CTV looked at how much rising real estate prices added to the personal wealth of the BC Cabinet – $2.3 million this year alone.
Surging real estate values added $2.3 million to B.C. cabinet ministers’ personal wealth this year alone, as the government says coming measures to ease housing affordability won’t include any that lower prices.
One minister saw her four properties jump $765,000, more than five times a minister’s salary. Another saw gains on a portfolio of eight homes. On average, ministers made $103,000 – more than an MLA’s salary, according to a review of public records by CTV News.
It’s natural for those ministers to welcome their own wealth boost, but they have to realize how their eye-popping gains translate into tremendous hardship for young people trying to get into the notorious Vancouver property market, said UBC professor Paul Kershaw.
Read the full article here.
As YVR points out, maybe it’s not just wealthy foreigners who are to blame for rising prices:
Funny thing is HAM is supposed to be buying all the property. Susan Anton owns 4 houses in Vancouver and DeJong owns 8 properties in Abbotsford.
Could that be the problem? Locals owning multiple properties? That is 12 properties between 2 people. Both are white and locals.
The 45 basis point reduction in interest rates at the start of the year has done wonders for real estate in Canada.
The average house price is up 7% and Calgary prices have gone up by nearly double the national rate.
With the October numbers by CREA, the average Canadian home has never been worth more than it is now.
In volume terms, the actual number of homes sold rose by the same amount — seven per cent. “This marks the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009,” CREA said in a release.
October isn’t typically one of the strongest months for home buying, as activity tends to be strongest in the spring and summer.
TD Bank said in a note to clients after the CREA numbers were released that in sales terms, the housing market is hotter than it normally is this time of year.
Of course most of these gains are driven by the three cities: Toronto, Vancouver and Calgary.
Will wonders ever cease or this the economic miracle that keeps on giving?
Looks like somebody has figured out the easiest and best way to make tons of money in Real Estate.
It’s not buying and flipping condos, it’s not renting out rooms and sheds, it’s not even as a developer building towers or a realtor taking a commission on each sale.
No, all those things would take way too much work.
The best way we’ve ever seen to get rich off of real estate is simple: sell your name to developers.
This way you take no risk in the market and make money no matter what happens.
So what are you waiting for? Get selling!
CIBC World Markets has released research that looks behind the average price moves in Canadian real estate. How are prices moving in Vancouver?
Astonishingly enough it looks like properties under the $1.1 million mark have moved less than a GIC in the last four years. Here’s a graph from the original PDF:
That boggles the mind. Even Toronto which has prices going up at the high end looks like its been a much better investment at the lower and middle end:
So essentially that idea you have in your mind that Vancouver real estate has been a good investment over the last four years with prices just rising and rising? Not so much.