Those of you who complain about the local real estate market should calm down and take a moment to reflect on the benefits of the current situation.
Without financial support from real estate developers how would the provincial government be able to provide necessities like salary top-ups for the premiere?
Without fundraising by condo marketers it would be you the taxpayer that would have to pay for that extra $300k given to the premiere since 2011.
And if you’re concerned about conflicts of interest, don’t be! The premiere herself has addressed this issue:
‘The issue for us is to make sure we always separate our public duties from any sources of funding for political parties, and I think that’s the most important thing for all of us to remember,” Clark has reportedly said in defense of the stipend. ”I always keep that utmost in my mind when we’re making decisions.”
If you want to read David Ebys concerns about the current situation, you can find them over at the Tyee but just remember, he’s likely motivated by sour grapes or jealousy. After all, Eby has been stuck with the MLA responsibilities for Vancouver Point Grey for the last few years while Clark gets to enjoy Kelowna.
Canada’s housing market is overheating.
Don’t worry, there’s no risk of a crash yet and further action by the federal government is expect to cool things down.
This according to Bank of America Merrill Lynch economist Emanuella Enenajor.
And, perhaps more importantly, she noted that “it’s different this time” because the Federal Reserve is in the midst of gradually raising interest rates.
“Economists and investors have become numb to signs of housing excess, as the sector has defied gravity for years,” Ms. Enenajor said.
“However, as the Fed gradually exits its accommodative policy, medium-term rates in Canada could also rise.”
This, she warned, heightens the threat of a correction in Canada’s housing market.
Read the full article over at the Globe and Mail.
You made it to the end of another work week!
And most of you are still living in Vancouver, which means you love it and find it worth the price. Good job!
With the weekend here it’s time for another Friday Free-for-all, our regular end of the week news link round up and open topic discussion thread for the weekend. Here are a few links to kick off the chat:
–CMHC: Many markets overvalued
–Fed leaves rate flat
–Donors top up Clarks’ salary
–US Ownership rate falls to 48 year low
–Who’s at the open house?
–How is Comox?
–How is Kelowna?
–Danger in the bond market
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
You know what the difference between you and the wealthy is?
The wealthy have lots of money.
And they tend to keep hold of it by using perfectly legal techniques such as buying and selling real estate within a bare trust to avoid taxes. One recent example prevented more than $2 million from from being vacuumed up into government coffers.
Green Party MLA Andrew Weaver has been concerned about the bare trust for the last two years, highlighting the need to fix the loophole.
He says people who are very wealthy or investing from abroad would be recommended by astute accountants to purchase their house using the loophole.
“Every time most people buy and sell a house, they’re paying property transfer tax. It’s only the wealthy and the wise who would actually buy in bare trust,” said Weaver.
“As a society, if every single person created a bare trust and bought every property in a bare trust there would be no more property transfer tax collected in British Columbia… there’s no reason not to change it.”
Just think of the efficiencies and tax dollars saved if every real estate transaction in BC happened through a bare trust. Less money spent in taxes means more money flowing into a supporting a healthy local economy. Bare trusts for all!
Over at MoneySense they have a list of 4 casualties of the Vancouver real estate market.
The first one isn’t really a negative though, it’s just people jumping into the market without any conditions or clauses and taking on the risks that entails. That only affects willing participants in the market.
The other 3 points affect everyone – Empty zombie neighborhoods, high rental prices and fewer options for local food.
…land prices in the rich and productive soils of the Fraser River delta have risen and now sell in the range of $80,000 to $110,000 per acre. While prices can drop for parcels of land greater than five acres, these price increases are setting off alarm bells, especially when paired with statistics from agricultural lender Farm Credit Canada that show that any land priced above $80,000 per acre makes farming unsustainable.
Read the full article here.