Tag Archives: foreign buyers

Vancouver Down, Toronto Up.

House prices never go down in Vancouver, except when they do.

But what about Toronto? The city that seldom thinks about BC?

Prices are up 11.8 per cent from a year earlier.

“In fact, there’s anecdotal information that suggests that foreign investors … are now turning to other cities that are not as expensive as Vancouver, because even that market’s gotten out of reach for wealthy foreign buyers.”

A separate report from real estate agents showed a 2.4 per cent monthly rise in sales in October and a 14.6 per cent surge in annual prices as buyers rushed to get into the market before tighter mortgage rules could take effect.

Taken together, the data showed Canada’s market cooling in most markets outside of Toronto, where a building boom and rising household indebtedness have spurred fears of a U.S.-style collapse if borrowing costs, already rising, spike further.

“Almost all seems to be well in Canada’s housing market, with most regions enjoying moderate sales activity and price gains, Alberta’s hard-hit market stabilizing, and Vancouver’s zany market returning to earth,” Guatieri said in a research note.

“However, accelerating prices in Toronto and its surrounding areas will only increase the chance of a correction if interest rates rise too sharply … and the chance of that happening is now somewhat higher under a new U.S. president.”

Read the full article over at BNN.ca

Rabidoux in Vancouver / HK property tax

A couple of news tidbits today:

First off Ben Rabidoux will be putting on a seminar in Vancouver about how to get rich flipping presales condo contracts.

At least I assume that’s what he’ll be talking about, what else could you talk about at a Vancouver real estate seminar?

Ben will be joined by David LePoidevin and they’ll actually be talking about the current state of the market, what comes next and what a ‘hard landing’ would look like for the economy and your investments.

Could Canada be facing a housing crash similar to what the US experienced?  As Canada’s most expensive real estate market, how will Vancouver fare?  What are the broader implications of a significant housing correction on the Canadian economy and job market?  What would a housing crash mean to your investment portfolio, and how can you protect yourself?

The event is at the Westin Bayshore on Wednesday November 28th at 7pm.  Registration is free, but first come first served.  There will be a Q&A session and a speculator dunk tank.  (Sorry, made that last one up.)

Also in the news, Mike sent in this note about a new property tax imposed in Hong Kong for non-resident buyers. Non-local and corporate buyers will now pay an extra 15% tax on purchase of property.  Hong Kong joins similar moves by Singapore and Australia to squeeze extra money out of foreign investors and give local buyers a market advantage to housing.

The 15 percent tax “will be effective in curbing foreign demand – mostly from mainland buyers – and avoiding ‘hot money’ influx into the property market,” Alfred Lau, a Hong Kong-based analyst at Bocom International Holdings Co., wrote in a report today. “However, local demand is not affected.”

The new property tax doesn’t apply to Hong Kong permanent residents. Inhabitants need to live in the city for seven straight years to be eligible for permanent residency, according to immigration rules, while Chinese citizens born in the city are automatically granted that status.