Quote:
Originally Posted by GGG
Rent has a value which follows supply and demand. So if real estate is too expensive rent and bank the difference. If rent supports the price then it's real demand and not the foreign investment boogeyman.
Saskatoons real estate is driven by the cost of new housing which is driven by the cost of labour which is driven by the labour rate in Fort Mac.
If rents don't support the housing price don't buy.
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I'm not sure I'm following you. If foreign buyers are buying up property, then that decreases the supply whole doing nothing to satiate the demand. At the same time, it's also driving up prices and making it harder for new domestic buyers to enter the market, which would subsequently increase the demand for rentals.
The problem that I see with the rental market in Vancouver is that it costs as much or more per month rent than it would a mortgage, so there is no banking the difference. And it's not just as simple as buying in a situation like that because the average person doesn't have the necessary down payment, and they can't really save enough for a down payment with the current rent prices.
There's a domino effect to this too, because the price of housing has to be seen as a factor in the decrease of family sizes, which in turn increases the tax burden on future generations to support the previous ones.