Why are investors fleeing Canada?

Canada’s economy is booming, expanding at a 3.7% annual rate in the first quarter. And yet…

Meanwhile, in a year when stocks are rising everywhere, Canada’s benchmark index is the second-worst-performer in the developed world after Israel, according to Bloomberg data. It’s a similar story in currency and bond markets.

The performance underscores how, even with the improving economic performance, caution prevails. Investors remain concerned about geopolitical risks such as U.S. trade protectionism, the outlook for oil prices and a housing market that some analysts say may be on the verge of a correction.

“It is a tad curious to say the least that the Canadian economy arguably has been one of the bigger pleasant surprises in 2017 and meanwhile the equity market has done a belly flop,” said Doug Porter, chief economist at Bank of Montreal, who highlighted the disconnect between Canadian growth and market performance in a May 26 note.

Energy shares are down 10 percent year-to-date, while fears about contagion from a run on deposits at troubled mortgage lender Home Capital Group Inc. have weighed on financial shares, which are down 1.2 percent.

Read the full article over at Bloomberg.

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Just me
Guest
Just me

Christy Clark has still her fingers in the pie.

http://vancouversun.com/opinion/columnists/b-c-liberals-deposit-close-to-1-million-in-corporate-donations-three-days-after-election

Daphne Bramham: B.C. Liberals deposit close to $1 million in donations three days after election

Nearly $1 million in contributions were deposited into the B.C. Liberal party’s bank account just three days after the May 9 election, reinforcing the perception that this province is the wild west when it comes to its unfettered political donations.

The most recent donors are the who’s who of corporate B.C. with real-estate developers leading the way followed by construction and forestry companies, big oil, big banks and big law firms.

Best place on meth
Guest
Best place on meth

real-estate developers, construction and forestry companies, big oil, big banks and big law firms.

They wasted their money, the corrupt cunt is being removed.

YVR
Guest
YVR

“They wasted their money, the corrupt cunt is being removed.”

The money is for the next election. It gives the BC Liberals a war chest the others don’t have. Next election within 18 months for sure.

Best place on meth
Guest
Best place on meth

Their contributions will be BANNED at the next election.

So the question is will the new rules on donations be made retroactive?

I hope so.

Kim
Guest
Kim

All of these categories can reasonably be related to real estate.

Just me
Guest
Just me

Foreign Property Investors in Sydney Hit With Higher Stamp Duty

https://www.bloomberg.com/news/articles/2017-06-01/foreign-property-investors-in-sydney-hit-with-higher-stamp-duty

Overseas investors will see taxes on purchases of Sydney property double as part of a state government package aimed at appeasing voter anger about sky-high housing costs.

Shut It Down Already
Guest
Shut It Down Already

Note that “appeasing voter anger” doesn’t mean “fixing the problem”.

Just me
Guest
Just me

So we should just ignore them and keep selling land to the mainland Chinese?

Shut It Down Already
Guest
Shut It Down Already

Well, we know for a fact that those transactions are a tiny fraction of the market. So if lower prices are your goal then it really makes little difference. Increasing minimum downpayments to 20% would have far greater impact. Isn’t that what you want?

Just me
Guest
Just me

Great suggestion. Chinese mainlanders also use leverage (just ask any CIBC or HSBC branch manager in Point Grey).
The point is that demand must be controlled, especially the foreign one that has no link to our daily lives.

Shut It Down Already
Guest
Shut It Down Already

You totally fucking missed the point as usual – demand is high because it’s so easy to put little down and blow your brains out on a 95% LTV mortgage against a bulldozer-bait crackshack. THAT’s the problem you’d be chasing if you weren’t such a dishonest little xenophobe.

There’s no fucking way you’re “following the money”. Time to fess up.

Oracle
Guest
Oracle

Then civil unrest will break out. The powers know that; case in point –> look at the backlash against globalization.

KickThemOut
Member
KickThemOut

I don’t think most people on this board have an inkling of what are the actual problems and what actual good solutions are…other than moronic ones that sounds good and appeal to their ego & sense of justice that those evil scummy Chinese locusts are properly punished and put back in their place in dirty poor rundown mud holes, and servant jobs.

Foreigners aren’t the real problem for the average joe. The city politicians are.

patriotz
Member

“The foreign investor stamp duty surcharge in New South Wales will rise to 8 percent from 4 percent”

Wow. Rising to just over half the amount Christy imposed. Still more window dressing from Oz’ “Liberal” party. Like Christy, the Oz “Liberals” have no intention whatsoever of bringing in policies that would actually result in lower prices.

Just me
Guest
Just me

Read the article. This is on top what everyone else has to pay (up to 7% extra). In addition, land taxes (a carrying costs) are jacked up by 2% for non residents.
Mainland Chinese might still go for it as they are desperate to buy real estate. But the extra costs are starting to build up.

Abdul Lahazi
Guest
Abdul Lahazi

More on the LuLu Island Winery arrests:
http://globalnews.ca/news/3494594/winery-owners-china-customs-valuation/
“There’s no need to have Canadian citizens detained overseas and imprisoned.”
Canadian citizens? They need to pay more bribes.

Best place on meth
Guest
Best place on meth

“……the case should serve as a warning for other Canadians hoping to do business in China.”

I’ve said before that if you lie down with dogs….

And our shithead communist PM is negotiating a free trade deal with these vermin.

There is one reason and one reason only why these people were arrested and it’s not because of duties.

Anyone who understands the evil mindset of the communist chinese subhumans will know what that reason is.

Just me
Guest
Just me

Why Christy Clark will not resign.

Andrew Coyne: Dear Premier Clark, Don’t give up (but try not to look like you’re clinging to power)

http://www.vancouversun.com/news/national/andrew+coyne+dear+premier+clark+give+look+like+99re+clinging/13414923/story.html

She has a lust for power, and many hungry interests behind her.

Whistler or Bust?
Guest
Whistler or Bust?

Another tiny nail in the coffin:

National Bank tightens mortgage rules in bid to reduce risk

National Bank of Canada is tightening its mortgage standards and is restricting the loans it advances outside of Quebec, a move designed to reduce the lender’s risk profile amid roaring housing markets in some of the country’s biggest cities.

Gotta wonder how widespread this is amongst banks.

bullwhip29
Guest
bullwhip29

i posted this last week. lending guidelines were changed significantly at numerous banks immediately after recounts were done. even if krusty hangs onto power she will have to do so in handcuffs or even a straight jacket meaning in best case scenario for Libs things still won’t be back to business as usual for the foreseeable future. at Lib caucus meeting on Tues no MLA incl Linda Reid offered to take on job as speaker, so things are far from clear cut at this point and could remain so for much of the balance of this year. cheers all.

http://vancouvercondo.info/2017/05/why-does-the-foreign-buyer-tax-only-apply-to-metro-vancouver.html#comment-301492

Dave
Member
I’m told that the precedent is for the opposition to abstain a single vote in this situation. So the NDP can appoint the speaker and the Liberals would respect their majority by having somebody not vote. It’s still a flaky situation because if the government is missing a single person, then of course, it’s fair game to take them down. You have to wonder if the Liberals will spend some of that $1 Million in corporate donations to hire private investigators to follow NDP MLA’s around. If somebody goes to lunch in the wrong part of town, the government could fall. We’re going to have 85 people living on a real tight leash. I know under the last NDP government, all the Liberal MLAs were tightly controlled because they were waiting for opportunity to take the government down and that… Read more »
/dev/null
Member
/dev/null

But the government only falls if it loses a vote on a confidence motion, doesn’t it? And those are only budget, supply, throne speech and other votes that are explicitly described as confidence motions (per http://www.ourcommons.ca/About/Compendium/ParliamentaryFramework/c_d_confidenceconvention-e.htm which is about the GoC but I imagine is still relevant for the GoBC). How quickly can the Liberals actually bring about a vote on a surprise motion of no-confidence? (Honest question, I don’t know.)

Dave
Member

I have no idea. The way I imagine it is that it takes just one minute. You stand up and say this is a vote of non-confidence and then vote on it.

southseacompany
Member
southseacompany

“Why every housing bubble looks like the new normal”, Maclean’s

http://www.macleans.ca/economy/why-every-housing-bubble-looks-like-the-new-normal/

““This time is different,” buyers tell themselves. They’re right—until they’re terribly wrong.”

Whistler or Bust?
Guest
Whistler or Bust?

That is an excellent article that will be completely ignored.

KickThemOut
Member
KickThemOut

Another point ignored by bears, if the bubble lasts 10 years and goes on for 10 years more, you might be right 15 years too late and you are still worse off than before.
But hey, reality is hard, and fantasies are easy for you.

Doomcouver
Guest
Doomcouver

It all depends on how big the crash is. If there’s a 20 year mean reversion under your scenario, you’d be better off not buying at any time during that period. Unless you’re flipping properties, then good luck timing the market to get out before everyone else…

Dave
Member

It’s fake news.

If it was real news, the reporter would have questioned the nonsensical response by the NDP. But, they don’t do that because they prefer the inflammatory accusation and headline. You wouldn’t want to undermine your own story.

Hyper-mega-Bull
Member
Hyper-mega-Bull

>“This time is different,” buyers tell themselves. They’re right—until they’re terribly wrong.”

the way things are going all of you will either be dead or retired by the time this “bubble” bursts.

KickThemOut
Member
KickThemOut

But they would have avoided the bubble burst and get to say I TOLD YOU SO from beyond the grave!

Everyone knows that once bears find a nest, they never leave, so it’s always better to pay rent than buy when prices are going up, up, up, up , up, just to avoid the drop 10 or 15 years later, even if the ending price is still higher than the purchase price.

Doomcouver
Guest
Doomcouver

Bubbles tend to overcorrect. This means in a full blown crash properties will be selling for under normal price to income and price to rent metrics for homes. So if it’s a really spectacular crash, under your scenario the price could go back to many years before when the bubble even started. So if the bubble started 15 years ago, prices may bottom out at 20 years ago (adjusted for inflation).

Being a bull or a bear on real estate in Canada is kind of like gambling. There is a non-zero chance that the bubble could go on for the rest of our lifetimes, the chance however is miniscule compared to the almost inevitable outcome of a reversion to historical norms. I know what side I’ve been hedging my bets on.

Just me
Guest
Just me

What those millions in donations buy you (if you are a developer). Nobody makes donations without expecting a payoff in return, sooner or later.

http://vancouversun.com/news/local-news/development-lots-in-false-creek-flats-offered-in-untendered-deal

Development lots in False Creek Flats offered in untendered deal that needs provincial approval

Kudos to Sam Copper for bringing to public attention the dirty dealings of Christy Clark and the BC Libs.

KickThemOut
Member
KickThemOut

So why is this legal again? I thought bribery is illegal? Why do we have exemption for political parties?

Abdul Lahazi
Guest
Abdul Lahazi

These types of shenanigans is exactly why I did not vote BC Liberal.

Doomcouver
Guest
Doomcouver

The Christy Clarke Liberals love shady land deals. Remember the Burke Mountain handout to their developer buddies? http://www.cbc.ca/news/canada/british-columbia/rushed-burke-mountain-land-deal-cost-taxpayers-43m-ndp-claims-1.3033022

Dave
Member
I don’t see what the big deal is here. The Province and City helped to create that post secondary institution by assisting with the land purchase. As part of that agreement which dates back a long time, the Province would have to approve any sale of land. The board of directors for all those universities felt the best way to sell those lands was through a private negotiation which happens all the time in real estate. If you want to claim they are in cahoots with the developer, then at least that makes sense. But at this point in time, the Province has nothing to do with it, other than a pending approval. If the deal was nefarious would they not have signed it ahead of the election? I think the NDP come across like idiots. The land trust has… Read more »
Just me
Guest
Just me
You are overplaying your hand here. This is what david Eby had to say (sounds totally reasonable to me, given the recent political upheaval): “Postmedia News informed NDP MLA David Eby of the proposed deal and he said he would be concerned if the deal was rushed through for approval. He said an NDP-Green government might want to see Lots 6 and 7 used for ideas from their election platforms, such as promotion of affordable housing or technology development. “I’m really unhappy that a major land deal might go forward untendered, when the province has a gap between two governments,” Eby said. “And if this deal allegedly involves big B.C. Liberal donors, I don’t think it is appropriate.”” Regardless of Eby’s take on this, there are three points that you ignore: (1) University administrators are just as corruptible as others;… Read more »
Dave
Member

To this point, the Liberals have had no involvement. So who’s overplaying their hand now? Why is Eby bringing them into it?Why assume that the University Board of Directors are incompetent? Why didn’t the NDP simply say we will fulfill our duty to review the land deal? That’s what a reasonable and competent party would do.

Burnaby Bear
Guest
Burnaby Bear

So, the fact that the two companies that are buying the lots donated over $800,000 to the BC Liberals since 2005; and the fact that the CFO of a company that donated $340,000 to the BC Liberals was appointed to the board of Emily Carr and to the board of the Trust which is selling the property, and the fact that the article indicates that similar properties have sold for 6x the price in this private tender doesn’t make you pause for even a moment?

YVR
Guest
YVR

“Nobody makes donations without expecting a payoff in return, sooner or later.”

The pay off is a strong economy where businesses can grow. There does not need to be anything more than that for a donation to pay itself back many times over. An NDP government will mean many businesses shutdown completely. Many businesses who didn’t fund the Liberals will have wished they gave to the Liberals after a year of communism.

Just me
Guest
Just me

This transklates to: corruption can generate jobs. Is that what you are saying?

YVR
Guest
YVR

Let me make it simple for you. You give the NDP $1000 donation because you want the NDP to win to implement policies to lower the cost of housing. The NDP win and implement those polices. You then buy a house for $100,000 less than it cost prior. You get you $1000 back 100 times over. There will be people who are negatively impacted because the cost of housing was reduced. Is that corruption? Or is it just corruption when you don’t get what you want?

Best place on meth
Guest
Best place on meth

What a bullshit comparison.

A private citizen donates to the NDP in order to bring down house prices?

First of all it’s a crapshoot that the desired result would even happen, and secondly the NDP would not be helping you directly, as in right to your face.

With Corrupt Kristy on the other hand, a donation from a developer gets her personal attention and and a personal decision to help out the donor by personally enriching them.

Is that simple enough for you?

Do you understand the personal part vs. the random chance part?

YVR
Guest
YVR

“First of all it’s a crapshoot that the desired result would even happen”

Everything is crap shoot snowflake. The Liberals just lost even with all the donations and the NDP are reneging on those housing policies you voted for. Maybe you should have bucked up the $10,000 to dine with Leader John Horgan.

https://www.theglobeandmail.com/news/british-columbia/bc-ndp-under-fire-for-pricey-fundraising-event/article33045874/

Abdul Lahazi
Guest
Abdul Lahazi

Questions persist as Sino-Forest case nears conclusion:
http://www.ctvnews.ca/business/questions-persist-as-sino-forest-case-nears-conclusion-1.2893202
“Sino-Forest opened the eyes of a great many Western investors to the prevalence and scale of fraud in China,” Block said in an email.
“Canadian regulators have failed to understand Chinese business customs.” LOL yes like fraud, bribery and corruption.

Combat roach
Guest
Combat roach

Well, Canadian regulators should have take training in Richmond or Vancouver, plenty of workshops and practitioners to teach them Chinese business customs.

KickThemOut
Member
KickThemOut

Not as advanced as the old VSE buddy. Have some pride in Canada you traitor.

KickThemOut
Member
KickThemOut

Bre-X…

And the Vancouver Stock Exchange was a model of junior mining and resource companies, envy of the world.

Doomcouver
Guest
Doomcouver
Combat roach
Guest
Combat roach

The pipeline is in the best interests of Albertans and all Canadians — but especially to British Columbians.

“Quite honestly the province of B.C. can’t grow solely on the basis of escalating housing prices in Vancouver and the Lower Mainlaind. They need stronger economic growth and the reality is that in Interior B.C., they need the jobs that this pipeline will provide.”

http://www.ctvnews.ca/business/mark-my-words-alberta-s-notley-says-pipeline-coming-no-matter-b-c-politics-1.3435811

Oracle
Guest
Oracle

Only 50 jobs once built.

Dave
Member

Anybody who repeats this line is intentionally dishonest or economically illiterate.

Shut It Down Already
Guest
Shut It Down Already

Can’t they be both?

Doomcouver
Guest
Doomcouver

This is just to help us send more raw materials to China to have value-add processing done to them there. Canada has a bad case of Dutch disease and projects like this aren’t helping. We need more refineries in Alberta, not more pipelines to China.

Best place on meth
Guest
Best place on meth

Sounds like Notley has joined Turdeau in lying down with dogs.

KickThemOut
Member
KickThemOut
People, June 4th is coming up again! It is our duty to let forget the massacre that occurred, where tens of thousands of students are gunned down, crushed, and bayonet by the people that are supposed to be protecting them. If you have any mainland Chinese locusts or even their descendants working in your office, you need to make sure they know and they need to attend the memorial services held in Vancouver. We cannot let them sneak past this important date. Put up posters about this horror in your office, stick the posters on the locusts computer monitors. We need to be in their face and remind them that we will never forget about those students and their blood wasn’t spilled for nothing. It’s going to be a gong show at my office but I’m going to do my… Read more »
Best place on meth
Guest
Best place on meth

Somebody here thinks Tiananmen is something to joke about.

Combat roach
Guest
Combat roach

Totally failed counter-sarcasm actually showing support for the regime and their act at Tiananmen, a typical moron.

Oracle
Guest
Oracle

Regarding Climate accord rejected by USA;

Not question whether wrong or right BUT the hypocrisy from Trudeau is earth shattering.

He will say, along with his Corp minions and media, that Trump is bad for doing this. On the flip side he wants to push a pipeline through??

If people don’t see that he works for special interests and is most likely padding his foundation, then we have a nation of imbeciles.

Trudeau gonna lose massive votes in BC.

Shut It Down Already
Guest
Shut It Down Already

Only Oracle would find it hypocritical rather than pragmatic.

Bag it and tag it
Member
Bag it and tag it

I’m not for or against the pipeline expansion, but really I find it curious that everyone is so anti-pipeline when it’s the most environmentally responsible way to transport oil. They should be protesting rail nstead…

Oracle
Guest
Oracle

Wrong. Bitumen is liquefied in pipelines. Solid in trains. Much safer in trains.

Best place on meth
Guest
Best place on meth

Safer in trains, as long as the brakes are applied correctly.

Shut It Down Already
Guest
Shut It Down Already

It’s not solid in trains.

YVR
Guest
YVR

” I find it curious that everyone is so anti-pipeline”

The theory is if you make it cheaper and easier to transport they will extract more from the oil sands which is an environmentally unfriendly way of extracting oil. Lots of energy used to extract it.

In this case you also have the shipping of it through Burrard inlet which to me is the bigger concern. Lots of risk for little gain for BC.

Best place on meth
Guest
Best place on meth

It’s not pipelines that are bad, it’s pipelines being built to sell oil to locusts that’s bad.

history
Guest
history

People might want to take a long look at the nascent Run of River economy, and how Weaver set up to feather his political nest. The Capatalists have migrated to this already, witness their LNG silence.

It could really implode for Clark if the core breaks.

and it could be quite severe for many in this country who have hitched themselves to HydroCarbons, if a new alt oil energy technology announced.

xyz
Guest
xyz

China Doubles Down on Coal Despite Climate Pledge

BEIJING—China’s government said it would raise coal power capacity by as much as 20% by 2020, ensuring a continuing strong role for the commodity in the country’s energy sector despite a pledge to bring down pollution levels.

https://www.wsj.com/articles/china-doubles-down-on-coal-despite-climate-pledge-1478520063

Best place on meth
Guest
Best place on meth

Which is why the Paris Accord is a fucking joke.

China gets to continue polluting the planet on an unprecedented scale.

Shut It Down Already
Guest
Shut It Down Already

You should really explain to the other 194 signatories that they’ve got it all wrong. There’s a Nobel prize waiting for you.

Best place on meth
Guest
Best place on meth

Top 10 over-the-top reactions to Trump pulling out of a symbolic and useless accord:

https://news.grabien.com/story-10-dumbest-reactions-trump-quitting-paris-climate-accord

stagnate
Guest
stagnate

this is one thing I agree with Trump on; the only serious way to deal with climate change is to get birth rates way down in second and third world countries. left wing drivel isn’t going to save the planet.

YVR
Guest
YVR

“get birth rates way down in second and third world countries.”

Birth rates anywhere. People in developed nations use way more energy per person. Also bringing people from warm climates (Philippines and India) to cold climates (Canada) makes it worse. Just sayin.

This agreement was a joke. India and China were basically exempt for the next 13 years and then they had to be paid 10s of billions to take any action. Trump is so refreshing.

Best place on meth
Guest
Best place on meth

The best way to get birth rates down in third world countries is to stop sending them aid.

Let them figure out their own problems and stop relying on welfare.

Shut It Down Already
Guest
Shut It Down Already

You really are a toxic attention-seeking little turd.

Best place on meth
Guest
Best place on meth
Shut It Down Already
Guest
Shut It Down Already

Nobody clicks your links, dumbass.

paulb
Member
Active Member

New
249
Price Change
53
Sold
169

TI:8752

http://www.clivestevepaul.com

Oracle
Guest
Oracle

Looks like no big changes on housing coming. Just a few loopholes being closed.

I was wrong.

Reaffirms my position that Greens are a Developers creation just to protect housing.

Bestplaceonearth
Guest
Bestplaceonearth

Green are opportunists. The guy holds the cards in his hand, he could have swung both sides if he wanted to. Instead, he signed an agreement with hulk. The green voters will remember this when the next election comes around. Kudos to ms. Clark for staying. She doesn’t have to call back the house until she needs to pass the budget.

Combat roach
Guest
Combat roach

STFU and wash your mouth, it fucking stinks.

Best place on meth
Guest
Best place on meth

Strange, no end of month drop in inventory.

Best place on meth
Guest
Best place on meth

NDP and Greens will be eliminating bare trusts, which will give locusts fewer options to hide their identies and stolen loot.

It’s about time, just one of many housing measure coming to clean up the filth.

Combat roach
Guest
Combat roach

City that got eat up by locust…

“You’re gonna lose that side of Vancouver because of the cost,” he said.

http://bc.ctvnews.ca/mobile/vancouver-eatery-facing-65k-per-month-rent-increase-moving-locations-1.3440082

Polozi Scheme
Guest
Polozi Scheme
Oracle
Guest
Oracle

Lots of revenue choices of new government:

The 2%+ tax on 2nd homes, empty homes, and non-resident homes will rake in lots of money.

Increase property transfer tax on homes over $1 Million.

20% tax on luxury cars worth over $70,000. 50% on cars over $100,000

Double ICBC insurance for foreign licence holders.

Increase taxes on people earning more than $100,000 significantly.

Vehicle Levy or Road pricing!

Double carbon tax.

Catch landlord tax evaders.

Vancouver International Customs charge of $100 per flight to Asia.

Lots of ways to get money HAM isn’t paying right now.

Oracle
Guest
Oracle

Ebyy today said 2% tax definitely coming and they will close loopholes around FBT.

I think they need to up FBT to at least 20% and make it province wide. Also the 2% rate may be needed to upped to 3% on homes worth more than $3 million ($90,000 tax collected per year). And the luxury car tax rate of 20% would also get a lot of money from astronaut families.

Also a new department to make sure astronaut families are declaring their worldwide incomes. If not–>deport

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[…] –What do millions in political donation buy? –Bad policy role in housing crisis –Drop in CMHC insurance –Face it, your addicted to real estate –Mortgage rules tighten –The marvelous drama of BC –Greens / NDP target money laundering –Welcome to the bubble Toronto – […]

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