China's Millionaire Migration

[squiggs96]

Originally Posted by peter12

Given squiggs' position in the Vancouver real estate industry, it is no surprise that he is pretty squirrelly about actually stating his opinion.

I get that he thinks we should build condos. Of course, we need to increase supply. Kind of a classic bit of misdirection there, btw.

I am more interested as to his opinion on the exploding price bubble, and its causes. Maybe he can't state that for professional reasons, and I would understand. However, he did call out a few posters for being racist, which is a significant accusation given how little he has done to support his own position.

Speaking of that, what is his position?

I'm not sure how I'm squirrely. I have been very clear that I think we need to build more condos, and increase density in the city. I also think that while the condos are going up that the city should be increasing transit infrastructure, in order to move these people around the city. You can't just build a 400 unit tower and have them all be driving cars. Transit, walking and cycling need to be promoted. How is that misdirection? I'm saying I want to increase the supply of homes. By building more condos and townhomes, and decreasing the amount of single family homes, I'm advocating for increased supply and density. People need to give up on the idea of land ownership and focus on home (not house) ownership, similar to London, England and New York.

If you look in this thread, and the other couple of threads that have this topic, I've given my reasons for why there have been large increases in land value. You said I haven't given my reasons, but I'm not sure you've read them. You can search for them, but the main reasons are:
-Diminshing amount of land. This increases SFHs the most, but also has residual effects
-Red tape from city of Vancouver restricting development
-Exchange rate of CAD dropping
-YVR, Whistler, air quality, weather, proximity to Asia, port city, scenery, etc. etc. makes Vancouver a desirable city. People want to live here, which increases demand.
-Decreased supply of land and increased demand are simple economics on why the prices have increased

I've gone in depth on all of the above issues before.

Originally Posted by IliketoPuck

More condos?

I'm not sure if peter's comment was supposed to be green text, but, yeah, more condos.

[rubecube]

Originally Posted by squiggs96

People need to give up on the idea of land ownership and focus on home (not house) ownership, similar to London, England and New York.

*Derail alert*

While I agree with you, this is a pretty hard sell to the current generation when the previous generations have pretty well beaten into our heads that house ownership is a measuring stick for both personal and financial worth. There are also some pretty negative downstream effects related to that kind of thinking, specifically a declining birth rate.

[peter12]

Originally Posted by rubecube

*Derail alert*

While I agree with you, this is a pretty hard sell to the current generation when the previous generations have pretty well beaten into our heads that house ownership is a measuring stick for both personal and financial worth. There are also some pretty negative downstream effects related to that kind of thinking, specifically a declining birth rate.

Exactly. Long-run for these kinds of initiatives regularly trotted out are a hollowing out of any kind of economic productivity, and a mass exodus of families. This has already started, actually.

I will post a longer rebuttal tomorrow.

[Tron_fdc]

annnnnnnd the Chinese are suing the government

http://www.cbc.ca/news/canada/britis...-tax-1.3769751

[Weitz]

Its Canada.

They will win and every day normal BC folk will lose.

[Wormius]

Not to act too skeptical, but how does a student afford a 504,000 mortgage? Wouldn't the payments be nearly $3000/month alone?

[Locke]

Originally Posted by Wormius

Not to act too skeptical, but how does a student afford a 504,000 mortgage? Wouldn't the payments be nearly $3000/month alone?

Well, presumably their parents co-signed the mortgage, like any co-sign agreement if the principal signer cant make the commitment the co-signer has agreed to guarantee the payments.

So if the kid cant make the payments which was presumably the plan all along, the parents make the payments on the house that is in the kid's name.

[Leondros]

Originally Posted by Tron_fdc

annnnnnnd the Chinese are suing the government

http://www.cbc.ca/news/canada/britis...-tax-1.3769751

Not sure if green text...

If not, you mean every foreign national is suing the government... God some people are so ignorant.

[nik-]

Originally Posted by Leondros

Not sure if green text...

If not, you mean every foreign national is suing the government... God some people are so ignorant.

How does it feel to take everything so literally? That must be pretty frustrating on a day to day basis.

[Tron_fdc]

Originally Posted by Leondros

Not sure if green text...

If not, you mean every foreign national is suing the government... God some people are so ignorant.

The other day I learned a new internet acronym "smh"

So yeah. Smh.

[Leondros]

Originally Posted by nik-

How does it feel to take everything so literally? That must be pretty frustrating on a day to day basis.

Hey, I wasn't sure. You never know with some people

[rubecube]

Originally Posted by Tron_fdc

annnnnnnd the Chinese are suing the government

http://www.cbc.ca/news/canada/britis...-tax-1.3769751

Meh. Unless they get an injunction on the tax, we're looking at a few years before this gets resolved, and a likely appeal to the SCC if the student wins. Even at that point B.C. could invoke s.33. She could try to take it to an international tribunal but unless a country intervenes on her behalf it's highly unlikely any international tribunal will grant her legal personality.

[Winsor_Pilates]

Was bound to happen.
All could have been avoided if the government had grandfathered existing contracts.

[Leondros]

Vancouver vacancy tax to include airbnb.

http://www.theglobeandmail.com/news/...ticle31971833/

People are going to be livid! This may also hurt condo sales for seller hoping to utilize services such as airbnb of which there are many in Vancouver.

[rubecube]

Originally Posted by Leondros

Vancouver vacancy tax to include airbnb.

http://www.theglobeandmail.com/news/...ticle31971833/

People are going to be livid! This may also hurt condo sales for seller hoping to utilize services such as airbnb of which there are many in Vancouver.

Absolutely the right move though.

[peter12]

I cannot stand the comparisons between Vancouver and London or Tokyo or Manhattan. All of the latter have salaries and industries commensurate with housing, and even places like London are now officially out of control.

[Leondros]

Originally Posted by rubecube

Absolutely the right move though.

If they are serious about housing pricing for Vancouverites, yes, its the right move.

The fallout of this could be terrible for the government. The ease of introducing a foreign tax is that it was an easy sell. A simple us versus them, protecting domestic interests and quality of life.

This however, is going to be far harder to sell. It will impact many people who have chosen to purchase a second home for the purpose of generating rental income. I know the percentage who use airbnb or other short term vacation rental services is likely small, but this will still have an impact on Canadian's finances.

[rubecube]

Originally Posted by Leondros

This however, is going to be far harder to sell. It will impact many people who have chosen to purchase a second home for the purpose of generating rental income. I know the percentage who use airbnb or other short term vacation rental services is likely small, but this will still have an impact on Canadian's finances.

They can still use their second home to generate rental income. They just have to, you know, actually rent it.

[peter12]

Originally Posted by Leondros

If they are serious about housing pricing for Vancouverites, yes, its the right move.

The fallout of this could be terrible for the government. The ease of introducing a foreign tax is that it was an easy sell. A simple us versus them, protecting domestic interests and quality of life.

This however, is going to be far harder to sell. It will impact many people who have chosen to purchase a second home for the purpose of generating rental income. I know the percentage who use airbnb or other short term vacation rental services is likely small, but this will still have an impact on Canadian's finances.

Purchasing a second home for rental income in this market is just about the most bone-headed thing someone could do. The fact that they knew they were breaking municipal by-laws to make a tiny chunk of change, and exposing themselves to further risk in the market is their own fault.

This is a good thing.

[Flamenspiel]

Originally Posted by peter12

I cannot stand the comparisons between Vancouver and London or Tokyo or Manhattan. All of the latter have salaries and industries commensurate with housing, and even places like London are now officially out of control.

I think someone back a few posts that said it was just like London or New York..I had to laugh at that, but if its true then the Vancouver market should be able to withstand extra taxes, vacancy charges, rent controls, congestion charges, and all the other disincentives that those other places have.