $1,584. In a small market like Saint John, the extra cost would be close to $350. The biggest question in housing today is what will happen when mortgage rates rise from the historic lows they’ve been at in recent years. We saw the very beginning of this in the final months of 2016 and the results are significant.… Read more »

bullwhip29
bullwhip29
3 years ago
Combat roach
Combat roach
3 years ago
Reply to  bullwhip29

This is correct and as many times pointed out. If can’t be stopped immigration from China should be significantly reduced until Canada gets its housing shit together.

“Should the Chinese or immigrants be blamed for our housing crisis? Why not? Many of the expensive properties are purchased by people with Chinese surnames. “

Newcomer
Newcomer
3 years ago
Reply to  Combat roach

You didn’t read it, did you? Can’t you recognize the sarcasm is the sentences that you quoted? Even the stuff you cite in support of your theories shows your theories to be without merit. From the article: “Statistics Canada data show that, from 2011 to 2015, the housing start in B.C. was 140,721 units. For a family of 2, these units could house over 280,000 people. For a family of 3, it could house over 420,000. That is 2.5 times more than the total immigrants and in-migrants landed. Studies indicate that in the 90s, the average family size of immigrants was from 3.2 to 4, depending on the period they arrived. Thus, immigrants and in-migrants did not contribute to the shortage of housing stock; they are contributors to the economic growth during that period. …. For those who want to… Read more »

Shut It Down Already
Shut It Down Already
3 years ago
Reply to  Newcomer

Please, don’t baffle Combat Roach with logic and reason.

Oracle
Oracle
3 years ago
Reply to  Newcomer

Those numbers don’t include the more than 1 million temps (and growing) in Canada at any given time.

Oracle
Oracle
3 years ago
Reply to  Oracle

And that’s why the Statscan head resigned. He couldn’t stand the data manipulation.

Newcomer
Newcomer
3 years ago
Reply to  Oracle

True, those damned temps are buying everything. And can you blame them? Who wants to pick fruit or work in Tim Hortons when you could buy a condo in Vancouver and let the money take care of itself.

Oracle
Oracle
3 years ago
Reply to  Newcomer

Where’s your upvotes? Hahaha. Outed.