All posts by VCI Admin

New Zealand bans foreign home buyers

Just me shared this story from the BBC.

Prime minister-elect Jacinda Ardern said the ban only applied to non-residents.

The country is facing a housing affordability crisis which has left home ownership out of reach for many.

Low interest rates, limited housing stock and immigration have driven up prices in recent years.

Foreign ownership and a housing shortage in New Zealand’s bigger cities were prominent issues in the run-up to the September election, which saw the end of nine years of rule by the conservative National Party.

Read the full article here.

Class action against Airbnb?

Dude Chillin pointed out this article about a Vancouver strata lawyer preparing a class action suit against Airbnb:

A Vancouver strata lawyer says she is preparing a class action lawsuit against Airbnb, alleging the company is “profiting from the unauthorized use of other people’s property.”

Recently, Polina Furtula — who is on the strata council of her Yaletown condo tower — sent demand letters to Airbnb about unauthorized listings in her building. Airbnb notified the hosts of the complaints and shortly afterwards, the hosts decided to remove their listings.

Read the full article here.

How resilient is CMHC to a US style housing crash?

Kabloona points out this article asking yet again how this country would fare in a US style housing market crash, but particularly how the CMHC would fare:

Canada Mortgage and Housing Corp., which protects financial institutions in the case of consumer default and is 100 per cent backed by Ottawa, said in a release Wednesday that it looked at anti-globalization, earthquakes, a steep oil price fall and a U.S.-style housing correction to see how its insurance portfolio would hold up. It did not look at a combination of any of those scenarios.

The verdict is a U.S.-style correction would be its worst scenario for its insurance program with a cumulative loss of $217 million from 2017 to 2022 which would come on top of a need for the Crown corporation to suspend its dividends to Ottawa. CMHC paid Ottawa a special dividend of $4 billion in June because of excess capital and issued a $240 million dividend in August.

Read the full article here.

Vancouver condo presales, locals to get first crack

The Mayor is said to be drafting a motion that will give local buyers first chance to buy crack condos:

Mayor Gregor Robertson will introduce a motion to give local residents first crack at pre-sale condo sales Tuesday during a Vancouver city council meeting.

The motion asks city staff to draft a policy framework as part of the city’s “Housing Reset” plan.

Critics of the real estate industry have raised concerns about how the increasingly speculative pre-sale market is pushing up prices in both the pre-sale and resale market, and is preventing local residents from buying.

Presumably this will help to end the homeless problem in Vancouver by giving locals easier access to condo presales.

Read the full article here.