People who own seconds homes in Vancouver are suffering under the new empty home tax:
The Unfair Vancouver Vacant Homes Tax Coalition describes its purpose in the name. The group is calling on the city to do something as the Feb. 2 deadline for the empty home tax declaration approaches.
Rainer Borkenhagen says the group is made of members that are mostly retired and live across the country, but still own homes in Vancouver.
Borkenhagen himself lives in Gibsons, but owns a condo in Vancouver.
He said he tried to rent his condo once, but it turned out it was more practical to keep it and use it whenever his family needed it.
Read the full article here.
Bear Vancouverite pointed out this debate on CKNW:
I wanted to share this with you guys: a debate between Tom Davidoff and architect Michael Geller. Davidoff is a UBC economics professor in the Sauder School of Business which some here have (wrongly) accused of being in the RE Industry’s pocket. In this debate Davidoff’s position is that:
1) The rich who own huge homes are being subsidized by the rest of us
2) We should get rid of the Home Owner’s Grant (Michael Geller brings this up too)
3) We should encourage more density in super low density areas like Point Grey
4) We should not gentrify low income areas to increase density if we can increase density in wealthy areas
5) We need to curb demand using tax policy ( Speculator’s Tax)
6) Housing needs to be in line with local incomes
I’ve seen other interviews with Davidoff in the past and I believe he considers our housing overpriced, manipulated by wealth and speculation, and would like to see prices more in line with local incomes.
The one aspect that he believes that I think have offended some people here is he believes “everyone wants to live here”.
Here’s a Vancouver story if ever we saw one: A Flipper is suing a buyer who lost half a million dollars selling their condo at a loss.
The industry insider who tipped us off feels that this will end up being a nightmare situation for both Collins and Schomaker.
“When the buyer finds out that the property is now in the middle of a lawsuit, they will walk away and the sale will fall through,” they told ThinkPol. “Prices in West Vancouver keep falling, and seller will be lucky to even get $2 million in 2018. I expect both the flipper and the eventual buyer to lose a lot of money.”
The insider blamed the real estate industry’s unethical practices for putting many working Canadians into a tough financial situations.
“The sad part for me is ordinary Canadians are falling prey to number manipulation by the industry trying to keep up the perception real estate prices can only go up,” the whistleblower said. “The amount of deception, corruption and outright fraud in the industry is appalling and there is so much secrecy around the process of purchase and sale that the public is kept in the dark on just about every aspect of it.”
Read the full sordid tale over at ThinkPol.
Southseacompany points out this article claiming speculators are leaving the local market and selling homes purchased in the last two years for less than the purchase price:
Dozens of homes in Metro Vancouver bought in the last two years are currently listed to be sold for a loss as speculators appear to exit Canada’s hottest real estate market.
An industry insider sent ThinkPol sales data for single family houses in the Lower Mainland showing roughly 40 properties that are currently listed for prices lower than what the sellers originally paid for them.
As the property purchases were made within the last two years, ThinkPol was able to validate this data using information published by BC Assessment.
price read the full article here.
Southseacompany pointed out this article:
“The BC government has promised to tackle the housing affordability crisis in Metro Vancouver by “aggressively” increasing supply. A new study coming out of Princeton suggests that the NDP government may want to reconsider that strategy. In Economic Consequences of Housing Speculation, researchers link increased supply to a more severe crash when the bubble bursts”
“But Zhenyu Gao, Michael Sockin, Wei Xiong found that “housing speculation, anchored, in part, on extrapolation of past housing price changes, led not only to greater price increases and more housing construction during the boom in 2004 to 2006, but also to more severe economic downturns during the subsequent bust in 2007 to 2009.”
Read the full article here.