Blame game

The most hateful comments to this pathetic blog which end up being DELETED? Yes, without a doubt, one topic only. The Chinese. Trump openly blames Muslims and Mexicans for America’s ills. We hang family debt and disappointment on dudes from Guangzhou.

Because nobody’s proven immigrants or offshore investors are largely responsible for stupid house prices, and yet the evidence is overwhelming that local speculators are, this blog has been a lightning rod for xenophobes, racists and disentitled whiners. It’s human nature that we want to be victims. Meanwhile realtors have played the race card beautifully, convincing millions they must buy before all the houses are gone or become forever unaffordable. Politicians can’t resist currying favour running against people who are scary, and don’t vote. It’s a perfect anti-Chinese storm. Sadly, Canadian-born folks of Asian heritage have been swept into this cauldron, too. In Vancouver – where the two founding races were anglos and Chinese – this has turned ugly.

Will things change on Tuesday?

Maybe. Probably not. But we’ll see. That’s when StatsCan releases new numbers on foreign ownership levels in the GTA and YVR – the result of T2 spending $40 million on a project to measure market activity. The feds have been looking at tax data and land registrations to determine who’s buying what. The result will probably be consistent with what we’ve already been given, which the bigots and stubborn (who send me awful notes) will dismiss. That’s the thing about prejudice. It stains deep.

Desperately-unpopular governments in both BC and Ontario brought in massive taxes on foreign buyers, catering to the unproven belief Chinese dudes make houses cost $1 million. Because so many have bought into the offshore-buyer myth, the tax caused the market to swoon as everyone stopped buying and waited to see the impact. Now the tax is a non-event, because foreigners are a non-event. As a major survey showed a few months ago, most newcomers buying here actually move here and become residents. They also tend to purchase properties costing less than the average.

Without a doubt, rich Chinese, Iranians and Americans do scoop up high-end, high-profile homes, let their spawn roar around in Lambos and cause a fuss. But this is at the margins of the market. They’re not behind a 23% increase in condo prices in Vancouver, nor were they multi-bidding against 15 other buyers in Toronto last Spring. We did that. Cheap money and idiot governments did it. Lax lending and CMHC. First-time buyer incentives. The RSP home buyer’s plan. Newbie tax credits. Voracious bankers. The Bank of Mom. And the CRA.

After all, here’s the data collected to date: Ontario reported that 4.7% of properties selling at the very height of the market last March and April went to foreign buyers. So, 95.3% did not. The Toronto Real Estate Board’s research showed 4.9% of transactions had a foreigner on the buy side. Thus, 95.1% were local buyers.

When Ontario’s finance guy Charles Sousa slapped on the 15% anti-Chinese tax he said 8% of deals were going to offshorers. When actual numbers surfaced he recanted: “This indicates to me that the degree of foreign buyers is not as intensive as many may have contemplated.”

In BC, believed to be the epicentre of foreign ownership, the province puts the number at 6% of transactions over the past year. In some areas, like Richmond, it’s higher (at 10% recently), as in portions of the GTA (like Markham/Unionville). Of course there have always been ethnic concentrations – Little Italy, or Chinatown or Toronto’s Greek Village. In fact whole subdivisions can sell out in hours or days to one community – which doesn’t mean all these folks are foreigners, newcomers, immigrants or interlopers. Mostly, they’re Canadians who like having neighbours like them. Just like you.

There are many reasons why unaffordable real estate should tick you off. The biggest culprit is loose monetary policy, which gave us 2% mortgages. That bred unbridled borrowing, epic family debt and rampant speculation. Now 14% of Toronto households own multiple properties and up to 50% of condo sales in recently years went to ‘investors’. This helped foster the real estate porn that spilled onto TV screens and create stars out of speckers and flippers. It was only months ago that ten thousand people crowded a Toronto hall to hear housing investment tips from a contractor and a rap artist.

Did the Chinese make us do this? Not a chance. But realtors, politicians and media messed with your head.

On Tuesday I bet the new data reaffirms the old.

If I’m wrong, you can export me.

$  $   $

And here we go in Ottawa. With a mere 10 business days to prepare for the 2018 taxation year, and Parliament conveniently adjourning, Bill Morneau brings down the hammer. Merry Christmas, small biz suckers. Its so much easier to be a multi-millionaire with a billionaire spouse and an inherited fortune…

Government to Announce Next Steps on Tax Fairness for the Middle Class

Minister of Finance Bill Morneau will announce next steps to simplify the Government’s plan to improve the treatment of income sprinkling for owners of Canadian-controlled private corporations, on Wednesday, December 13, 2017.

Department of Finance Canada officials will provide a background briefing immediately following the release of the simplified proposals.

Time and location:

1:00 p.m. EST
National Press Theatre
150 Wellington Street
Ottawa

A question and answer session with media will follow.

277 comments ↓

#1 Lost...but not leased on 12.12.17 at 5:05 pm

Phhyyyyyrrzzt …….or no overpriced shoebox condo for you!!!!!

#2 Jungle on 12.12.17 at 5:10 pm

Treb has always said foreign buyers are less than 5%
Looks like they were right, this myth was busted so long ago. Time to move on.

#3 Jungle on 12.12.17 at 5:13 pm

And actually foreign buyers should only be investing in business or research innovation, infrastructure, etc not taking our houses when they don’t live here for their off shore piggy bank?

Our middle class here in to and van can barely get a house without some hardship. And thy live here, pay taxes and contrivute to society

#4 rainclouds on 12.12.17 at 5:22 pm

While I expect you are correct and the data will likely reinforce this yet again.

The real question is how do you stop RE associations from lying about this and other “facts”

Perhaps our leaders can address duplicous RE boards and their “data” , false claims ,unsubstiantiated projections about future market activity, pricing ,volumes……..

Once the commission based organizations with the glass always half full are brought under adult supervision then move on to numbered companies , dirty money , and “the Vancouver washing machine”

Oh and nuke CMHC. There is no reason for it to exist in 2017.oh wait. Cash cow for the feds……never mind!

#5 Jungle on 12.12.17 at 5:23 pm

Even at 5% in Gta foreign buyers have been taking advantage of Canada and rising out huge gains in re while they live off shore. Their intention is actually abusive since they don’t use the property what it’s intended for while locals are left with less chance.

#6 Out of reach on 12.12.17 at 5:28 pm

It doesn’t matter who bought the houses, they are out of reach now. IMHO the central bank and CMHC policies are where the blame lies. Central banks have screwed this planet over and now we have the everything bubble. Good times…

#7 Cdn Mom on 12.12.17 at 5:28 pm

How far back will this data go? Will it show beneficial ownership, or just legal ownership?

I don’t live in Van, but did live in the greater Van area for 4 or 5 years. While we left in 1998 because the cost of living was just stupid, I do believe there was a lot of foreign money laundering that started the snowball rolling downhill. Once it started rolling, locals were run over, sticking to that snowball.

Garth, if you haven’t already, I would strongly suggest you read the series of articles in the Vancouver Sun regarding the casino money laundering, especially at the Richmond location. I think the reporter’s name may be Cooper, and they start in October, IIRC. VERY interesting read of how Christy Clark and her government allowed this laundering to flourish, damaging the province of BC.

#8 Ray Skunk on 12.12.17 at 5:40 pm

That’s when StatsCan releases new numbers on foreign ownership levels in the GTA and YVR – the result of T2 spending $40 million on a project to measure market activity.

That’ll be the same T2 who advocates opening more visa processing centres for Chinese immigrants, is keen on pursuing more trade with China, and generally holds China in great admiration.

I can’t for the life of me imagine how this report is going to turn out.

For the record, I’m neither here nor there on the Chinese meme. To me the insanity is a some foreign money, with lots of locals trying to play along, fuelled by banks only too happy to drive no-risk profits, peddled by lying Realtors(tm).

To deny the influence of lucre from abroad, is as much as denying the insanity of born-and-bred Canadians. They’re both culpable for this mess.

#9 Sebee on 12.12.17 at 5:41 pm

Realtors, politicians and media have done a fantastic job to make people believe that there is shortage of land in this 2nd largest country on the planet with one of the lowest population densities.

Bravo!

#10 Freebird on 12.12.17 at 5:44 pm

“…spilled onto TV screens and create stars out of speckers and flippers. It was only months ago that ten thousand people crowded a Toronto hall to hear housing investment tips from a contractor and a rap artist.”

The Cdn ‘stars’ who are mainstays on HGTV/ daytime talk shows as guest ‘experts’, build multi million dollar homes/cottages on TV, align themselves with banks like CIBC and run seminars on real estate investing and even manage to arrange ad spots for their spouses and new telegenic in laws all have the advantage of 1) other lucrative forms of passive incomes (royalties, appearance fees for shows, ads etc) that aren’t talked about about and seems many either forget or aren’t aware. I don’t begrudge success or wealth but to give fans/ viewers the illusion your wealth was/ is mainly from real estate is a misleading narrative at best.

Let’s not forget ad placement on those rehab or HGTV stars self build shows pays for the material or most of it on that build. Just watch for the mini commercials built into the episodes like a certain online furniture co. that starts with ‘W’. Scripting is so obvious it’s funny.

#11 the ryguy on 12.12.17 at 5:45 pm

Garth I lose more and more respect for you everyday when you repeat the MSM garbage about Trump and this racism drivel. On the off chance you are trolling..kudos, well played, but I doubt thats it.

For a guy that builds his business and reputation on being ahead of the curve in research its pretty embarrassing. I know you don’t care, frankly nor do I, but Ill fight this stupid narrative tooth and nail wherever I see it. Unsubstantiated accusations don’t do anyone any favours, in fact they hurt real victims by no one listening anymore when the mob calls wolf, grow up already.

#12 Caleb Landry on 12.12.17 at 5:47 pm

Garth,

Respectfully, you are so off base on your analysis.

There are tens of thousands – more likely 150,000+ family units that have gotten in to Canada via Economic Migration programs so they aren’t counted as ‘foreign buyers’. Should we call them Canadian because they now have a passport – sure, but the truth is, they don’t participate in our society the same way a Canadian born Chinese person does. Not even close. These are the tax cheats everyone complains about – and, they are EVERYWHERE in Vancouver. When 7 of 10 multimillion dollar homes on the west side of the city get bought by people with non-anglicized names – one only has to point to the wealth migration schemes to make sense of it. And, this is buying that is on top of whatever cooked up number the province, feds or realtor lobby cooks up. And, the Quebec Wealth Migration Scheme is still churning – sending 90+% of the migrants west after stamping their passports. You don’t live here, you live in Toronto – where 5+m people absorb a portion of the buying that goes on compared to Vancouver. You have no means of wrapping your head around it. Here’s another stat. In Calendar 2016 the United States absorbed $27.5 Billion in Offshore Buying – across all 330 Million people and it’s massive world class cities. In the same time period the lower mainland absorbed $10 Billion in a population base that is less than 1/10th the entire continental USA. And this is just strictly OFFSHORE BUYERS – this does not account AT ALL for Wealth Migrants (150,000 + family units) that are deemed to be Canadians.

So, get real Garth – this has 100% been influenced by foreign buyers in Vancouver. To suggest otherwise is disingenuous. And, for the record, Vancouver is now a shell of itself. It’s been racked over the coals. It’s a fucking train wreck waiting to happen now that the same foreign buyers/wealth migrants start pulling their capital from the market. If it wasn’t such a problem, then we wouldn’t notice them stepping back. But, guess what, we’ll all learn the lesson that selling one’s soul always comes back to haunt you. And, the sooner we get of this fucking garbage the better.

So yes – it is the new Chinese, in Vancouver that have ruined this city.

#13 Gaga on 12.12.17 at 5:47 pm

Even 5% is still a lot
Why would we allow to do that?
This is mostly money laundering ,they don’t care about prices

#14 Paully on 12.12.17 at 5:48 pm

I agree with Rainclouds (#4): Nuke CMHC!

#15 Freebird on 12.12.17 at 5:48 pm

Forgot other advantage of HGTV stars/ guest experts…
2) they are well connected to access contracting resources/ materials at good prices esp if willing to be seen using or talking about it.

BTW the term expert used to have some meaning. Now?

#16 SimplyPut7 on 12.12.17 at 5:58 pm

#3 Jungle on 12.12.17 at 5:13 pm

Our problem is with supply, Arizona and Florida have never complained about the number of Canadians owning 1 or more homes in their States like Canadians have complained about foreigners stealing homes/land from the middle class.

#17 Your Sexy English Teacher who bares it all in the Buff in your school on 12.12.17 at 5:59 pm

“Politicians can’t resist currying favour”

Freudian slip much Sir?

#18 Paul on 12.12.17 at 6:04 pm

The buyer/ownership might not be foreign but the money must be. How else do you explain the 18 year old chinese canadian owner of a 8 million dollar house?

#19 Zapstrap on 12.12.17 at 6:06 pm

You drive a poor bargain Garth but … it’s a deal. Do we get to choose where to export you? I know it’s a longshot but still … just sayin’

#20 Reximus on 12.12.17 at 6:09 pm

why dont we just let builders build more homes, instead of penalizing those who have already have met the criteria for responsible property ownership

#21 First Nations own Canada, not Queen Elizabeth on 12.12.17 at 6:11 pm

DELETED

#22 AGuyInVancouver on 12.12.17 at 6:12 pm

Sigh.

There is no “only” in “only 5%”! In a geographically constrained city like Vancouver, 5% is a lot of homes to be selling to those with no stake in this country, other than a safety deposit box in the form of a house. And keep in mind that 5% is only declared foreign buyers. It doesn’t capture PRs or naturalized buyers who have been handed a nice cheque (or more likely snuck some bitcoin) from overseas.

Let me explain how this particular trickle down works: senior managers in local firms can no longer afford a house on the West Side because that “only 5%” disproportionately includes those homes. So Mr. Senior Manager slums it over to East Vancouver and buys the houses that were previously the purview of Mr.& Mrs. HipParent. Rather than fix up a character home on weekends as they did, Mr. Senior Manager flattens it and build his dream home. Now Mr. & Mrs. HipParent have to go to New Westminster for that home in a community with gritty street authenticity. But that puts Joe Lunchbucket’s family in a bind, because now they have to find an affordable to ‘hood to escape the gentrifying hipsters… Shall I go on, or do you get the picture?

#23 Ex-Cowtown on 12.12.17 at 6:15 pm

“Trump openly blames Muslims and Mexicans for America’s ills. ”

Uhhhh….. no. Actually he doesn’t. What he blames are people who willingly break the law. It’s not about race or religion.

It is about making sure that the law applies to everyone, not just the ones that Rosie O’Donnell and Joy Behar think it should apply to.

#24 Bezengy on 12.12.17 at 6:19 pm

Why do our governments subsidize 100,000 rental units in Toronto?, which is some of the most expensive real estate in North America. Perhaps it would be wiser to sell these units to the private sector and free up low cost housing spots. Everyone needs a place to call home, but if the tax payer is picking up the bill, I would think the decision on where to locate subsidized housing shouldn’t be left with the person in need. It should be located where it makes the most sense, and provides the lowest cost solution, and I doubt Toronto is it.

#25 Pete on 12.12.17 at 6:19 pm

Question for some here. Would you sell your house and accept Bitcoins? If not why do you believe bitcoin is worth anything? Blockchain has real applications but Bitcoin is useless as a medium of exchange. It only hold value because greatest fools of all believe it has value.

#26 Paul Fromm on 12.12.17 at 6:19 pm

We shouldn’t support international terrorism and organized global crime.

These foreign buyers need to be screened to determine whether they are legit or criminals fleeing from justice.

If the border patrol finds evidence that anyone from China, Iran, India, Saudi Arabia or any questionable country is engaged in the proceeds of crime, send them back to their local police in their home country for investigation.

#27 SimplyPut7 on 12.12.17 at 6:20 pm

Will StatsCan be able to tell us who owns all of the empty flipped homes for sale that have been trying to sell since March. Don’t the lenders/investors want their money back on these homes? How long can sellers wait and hope the market will go back up so they can break-even.

Why would I buy this house when there are cheaper (better looking) houses for sale in the area.

https://www.realtor.ca/Residential/Single-Family/18928556/334-MONARCH-PARK-AVE-Toronto-Ontario-M4J4T3-East-York

#28 BK on 12.12.17 at 6:20 pm

Garth I was going to comment but don’t think I need to. Your gonna get a lot of resistance after todays blog. You brought up the subject, so no whining about it afterwards. No one cares…

#29 Guy in Calgary on 12.12.17 at 6:21 pm

Housing is ssssooo 2017. Bring on the cryptos now.

#30 Cindy on 12.12.17 at 6:26 pm

As human beings, we are not encouraged to think for ourselves. From the time we are children, we are conditioned to imitate those around us, regurgitate other people’s thoughts and beliefs, and to fit in and follow the crowd.

So it’s not surprising that many Canadian’s have bought into this idea that foreign buyers have driven our real estate market into priced out madness.

Garth, you encourage your readers to think for themselves, and provide compelling arguments and data. Some people will continue blaming the Chinese for the mind blowing real estate market regardless of the facts.

If more people armed themselves with reputable knowledge instead of believing what they want to hear, we wouldn’t be in this mess to begin with. People blindly trusted real estate agents, who convinced them real estate would always go up in price, and that’s what those buyers wanted to hear.

And that’s why we’re here.

#31 Derry on 12.12.17 at 6:26 pm

Why are you so afraid of offending Asians? Look around Vancouver and tell me they are not driving the market–and no, they are not all from Vancouver. If you think most home buyers are Canadians then I guess most Canadian born Asians are filthy rich? And how do you explain all of the vacant homes owned by numbered companies?

#32 I’m stupid on 12.12.17 at 6:27 pm

#12 Caleb Landry

Remember when you were in school and the kids with the top marks were mostly Asian. Not because they’re smarter than anyone else but because you chose to have sex and smoke weed instead of going home to study. Well those kids grew up and got really good jobs because they went to Med school, law school, got MBAs etc etc. Now combine that with Chinese culture where parents live with their oldest son and you get a household with high disposable income.

#33 Redrum on 12.12.17 at 6:30 pm

It my understanding that these statistics are based on self reporting? If so they are worthless. Vancouver has been completely overrun, the only thing to be done is completely ban foreign ownership. I don’t understand why you won’t accept the reality and are constantly using false statistics with no factual evidence to back it up. I have noticed you are reluctant to admit it when you are wrong and you like to change your tune.

#34 Derry on 12.12.17 at 6:32 pm

If you don’t think foreign ownership is driving the market in Vancouver then how come it is twice the price of Toronto?

#35 SoggyShorts on 12.12.17 at 6:33 pm

Does no one see the upside to foreigners buying houses?
We’re talking about millions of dollars flowing into the country. That’s not entirely a bad thing.

Personally I’m looking forward to buying a McMansion in Asia, and I hope instead of hating me for it that they are happy for the money I bring in.

#36 Lost...but not leased on 12.12.17 at 6:34 pm

Sigh….

…..let’s start from the beginning….

Definition of “foreign buyer “= not a citizen nor permanent resident.

Question: How can/may this definition be bypassed to hide/disguise a foreign property owner ? Then the discussion can move foreward.

#37 I’m stupid on 12.12.17 at 6:34 pm

For over 50 years Canadians and Americans have been going to third world countries for Vacations. Buying vacation properties in those Caribbean islands while the local populations starve. Now that a few foreigners are buying luxury properties here you get angree and cry foul. Pathetic!

#38 IHCTD9 on 12.12.17 at 6:35 pm

If Canadians could get a grip on their emotions, none of this would have happened. FOMO, so easily plyed upon insecure Canucks, and a lust to get rich quick requiring an outsized mallet to subdue. A few west side houses sell for big money, and everyone goes insane trying to cash in. The weakest of all Canadians are in our big cities where it seems 90% of the population is “faking it till they make it”.

I’m still watching the two local mansions down the road that went up for sale in the spring trying to cash in on the frenzy. One sold after a 100K drop and 6 months on the market. The other has dropped 150K and after near 8 months on the market, still sits.

Why? Because no one out here is that stupid to pay those balloon head asking prices. These homeowners are fishing for bozos 1.5 hrs East of them. Both of these homes quickly went up for sale after another local home got bid up by a couple dingbat GTA buyers and sold for 700K early this spring.

This local event IMHO, is a microcosm for what has happened on a grand scale in YVR and the GTA. The only difference is that goofball metro buyers kept paying whatever they were asking no matter how loopy the prices got.

#39 CRAsucks on 12.12.17 at 6:39 pm

What a stupid article showing a complete lack of clue about what is blatantly obvious in Vancouver Real Estate. Nice #FakeNEWS lol

#40 JSS on 12.12.17 at 6:40 pm

Based on the comments I’m reading above, many Canadians are just as racist as Americans. Why not admit it?

#41 disconnect on 12.12.17 at 6:41 pm

The key number is not the % of homes bought by foreigners, it’s the net %. Data anyone? Geese.

#42 IHCTD9 on 12.12.17 at 6:41 pm

Make that 1.5 hrs WEST (cough GTA cough)

#43 TheSecretCode on 12.12.17 at 6:42 pm

How many homes in Canada are owned by a blind trust with a Canadian lawyer listed as the cover?

Lawyer client privileged information bs.

That is the number we want.

#44 Karma on 12.12.17 at 6:43 pm

“In Vancouver – where the two founding races were anglos and Chinese – this has turned ugly.”

How were Chinese part of the “founding” of Vancouver. They came is relatively small numbers to work in the interior building the railroad. BC was already created by then and was a part of Confederation for over a decade before they came in relatively large numbers to work on the railroad. Also, the vast majority of the Chinese-Canadians or their parents came to Vancouver in the past four decades… Let’s not overstate their contribution to BC.

#45 oncebittwiceshy on 12.12.17 at 6:43 pm

Lolol, all of you confirmed foreign buyer shills are simply entertaining Garth at this point.

The numbers next Tuesday will say exactly what the numbers have said already and all of you will be outraged.

The rubber hits the road in less than 3 weeks and then you will be shocked to see that all of those Chinese investors are your parents/realtors/mortgage brokers.

You will be able to see this because the carnage in the market will drive every over indebted, extend and pretend REIN investor wannabe to the exits driving the prices of your home to the ground.

The amount of sales in November and possibly December are simply fools pulled forward from next year trying to avoid OSFI legislation. Let’s see how many specuvestors hang tight as the market grinds to a crawl.

Let’s see how many saps who have to renew next year and were hoping to refinance their mortgages to pay off their extend and pretend lifestyle are able to hold on because they can’t pass OSFI’s stress test.

Read this article and try to come up with reasons why Canada is going to fare so much better than our American friends.

http://www.moneygeek.ca/weblog/2017/10/16/canadian-housing-market-bubble-interview-seth-daniels-jkd-capital/

#46 Dave on 12.12.17 at 6:43 pm

DELETED

#47 MF on 12.12.17 at 6:43 pm

Not this topic again.

My take: the influence of foreign buyers is higher than the much touted 5%, maybe 20%. This is still not as big as the industry wants us to believe, which is that 50% of buyers are foreign.

I am against any rules against foreign ownership. I had a discussion with a colleague the other day about this topic. He kept saying “it’s not fair” this and “it’s not fair” that. Here he is explaining this T2 crap fake ideology to a guy working 3 jobs to pay his expensive GTA rent, and then have something left over to buy a place (or invest). Who said anything about fairness?

Let the free market dictate price. That includes an increase in interest rates and getting rid of the useless CMHC. That would increase affordability.

MF

#48 Rooster on 12.12.17 at 6:46 pm

#102 Glengarry Girl on 12.12.17 at 10:44 am
This blog is interesting and I do enjoy reading the comments section…human nature…..substantiate your beliefs……. in uncharted territory…. data is not reliable….. distorted reality……sit on the sideline……invest after the correction…..blah blah blah.

#30 Cindy on 12.12.17 at 6:26 pm
As human beings, we are not encouraged to think for ourselves….children imitate ….. follow the crowd…. bought into this idea foreign buyers….. madness…. think for themselves…. compelling data…… blaming the Chinese…regardless of the facts… blah blah blah
———–+++++++
Ok, well ..m’ladies….. it’s obvious that you both let your emotions run away with you there, but you’ve had your say. FYI this is a forum for men with uncanny powers of observation to discuss serious issues. In the time it must have taken you to write all that you could have learned the Charleston or the Lindy Hop. Please stick to doing what you do best.

#49 MF on 12.12.17 at 6:48 pm

#32 I’m stupid on 12.12.17 at 6:27 pm

“Not because they’re smarter than anyone else but because you chose to have sex and smoke weed instead of going home to study.”

Lol agreed.

Weed is for losers, or T2 supporters…which are the same thing.

MF

#50 NEVER GIVE UP on 12.12.17 at 6:50 pm

#12 Caleb Landry on 12.12.17 at 5:47 pm

Kinda ABSOLUTELY RIGHT!

What Canadians and our most generous and esteemed blog owner Garth included don’t know is that we don’t understand the incredible depths of connection Asians and especially the Chinese have.

For example. I can borrow 100k USD anytime from local Chinese through my employee in China. I do it often when I am having trouble remitting money to China. Local Chinese have a system of lending at low or no interest because they have no place to put their money.

If one defaults on a loan you can be kidnapped and held for debt repayment payable by anyone who loves you.

How do I know this?

People who I am close to in China have done it to others and also had it done to them.

Near Chinese New Year this happens a lot because all debts are supposed to be resolved by Chinese New Year every Year.

I personally know someone who had paid to have a debtor thrown into a cold river (Shallow) in January and the debt was paid back the next day.

Access to credit is Ubiquitous in China and for the purpose of buying overseas property there is a cult like following of money assembly.

That is all money that has pumped up our property to the point whereby our own children cannot compete for property.

All Bad and ALL OUR OWN GOVERNMENTS DOING.

#51 Thoughts? on 12.12.17 at 6:51 pm

Hey Dogs…thanks for your feedback yesterday regarding my friend that just bought herself a new condo. You reiterated exactly some of the thoughts I had when I heard the news.

I hope it works out for her, who knows what the future holds for anyone, but it does seem like a bit of a risky move at 45yrs old. It’s really, really hard trying to enlighten people when they’ve been bitten by the “homeowner” bug. C’est la vie, such is life. As for me, I just found myself a sweet little apartment that’s a 15 min walk to work, fireplace, den, parking & laundry (all coveted in Van), + freedom, and still have six figures in the bank! Think I’ll keep doing what I’ve been doing :)

#52 Money flows on 12.12.17 at 6:54 pm

This post dangerously misguides the foreign ownership issue. Foreign humans are not the problem. It is the foreign capital. I fear this post will get deleted so I will not use any country identifiers accept for Canada.

This is how the money enters Canada by the 100s of MILLIONS each month, year after year. A very small portions may enter via Bitcoin, but the monster share enters as follows:

2 banks are needed. One in the country of Origin, One in the Destination country. Money is deposited in the country of Origin in the local currency. An equivalent amount of money (minus of service fee ~ 7-15%) is withdrawn from the bank in the Destination country in the local currency. No money ever crosses any borders. The 2 banks are in close cooperation. You are free to enter at the airport customs counter with nothing to declare while $2M in cash waits for you at the bank. You then purchase a luxury home using lawyers who transfer the money and title. This happens every single day in Canada and explains why the luxury market is hot. Anyone who tells you different is either lying or naive.

#53 TheSecretCode on 12.12.17 at 6:56 pm

“Without a doubt, rich Chinese, Iranians and Americans do scoop up high-end, high-profile homes, let their spawn roar around in Lambos and cause a fuss.”

Could this have spawned the speculative mania among locals?

You know what they say: if you are talking/looking at the bubble (real estate, crypto, stocks, etc.) you are probably not in it.

I remember back in the day when I listened to main stream media, government warnings, etc. about how dangerous bubbles are, warning against virtually everything except for paying your taxes…I followed the warnings and all I could afford was a Toyota Tercel.

That was then is now as I look for a supercar condo to store a couple of whips.

Trove development in Richmond, BC will have a home to house 100 million+ worth in cars.

#54 akashic record on 12.12.17 at 6:57 pm

In a country where proper laws are in place to provide equality for all citizens all accusations of racism, etc. should be dealt with at the courts exclusively.

Otherwise any voluntary, vigilant enforcement of those laws outside of the courts is simply censorship, denial of free speech, etc. which is more harmful in a society than any openly discussed opinion, idea can ever be. It is also illegal.

#55 Andrewski on 12.12.17 at 6:58 pm

Methinks you’ve yet again touched a lot of nerves with today’s post Garth. Prickly, pissed, perplexed people.

#56 Penny Henny on 12.12.17 at 6:58 pm

When Ontario’s finance guy Charles Sousa slapped on the 15% anti-Chinese tax-Garth

There you go again. Stirring the pot

Who else was targeted? – Garth

#57 Bobby13 on 12.12.17 at 6:58 pm

Yes monetary policy sums it up. Low rates insured loans fearless buyers and lenders. What could possibly go wrong. Not to mention monetary policy. Oh and a couple pay stubs taken to bank and voila 750$$$ in pre approved loans.

#58 Bob Dog on 12.12.17 at 6:59 pm

I would never blame immigrants. I place 100% of my utter contempt and vile hatred at the feed of the Government of Canada. I too would take advantage of an amazing opportunity if only I could find a country under the control of such corrupt fools.

Here is an very good documentary made by an Australian media company. It’s actually refreshing to get an unbiased external viewpoint of Canada and Canadian real estate.

https://www.youtube.com/watch?v=IZs2i3Bpxx4

#59 Andrew Woburn on 12.12.17 at 7:01 pm

Vancouver councillor wants to rezone West Point Grey for rental apartments

http://www.cbc.ca/news/canada/british-columbia/west-point-grey-rezoning-1.4442289

#60 Karma on 12.12.17 at 7:01 pm

“After all, here’s the data collected to date: Ontario reported that 4.7% of properties selling at the very height of the market last March and April went to foreign buyers. So, 95.3% did not. The Toronto Real Estate Board’s research showed 4.9% of transactions had a foreigner on the buy side. Thus, 95.1% were local buyers.”

The real question is how many foreigners, or people buying with foreign capital to be exact, is selling their assets in Canada and moving the capital abroad?

The reality is foreign capital is the problem, not the people moving to Canada. If they come here with nothing, like many immigrants beforehand, then they aren’t inflating housing costs for other Canadians. But if they are coming with tons of money, they should be taxed for causing negative externalities on the rest of the housing market. Also, banks should not be allowed to lend to people without proving Canadian income can pay for the mortgage. Non-Canadian income and non-Canadian collateral should not be allowed to be used in assessing people’s credit risk.

#61 mark on 12.12.17 at 7:04 pm

Nice to see T2 is going to rehab all those ISIS members then they can come over to canada brilliant! .

#62 Lost...but not leased on 12.12.17 at 7:05 pm

Garth….

You have my e-mail contact….when out here in GVRD area I will gladly give you a tour of Richmond BC….aim for evening when it is dark ….say 7-9 PM .

We can start in the City Core, say Westminster Hwy and #3RD…and walk North> South> East >West….and observe the many residential hi -rises where once stood commercial /light industrial areas. You will look up and see on average 80-90% of the condo units have ZERO lights on.

Next we drive into the suburbs….where 6000 sq ft McMansions continually displace 2000 sq ft original homes.These McMansions will also show all the indications of vacancy for most of the year.

You will be amazed at how the vast majority of retails spaces are tenanted by cafes and restaurants of shall we say Asian influence. Other than HBC, zero department stores left in city core (ie Sears, Zellers, Eatons, Woodward , Future Shop , NO movie theatres….all gone)

Enter any financial institution and find them predominantly( ie 99% )staffed by Chinese.

Simple observations, can be corroborated by anyone.

Now…whose the racist ?

#63 Mattl on 12.12.17 at 7:06 pm

In some areas of yvr known sales peaked as high as 20% some months. During that time this blog was posting the 4.9 percent number realtors were claiming for the lower mainland.

It never made sense that low interest rates, bank of mom, etc was driving prices at the top end. And the top end completely fell out after the foreign tax came in. And prices in areas not subject to the tax blew up.

And lets be real, 10% in Richmond is a huge number. 10 percent at the top end can lift the median price by double
digits.

Are the chinese completely driving the yvr market? No.
But they are one ingredient in a re madness sandwich and the numbers will show that. That doesn’t
make someone a racist to have properly identified that HAM was a significant player in the run up.

#64 Peezbe on 12.12.17 at 7:07 pm

Garth, ive been in a long time reader, however i rarely comment. In this case, i believe you are wrong. An absolutely astonishing amount of money has already left and continues to leave (mainly China, but Iran and Russia as well).

I work in private wealth management. I see it first hand on a daily basis. Young 20s student turned PR, bought several FLOORS of a recent condo project. Nice lady, she drives a prius and doesnt show off her (parents) wealth. Another young male, already owns two vancouver condos…. not units, condo buildings. Wanted to diversify a bit, had a cool 7m in his chequing account. Again, he was a PR. This is just retail, i have some great commercial and recreational (buying golf courses, private schools) anecdotal stories as well you want to sit by the campfire.

There have been studies that show mainland chinese surnames are purchasing expensive Vancouver and Toronto mansions and they wont show up on any foreign buyers list as they are all students or PRs. The truth is, these arent even the ultra wealthy Chinese as per my examples above…. they are middle class that might own an apartment or two in Shanghai which is enough for several mcmansions here in Canada.

Now i completely agree that local speculation and historically low interest rates have also played a large part, but for someone who works in Finance, you should know better that unless you and your wife are surgeons or executives, local incomes cannot support the prices in Vancouver and to a lesser extend, Toronto. Its also not a coincidence that New Zealand and Australia have a similar (worst) phenomenon. Foreign buyers are playing a significant role, pay close attention to what happens in New Zealand now and maybe your tune will change.

#65 Terry on 12.12.17 at 7:10 pm

“Trump openly blames Muslims and Mexicans for America’s ills.”

Once again you’re misinformed Garth.

It’s the radicalized Muslims and the illegal Mexicans that are partly contributing to America’s ills. Liberalization in our society is another big big problem. Your watching too much CNN & ABC news again Garth!

“The biggest culprit is loose monetary policy, which gave us 2% mortgages. That bred unbridled borrowing, epic family debt and rampant speculation.”

This you got right Garth! Many Canadians are in debt up to their eyeballs and will most likely never ever be able to get out from under it. It’s over for Canada, we lost! We are the most indebted country in the world. All highly indebted Canadians can do now is continue to borrow and spend their future earnings kicking the can down the road a little longer until they all hit that debt brick wall and borrowing more into the future won’t work anymore. That time is coming …. just wait for it.

#66 Andrew Woburn on 12.12.17 at 7:12 pm

One more headache for the Trump White House is likely to be an exodus of staffers who have completed a year in January, 2018 and want out. According to political blogs it is considered bad form to bail on the WH without serving 12 months.

But with the risk to reputation of serving the Orange One and the prospect of being caught up in the Mueller probe, observers think there will be a steady pace of exits in the New Year and perhaps not a lot of enthusiastic, competent applicants for the vacancies.

https://www.axios.com/exclusive-policy-official-leaving-white-house-2516458672.html

#67 TheSecretCode on 12.12.17 at 7:14 pm

It is all about economic cycles and bubble chasing…the bigger the better.

You pull some off the table each step up for the well balanced/diversified portfolio. This will be the only thing left when these bubbles blow (and even your portfolio will take a hit). You day job/career (the thing that so many people say as the best thing in the world – as they love their job) should always be a plan B. And yes, you should be prepared to compete in the working world as you have to start somewhere. For most, their job will be the biggest income generator of their lifetime, but you will never become rich working for someone else. Regardless of what you do, avoid debt at all costs and run your living expenses as lean as possible.

There is nothing wrong with driving a Toyota Tercel. In fact I recommend it as a multi-millionaire as you can fly under the radar easier. Look at what it provides versus how nice it is. The Tercel only becomes a problem when it breaks down and the cost benefit does not make sense anymore. Some may argue upgraded safety features on newer rides…that could be justified…whatever floats your boat…just avoid debt.

#68 Rickeekee on 12.12.17 at 7:16 pm

Well this is what troubles me Garth, is the fact governments are pandering to the racial “fictitious” bias of the general public. They know it’s not the foriegn factor causing prices to rise. So it’s a relatively low risk endeavour appearing to be on the side of the people. What they don’t realize is the subtle “positive” undertone they spread to the hate mongers of the world. Sad … really

#69 -=jwk=- on 12.12.17 at 7:17 pm

@#16
#3 Jungle on 12.12.17 at 5:13 pm

Our problem is with supply, Arizona and Florida have never complained about the number of Canadians owning 1 or more homes in their States like Canadians have complained about foreigners stealing homes/land from the middle class.
———————-
Your kidding right? Look up the homestead exemption in florida (50k for natives, 0 or anyone else) and the cap on assesment increases gains (3% max assessment increase per year for locals, 10% for anyone else). When speculation was rampant in FL/Az they took action so their own residents wouldn’t be squeezed out by out of state speculators. Not saying it is good or bad (it punishes renters in out of state owned properties) but at least they did *something*!

#70 not so liquid in calgary on 12.12.17 at 7:17 pm

Garth, I get your rant. The comments we get to read are frustrating enough, can’t even imagine the ones you DELETE.

Carry on, you’re doing good work here.

#71 Cecil Henry on 12.12.17 at 7:18 pm

DELETED

#72 not so liquid in calgary on 12.12.17 at 7:19 pm

@ Guy in Calgary

Go back to Nov 30 blog: The Bitbrains…and fill yer boots!

#73 not so liquid in calgary on 12.12.17 at 7:21 pm

#18 Paul

got a link for your comment?

#74 not so liquid in calgary on 12.12.17 at 7:23 pm

@ #12 Caleb Landry

so much verbal diarrhea in one comment.

any real proof?

#75 Dolce Vita on 12.12.17 at 7:26 pm

“Now 14% of Toronto households own multiple properties and up to 50% of condo sales in recently years went to ‘investors’.”

When the inevitable happens and it is beginning with prices already beginning to drop wiping out 1 years worth of gains in YVR & 416.

More pain to come:

-Rates going up.
-B20 delivering fewer buyers with less money to spend.

Largest bubble in Cdn. RE history –> Largest asset devaluation in Cdn. RE history. Common sense dictates that.

What a disaster it will be for many peoples finances…Extend & Pretend…to the bitter and inevitable end.

#76 After Communism on 12.12.17 at 7:31 pm

If the bet fails, then I think export Garth to Hong Kong because Garth’s British predecessors are the founding race of China, except the hundred year lease was not extended. That could be a problem. British should have bought, not rented Hong Kong?

Another destination for Garth is Palashi, India, 1757AD, as a founding race of India. But then there was The Indian Mutiny of 1857AD.

On the other hand, the Japanese are not a founding race of Nanking, China. Territory changed hands, but not in a civil way. So that is not the same.

#77 Kim on 12.12.17 at 7:32 pm

“In Vancouver – where the two founding races were anglos and Chinese”

I was recently at an event where I heard some prominent Chinese dignitaries push this idea of being the two founding races. In fact, they want to build a special museum and cultural centre to acknowledge the contribution of the Chinese to the creation of Vancouver.

Whether or not it is true, I don’t really know. It is just that I have lived in Vancouver all my life and have never heard this message before – and now I hear the idea twice in two weeks.

Not sure how well the idea will go over with the First Nations though…

#78 TnT on 12.12.17 at 7:33 pm

The Blame Game….

This is classic Divide and Conquer.

While all you Crabs pull each other down with and the name calling and xenophobia (very sad…)

AND

While all you Jones’s try to keep up with each other by buying THIS and buying THAT, on credit no doubt… (lawlz…)

the rest of us will grab the popcorn and enjoy a little schadenfreude.

#79 For those about to flop... on 12.12.17 at 7:34 pm

Where is Freedom First…

M43BC

“These Maps Show How Economic Freedom Around the World Enriches/Impoverishes People

The Heritage Foundation recently came out with an updated ranking of countries’ economic freedom. Heritage is focused on creating laws that encourage economic freedom, by which they mean low taxation, open trade policies, and few barriers to start a new business. We mapped Heritage’s scores from the freest countries in the world (in green) to the most repressed (dark red). This lets you easily see the best (and worst) places to live when it comes to making your own financial choices.

Looking at a map of economic freedom for the entire world reveals distinct pockets of freedom and repression. The freest continuous group of countries stretches from the United States and Canada over to northern Europe and the Baltic countries. Russia is the only country touching the Arctic Ocean in a color other than dark and light green. Australia and New Zealand also stand out in the Pacific as bastions of freedom, especially combined with the other countries in Southeast Asia. On the other hand, almost all of South America, Africa, and Asia (at least on the continent itself) remain repressed.

Searching for patterns across the entire globe is interesting, but we thought we could take our viz up a notch and see if there are any correlations according to average GDP per capita and economic freedom. Gross Domestic Product (GDP) is a simple economic measurement for the total value of the goods and services sold in an economy. Looking at GDP per capita is not the same as average income, but it lets you quickly judge how well off the average person in that country is. So we used GDP figures from the International Monetary Fund to change the size of each country on the map—the larger the country appears, the higher per capita GDP is. There are some surprising insights you can gather from crunching the numbers like this.

First off, the United States is obviously the richest country in North America with a GDP per capita of $59,609, followed by Canada ($43,611). Every other country is either moderately free or mostly unfree, and third richest country in the bunch is actually The Bahamas ($24,631) followed by Barbados ($16,938). But look at how small Mexico appears, where GDP per capita doesn’t even reach $8,000. That fact alone tells you a lot about the Mexican economy.

Moving down to South America reveals other interesting trends. Chile is the freest country around, scoring a respectable 76.5 in Heritage’s ranking, but it only has a per capita GDP of $13,663. Two other countries are comparably less free but richer: Uruguay ($16,639) and Argentina ($14,267). This is our first clue that economic freedom is not a surefire guarantee for a wealthy economy.

Crossing the Atlantic Ocean into Europe reveals a significant amount of economic freedom with several developed and rich economies. Luxembourg blows away the competition in terms of its GDP, boasting $101,715 in economic output per citizen, followed by Switzerland ($78,245) and Norway ($73,450). Not everything is so great across Europe, however. Several countries along the Mediterranean remain only moderately free, with other countries in Eastern Europe along the Balkan Peninsula generating comparably small economic outputs. Greece is an interesting place our map given the recent news about its debt restructuring. It still has a per capita GDP of $17,806, which certainly isn’t the best, but its about the same as Portugal. There is yet hope that the Greek economy can muddle its way through.

For the purposes of this map, we define Asia as the entire continent stretching from Israel in the East all the way to Indonesia and Taiwan in the West. There’s a tremendous amount of diversity in this region, both in terms of the relative freedom of these places and the size of their economies. Hong Kong ($44,752) and Singapore ($51,431) are the two standout countries with the freest citizens. We should mention that both countries inherited their current government and legal systems from their historical legacy as British colonies. Macau actually has the largest economy for its size ($68,401) thanks to a robust gambling industry, while Qatar ($64,447) and the UAE ($40,162) make the list thank to their oil wealth. Every other country across the Middle East still has a long way to go before joining the ranks of economically developed countries.

The situation is Africa is quite different from the rest of the world. Looking at our map, you can immediately see a large number of repressed or mostly unfree countries with tiny economies. Seychelles actually has the largest economy for its size with a GDP per capita of $15,578, but its not technically in Africa (it’s actually in the middle of the Indian Ocean). Equatorial Guinea ($13,867) is the wealthiest on the continent itself, but the country scores extremely low on Heritage’s ranking at 45.0. Mauritius ($9,619) and Botswana ($7,141) are the freest countries around, but their economies are still puny in comparison to almost everywhere else in the world.

Oceania is the last stop on our world tour, and you can clearly see a dichotomy between Australia and New Zealand and the rest of the region. The Auzis have the most robust economy with a per capita GDP of $55,215, roughly $14,000 higher than New Zealand. There’s simply no other place in the region with nearly as much wealth or economic freedom. Fiji is the only other island to cross $5,000 in per capita GDP, scoring only 63.4 on Heritage’s rankings.

Let’s break this down one more way. Take a look at the top ten freest countries on Earth. We also listed Heritage’s freedom score and the GDP per capita as a quick reference.

1. Hong Kong: 89.8 and $44,751

2. Singapore: 88.6 and $51,431

3. New Zealand: 83.7 and $41,107

4. Switzerland: 81.5 and $78,245

5. Australia: 81.0 and $55,215

6. Estonia: 79.1 and $17,891

7. Canada: 78.5 and $43,611

8. United Arab Emirates: 76.9 and $40,162

9. Ireland: 76.7 and $62,085

10. Chile: 76.5 and $13,663

As you can see, Estonia and Chile both crack the top ten, but they don’t exactly have high performing economies. The things that the Heritage Foundation measures for economic freedom only tell part of the story in terms of economic development. Countries also need to get lucky in terms of geography (like the United Arab Emirates) or historical legacies (like Hong Kong and Singapore).”

#80 TRUMP on 12.12.17 at 7:34 pm

That messin with the head is referred to as being ” Bamboozled”

Let’s face it … Canadians drink beer, watch hockey, send their kids to sports every evening and wonder why they end-up working for the so-called immigrants.

We are all immigrants in this country…..some got their priorities right and recognized the opportunities.

The other immigrants just got “Bamboozled”

#81 Caleb Landry on 12.12.17 at 7:35 pm

#32 – I’m Stupid

I remember high school quite well – and no, I wasn’t smoking weed. I was running a business in my spare time. And no, the kids with the highest marks in my school were not Asian, they were Indian – and a whole whack load of them still live with their parents – but don’t drive Lambo’s and Bugatti’s.

Congrats on your life well lived I suppose.

#82 Zapstrap on 12.12.17 at 7:37 pm

#32 I’m stupid on 12.12.17 at 6:27 pm

#12 Caleb Landry

Remember when you were in school and the kids with the top marks were mostly Asian. Not because they’re smarter than anyone else but because you chose to have sex and smoke weed instead of going home to study. Well those kids grew up and got really good jobs because they went to Med school, law school, got MBAs etc etc.

Yeah but we had a lot more fun. We bought houses in Van so made out probably just as well. Have many Asian friends out here, always have.

#83 crowdedelevatorfartz on 12.12.17 at 7:37 pm

@#32 Im Stupid.
“Now combine that with Chinese culture where parents live with their oldest son and you get a household with high disposable income.”
++++++

“High disposable income……”

I guess that explains the teenaged kid driving the Lamborghini pulling out of the parking lot at Burnaby South High School the other day that almost took the side of my truck out……..

Nah.
I’m thinking the perfect storm of rising interest rates, higher down payments, stricter rules for mortgages, foreign ownership taxes, Chinese govt corruption crackdowns, Chinese govt seizure of illegal foreign assets ( cant wait to hear the wailing when the Trudeau govt starts handing over millions in laundered money to a Communist govt).

Pump millions into Revenue Canuckda and let em rip right through all the flippers, speckers, realtors, etc.
The National Debt would be reduced by half.

#84 akashic record on 12.12.17 at 7:39 pm

#21 First Nations own Canada, not Queen Elizabeth

DELETED

—-

Sounds about right.

#85 Danny on 12.12.17 at 7:41 pm

Garth you get my applause.
Good to stop racist comments….keep them out.
Greedy people exist in all races.

Although you must agree that since the daily flood of hate from Donald Trump……it seems that racist even here in Canada seem empowered…..as if their tribal poison spreading against other people has been enriched.

No one can doubt that since Donald Trump become a politician…..North America……has become insensitive towards the underprivileged…..and I include women who
have suffered under the “male” regime for much too long.

Seems that the wars in Iraq and Afghanistan….some said were to help women there become liberated….when now we are realizing that the same need is in North America.

For all your “comment folks”……wake up and realize that Canada is a nation of immigrants……recent and in the pioneer period …all coming here for a better and more peaceful life.
Most unfortunate that the natives in North America took the brunt of some racist hatred feelings…..in colonial times….by the conquering armies from Europe and England.

#86 common sense on 12.12.17 at 7:41 pm

Happy Holidays Blog Dawgs!

Thanks for a great year of posts Mr. T (obligatory suck up) and comments by 98% of you.

Off to enjoy the holiday season in Cuba to become even more familiar with Socialism to be prepared for 2018.

Enjoy!

#87 Raincouver on 12.12.17 at 7:42 pm

https://thinkpol.ca/2017/12/11/many-metro-vancouver-homes-selling-for-a-loss/

#88 Lost...but not leased on 12.12.17 at 7:42 pm

Anecdotes…

Old neighbour was a property manager for one of Vancouver’s oldest Commercial landlords.

His boss started to sell off assets, one of them was right across from Oakridge Mall(where HSBC is).

His boss sold it for $18 million…it was flipped for..drumm roll…. $27 Million within 5 months.

The story goes that some agent was entrusted with a mission to spend $275 million on RE in the Vancouver area.

Read into that what thou whilst.

#89 Caleb Landry on 12.12.17 at 7:43 pm

#40 – Read this.

$27B in US buying…

https://www.seattletimes.com/business/real-estate/seattle-becomes-no-1-us-market-for-chinese-homebuyers/

and then read this… $885m in 5 weeks.

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-foreign-data-1.3695439

Proof???

#90 jim on 12.12.17 at 7:45 pm

#40

“But with the risk to reputation of serving the Orange One and the prospect of being caught up in the Mueller probe”

Umm, have you actually been following that probe?

Turns out there was indeed contact with the Russians. The Israelis goaded their US allies into making contact with the Russians for political purposes. I suggest you go and find the info on a reputable website. Look forward to that probe shutting down quickly when more and more details of collaboration with another foreign power come out.

#91 Doug t on 12.12.17 at 7:45 pm

I tell my son home ownership isn’t the bee’s knees – get into a co-op and then invest

RATM

#92 Raincouver on 12.12.17 at 7:48 pm

I TOTALLY AGREE WITH #12 Caleb Landry. Well said. Garth, you are in denial about Van Real estate. Sorry man, but come down here and have a look!

#93 Dave on 12.12.17 at 7:51 pm

#12 Caleb Landry,

THANK YOU for hitting the nail on the head.
I was born and raised in Richmond and sadly, had to leave as the city I grew up in became totally unrecognizable. Now, I’m about to leave Vancouver for the same reason. It’s a damn shame when your household income is in the top 5% statistically and a modest home is completely out of reach, price wise.
Sad to see all our politicians line up, drooling with their hands out for some of that dirty Chinese money while the locals get left behind.

#94 bigtowne on 12.12.17 at 7:52 pm

How many more years are the governments in Canada including the local; provincial and federal going to continue to study and analyze the high housing costs and the zero vacancy rental rates in the higher populated areas of Canada? This problem of limited supply of rental stock and housing prices only for the rich has been brewing for more than two decades and is a result of “Uber Immigration”.

The Sacred Cow is “unlimited Big and Bigger Immigration” because according to our governments any and all immigration is necessary and good and our whole economy would collapse and there would be nobody left in Canada except too many boomers.

Japan has no immigraton….and a declining population and high rental and high vacancy rates and no housing problem. Instead of spending more and more taxpayer money on studying and analyzing the wrong problem it would be far better to solve the problem and save the taxpayer money.

Our infrastructure is overwhelmed from too much traffic; the hospital Emergency wards have patients on gurneys in the corridor waiting (to die) for hours or days for a bed; incomes are stuck for most workers; and we have too many overeducated millinealls living in their parent’s basements until their 40.

Immigration was great when Pierre Trudeau ruled…he let in 50,000 per year.

#95 Lost...but not leased on 12.12.17 at 7:53 pm

#52 Kim….

Justin Turdeau submitted an apology involving various letters of the alphabet..ie L, G, B, T..etc….but was NOT inclusive of the rest.

” Alpha/Beta” xenophobia ?

#96 For those about to flop... on 12.12.17 at 7:58 pm

Pink Pumpkins being carved in Vancouver.

This place was picked up in the epic 2016 market for 2.58 million.

2765 w 8th ave,Vancouver.

After trying to get 2.82.

Then wishing for 2.71

Then hoping for 2.65

They are now praying for 2.49, plus G.S.T

Gullible Sellers Tax…

M43BC

https://www.zolo.ca/vancouver-real-estate/2765-w-8th-avenue

#97 Long-Time Lurker on 12.12.17 at 7:59 pm

Just a quick comment before I’m off to dinner. I haven’t read the comments yet for today or yesterday.

Vancouver History
by Long-Time Lurker

First the Native peoples were here. They still are. There’s a Musqeum reserve right beside The University of British Columbia and on the northwest side of The Lions Gate Bridge. They have reserves dotted throughout The Lower Mainland, Vancouver Island and Gulf Islands, in The Interior and throughout BC. Those are the places I’ve met them.

Next the Europeans came along unless the early Chinese explorer theories are true. The Spanish sailed here first so there are bodies of waters with Spanish names but the climate was too cold and they headed south to California. Next the British came here and settled down with a small fort.

After this a mix of people came. Some Chinese people came primarily from the south of China because the British owned Hong Kong. There was once a Hawaiian village in Vancouver near Stanley Park, I think. I don’t know the history of how they got here but I did read about it.

After the CP Railway was built more Europeans of different origins came. At one point there was a large African-American community located in the False Creek Flats. Jimi Hendrix’s grandmother lived there. There’s also a famous Caribbean-African lifeguard who lived at English Bay who was named Joe Fortes.

Some Japanese people located here sometime before World War II and lived in Steveston, Richmond and throughout Vancouver. I read they had farms on the Gulf Islands. During World War II many of them had their property confiscated and they were sent to internment camps in BC’s interior. After the war, some returned to Vancouver and some went out east like David Suzuki’s dad, if I remember correctly.

More people came later from differing European and Asian countries. The Asians were largely from the British colonies. A large number of Iranians moved to North Vancouver after the Iranian Revolution.

Vancouver continues to grow in diversity. Peacefully co-existing with a large number of different ethnic groups is the norm for people who grow up in Vancouver.

#98 Kelsey on 12.12.17 at 7:59 pm

Garth hit the nail on the head…monetary policy. There are other factors at the margins, but these pale in comparison to cheap money.

#99 Nonplused on 12.12.17 at 8:03 pm

That photo was funny, some people have a sense of humor. Normally you see the funny lawn stuff at Halloween but that was good.

I think if we want to get to the bottom of this foreign invasion question, we need more information than the percentage of purchases by foreigners. What we really need to know is the percentage of purchases by non-resident foreigners and the percentage of sales by non-resident foreigners. Alternately we can go down to land titles and calculate the total of all properties currently held by non-resident foreigners.

The total percentage of purchases by foreigners doesn’t give much insight. If all they do is buy and they never sell, 4.7% is indeed a troubling number. They’d own everything in 21 years! But I would suspect foreigners have the same reasons to sell houses as the locals do, take a profit, moving, no longer need such a big house, want a bigger house, going back to the home country, job moves elsewhere, tired of mowing the lawn, etc. So if they sell houses about as fast as they buy them just like everyone else, this is a total non-issue. It doesn’t even make any sense.

The real reason houses cost so dang much, other than low interest rates, is that planning departments and developers have colluded to restrict supply. I’ve talked about this before but it was a long time ago so it bears repeating.

The Scurfields are so rich because they bought up all the farm lard they could around Calgary, Edmonton, and Regina was back when these when the roads in a community still ran straight and intersected with each other. It was a brilliant move, Scurfield Sr. wisely saw the oil boom that was coming and predicted quite properly that these cities would experience fast growth (not so much Regina but the idea was correct). And as the cities grew he kept buying up all the farmland. Brilliant. But since he always had almost all the new land and always paid top dollar for the next tranche, he could set prices. Absolutely brilliant. That’s why that family and his other investors are so rich.

I learned this 25 years ago when I had a job that involved working with landowners and I noticed most of the farms adjacent to Calgary were owned by a company called “Carma Ltd.”. I also read about it years later. He was also the owner of Nu-West. You can read all about it here if you don’t believe me:

https://en.wikipedia.org/wiki/Ralph_Thomas_Scurfield

I am sure, without a shadow of a doubt, this activity continues in ever town and city across the globe to this day. Do you think a new LRT extension alignment and the location of the stations gets settled before the appropriate political campaign contributors have purchased all of the valuable land and had it re-designated for high-rise condominiums? Not on your life. People talk, and whenever they are talking they are colluding.

More evidence that HAM is not the problem is that this property bubble is pretty much world wide. It’s not just Canada although we might be the worst example, partly due to the oil boom prior to 2008. And it’s not the only bubble. There are bubbles in stocks, bonds, bitcoin, farmland, commercial real-estate, Tesla, practically anything you can buy or sell except commodities and wages. All we need is another beanie-baby bubble for a full trifecta.

Nobody is running around saying there is a bubble in Tesla because of “foreign buyers” but Toyota has something like 40%. We’ll know the top is in when Toyota divests, if they haven’t been already. Sort of like when Bell split Nortel out into a separate company. You can fact check me here as well:

https://en.wikipedia.org/wiki/Nortel

#100 akashic record on 12.12.17 at 8:09 pm

……wake up and realize that Canada is a nation of immigrants……

—-

It is the cover of collective guilt for taking what belonged to the Natives, the way how it was done.

Immigrants are the sacred cow of North America, otherwise it opens up a dirty can of worms, nothing short of Holocaust.

#101 Chaddywack on 12.12.17 at 8:10 pm

My wife is a doctor and I am an administrative judge. We can’t afford a detached house on the west side of Vancouver on our combined incomes.

This thought would have been absurd even 5 years ago. So if we are in the top 0.5% of income earners and are priced out of the west side, what is the completion to this equation……

You guessed it foreign buyers driving up the market.

You came here for sympathy? – Garth

#102 People are Strange on 12.12.17 at 8:11 pm

#20 – Yeah, let’s just build more homes…..so the speckers have something more to buy. Until we curtail speculative buying, it’ll just be a vicious circle. I believe that’s what our government did in the early 90’s; put a 50% speculation tax on real estate deals. Sometimes we have to protect our own. Very simple!

#103 common sense on 12.12.17 at 8:13 pm

#40 Andrew

Vacancies in 2018 at White House?

I’m in…US citizen and can read.

Would be great to have an inside seat at the S#$^ Show and write about it for millions later…

#104 Stampede on 12.12.17 at 8:17 pm

Makes me think of bitcoin. 1,000 own 40%, yet they can create a gargantuan stampede by millions. It’s not what percentage of the homes they are buying, but the FOMO. Emotion trumps numbers.

#105 dosouth on 12.12.17 at 8:24 pm

Stats are just that stats aka: numbers game. Regardless of who(m) caused the uptick in prices people who make a living at quoting, interpreting and selling statistics (Stats Can, TREB, CMHC, Investors groups) will do it to fit the mold requiring their message.

In other words reality is what is in the eyes of the investor (seller) and reader (buyer). 5% causing majority of the increase in prices is like 1% holding 80% of the wealth…what about those stats?

#106 Lost...but not leased on 12.12.17 at 8:26 pm

When SHTF….re old issues

I have always found it intriguing when quasi racial issues come to the forefront that the olde boogeyman bible from history is whipped out and some events or policies from over 100 years ago are resurrected…and often directed at people of European(Caucasian) descent who seem to be portrayed as the eternal villain.

It is rather ironic, and somewhat hypocritical that Western Nations seem to have a high /highest preference as destination to emigrate to. Can’t have it both ways?!?

The Head Tax is often dusted off. The flip side to it was the Railway oligarchs were going to undercut wages of
existing Canadians, who protested. The Head Tax was implimented.

Was it fair? ….depends on if you were an oligarch or “out of work Canadian” . Regardless, many Asians still chose to pay it as they found Canada a better option than their own homeland…aka the Headtax was worth the cost. The final irony is their descendants are the ones complaining, far removed from the era….yet have had multigenerations of presence here in Canada and benefitted from it.

Reminds me of a First Nations chief…who whilst into native traditions. made it clear they like central heating… and not at all interested in a teepee.

#107 Linda on 12.12.17 at 8:30 pm

Garth, I agree that ‘foreign buyers’ are not why Canadian housing has become so expensive. However, the bigoted will never agree or admit that ‘those foreigners’ are not the cause of the problem, because the bigoted will seize upon any excuse to justify their bigotry.

I will add that envy is behind much of the bigotry. The real objection isn’t so much that someone is of a different ethnic background, it is more that someone who isn’t ‘one of us’ has so much ‘more’ – be it money, youth, education, beauty or any other attribute that the envious want & feel that they deserve. In the absence of a ‘foreigner’ the envious then target anyone else who they think has more than they do. Hence the cheers when taxes were increased for the top tier earners. Of course, when the government inevitably has to raise taxes for the other 99%, the cries of ‘unfair’ will be shrieked to the heavens. Oddly, those who demand measures be taken against others never see why those measures should also apply to them:)

#108 young & foolish on 12.12.17 at 8:33 pm

This whole “foreign buyer” meme is fake news. I can’t believe so many people fall for it.

… now about those cryptos …. hehehe …

#109 AB Boxster on 12.12.17 at 8:34 pm

In this massively connected and information based world, where Google, Facebook, Tinder, snapchat and instagram know exactly what you had for dinner and the likelihood of your passing gas in the next 7 minutes, to not have meaningful statistics on house sales and sources of money buying them is patently absurd.

There can be absolutely no doubt that over the past 30 years that the Canadian standard of living has remained the same or fallen.

There is also no denying that over this same 30 years, vast amounts of wealth have been created in foreign countries. China is an excellent example of this. And frankly this is a good thing for the chinese.

However, it would be simply ridiculous to believe, that vast sums of wealth made in foreign countries, (where domestic property is tightly controlled by the state and property values are out of the world, and where communist or despotic foreign governments can just as easily confiscate ones wealth for any purpose), that this wealth has not travelled and can have an impact on the local markets of countries with stable political and economic systems.

However, in the open ‘progressive’ societies that we live in, we are now too politically correct to even find out. It is now racist to keep the stats.
We are so enlightened and progressive that we really don’t want to know.

So people just go by their experience and what they see in their own lives. And it is obvious that many are rightly pissed.

What I do believe is this.

Regardless of whether there are vast amounts of foreign money coming in, or whether it is the local Canadian population buying habits, or whether it is a combination of both, it now matters not.

Any foreign money coming in and impacting the local markets is due to either sanctioned government policy, or total government ineptitide.

And the borrowing behaviour of Canadians has been encouraged by sanctioned government policy (stupidly low interest rates to 10 yrs) or through total government ineptitude and inability to react to the housing affordability issues.

So the facts really are that over the past years governments of all political stripes have been either actively working against your interests, or asleep at the the wheel. Either way, the situation is not fixable in the short term.

My advice to young professionals in Canada living in these distorted housing markets?

Take your considerable skills, and earning potential, and be successful somewhere else, like the USA.

Their market was a disaster 10 year ago, but now there are many affordable places to live with good job prospects, unlike in Canada. You do not want to be holding large mortgage debt , at this time, in this country. The risk is too great.

Maybe in 30 years Canada will become affordable again.

But if it’s up to the politicans and central bankers, I highly doubt it.

#110 rc99ar on 12.12.17 at 8:35 pm

I have yet to hear a reasonable explanation as to why foreign ownership is bad. The money comes in to Canada to buy a house(+hst) built by Canadians, for Canadians, that pays taxes to Canadians. The rents can be controlled, taxes increased, and if the investor wants out they must sell. You can’t ship your house back home for consumption like a barrel of oil. If I ran the circus I’d have realtors flogging Canadian RE to foreigners like it’s blue sky. What economic principle am I missing here?

#111 the Jaguar on 12.12.17 at 8:36 pm

#36 & #64. These are the posts that identify the “real issue” and cause of befuddlement and disagreement on this issue. One must understand the difference in “definitions”. Permanent Resident of Canada, Resident of Canada here on a “temporary basis”, i.e foreign worker or foreign student, and finally the actual Non Resident or what the term ‘foreign buyer’ implies. If stats come out that show that “foreign buyers’ had a minimal impact, those stats won’t include the other two categories which contribute heavily (primarily) to purchase statistics. We ain’t talking long term permanent residents here. Not even the exodus from the early 1990’s. All three groups benefited from preferential financing offerings. At government and private levels. We are at the end of the cycle now, but think back a few years to 40 year amortizations, bottomless pit of low interest rates, and slow moving regulatory oversight. This train was always going to be a runaway. There was some impact in the GTA, but GTA ain’t got no ocean. And the Italians and Wasps still run things there, last I heard.
The hard part to figure out is how so many people couldn’t see what might happen if rates went up after they boarded that runaway train with a mountain of debt. Where is Fishman with the answer…..

#112 I’m stupid on 12.12.17 at 8:39 pm

#83 crowdedelevatorfartz

I live in a high priced neighbourhood in Toronto. I’ve gone to the grocery store and saw 4 white teenagers come out of a 200k Benz. I’ve seen some early 20s driving Bentley’s. Why does everyone assume that just because someone is Asian driving a Lamborghini it must be I’ll gotten gains?

Just because you think an Asian is young doesn’t mean they are. I’ve seen Asians that look like they’re 12 but are in their 30s.

For the record I’m not Asian. I’ve worked with Asians while in high school. Most speak about things they don’t understand. I’ve seen waiters driving new Bmws. Chinese have a saying is something similar to keeping up with the jones’.

One question… have any of you seen an old Chinese person buying really expensive hand bags or driving 200k cars? I haven’t, they’re the equivalent to the great generation In Canada. They saved every penny they made not their kids are spending the accumulated wrath of their parents.

I know this is a little old and a US statistic but I can bet it hold true in Canada as well.
https://www.google.ca/amp/s/amp.businessinsider.com/heres-median-income-in-the-us-by-race-2013-9

Notice how Asians top the list of household incomes.

#113 roan on 12.12.17 at 8:41 pm

I got hooked on this blog about a year ago when we were preparing to list our home. In the back of beyond, up north and out west so of little interest to the masses. But what I read in Garth’s blog and in the comments section was always entertaining and informative about the big picture. And then I noticed a disturbing trend over the past while. It is disappointing that following a thoughtful post about bigotry that the likes of Rooster#48 (not for the first time) is then indulged in his woman-hating remarks. Garth, if you substituted his misogyny with racism – it would not be tolerated on this board. Hard to believe that it has to be repeated in the twenty-first century but here’s some ‘breaking (not fake) news’ – women are half the population, millions of individual humans (just as men are) with millions of different characteristics, beliefs, behaviours! Rooster’s prejudice signals to every woman that he meets (they know it, even on a subliminal level) that he is too insecure to come together on an equal basis which then reinforces the perpetual cycle of his rejection which then makes him think he has the right to project bile. Confident men are not misogynistic. I don’t think that the majority of men on this board would want the women they love to encounter Rooster in any format. In the meantime, Garth, indulging bigotry of any kind, is condoning it. Inevitably, you will end up as Wikipedia, for example, with a hugely disproportionate number of male readers and contributors. That will be a loss for some of us. But Rooster will finally be comfortable in his own skin.

#114 I’m stupid on 12.12.17 at 8:42 pm

I’m not saying that they’re aren’t crooked Asians, I’m simply saying it’s no more than any other group.

#115 down and out on 12.12.17 at 8:43 pm

Today s post is spot on ,I have many Asian- looking friends ,neighbors who have a long history in Canada but are being misjudged as new comers because genetics does not change family features just because they are Canadians .I am ashamed of myself when I too prejudge people without knowing them .Long ago to avoid a coming recession fed chair Greenspan lowered rates to stave off the downturn in the economy but no one knew when to normalize rates fearing voters reprimand and here we today pointing fingers at the wrong causes.

#116 Lost...but not leased on 12.12.17 at 8:44 pm

See Richard Wagner is new Supreme Court Judge…

Multi talented for a change…I really like his operatic music..especially “Ride of the Valkyries”

(too bad they have to dress up like Santa Claus in the red velvet and white fur costume).

#117 Jimmy on 12.12.17 at 8:48 pm

Regular reader of this interesting blog.

#118 Sue on 12.12.17 at 8:49 pm

In the words of donald

‘Wrong’

#119 Tony on 12.12.17 at 8:52 pm

No one ever seems to talk about the Canadian cities with zero foreign investment and the coincidental low real estate prices.

#120 People are Strange on 12.12.17 at 8:54 pm

Oh Montreal! Get ready for the tidal wave of speculation and denial!!!
Halifax! You’re next!

#121 KLNR on 12.12.17 at 9:00 pm

Very well put Garth.
The truth/facts hurt for some apparently.

#122 Dirty D Hanson on 12.12.17 at 9:08 pm

Garth, I hope you are right.

But I see a lot of Chinese people around and lots of restaurants so there is proof of more people being around so the figure might be alot higher then 5%.

Lets see the stats tomorrow though and the discussion should be heated tomorrow.

Just wow. – Garth

#123 CascadiaNow on 12.12.17 at 9:14 pm

Founding races were anglo and Chinese ?

You mean squamish, musqueam, salish and burrard. What a laughable colonist statement from someone who in the same breath is calling Vancouverites xenophobic.

Van was founded in 1886. – Garth

#124 Graeme on 12.12.17 at 9:16 pm

When the truth is revealed about the extent to which foreign money pools have created an asset bubble, govt will be able to grab the high ground to control it.

A surtax is a start but it doesn’t stop the really big money and isn’t an effective deterrent for laundered money.

Preliminary trade talks in China, for example, shortly after T2 was elected were interesting. China insisted proper extradition treaties be drawn up, to facilitate prosecution of their crooks on home turf.

This seemed to be a sticking point and it appears, after the more formalized talks, recently, the same issue probably came up again.

Not only that, the Chinese are in the catbird seat, from the current trade perspective and may be pressuring Trudeau, behind the scenes.

It’s a sad, sorry situation.

#125 I believe everything on television on 12.12.17 at 9:18 pm

#26 Paul Fromm on 12.12.17 at 6:19 pm
We shouldn’t support international terrorism and organized global crime.

These foreign buyers need to be screened to determine whether they are legit or criminals fleeing from justice.

If the border patrol finds evidence that anyone from China, Iran, India, Saudi Arabia or any questionable country is engaged in the proceeds of crime, send them back to their local police in their home country for investigation.

relax, if the terror is fake so is it’s financing

do you work for jeremy rudin?

#126 Risktopia on 12.12.17 at 9:20 pm

Coinbase is the #1 app right now.

Google searches for “buy bitcoin” skyrocketed past “buy gold”

Bitcoin FOMO!

http://www.risktopia.com/2017/12/bitcoin-fomo-bubble-is-real.html

#127 When the Whip Comes Down on 12.12.17 at 9:24 pm

#12 mr. Landry
Another thumbs up supporting your statements.
I agree with most of your comments

#128 Ben on 12.12.17 at 9:44 pm

Many metro Van houses selling for a loss

https://thinkpol.ca/2017/12/11/many-metro-vancouver-homes-selling-for-a-loss/

#129 FOUR FINGERS WATSON on 12.12.17 at 9:51 pm

#12 Caleb Landry on 12.12.17 at 5:47 pm
……………………………………

Well said. Most insightful post on this subject in a looong time.

#130 BillyBob on 12.12.17 at 10:11 pm

In my humble opinion, foreign money – or rather, the massive underestimation of foreign influence – is Mr. Turner’s massive blind spot. For someone so astute in money management, there is almost a wilful ignorance on the issue. I believe this is guided by the best of intentions, the oh-so-Canadian, achingly earnest desire to not be, or be seen as, xenophobic/racist/privileged/etc/etc and so on.

It does not mean it is a healthy or remotely accurate viewpoint. Not if you actually strive for a ruthlessly true version of the reality of what is happening and set aside the noise of “racism”.

I speak as someone who is presently living within one of the cultures mentioned. I live and work and count as friends and colleagues many of the Chinese who are sending their money and their children to Canada, to the US, to Australia. Trying their hardest to obtain something better for themselves and their descendants (they call them “second chance” passports). They have no particular desire to be Canadian, American, Australian – but they certainly want the benefits that the citizenship bestows. They have zero, I mean absolutely no qualms about doing ANYTHING to move money into assets in their target countries. The schemes are beyond ingenious. They can’t be measured by “government reports” because they aren’t operating within official frameworks. This is the part that Garth, sitting in an office tower in Toronto just doesn’t seem to know, or want to know. The report on Tuesday is meaningless. I’m sure it will show very little. The money involved is far too clever, powerful, and opaque to allow their dealings to be seen openly, certainly not to be comprehensively measured. I say that not as criticism but in a form of admiration, actually. They’re playing chess while Canadians are playing….tiddlywinks.

I don’t “blame the Chinese”, or any cultural/ethnic group for what they’re doing – it’s human nature. Who wouldn’t want something better for the themselves and their children? In the end we ALL act in our own self-interest. And how can we blame people for taking advantage of a country so seemingly eager to be taken advantage of? I am doing the same, in reverse, taking advantage of a niche opportunity to enrich myself in Asia as an expat in ways I couldn’t in Canada. The Chinese I work with know this, a few resent it, some admire it. But they don’t pretend it’s anything different. That’s a crucial distinction

I guess you could say I knew I couldn’t beat them, so I joined them. But I just laugh at the naivete that persists in downplaying the influence of nations many multiples of times larger than little wee Canada, wield over it.

At least, I try to chalk it up to naivete and not succumb to total cynicism and think that it could be a deliberate attempt to deceive and manipulate by cloaking things in the mantle of self-righteous “anti-racism”.

All I can say is, such ignorance, no matter how well-intentioed, will perpetuate the problems that have been building over the past few decades.

Certainly there are folks whose bigotry clouds their judgment. But today’s blog demonstrates there are those who allow their political-correctness to blind them just as equally.

I’m a numbers guy. Your anecdotes are compelling but facts are lacking. Perhaps if you were actually here, instead of a world away, you’d understand better. The reason Canadians can’t afford houses is Canadians. – Garth

#131 Google Trends on 12.12.17 at 10:12 pm

#126 Risktopia

That happened already in April:

https://trends.google.com/trends/explore?q=%22buy%20gold%22,%22buy%20bitcoin%22

Heck, there is now more interest in Ethereum than in Gold:

https://trends.google.com/trends/explore?q=%22buy%20gold%22,%22Buy%20ethereum%22

#132 Kilt on 12.12.17 at 10:13 pm

#12 Caleb Landry

We allowed people to buy their citizenship. That makes them Canadians, regardless of how they decide to participate in that citizenship. That is a part of what it is to be Canadian.
Do I agree with allowing people to buy Citizenship. Not really.
5-10% is statistically significant especially when you are dealing with SFH in a market with limited supply.

Garth you don’t mention Cow town much recently. Looks like a slow melt in anything but SFH. Be interesting to see what happens in January when the new rules kick in. Saskatoon looks even uglier.

Kilt.

#133 James Kook on 12.12.17 at 10:22 pm

Vancouver has been lost for the western world.
It is now is kind of west only geographically :-)

#134 Big Daddy on 12.12.17 at 10:29 pm

If Chinese citizens ( actual PRC foreign nationals) are such a minuscule fraction of the market then the government should have no problem banning foreigners from buying land in Canada as so many other countries have done…..it won’t make difference. Just imagine what it would be like to have neighbourhoods without entire blocks of boarded windows, where shopkeepers didn’t have to move because the people living there supported them, where schools had children in classrooms instead mass amalgamations and selling off school land because neighbourhoods populations have collapsed. That’s what’s happened in BC……it’s widely recognized, but the race minded politically correct fight the facts and keep slugging at any notion that foreigners, even though they’re ubiquitous, even exist.

#135 David on 12.12.17 at 10:31 pm

As a 4th generation Canadian, married to a Chinese lady for the past 20 years all I can say is I am ashamed of the so called Canadians on here and their blatant, ignorant, hateful comments I just read.
Chinese are hardworking, intelligent and conservative people. They don’t become homeless, smoke weed, panhandle, or live off the government. They are ideal citizens.
I spend months of every year in China and they treat me with respect and kindness everywhere I go. They think very highly of Canada and Canadians. I feel shame knowing how racist and spiteful most Canadians actually are.
I like the way Vancouver has grown from a mouldy working class hick town into an interesting mix of cultures with beautiful buildings, homes and nice developments.
You all need to get out more and see the world, you’re not at all special because you’re white. Thats just a lie you’ve been told all your life.

#136 Rates vs Capital on 12.12.17 at 10:40 pm

While many posters have shared credible and irrefutable data on the influence of foreign capital ad nauseam, you continue to walk the fine line between denial and minimization of its effect.

It is nice to see that you have finally used data provided by readers on the impact of foreign capital – that in communities like Richmond and Burnaby the percentage now is 10% (prior to the BC foreign buyers tax it was over 20%) and that 10% is on the ‘margin.’

As you have pointed out many times, it took only 8% of marginal buyers to cause a 32% decline in US prices. It seems ‘marginal buyers’ are market makers so why discount the impact of 10% of buyers in a quarter million person city?

In Vancouver, the media, the real estate industry, the development industry, the banking industry, and officials at the local and provincial level, all down played the impact of foreign capital in the dramatic rise in housing prices.

First, it was apparently ‘racist’ to discuss foreign buyers – I did not know ‘foreign’ is now a race – you better tell the Americans, Chinese, and British buyers they are all a race now; then foreign capital purchases were supposedly restricted to the higher end of the market which apparently has no impact – its not like once a house sells for a high price that the next neighour selling says, ‘that was too much, I will lower my price for local buyers’; then foreign capital purchases were apparently restricted to certain neighbourhoods which has now morphed into certain cities (e.g. Richmond).

It took over half a decade for some of those stakeholders and the public to gently talk about the impact of foreign capital and to acknowledge, begrudgingly, its impact on housing affordability. Now, the media is finally exposing the sheer scope of foreign capital in places like Vancouver.

Even the City of Vancouver has finally acknowledged the huge impact of foreign capital after years of denying its impact and falsely labelling those that said otherwise as ‘racist.’

http://vancouversun.com/news/local-news/not-enough-focus-on-the-demand-side-supply-alone-wont-fix-vancouver-housing-crisis-says-chief-planner

http://vancouversun.com/news/local-news/dan-fumano-global-money-hit-vancouver-real-estate-like-a-ton-of-bricks-robertson-says

Day after day a new layer of foreign capital penetrating the West Coast gets exposed

• Greater Vancouver is a money laundering capital with its own model with impacts on housing

http://vancouversun.com/news/local-news/more-to-come-on-money-l aundering-allegations-b-c-attorney-general-says

• Of Vancouver’s 100 most expensive homes, 50% have opaque ownership where buyers use shell companies, trusts, nominee buyers

http://www.transparencycanada.ca/wp-content/uploads/2017/05/TIC- BeneficialOwnershipReport-Interactive.pdf

• There is no correlation between local incomes and house prices, where 33-50% of homeowners in the richest communities report poverty level incomes

http://vancouversun.com/news/local-news/radical-disconnect-as-average-metro-vancouver-earner-reaps-72000-a-year-and-pays-1-4-million-for-a-home

• There are 25,000 empty homes in Vancouver and over 60,000 in the Greater Vancouver – that is a lot of local speculators with average salaries sitting with non-revenue generating homes, because they can right?

The bottom line – in less than 2 weeks, the moister killing, market crunching stress test will kick in supposedly wiping out 18% of buyers. Therefore, in a month, RE data should show an impact and by three months you will know whether foreign capital or domestic speculators are the drivers of the two most unaffordable markets.

No one is denying that domestic speculation has an impact, along with lax lending practices, low interest rates, federal CMHC subsidization, migration and immigration pressures, land constraints, and so forth. And no one is saying that Regina or St. Albert is being bought up by ‘rich Americans’ – just that two or three major urban centres feel the impacts of foreign capital.

But you, and the developers, are the only ones that continue to deny that foreign capital has a significant impact in Vancouver and to a lesser extent Toronto long after data has changed even the most ardent deniers.

And yes, the Stats Canada data will be reviewed by internet sleuths and dissected because federal methodologies on the issue have been found to be woefully inadequate. For Vancouverites, the data will only be accepted if it takes into account bare trusts, beneficial ownerships and proxy voters – all means of hiding true ownership, which has been exposed in numerous media reports.

Unfortunately, sometimes we have to see the world as it is – not as we would like it to be. Lets watch New Zealand as they finally see the world as it is….not as it should be like our Canadian boy scout naivety.

#137 Keith in Calgary on 12.12.17 at 10:48 pm

It only takes 5-10% of the market to pop to bring up the rest of it along for the ride.

So while governments, et al, are directly to blame, they’re not alone in determining what caused it.

#138 For those about to flop... on 12.12.17 at 10:52 pm

Pink Pumpkin Update.

This house was picked up for 875k in June 2016

10648 Santa Monica Dr,Delta.

Paid 875

Asking 799

Sold on November 5th 2017 for ???

Most likely went over ask ,but only time will tell.

If it went for ask ,then roughly 8.5% loss and closer to 15% after expenses.

People like to say only the high end is in trouble but they are what I like to call wrong…

M43BC

https://www.zolo.ca/delta-real-estate/10648-santa-monica-drive

#139 Lorne on 12.12.17 at 10:54 pm

“Desperately-unpopular governments in both BC and Ontario”….really? Link please. I know you feel that way…but that doesn’t make the NDP/Green coalition in BC, “desperately unpopular!”

The Libs did it. – Garth

#140 Vanreal on 12.12.17 at 11:00 pm

Post #135. Truer words were never spoken. Vancouver is getting better and better. I hope the development continues!

#141 For those about to flop... on 12.12.17 at 11:02 pm

Pink Pumpkins being carved in Richmond.

This house was picked up for 2.15 in April 2017

7720 Malahat Ave,Richmond.

Paid 2.15

Asking 2.09

Been on the market for a while with no takers.

In line for a solid loss, but they are far from being lonely in that department in Richmond…

M43BC

https://www.zolo.ca/richmond-real-estate/7720-malahat-avenue

#142 Fortune500 on 12.12.17 at 11:10 pm

Respect where respect is due Garth. You stood by your principles and the facts as you saw them, despite the MSM-fueled ‘Groupthink’ and sometimes overwhelming arguments to the contrary.

I held back making any kind of conclusions myself until more data was available, but I just wanted to thank you for being the non-bigot voice of reason through a lot of this.

#143 Kilt on 12.12.17 at 11:29 pm

#119 Tony

Actually Tony, there is nearly a perfect correlation be average home price appreciation in our cities and the Chinese population for most Canadian cities. I had done a previous analysis on it and there were a few outliers mainly up North.

Kilt

#144 Skeptic on 12.12.17 at 11:33 pm

Garth, stop skewing the facts. Just because a Chinese person living in China happens to have permanent residency in Canada doesn’t mean that they are a local buyer. Add in the number of noon-resident Canadians and Canadian PR’s buying property and the figure will be multiples of the 5% figure you have been clinging to.

#145 NoName on 12.12.17 at 11:34 pm

i watched this last year.

https://www.youtube.com/watch?v=_pUtz75lNaw

#146 Happy Housing Crash Everyone! on 12.12.17 at 11:34 pm

Garth is right there is no Chinese boogieman buying up all the houses. That is a SHYSTER lie. Why is no one buying anything now? Why are houses rioting on the market for months and months and even after hundreds of thousands in price drops? Would this not be the perfect time for them to buy? SHYSTERS are liars and they pay for lies via media to repeat and repeat a lie over and over. Then the puppet masses repeat lies as if they are fact. The bigger the lie the better. Since credit got more expensive what happened? TIMBERRRRRRRRrrrrrrrrrrrrr. We even had SHYSTERS screaming lies about September Market will pick up. What happened? NOTHING. Why? Because no one can afford current prices even as they fall.

Can you imagine how much prices will crash over winter?
Happy Housing Crash Everyone!

#147 genbizx on 12.12.17 at 11:39 pm

ok Garth, you’re a good torontonian…you think all the right things, more importantly, say all the right things, support the right ideas, condemn and condone the right things…the rest of us are poor, unenlightened, dim lights..

if given half a chance, this country will completely sell itself out and then trip over itself trying not to offend the buyer…
money still talks….as always

#148 Happy Housing Crash Everyone! on 12.12.17 at 11:40 pm

BTW SHYSTERS know the boogieman is only 5% but they will scream like the dirty SHYSTERS how every boogieman wants to freeze in Canada. Go watch million dollar listings where you can buy a palace for $1.5 million and it looks like a million dollar house in warm weather all year round. You will see just how CRAZY Canadians have become.

#149 Mordko on 12.12.17 at 11:42 pm

“But realtors, politicians and media messed with your head.”

Really? You think people are sheep?

With regards to foreigners, money could still be coming from the overseas even if the buyer is a resident. And 5% of aggressive, high-bidding buyers can move the whole market. If X overbids by 300k, the price for the whole neighbourhood has just jumped.

Last but not least, the influx of foreign money is always a good thing.

#150 Lost...but not leased on 12.12.17 at 11:52 pm

Our Gov’t sell out…

Vancouver BC hosted EXPO 86…

Shortly thereafter the Real Estate Market took off…
Its beyond debate it was fuelled by Asians…at the time from Hong Kong.

It isn’t a stretch to realize that with Hong Kong lease expiring in 1997 and surrendered to Mainland (Communist) China that there would be a mass exodus of citizens..AND MORE IMPORTANTLY $$$$… that would seek a safe haven and various jurisdictions thought providing options would be a good idea ???

BC’s fate was sealed with the sale of the EXPO lands. BC citizens were effectively told to buzz off…the gov’ts felt that we “locals”were not capable of generating a strong domestic economy so we must import wealthy migrants?.

The gov’ts most assuredly had the data and studies to predict what actually unfolded..how could they not? As ancient philosophers have warned, a nation can survive many onslaughts except for treason from within.

Or..concurrently…if Asian migrants post 1986 were poor and destitute… would we still have this problem ?

#151 Karlhungus on 12.13.17 at 12:01 am

If a foreigner gives money to a relative in Vancouver to buy a house (why wouldn’t they do this to avoid new tax), it’s foreign money but counts as a local purchase. What’s your estimation of how many transactions this is affecting?

#152 viorelli on 12.13.17 at 12:07 am

Every asset is inflated: thank your local and provincial governments who require higher and higher property tax and other tax bases to cover healthcare, infrastructure, law enforcement, pensions. This is why immigration will not be reduced, rates will not rise drastically, ICBC, potatoes and milk will be more expensive next year, and surely the regular property tax increase is already planned. Lots of money due to cheap lending, inflows from outside, bitcoins, marijuana, etc. but limited assets present an ever increasing cost of an asset desired by loose global and local capital.

#153 NoName on 12.13.17 at 12:09 am

Democrat Doug Jones won alabama…

#154 Jake on 12.13.17 at 12:32 am

Got money needs laundering? Take out a mortgage to purchase a house in Vancouver start making totally legal cash payments on the loan. Slowly move your money from where ever. Time to cash in – sell house put the cash in a Canadian bank. Everybody wins banks make money who cares if some shlub can’t afford to live in Van anymore. That’s gentrification shmo

#155 Hopeurright on 12.13.17 at 12:33 am

Maybe, but any study wont pick up all the foreign money funeled into Canada via any person with a permanent resident card. If it is local speculators how does 95% of home buyers qualify to buy a $1 million average house on a median household income of less than 60k? Why are taxable incomes and home prices inversely correlated? No matter which way you cut it either the banks are making crazy loans, massive levels of tax evasion across all levels of vancouver society or money coming in from people who are not tax residents whether they are canadian or any other nationality. Maybe all three, but whatever is going on isnt right and the goverment has a moral obligation to figure this out and they have done nothing.

#156 the ryguy on 12.13.17 at 12:35 am

#135 David on 12.12.17 at 10:31 pm
_______________________________________

Impressive pearl clutching there David! Jeez if you could go back 10-12 years you would probably be head of the liberal party with such grief and outrage.

The only racist comments made were yours, “hick town” and “not special cause you’re white”..yeah real tolerant.

Mouldy hick town..ha, should we get into the human rights atrocities your country commits, or how about the working conditions, or how about the pollution?

You preach “Get out and see the world” and yet you think you’ve experienced racism based on a f*cking real estate blog?

Your level of undeserved arrogance is mind boggling. I hope the zombie outbreak starts soon, special little snowflakes like you will be the first to go.

#157 april on 12.13.17 at 12:36 am

#149 – Yes people are sheep that’s why we’re in this mess. Garth knows what he’s talking about…realtor………

#158 Exodus 2020 on 12.13.17 at 12:52 am

Foreigners definitely have a huge effect on the market in two ways:
1. At 5% or more of sales they have a compound effect. The dudes they outbid on results in more cash for the sellers, and the sellers flush with this cash go off and outbid someone else as a domestic investor, but ultimately with funds originating offshore. Trace the cash breadcrumbs and the impact is more than 5%.
2. Psychological impact. Stop foreign investment and this impact will be reduced and calm the market. Donald Trump can move stock markets with a tweet, so to say foreigners have zero or meaningless impact on real estate is complete b.s.

#159 raider on 12.13.17 at 12:54 am

It’s not foreigners but the frenzy has a severe cultural impact :D …
http://www.zerohedge.com/news/2017-12-12/torontos-housing-bubble-crushing-strip-club-industry

#160 Pretentious Hipster Bicycles on 12.13.17 at 12:54 am

Hear hear Garth. Well said!

#161 fishman on 12.13.17 at 1:05 am

If we could just go back to the old days. Life was so much simpler. They knew how to take care of business then.
A few years ago:halibut man (Longliner Jim from Granville Island)figured he sell out & move back east N.B.oceanside. House he bought in Point Grey in the 60’s worth a bundle. Couple boys to give the tax free cash to. Give them a leg up starting a family & all that in Van town.
Everything goes according to plan. Chinese New Year the limo pulls up to the curb, buyer checks it over from the back seat, gives OK, money in escrow, title searched, subjects dropped. Third week Jim gets a call from his lawyer, “come in & sign one more paper,just a formality,blah,blah.” But suspicious.
Goes in office. lawyer pushing to sign & run, but our hero wanted to read the covenant he was signing off on.
It said that any buyer of property in Pt. Grey can not resell his property to a Jew,Chinese,Hindu(I think they meant Sikh},or Ni***r. UBC’s Great March was 1922 so covenant’s started then as Pt Grey subdivision became developed. I wonder why they left out the Japanese. There were a lot of Japanese in Vancouver then too.

#162 DON on 12.13.17 at 1:18 am

#30 Cindy on 12.12.17 at 6:26 pm

As human beings, we are not encouraged to think for ourselves. From the time we are children, we are conditioned to imitate those around us, regurgitate other people’s thoughts and beliefs, and to fit in and follow the crowd.

So it’s not surprising that many Canadian’s have bought into this idea that foreign buyers have driven our real estate market into priced out madness.

Garth, you encourage your readers to think for themselves, and provide compelling arguments and data. Some people will continue blaming the Chinese for the mind blowing real estate market regardless of the facts.

If more people armed themselves with reputable knowledge instead of believing what they want to hear, we wouldn’t be in this mess to begin with. People blindly trusted real estate agents, who convinced them real estate would always go up in price, and that’s what those buyers wanted to hear.

And that’s why we’re here.
******************

Well stated!

As simple as that.

#163 down_boy on 12.13.17 at 1:26 am

The latest Vancouver Hockey Riot was refreshing. I watched it on TV. It was a multicultural event. Asians, Latinos, European Heritage, Africans, all with big grins, brothers and sisters in pucks, causing havoc. Not a great day for the Better Business Bureau, but proof that children at play see beyond differences. The police up here handled it beautifully, and far better than the riot control down south.
File it under “When we aren’t buying houses”.

#164 El Joko on 12.13.17 at 1:26 am

I’m usually one of the most liberal-minded people posting here, but you actually think that MASSIVE immigration doesn’t have anything to do with insane house prices?

Canada has 1/3 of Germany’s population, yet lets in more immigrants per year.

Honestly, wake up.

#165 George Orwell on 12.13.17 at 1:32 am

I predicted all of this years ago.

My popular book, 1984, was meant as a warning, not a “how to” book for government. But yet you didn’t heed the warning and government did take the “how to” part.

Now you fools have actively allowed the government to put cameras in every room of your houses, you’ve let them track who you are friends with, you’ve bought internet connected devices that record your every word just so you can play music on voice command. You fools!

You’ve also let yourself be dumbed down to the point where you don’t even know why a microwave oven works but you think an invisible airplane is possible and should get trillions in funding. Invisible airplanes do not exist, nor can they. The majority of that funding is being diverted. But you are too dumb to notice.

However, I have hope for you. However much the population has been dumbed down by the treacherous public education system, the propagandist universities, and the criminal media, they have not removed the human brain’s ability to learn, and learn quickly.

The time to learn is coming soon. It wouldn’t hurt to start now.

Big Brother is not your friend. This is the first thing to learn. It was in my book. I’m surprised you missed it.

#166 DON on 12.13.17 at 1:44 am

#45 oncebittwiceshy on 12.12.17 at 6:43 pm

Lolol, all of you confirmed foreign buyer shills are simply entertaining Garth at this point.

**************
LOL….It is funny! Similar to what Garth did last time.

No doubt “the Chinese are coming” and the obvious money laundering problems have added to the mix.

But money laundering also includes locals – lots of illegal drug money to launder in BC and based on recent findings – political corruption is rampant or at least was under the former government.

Let the data speak… (I am sympathetic to Vancouverites though – affordability is out the door for everyone)…but then again it is like that almost everywhere in BC in relation to wages.

I am still waiting to see all the foreign buyers that are supposedly buying all around me. They all look like Canadians to me. Lots of younger folks who can afford there parents dream home right off the bat, and new cars too. Boomers driving around in brand new sports cars and big trucks – big vacations and second properties. Yup…foreign buyers are definitely the problem!

#167 Ponzius Pilatus on 12.13.17 at 1:57 am

Flop,
Stop wasting so much space on this blog with useless stats.
The only thing that counts is how happy citizens are.
Turns out Nigerians are the happiest.
Go figure.

#168 Ponzius Pilatus on 12.13.17 at 2:02 am

#89 Caleb Landry on 12.12.17 at 7:43 pm
#40 – Read this.

$27B in US buying…

https://www.seattletimes.com/business/real-estate/seattle-becomes-no-1-us-market-for-chinese-homebuyers/

and then read this… $885m in 5 weeks.

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-foreign-data-1.3695439

Proof???
———–
No proof needed.
It’s obvious to everyone with an IQ over 60.

#169 Karma on 12.13.17 at 2:02 am

“#21 First Nations own Canada, not Queen Elizabeth ”

LOL! QEII doesn’t own Canada. Her name is just a placemarker for the Governments of Canada and Provinces in legal documents.

Want to know what she owns? Look here: https://www.thecrownestate.co.uk/

But a long list of Prime Ministers of the United Kingdom have helped themselves to the dividends her estate provide per annum. So really, she doesn’t even own the Crown Estate fully.

#170 Karma on 12.13.17 at 2:09 am

#35 SoggyShorts on 12.12.17 at 6:33 pm
“Does no one see the upside to foreigners buying houses?
We’re talking about millions of dollars flowing into the country. That’s not entirely a bad thing.”

If it was in moderation, it would be a great thing. However, when BC’s top export was housing rather than the usual natural resources or weed, there is a problem. It greatly increases wealth inequality between haves (owners) and have-nots (renters). If principal residences were taxed for capital gains, it wouldn’t be so bad. But alas, that’s not the case.

#171 Protea on 12.13.17 at 2:10 am

Here is one of the main reasons why Vancouver is such a mess. And who is doing the money laundering at Vancouver Casinos. The Hong Kong police force have always had their hands full !!

This was on the radio the other night in Vancouver hosted by Journalist Mike Smyth of the Vancouver Province on CKNW 980 it shows you how corrupt the Liberal government were under Christie Clarke and how as a result of benefiting from the Vancouver real estate debackle how Christie allowed this blatant money laundering to skew the real estate market in the GVR.

Evidence suggests that Canada has some serious money-laundering and financial crime problems… but how bad are they? well listen to the recording very revealing to say the least .

Guest: Christine Duhaime – Financial-crime lawyer and money-laundering expert

Guest: Richard Kurland – Vancouver immigration lawyer

https://omny.fm/shows/charles-adler-tonight/charles-adler-tonight-evidence-suggests-canada-has

#172 Karma on 12.13.17 at 2:12 am

#37 I’m stupid on 12.12.17 at 6:34 pm
“For over 50 years Canadians and Americans have been going to third world countries for Vacations. Buying vacation properties in those Caribbean islands while the local populations starve. Now that a few foreigners are buying luxury properties here you get angree and cry foul. Pathetic!”

Fair point. But I doubt Puerto Vallarta’s residential sales mix is up to 10% non-Mexican each month. Or ever reached 24% in a given time period, such as foreign buyers were in Burnaby and Richmond in the Summer of 2016.

#173 westcdn on 12.13.17 at 2:27 am

I look at politics and wonder about the art of burying truth. I know I have done dumb things that I don’t want to discuss in public but if I am being a hypocrite or an ostrich, I should be called out and answer. Period.

I have doubts about myself – mainly about stepping up when it matters. What disturbs me is how the elite believe they are above being average. Sure there are smart ones but most, like the plebs, follow the trend. I believe most use money/power to cover their inadequacies. If the 1% died tomorrow, I am sure I would continue to exist and would fight to re-establish what was destroyed.

I got tired of dealing with egos and empty suits – my lousy introvert side. I know my attitude was an issue with management but it was not malicious. I sought to be positively convinced of my actions and living with the consequences. Early retirement worked for me as I am used of living modestly.

Garth states a 10% return on his balanced portfolio this year. I grit my teeth at my lesser return because I think I can do better. Nothing stirs me more than failing or finishing behind a clown (IMO) – not you Garth. The world chooses its winners but I will not accept failure other than being a learning experience (unless being stupid enough to allow death as a result and I am in no hurry to die). I did make 18% last year so it is some condolence.

There is something about the best way to get back on your feet is to get off your ass. My income stocks are putting me down this December but I don’t think it will last. We will see how much I have learned for the next annual round. Fortunately, going forward, I do not to go on bended knee to an angry spouse again. I can own my mistakes without shame.

#174 down_boy on 12.13.17 at 2:29 am

#125 I believe everything on television on 12.12.17 at 9:18 pm
#26 Paul Fromm on 12.12.17 at 6:19 pm
We shouldn’t support international terrorism and organized global crime.

These foreign buyers need to be screened to determine whether they are legit or criminals fleeing from justice.

If the border patrol finds evidence that anyone from China, Iran, India, Saudi Arabia or any questionable country is engaged in the proceeds of crime, send them back to their local police in their home country for investigation.

relax, if the terror is fake so is it’s financing

do you work for jeremy rudin?

The financing is quite real. The Dee-Oh-Jay in US is auditing the Pentagram to figure out where a trillion of it went.

#175 BillyBob on 12.13.17 at 2:42 am

I’m a numbers guy. Your anecdotes are compelling but facts are lacking. Perhaps if you were actually here, instead of a world away, you’d understand better. The reason Canadians can’t afford houses is Canadians. – Garth

===================================

Fair enough. Sounds rational, on the surface. But you’ll never get the truth from the numbers in a government report. The money is rarely moved in ways that will be recorded or scrutinized. If it is, the origin and path will be virtually opaque. That’s kind of the point. There is also a case to be made that the government very much depends on the reality not becoming known.

Incidentally, I split my time between Taiwan/China and Canada, given my job. Guarantee I spend more time on the West Coast on a monthly/yearly basis than yourself, so the attempt to be dismissive is misplaced.

Perhaps if you were in Vancouver, not a world away, you’d understand better.

I don’t doubt there’s some serious bigots out there. But attempts to explain and account for very-real cultural differences is not the same thing. Lumping it all together is simplistic and does you no credit.

#176 a d on 12.13.17 at 2:47 am

prices are set on the margin. in any market.
regardless of where the buyer is from. they just happen to be chinese. that does not make people anti chinese

if foreign buyers are willing to buy in vancouver AND pay 15% tax premium to the government then that is what every patient seller is waiting for.

just like when bitcoin hits a new high even though not every bitcoin chsnges hands. price is set on the margin

You see this all over the world. who owns all the premium vacation properry in mexico? not mexicans. not sure why you hold on to this position GT. does it get you more customers?

#177 Karma on 12.13.17 at 3:00 am

#64 Peezbe on 12.12.17 at 7:07 pm
“Garth, ive been in a long time reader, however i rarely comment. In this case, i believe you are wrong. An absolutely astonishing amount of money has already left and continues to leave (mainly China, but Iran and Russia as well).

I work in private wealth management. I see it first hand on a daily basis. Young 20s student turned PR, bought several FLOORS of a recent condo project. Nice lady, she drives a prius and doesnt show off her (parents) wealth. Another young male, already owns two vancouver condos…. not units, condo buildings. Wanted to diversify a bit, had a cool 7m in his chequing account. Again, he was a PR. This is just retail, i have some great commercial and recreational (buying golf courses, private schools) anecdotal stories as well you want to sit by the campfire.”
————————————————

I work in Commercial Real Estate. I toured a duo of Mainlanders looking for downtown office space for their development company. Nice guys, I wish them the best. I don’t think they are pernicious in any way. They are just trying to use their foreign wealth to create more and build some townhouses in Canada.

Anyways, their company owns two tracts of land, 1 in Vancouver and 1 in Richmond, that will be for townhouses. In total, they spent about $40 million for the two land parcels. When doing due diligence for the office space, they provided their personal banking account summaries. One had GICs for about $3 million and about $200k in the chequing account. I don’t remember the other’s personal wealth, but he was the decision-maker so it was probably higher than the first guy.

Best part is they liked the space and leased it.

Oh, and first guy told me that him and 7 of his mainlander friends enquired about buying a whole floor at Bosa’s office development at 320 Granville, which is strata office for the majority of it. One floor is $20 million. Each of them would kick in $2.5 million. But they decided not to because it was a bad investment (took them two days to come to that conclusion).

#178 down_boy on 12.13.17 at 3:05 am

The Blame Game
Spin the wheel and the pointer lands on one of the usual suspects.
Will it be foreign investors, politicians, banks, speculators, or house hungry nesters? Take your chances, but avoid the obvious… municipal treasuries and property tax appraisals cover most of the playing area. Fun for the whole family.

#179 Karma on 12.13.17 at 3:05 am

#76 After Communism on 12.12.17 at 7:31 pm
“If the bet fails, then I think export Garth to Hong Kong because Garth’s British predecessors are the founding race of China, except the hundred year lease was not extended. That could be a problem. British should have bought, not rented Hong Kong?”

They leased New Territories only for 99 years. They had no obligation to give HK Island and Kowloon back to China, but they figured it was too difficult to split it again.

#180 Karma on 12.13.17 at 3:13 am

#77 Kim on 12.12.17 at 7:32 pm
“In Vancouver – where the two founding races were anglos and Chinese”

I was recently at an event where I heard some prominent Chinese dignitaries push this idea of being the two founding races. In fact, they want to build a special museum and cultural centre to acknowledge the contribution of the Chinese to the creation of Vancouver.

Whether or not it is true, I don’t really know. It is just that I have lived in Vancouver all my life and have never heard this message before – and now I hear the idea twice in two weeks.

Not sure how well the idea will go over with the First Nations though…”

————-

It’s called propaganda and re-writing history. According to Wikipedia (Chinese Clan Associations), there were 16,700 Chinese people in Vancouver in 1964, while the region had a population of 790,741 in the 1961 census. That translates to about 2% of the population.

#181 Hank N Moss on 12.13.17 at 3:33 am

Garth

Dont jump all over me, but that guy looks alot like the Chinese acrobat due who just died doing a similar stunt…
http://www.abc.net.au/news/2017-12-12/chinese-rooftopper-dies-in-stunt-gone-wrong/9250198.

#182 Hank N Moss on 12.13.17 at 3:36 am

#135 David on 12.12.17 at 10:31 pm

As a 4th generation Canadian, married to a Chinese lady for the past 20 years all I can say is I am ashamed of the so called Canadians on here and their blatant, ignorant, hateful comments I just read.
Chinese are hardworking, intelligent and conservative people. They don’t become homeless, smoke weed, panhandle, or live off the government.”

Dude weren’t opium dens invented over there? Just sayin’

#183 Karma on 12.13.17 at 3:41 am

#108 young & foolish on 12.12.17 at 8:33 pm
“This whole “foreign buyer” meme is fake news. I can’t believe so many people fall for it.”

You are definitely foolish if you don’t think foreign buyers make a difference…

https://betterdwelling.com/city/vancouver/a-brief-history-of-foreign-buying-of-vancouver-real-estate/
http://www.moneysense.ca/spend/real-estate/b-c-government-reviewing-foreign-buyers-tax/
http://www.vancourier.com/news/foreign-buyers-remain-resolute-in-richmond-1.23096309

#184 Midnights on 12.13.17 at 3:53 am

I believe both sides are right on this debate. But let’s be real. Unless your a truly big whale or deal with whales you won’t understand their game.
Ps..BillyBob, does make some good points though.
http://brucewilds.blogspot.com/2013/02/millionaires-and-billionaires.html

#185 Karma on 12.13.17 at 3:57 am

#110 rc99ar on 12.12.17 at 8:35 pm
“I have yet to hear a reasonable explanation as to why foreign ownership is bad. The money comes in to Canada to buy a house(+hst) built by Canadians, for Canadians, that pays taxes to Canadians. The rents can be controlled, taxes increased, and if the investor wants out they must sell. You can’t ship your house back home for consumption like a barrel of oil. If I ran the circus I’d have realtors flogging Canadian RE to foreigners like it’s blue sky. What economic principle am I missing here?”

It has created more competition for a scarce resource, leading to gross indebtedness of the population beyond what is healthy for the economy and has put the economy in a similar position to what the US was prior to the financial crisis. Some people are forced to take on mortgages that are 600% of their income because they are petrified that they will never be able to own. Whether that’s a smart idea or not, FOMO is real and was significantly caused by copious amounts of foreign buyers in Vancouver and Toronto. Furthermore, foreign ownership leaving units empty is an inefficient use of land, which causes extra congestion and costs on citizens of Vancouver and Toronto.

Lastly, a house that would have sold for $700,000 in 2012, and hasn’t been substantially renovated, shouldn’t be worth much more than $800,000 in 2017 as it should track just above inflation, say 3% per annum. But instead, it’s going for $1.4m in East Vancouver. Considering 5 years ago, 5-year mortgages were essentially the same as what they are today (3.2% or so), and wages are up probably about 10%, the difference of $600,000 ($1.4m – $800k) can be attributed to foreign capital. That extra money required from a local is now from either the bank of mom and a big 5 bank, or credit union. The health of the financial system would be much less at risk if the house was priced at $800,000 rather than $1.4m. We reap what we sow.

#186 Midnights on 12.13.17 at 4:36 am

Vroom! Ferrari Plans To Double Production Shifts – On Track To Smash Earnings, Production Targets
http://www.zerohedge.com/news/2017-12-12/vroom-ferrari-plans-double-production-shifts-track-smash-earnings-and-production-tar

#187 Howard on 12.13.17 at 4:52 am

Let’s learn from the wise Chinese and ban foreign property ownership.

Canadian homes for Canadians.

#188 jane24 on 12.13.17 at 4:55 am

From what I have heard on the ground the problem is made worse by loosely regulated numbered companies buying local RE. Why don’t the various many levels of Canadian govts get to grips with this one? Numbered companies to me make money laundering so easy.

I swapped houses in England yesterday. The process at the bank to prove who I was, where my funds came from and where my funds are going and why, took one hour and copious ID and proof of ownership of this money that my head spun. But I was glad that they did it. Safeguards my funds and their integrity.

#189 Howard on 12.13.17 at 5:05 am

#97 Long-Time Lurker on 12.12.17 at 7:59 pm

I wouldn’t call Vancouver diverse.

Toronto is diverse. Montreal is diverse. Even Calgary is diverse.

Vancouver has large populations of non-Caucasian residents, but most belong to one group. There’s nothing wrong with that, but it ain’t diversity.

#190 SimplyPut7 on 12.13.17 at 5:21 am

Hey Garth,

I don’t think any data from StatsCan can change the opinion of the people commenting on this site. Just like how you couldn’t convince people interest rates can rise and sales and prices in Toronto and Vancouver can fall, people need to find out for themselves that Canadians, not foreigners caused the housing mess.

Maybe when banks/non-banks/private lenders go after flippers and speculators for the money they were supposed to repay months ago, because the home they bought to flip did not sell as fast as they should have in the hot Canadian housing market, will people finally realize foreigners with “suitcases full of money” don’t get homes repossessed by Canadian lenders.

#191 under the radar on 12.13.17 at 6:01 am

Since the non resident speculation tax came into effect In Ontario, i have probably done 100 purchases for clients. Not one was a non resident buyer.
Fact is , people from all over the world buy Canadian real estate. Everybody wants what we have .

#192 Howard on 12.13.17 at 6:20 am

When I go to Vancouver, I immediately appreciate the wisdom of Quebec’s language police.

#193 Dharma Bum on 12.13.17 at 6:37 am

https://www.youtube.com/watch?v=OQWZs_dvePc

#194 Dharma Bum on 12.13.17 at 6:39 am

#187 Howard

Canadian homes for Canadians.
——————————————————————–

Ridiculous.

#195 Rooster on 12.13.17 at 6:42 am

#113 roan on 12.12.17 at 8:41 pm
It is disappointing that following a thoughtful post about bigotry that the likes of Rooster#48 (not for the first time) is then indulged in his woman-hating remarks.

Rooster’s prejudice signals to every woman that he meets (they know it, even on a subliminal level) that he is too insecure to come together on an equal basis which then reinforces the perpetual cycle of his rejection which then makes him think he has the right to project bile.
_———————
Roan, I assume you read as carefully as you write, so I must accept responsibility for my obviously failed attempt at satire. Please accept my apologies and I ask only that you re-read my post from a different perspective, and hopefully you can forgive me this and my past transgressions.

#196 Lolita's BFF on 12.13.17 at 6:50 am

Despite befriending the blacks and Jews he employs, Alabama’s Roy Moore failed in his US Senate bid; but he valiantly fights on. If the good folks of Alabama won’t hold their noses and support the elephant in the room, who will ?

Let us rejoice. For this is the day that people realized economic self-interest does not trump all. Markets will take the news in stride, but the faint clatter of hooves can be heard above the din. Act naturally.

#197 Another Deckchair on 12.13.17 at 6:58 am

@182 Hank;

I think you have it backwards – so 20 seconds of searching produced this:

“In order to fund their ever-increasing desire for Chinese produced tea, Britain, through their control of the East India Company, began smuggling Indian opium to China. This resulted in a soaring addiction rate among the Chinese and led to the Opium Wars”

From:

https://www.deamuseum.org/ccp/opium/history.html

#198 Howard on 12.13.17 at 7:03 am

#164 El Joko on 12.13.17 at 1:26 am

I’m usually one of the most liberal-minded people posting here, but you actually think that MASSIVE immigration doesn’t have anything to do with insane house prices?

Canada has 1/3 of Germany’s population, yet lets in more immigrants per year.

Honestly, wake up.

——————————————-

Whenever an SJW/cultural marxist throws out the racism canard at those expressing a desire for a sane immigration policy, simply respond thusly:

1) “Do you support an open border?” (you might have to explain the concept of open borders to them)

2) “No? You’re saying there should be limits? By your definition, wouldn’t that make you a racist xenophobe?”

Sit back and be entertained at the garbled, improvised response.

Historically Canada has had immigration of about 0.8% of its population annually. That continues. I’m sure almost everyone posting here is the product of an immigrant background. I am. My wife is. Stop being so small. – Garth

#199 the Jaguar on 12.13.17 at 7:07 am

136 was ” rates versus capital”
Billy Bob #2, was 175

#200 I’m stupid on 12.13.17 at 8:00 am

I understand the frustration you’re feeling and you may be right but to presume guilt without evidence is dangerous. It’s much more likely that lax mortgage rules and shady mortgage brokers led to higher prices. If money was flowing in from other countries to buy Realestate it must show up somewhere but that not the case. All I see is a huge pile of mortgage debt and an equally big pile of helocs.

#201 I’m stupid on 12.13.17 at 8:16 am

185 Karma

Your math is wrong… it’s the carrying cost of a mortgage with 10% increase in wages. The real culprit here is a society that lacks financial literacy. Keep doing what you’re doing eventually you’ll have everything you want. Remember you can’t fix stupid, eventually the lemmings will go off the cliff.

#202 crowdedelevatorfartz on 12.13.17 at 8:30 am

@#112 Im Stupid

http://www.google.ca/url?url=http://nationalpost.com/news/canada/b-c-sells-lamborghini-forfeited-in-street-racing-case&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjVzoPNh4fYAhWU0YMKHXTEDHoQFggpMAY&usg=AOvVaw3GtJNpCINk6u99hGverPzh

This incident occured in 2012
Of the 12 high end cars seized for a street racing episode on a Richmond BC highway.
None of the drivers were over the age of 21.
One had a foreign drivers license.
Some were young offenders thus they couldnt be identified.
And several months later when the parents arrived with their kiddies to pick up the cars from “car jail” .
The TV reporters were flocking ( since it drew a high degree of interest from the public) to see who the owners were
All were asian not caucasian.

Methinks if I was a parent.
Would I want my brat risking their neck street racing because of “high disposable income”?

As a follow up.
Street racing is still going on and kids are still dying.
The BC govt has changed the rules once again.
Cars will now be seized from 3 months to 3 YEARS depending on the violators record of street racing since the rich usually own more than one car…….

You can blather on all you want about “conspicuos consumption” in Ontario all you want. The reality in the Lower Mainland is entirely different.
Asians seem to go for the most expensive, flashy luxury cars…its all about image… not driving skills.
East Indians flock to high performance Mustangs.
Drug dealers seem to like Cadillacs, jacked 4×4’s, etc.
Everyone else seems to schlepp along in Audi’s , BMW’s, Toyotas, Hyundais, and God help them …Kias.

But the exotic car dealers and salesmen are happy here.

https://www.google.ca/url?url=https://globalnews.ca/news/2447804/metro-vancouver-the-luxury-car-capital-of-north-america/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjkz5OBjIfYAhXF4IMKHeJfAd4QFghVMAQ&usg=AOvVaw3yQleXN2FHC06LZiiDBDeY

Its all about that “high disposeable income”

And when one realizes that most cars sit for 90% of their life…….. a huge waste of money.

#203 Vin on 12.13.17 at 8:39 am

DELETED

#204 crowdedelevatorfartz on 12.13.17 at 8:44 am

@#163 down_boy
“The latest Vancouver Hockey Riot was refreshing. I watched it on TV. It was a multicultural event….”

+++++

That was funny. Lol.

#205 crowdedelevatorfartz on 12.13.17 at 8:52 am

@#146 Happy Housing Crash

“Garth is right there is no Chinese boogieman buying up all the houses. That is a SHYSTER lie…..”

+++++

Uh oh.
HHCE has Garth’s back…..
Apocalypse 2017 is inevitable…..

#206 Steven Rowlandson on 12.13.17 at 9:00 am

“It’s human nature that we want to be victims.”

That turns out not to be the case. We just hate those who monkey wrench our lives and economic strategies.
Those who offend our sensibilities get our hackles up and like the government we don’t really like competition if it can be avoided or excluded. Hate and self interest are normal and natural aspects of human nature Garth. You don’t have to like it but by now you should understand it.

Immigrants are supposed to be poor, right? — Garth

#207 Stan Brooks on 12.13.17 at 9:17 am

CHMC serves politicians.
They care about the banks profits, not about the middle class as they constantly lie about.
So behind the CHMC and BOC follies, stupidities and idiocy is the government. period.

The entity that owns you and is entitled to your taxes.
Why not allow the banks to profit handsomely while transferring the risk to the taxpayers?
Who cares about the regular people with giant mortgages, or about the basement dwellers?
They are just small details in the big picture – the french villa, mansions, world economic forums, billionaire islands.

The biggest battle of the future will be to limit the damage it can inflict on the regular people and to build alternative support structures/social nets outside of it.

What is government?
Bunch of relatively honest people led by politicians morons.

#208 Ace Goodheart on 12.13.17 at 9:49 am

This blog entry smells a bit like someone stirring the pot.

There is a lot of anger in Vancouver right now as to what has happened to the city, with entire neighbourhoods being turned into ghost villages by rampant real estate speculation. No one can afford to buy a house, and yet there are empty houses everywhere, owned by speculators who cannot sell them anymore due to the recent price decline.

The only people who won in Vancouver, are those who cashed out. Anyone still there looking for a place to live, is eff’d. Same goes for anyone who bought on spec and still has their speculation house.

It’s sad when this sort of thing happens to a society. Almost like everyone lost hope and decided to gamble rather than work.

Of course on the bright side of things, useless crypto currencies continue to experience thousand percent value increases, as people mortgage everything to pile into them as fast as they can. Bitcoin has gone stagnant, stuck at $22,000 CDN, unable to move up (no one has the money to buy them anymore) and unable to move down (you can’t easily sell a bitcoin).

That has not deterred the crypto speckers though, they have just found a new target, and that target is a little known bitcoin fork called “Litecoin” which has gone from $97.00 per coin up to $450.00 in about a week and a half, creating yet another group of newly minted crypto currency millionaires, who cannot actually get at their millions because, like bitcoin, LTC is very difficult to sell.

Human beings seem to be inherently drawn to hoarding.

#209 unbalanced on 12.13.17 at 9:54 am

Just love coming here and reading the comments. Some people fib and some people tell the truth. The truth hurts. It is real. So get use to it!!!

#210 Stan Brooks on 12.13.17 at 10:05 am

income sprinkling?

And what exactly is that? It/the term/ does not exist in any other country/jurisdiction except Canada. It was in fact invented by this finance minister to serve his hidden agenda.

Is that a sex game/foreplay term?

#211 REBear on 12.13.17 at 10:05 am

Here we go again…they just don’t stop. Last time this happened last year, prices went sky rocketing. Its funny how people who are bullish about prices going back up bring these articles up, however when articles or economists talk about downturns, they dont have anything to day. Biased? I think so.

https://www.thestar.com/business/real_estate/2017/12/13/toronto-region-home-prices-forecast-to-rise-68-next-year.html

#212 Sam the Sham on 12.13.17 at 10:06 am

Sorry to all the blog dogs hoping for a housing crash. Read’m and weep!

Price change forecast for 2018 Canadian housing markets

Canada: 4.9%

Toronto: 6.8%

Montreal: 5.5%

Vancouver: 5.2%

Ottawa: 3.2%

Calgary: 2.3%

Edmonton: -1.5%

Winnipeg: 4%

Halifax: 2.5%

Regina: 0.7%

Source: Royal LePage Market Survey Forecast

What would you expect Royal LePage to say? – Garth

#213 I’m stupid on 12.13.17 at 10:08 am

#202 crowdedelevatorfartz

So what exactly your issue? That they’re not white? That they’re rich or bad parenting? Nothing there to suggest the money to buy those cars was obtained illegally. If they choose to spend it on fancy cars it’s their choice. As for the the street racing that’s a matter for the courts to decide adequate punishment.

Look at the Marco Muzzo incident. Rich kid killed 3 kids drunk diving, his family wealth probably gave him the sense of invincibility until he killed 3 kids. Now he needs to live with that on his conscience for the rest of his life.

#214 Stan Brooks on 12.13.17 at 10:09 am

Look at the liars strait faces when announcing that they work for the middle class

http://business.financialpost.com/opinion/joe-oliver-trudeau-and-morneau-can-income-sprinkle-their-wealth-but-you-cant

Canadians fully deserve the corrupted and incompetent idiots who rule them.

So glad I left.

#215 Stan Brooks on 12.13.17 at 10:13 am

There is no other country on earth where corporate owners have to justify to whom they pay salaries and how much these salaries are.

Except lieberals Canada.

A am looking with great interest at this idiotic proposals, where people’s labour and wages will need to be justified based on some arbitrary artificially invented criteria by incompetent bureaucrats.

#216 IHCTD9 on 12.13.17 at 10:54 am

#195 Rooster on 12.13.17 at 6:42 am

Roan, I assume you read as carefully as you write, so I must accept responsibility for my obviously failed attempt at satire. Please accept my apologies and I ask only that you re-read my post from a different perspective, and hopefully you can forgive me this and my past transgressions.
____________________________

Don’t sweat it Rooster, the feminists are a touchy bunch. Quick to become offended, and quick to pass judgment.

Always risky to attempt humor with these folks – the drive for cosmic levels of victimhood is just too strong.

If you want to be safe, keep the conversation centered around the Patriarchy (I know, I know… just pretend it exists), and the pursuit of victimhood.

Remember, no humor. None. Serious feminazi talk only.

#217 gattaca on 12.13.17 at 11:13 am

another casualty of TO’s housing bubble – TO strip clubs

Adult-entertainment sites in Toronto have made way for a luxury townhouse complex, churches, a Sikh temple, a mosque, charities, and a furniture store visited by one of the Property Brothers of reality-TV fame.

https://www.bloomberg.com/news/articles/2017-12-12/it-s-closing-time-for-toronto-s-strip-clubs

#218 Playback Loop on 12.13.17 at 11:19 am

#215 Stan Brooks on 12.13.17 at 10:13 am
There is no other country on earth where corporate owners have to justify to whom they pay salaries and how much these salaries are.
————

Stan we went all thru this weeks ago.
The Government allows you to split pension income with your spouse (or common-law partner), but not earned income. Nor can you split any income with your children or your children’s children.
The rules are pretty simple and are there to prevent people from avoiding taxes, which despite rumours to the contrary is against the law (since 1988).

“Tax avoidance results when actions are taken to minimize tax, while within the letter of the law, those actions contravene the object and spirit of the law.” CRA

Paying your spouse and/or children a salary or dividends for work not done, or overpaying for work performed is against the object and spirit of the law.
The tax rules are meant to encourage business growth, not as a tax loophole for high income earners.
Whenever a tax avoidance scheme becomes too successful, the Government must step in (see Income Trusts).
There are other schemes that currently fly under the radar, but people always get too greedy. It’s just human nature.

#219 IHCTD9 on 12.13.17 at 11:26 am

#188 jane24 on 12.13.17 at 4:55 am

Why don’t the various many levels of Canadian govts get to grips with this one?
____________________________________

Because the Canadian Government that would take the bull by the horns on this front will never get voted into power.

Canadians vote for balloon heads like Wynne and Trudeau. This guarantees that alt-politics trump real issues that are affecting a big slice of the population.

Canadians evidently do not want controls put on the influx of foreign funds. It turns out Canadians want more debt, bigger deficits, and huge payouts for victims of “social injustice”. Canadians prefer nice hair and selfies instead of performance or results, so that is what we got.

We got exactly what we voted for.

#220 Stan Brooks on 12.13.17 at 11:43 am

Coming at 1 p.m. today, the minister of fairness press conference

https://78.media.tumblr.com/bcb1447af11db783f6ddd75a11b6102a/tumblr_nwlursW2z81tmlgseo1_250.gif

#221 Ubul on 12.13.17 at 11:44 am

#123 CascadiaNow on 12.12.17 at 9:14 pm
Founding races were anglo and Chinese ?

You mean squamish, musqueam, salish and burrard. What a laughable colonist statement from someone who in the same breath is calling Vancouverites xenophobic.

Van was founded in 1886. – Garth

…..

The same year when Johannesbourg was founded by gold diggers from Europe. The region surrounding Johannesburg was originally inhabited by San people. They were hunter-gatherers who used stone tools.

Is the colonization of South Africa supposed to be somehow different from the colonization of Canada?

#222 IHCTD9 on 12.13.17 at 11:56 am

#110 rc99ar on 12.12.17 at 8:35 pm

“I have yet to hear a reasonable explanation as to why foreign ownership is bad.

#185 Karma on 12.13.17 at 3:57 am

It has created more competition for a scarce resource, leading to gross indebtedness of the population beyond what is healthy for the economy and has put the economy in a similar position to what the US was prior to the financial crisis.
_________________________________

I sit back and consider what would need to happen to make me pay 1.5 Million for an ugly shack that wouldn’t fetch 150K elsewhere.

Nothing could.

I’d be outta there like my @ass was on fire.

Hopefully those who are complaining about the prices have never participated in a bidding war.

No one put a gun to their heads to make them spend 1.5 Mil on a shack.

#223 sm_yyc on 12.13.17 at 12:06 pm

Hi Garth – check out this blatant lie from the cartel

http://www.660news.com/2017/12/13/calgary-home-prices-expected-rise-new-stress-test-takes-effect/

Notice how they say it’s only going to affect uninsured mortgages with 205 of more downpayment.

it’s ridiculous how they can report false info as news. it was on the radio too.

#224 QEII on 12.13.17 at 12:09 pm

#169 Karma
LOL! QEII doesn’t own Canada. Her name is just a placemarker

BUZZZZZZ!

Wrong. Thank you for playing.

http://www.whoownstheworld.com/canada/

All physical land in Canada is the property of the Crown, Queen Elisabeth II. There is no provision in the Canada Act, or in the Constitution Act 1982 which amends it, for any Canadian to own any physical land in Canada.

We, Canadians, should be a lot more outraged by this fact than we actually are.
And ‘Karma’ typing up disinformation is not helping either.
Please stop doing that.

#225 Damifino on 12.13.17 at 12:14 pm

#208 Ace Goodheart


No one can afford to buy a house, and yet there are empty houses everywhere, owned by speculators who cannot sell them anymore due to the recent price decline.

————————————–

But of course they can sell them. They will get get the current market value, as is always the case. It might take a bit of time, so they should list early and price competitively. Let the market do what it does best.

#226 FOUR FINGERS WATSON on 12.13.17 at 12:16 pm

David Rosenberg has issued yet another piece of blistering common sense (which most mainstream and sellside economists seem to lack in wholesale amounts these days), in which he explains why the action at the margin is all that matters for asset prices and all that follows.
Supply and demand at the margin in the real estate market consists of those who have “For Sale” signs on the lawn and those who are actively looking to buy. The price of the entire market is in their hands, not in the hands of those who are confidently sitting tight. This is important because it was the action at the margin that took prices parabolic, and all homeowners benefited during the bubble.

From Arthur Zeikel;
“As all of us were taught, but most of us have long since forgotten, economic change occurs at the margin, where the action takes place… individuals who can think on the margin always have an advantage over those who cannot.”

#227 Forecast on 12.13.17 at 12:20 pm

#212 Sam the Sham
Price change forecast for 2018 Canadian housing markets

I must say a strange forecast, as it contradicts the current trend that is downwards:

https://housepriceindex.ca/2017/12/a-third-straight-monthly-decline-in-november/

-0.5% in a month, would be -5.8% over a year if that rate were to continue for 12 months.

Frankly, it could be much worse than that, depending on how hard the new OSFI regulations will hit the market. This remains to be seen.

#228 Mattl on 12.13.17 at 12:20 pm

It’s pretty clear that tax evasion strategies are being used post Aug 2016 and the implementation of the foreign buyers tax. Prior to the tax, in Richmond, foreign buyers were resposible for 24% of home purchase. After, 8%. Will be very interesting to see how the gov’ts numbers account for beneficial ownership. I work for a bank and if we were underwriting sales in Richmond and tracking source of funds I’d bet somewhere around 16% of sales would fail to close, or result in being taxed.

Also, post tax condo sales skyrocketed in both yvr and the gta. Presale going crazy. Presales buyers not need to register as foreign buyers. Likely just a coincidence I’m sure.

#229 Zapstrap on 12.13.17 at 12:22 pm

#161 fishman on 12.13.17 at 1:05 am
If we could just go back to the old days.

Recently read:
Fishing with John
Spilsbury’s coast
Must have been quite the life on the coast back then. Not so nice for the Japanese with the outbreak of WW2.
Gulf of Georgia cannery and Richmond has great displays in Steveston which are free this year as are others for Canada 150. The guided tours are free too.

#230 Ronaldo on 12.13.17 at 12:31 pm

#145 NoName on 12.12.17 at 11:34 pm

i watched this last year.

https://www.youtube.com/watch?v=_pUtz75lNaw
—————————————————-
Excellent.

#231 IHCTD9 on 12.13.17 at 12:33 pm

#217 gattaca on 12.13.17 at 11:13 am
another casualty of TO’s housing bubble – TO strip clubs

Adult-entertainment sites in Toronto have made way for a luxury townhouse complex, churches, a Sikh temple, a mosque, charities, and a furniture store visited by one of the Property Brothers of reality-TV fame.

https://www.bloomberg.com/news/articles/2017-12-12/it-s-closing-time-for-toronto-s-strip-clubs
________________________________________

A small town near me with 20K population used to have 4 strip clubs when I was in high school. They were packed, violent, and downright dirty. Now there are none, zero.

Lack of business was the problem – it started with the birth of the http://WWW., and now carries on thanks to easy, near free access Women and Men have to each other via the same WWW. Whatever your mind can dream up, the internet has the degenerate you need – in spades.

Those strip clubs were doomed anyway – their owners are smart to sell out.

#232 Native English Speaker on 12.13.17 at 12:39 pm

@192 Howard:

“When I go to Vancouver, I immediately appreciate the wisdom of Quebec’s language police.”

Me too!

A diverse country is great, isn’t it?

Each and every time I hear anything other than English spoken, I’m appreciative of how great and accepting our country is.

Although the POLITICS of language, in my previous employer, which Trudeau heads now, were (in my opinion) stupid, I loved the diversity. Each and every colleague, no matter what they identified as their first language, or even native country, were a joy to work with.

As a native English speaker, I have had the opportunity to live and work in countries where English is not a recognized language of the work environment. Never once was I chastised for making mistakes in the language(s) of the workplace or neighbourhood, but was greeted with a smile and, often, a helping hand.

Now that I’m back in Canada, the non-English languages I was conversant in (2 for work, another 2 for play) have become rusty – a personal issue I’m taking steps to cure. Yes, one of those languages is French, which was a working language for me when working outside of Canada, but on returning I did not have a “bilingual certificate” so was not considered bilingual when hired. Getting a certificate, and the bilingual bonus, was not on the cards for me. Politics. Shrug.

When I read about the Quebec language police doing their thing, I consciously try to look past the politics, and focus on the people – it’s people that really matter in this world, isn’t it?

#233 Doug t on 12.13.17 at 12:41 pm

I cannot fathom how someone like Morneau with his wealth can actually believe this is a good idea – the man truly is a screwball – still can’t believe he didn’t get the boot

RATM

#234 Iconoclast on 12.13.17 at 12:56 pm

I’d like to see Canada commit to some serious financial transparency. Untangle the web of numbered companies, straw buyers and sham transactions.

True beneficial ownership should be recorded for real estate transactions. There’s a strong public benefit to public knowledge of these. This just might tell a different tale than what we are told now.

And CRA, at least, should know who owns everything else.

#235 Big Daddy on 12.13.17 at 12:56 pm

We’re screwed, it’s over, baked, it’s done. Our Liberal leaders opened the country to unprecedented money laundering by foreign nationals and gave them 10 year visas so they could send grandma for free health care and the kids to free school….mall while paying zero tax…..how would you like a deal like that? The time to complain was ten years s go o when the wave was obvious…that’s when we should have been raging in the streets ….but now…..foreigners have us by the balls and our homes are just casino chips. You did it suckers….you screwed the pooch and threw your kids to the dogs in the bargain.

I think I’ve just about had it with this blog. Giving people like you a forum makes me ill. – Garth

#236 crowdedelevatorfartz on 12.13.17 at 1:12 pm

@#213 Im Stupid.

You’re the one blathering on about “high disposable income” not me.

It just seems that the kids road racing and smashing up expensive high end luxury cars seem to be of a particular descent……. and since its govt car insurance out here and as a 57 year old “road star” driver ( no accidents in 10+ years) Im particularly annoyed that my 4 year old truck costs $2000 per year ( even with my 45% “discount”) to insure through ICBC ( govt insurance cash grab).
So, essentially, I’m subsidizing rich brats in super cars that cant drive and don’t give a $hit…..because daddy ( with high disposable income) will just buy them a new one…..
because…..its all about “image”

#237 Renter's Revenge! on 12.13.17 at 1:15 pm

Holy virtue signalling, Batman!

#238 Howard on 12.13.17 at 1:28 pm

People are taking out mortgages to buy bitcoin.

Can we say the dumb money is now all-in?

https://www.cnbc.com/2017/12/11/people-are-taking-out-mortgages-to-buy-bitcoin-says-joseph-borg.html

#239 yeahboy on 12.13.17 at 1:30 pm

Never agreed with you more. I know plenty of people who bought property they can barely afford. Normal canadian people.

But everytime you say anything about it in some hot button communities (/r/vancouver is one) you are mercilessly downvoted by everyone who would rather blame foriengers than there neighbours and family members.

Anyone who pays more than asking in the last 10 years has driven the market up. Anyone who flips, buys multiple properties for investment, drives the market up. Anyone who cons a third or 4th income onto a mortgage has driven prices up.

Its the locals stupid! and i have been saying that for years.

#240 IHCTD9 on 12.13.17 at 1:44 pm

#155 Hopeurright on 12.13.17 at 12:33 am

If it is local speculators how does 95% of home buyers qualify to buy a $1 million average house on a median household income of less than 60k?
__________________________________________

When you could get a fiver for 2.48, and you have a decent dual income household, and happen to be a move up buyer, regular working folks can move into million + dollar houses with ease.

Even out in the windswept Tundra where I live, folks sell their house for 500K, and could move into a 1 Mil house. That’s an $2200.00 monthly at 2.48% which is easily done.

There are millions of folks out there who own their homes and they ride the price increases to stratospheric levels. The price increases in RE do not affect them as their home value rises to match the market. Meanwhile they cash in on emergency style interest rates when they buy.

I crunched the numbers on a nice 700K home earlier in the year (that is a real life mansion out my way). I could move in for 1900.00 mo. That’s only 700.00 month more than my old farm house was over 16 YEARS ago. Meanwhile I’m comparing an old 1500sf farm house to a truly beautiful timber frame 3000sf super awesome home.

These homeowners also have a large ability to borrow via HELOC, and can gift the money to others as has been well discussed.

#241 Lost...but not leased on 12.13.17 at 1:53 pm

DELETED

#242 Ian on 12.13.17 at 2:17 pm

Fed raises and says three raises next year!!!

Wake up BoC and get on the train!!

#243 Ponnaps on 12.13.17 at 2:28 pm

No survey of market activity is going to uncover two simple yet crucial factors driving prices UP, that Garth also seems to miss…

1. its not about origin of the buyer as much as it is about the origin of the money. Has any survey been conducted on Source of Funds and how much originated offshore??

2. All it takes is one transaction on a street or neighbourhood to set prices for the future(coupled with all the RE pumping). 4% foreign dudes could be all it takes , its not a trivial influence as the % suggests..

#244 bdwy sktrn on 12.13.17 at 2:32 pm

#195 Rooster on 12.13.17 at 6:42 am
#113 roan on 12.12.17 at 8:41 pm
It is disappointing that following a thoughtful post about bigotry that the likes of Rooster#48 (not for the first time) is then indulged in his woman-hating remarks.

Rooster’s prejudice signals to every woman that he meets (they know it, even on a subliminal level) that he is too insecure to come together on an equal basis which then reinforces the perpetual cycle of his rejection which then makes him think he has the right to project bile.
_———————
touchy much?

rooster was clearly satire.

lighten up.

#245 Overheardyou on 12.13.17 at 2:45 pm

#4 rainclouds on 12.12.17 at 5:22 pm
While I expect you are correct and the data will likely reinforce this yet again.

The real question is how do you stop RE associations from lying about this and other “facts”

——–

Or you could hold realtors responsible for the sales they make, so if a house was poorly renovated and the realtor failed to point it out to the buyer then they must pay for the repairs. That would definitely dwindle down the number of realtors in Canada and cut off the shady sales

#246 SoggyShorts on 12.13.17 at 2:47 pm

#164 El Joko on 12.13.17 at 1:26 am
I’m usually one of the most liberal-minded people posting here, but you actually think that MASSIVE immigration doesn’t have anything to do with insane house prices?
Canada has 1/3 of Germany’s population, yet lets in more immigrants per year.
Honestly, wake up.
*******************************
There are a lot of people who have jobs directly related to NEW housing, so if we stop, or even decrease immigration it would be a serious blow to our economy.
Without immigrants our population would go up by 60K a year– not nearly enough to support construction.
Space might be limited in Van, but we could expand for 100s of KM in other cities.
Until we live in a robot-labour utopia growth is how we advance.
We can’t dictate which cities citizens are allowed to live in, so if the richer immigrants want to buy/flip/teardown million dollar crackshacks in Van, let em have it, and move somewhere reasonable.

#247 SoggyShorts on 12.13.17 at 2:48 pm

Also we are 30x the size of Germany…

#248 Herb on 12.13.17 at 2:54 pm

#215 Stan Brooks,

“There is no other country on earth where corporate owners have to justify to whom they pay salaries and how much these salaries are.”

Do you know of any other country on earth where you can distribute largesse to your family and deduct it from taxable income?

If you know of a corporate owner who will pay me solely to reduce his taxes owing, I’m in. Up to now they seem to have kept that arrangement to families.

#249 For once, I disagree on 12.13.17 at 2:58 pm

Is that why, when you look up at the Vancouver skyline, you see empty apartments? Is that why, when you walk through Richmond/Vancouver neighbourhoods, you see unoccupied homes?

Seems like an awful lot more than 5%.

#250 bdwy sktrn on 12.13.17 at 3:01 pm

I sit back and consider what would need to happen to make me pay 1.5 Million for an ugly shack that wouldn’t fetch 150K elsewhere.

Nothing could.

I’d be outta there like my @ass was on fire.

Hopefully those who are complaining about the prices have never participated in a bidding war.

No one put a gun to their heads to make them spend 1.5 Mil on a shack.
——————————-
next door to me is a 3 unit rental house, lately the tennants have been a much higher quality than they used to be. 2 guys there just bought condos in the past month. one in north van, one in vancouver city hall area.
both bright ambitious pleasant guys who will do well. neither has a hope in hell of doing what they do in a city of less than 1m or so. the jobs are here.

#251 Stan Brooks on 12.13.17 at 3:01 pm

#218 Playback Loop on 12.13.17 at 11:19 am
#215 Stan Brooks on 12.13.17 at 10:13 am
There is no other country on earth where corporate owners have to justify to whom they pay salaries and how much these salaries are.
————

Stan we went all thru this weeks ago.
The Government allows you to split pension income with your spouse (or common-law partner), but not earned income. Nor can you split any income with your children or your children’s children.
The rules are pretty simple and are there to prevent people from avoiding taxes, which despite rumours to the contrary is against the law (since 1988).

“Tax avoidance results when actions are taken to minimize tax, while within the letter of the law, those actions contravene the object and spirit of the law.” CRA

Paying your spouse and/or children a salary or dividends for work not done, or overpaying for work performed is against the object and spirit of the law.
The tax rules are meant to encourage business growth, not as a tax loophole for high income earners.
Whenever a tax avoidance scheme becomes too successful, the Government must step in (see Income Trusts).
There are other schemes that currently fly under the radar, but people always get too greedy. It’s just human nature.

——————————————

You are brainwashed.

Most of the countries have family income taxes.
In Germany a single person making 10 k euro a month pays over 50 % in income taxes. If he/she has a family with spouse not working and a dependent child that tax is reduced to 25 % so equal in terms of taxes to 2 people making 5000 euro a month. No difference whatsoever.

So if you find me a German source referring to ‘income splitting’ I will legally change my name to Douche bag Moron.

Nothing that depends on arbitrary rules to determine amount of work invested and legitimacy of that work in order to justify that salary is simple.

So instead of recognizing that the tax system is crap and re-organizing it in order to simplify it, we keep insisting on making it more and more complex and unfair, in the name of fairness.

In USA you actually are incentivezed to employ your underage kids in a private Business!

It is good to travel, see the world and countries with normal taxation.

We are not one of them. Period.

#252 Victor V on 12.13.17 at 3:05 pm

Canada’s housing risks haven’t gone away — they’ve just moved to the shadows

http://business.financialpost.com/real-estate/risk-shifts-to-shadows-in-canadas-whac-a-mole-housing-market

Mortgage broker Samantha Brookes is trying to figure out how to get one of her clients out of a housing-fueled debt hole.

The couple, a 59-year-old Toronto city worker and her husband, 58, have so much debt that they stopped making payments on the $410,000 mortgage for their suburban home. They wanted to refinance but regulations imposed last year will disqualify them. In a few weeks, they won’t even qualify for an uninsured loan at an alternative lender as more rules come into effect.

They opted for a third route: adding a second mortgage with an interest rate of 10.5 per cent to pay off their debt. Their salvation came from a private unregulated lender, a move many other Canadians are making as the government tries to rein in a home-price surge that’s driven household debt to a record. But like a giant game of Whac-A-Mole, the risk to the financial system from tapped out borrowers is merely shifting — this time to a market where there’s no oversight from the country’s national bank regulator and new stress-test rules don’t apply.

#253 Victor V on 12.13.17 at 3:06 pm

Federal Reserve raises benchmark interest rate to 1.25-1.50%

https://www.bnn.ca/federal-reserve-raises-benchmark-interest-rate-to-1-25-1-50-1.942697

#254 bdwy sktrn on 12.13.17 at 3:09 pm

#223 sm_yyc on 12.13.17 at 12:06 pm
Hi Garth – check out this blatant lie from the cartel

http://www.660news.com/2017/12/13/calgary-home-prices-expected-rise-new-stress-test-takes-effect/

Notice how they say it’s only going to affect uninsured mortgages with 205 of more downpayment.

it’s ridiculous how they can report false info as news. it was on the radio too.
—————————-
it’s true.

try to keep up.
sub20% down has been under the test for over a year.

http://www.cbc.ca/news/business/mortgage-rules-stress-test-1.3808140

#255 Stan Brooks on 12.13.17 at 3:14 pm

As for the idiotic statement by wild bill that private corporations income is employment income, ignorance of the double CPP paid, risks, lack of benefits (vacation, pension etc), in my mind only an entitled idiot born rich who never achieved anything himself can come up with such idiocies with strait face, at the same time he is very savvy at finding loopholes himself, for half of the things and practices that he employs you and I will be in jail with confiscation of property.

#256 Stan Brooks on 12.13.17 at 3:19 pm

#218 Playback Loop on 12.13.17 at 11:19 am

Paying your spouse and/or children a salary or dividends for work not done, or overpaying for work performed is against the object and spirit of the law.
The tax rules are meant to encourage business growth, not as a tax loophole for high income earners.

————————

If you spouse owns half of the company he/she/zhe…
is entitled to half of the dividends. Period.

It is true for public companies. Why should it not be true for private?

So you are saying taxing and discouraging investments and retailed earnings within the company is actually encouraging business growth?

Liebaral paid troll.

#257 Dissident on 12.13.17 at 3:28 pm

Something for the funny bone! #BITCOIN #LOLZ

A boy asked his bitcoin investing dad for 1 bitcoin on his birthday.

Dad: What? $15,554??? $14,354 is a lot of money! What do you need $16,782 for anyway?

credit: https://www.instagram.com/p/Bchu5eKAHxa/?hl=en

#258 Stan Brooks on 12.13.17 at 3:29 pm

#218 Playback Loop on 12.13.17 at 11:19 am

And the worse thing is that government actually incentivized private professional corporations and FORCED layers and doctors into such, only for the first rich elitist moron government to completely renege on their own promises and word.

So think about your RRSP again. You will see none of it in 10-15 years with lieberals in power.

I am sure wild bill will find some unification replacement formula to be managed by his company to compensate you for the expropriation of your funds.

Not possible? Just watch out.

#259 down_boy on 12.13.17 at 3:33 pm

#232 Native English Speaker on 12.13.17 at 12:39 pm

…I consciously try to look past the politics, and focus on the people – it’s people that really matter in this world, isn’t it?

….

No, plankton matters more, but I’m science based. We’re just the top flea.

#260 bdwy sktrn on 12.13.17 at 3:39 pm

DELETED

#261 Blacksheep on 12.13.17 at 3:49 pm

BillyBob # 130,

Very insightful post, thanks.

#262 down_boy on 12.13.17 at 3:54 pm

Breaking: US Fed hikes rate.

In fake news, US to see sharp rise in economic growth for 2018. Trump joins Democrats. Justin Trudeau makes yoga mandatory.

#263 Stan Brooks on 12.13.17 at 4:15 pm

#239 Herb on 12.13.17 at 2:54 pm

Already replied to this.
earning a salary or dividends in a company you own can not be subject to arbitrary determination by an unqualified incompetent bureaucrat.

It is clear that you have not been exposed to other country taxation, the very fact that you are not familiar with family taxation is clearly evident from your post.

Doe wild bill or T2 justify their salaries?

bhahahahaha

#264 calgaryPhantom on 12.13.17 at 4:33 pm

#235 Big Daddy on 12.13.17 at 12:56 pm

I think I’ve just about had it with this blog. Giving people like you a forum makes me ill. – Garth
———————————–

Sadly, people like Big Daddy do exist, and in much higher numbers than we would think.
Otherwise we wouldn’t have trump as president.

#265 Lee on 12.13.17 at 4:50 pm

Why the hell does Amazon have a P/E of 252? How can this be sustainable?

#266 I’m stupid on 12.13.17 at 4:58 pm

#236 crowdedelevaterfartz

I don’t know how to respond to that. Your complaining about paying 2k a year insurance and blaming Asians for it. It seems to me that you’re angery because 20 year old are driving around in cars that you can’t afford in your 50s. If they were paying 50k a year for insurance you’d still be angry.

#267 P/E on 12.13.17 at 5:05 pm

#265 Lee
Why the hell does Amazon have a P/E of 252? How can this be sustainable?

The Earnings do not matter very much, as long as Amazon is growing its business.

P/E is a useless statistic.
It’s even undefined for zero or negative earnings.

Look to price-per-revenue instead.
(revenue, unlike earnings, doesn’t go negative.)

If you look at Amazon’s revenue, you will see its stock price is warranted.
All Amazon has to do is raise prices by 1% to go from almost no profit, to obscene profit.
And that is power. So much power, that it is worth a lot on the stock market.

To conclude: ask yourself this: How would you value a company that turns over 100 Billion dollars, but made a $1,- profit last year? Such a company, despite the pathetic profits, is immensely valuable. And thus will have a ridiculous P/E ratio.

#268 fishman on 12.13.17 at 5:10 pm

Zapstrap #229. I fished alongside John. His grounds were the “Shoals” between Cape Caution & Cape Calvert. We’d deliver in Port Hardy & John would always walk the beach into town making his poor little wife crawl over logs & slip on the kelpy rocks. Edith was held in high esteem by the old-timers even though she was a Yank. She came from an elite Upper New York family & had the connections to get job interning for Eleanor Roosevelt in 44-45. Anybody that had come in contact with either Churchill or Roosevelt had very high status to the war generation. Actually its only the last while I’ve come to appreciate in just how high a regard. Even John & he was on the Nerd Utopian Maoist side of the political spectrum.

#269 Newcomer on 12.13.17 at 6:13 pm

Ick.

You guys make me want to wash my eyes. If you grew up in this country as you claim, you must have been asleep in your Canadian History, Civics, and Social Studies classes. Many community colleges offer these as remedial high school courses. Go and learn something about the country you think you are defending.

#270 Gravy Train on 12.13.17 at 7:13 pm

I think I’ve just about had it with this blog. Giving people like you a forum makes me ill. – Garth

Hang in there, Garth. I keep coming back to this blog because you, Ryan and Doug often throw out some nuggets of information that hadn’t occurred to me and that have improved my finances once acted upon. :)

#271 Bob on 12.13.17 at 7:40 pm

“Its so much easier to be a multi-millionaire with a billionaire spouse and an inherited fortune…”
____________________________________________

…and he will be easily re-elected once again….

#272 crowdedelevatorfartz on 12.13.17 at 7:45 pm

@#266 You’re stupid

No, I’m angry because I’ve been driving out here accident free for 37 years.
My truck is worth about $30k and yet I pay $2000 per year for the “priviledge” of driving here AFTER my 43 % “discount”.
Yet, a person with “high disposable income” driving (and inevitably smashing up) a car worth 10 TIMES my truck pays barely a fraction of the value of the car to have it repaired.

I see the most unbelievable stupidity behind the wheel as I drive.
And its getting worse.
And the insurance rates are climbing because of it.
I couldnt care less what anyone drives, just drive it well and pay attention to whats going on around you.
Most of the drivers I’ve seen out here have the attention span of a fruit fly circling a bowl of rotten cherries.
And its only going to get worse.
Google ICBC Defict and Debt.
Rates are goin up up up……
The building I live in has dozens of mid range cars covered in dust with expired insurance.
Joe Average cant afford to drive.
Gas is the highest in Canada at $1.38/litre for regular
Insurance in in the top 3 as the most expensive…..

Gotta keep those Lambo drivers insurance subsidised by the great unwashed masses.
Things are slowly changing due to the public outrage at the carnage on the streets.

Anyone flaunting their “high disposable income” isnt appreciated and when its obnoxious 18 year olds street racing and laughing at the tv cameras and police, dont expect the average person to like it.

Next time your in Vancouver.
Rent a car and go for a drive.
Rush hour is all the time thanks to the “Nature Nazi’s” that have torn up streets and put in bike lanes, toss in incompetant drivers and voila!
Chaos.

#273 crowdedelevatorfartz on 12.14.17 at 9:02 am

Im Stupid

This is what driving is like out here.
Day in and day out……..

An 18 year old driver Plea bargain yesterday in a Richmond Court ……..
…..from Vehicular manslaughter( 5 to 10 in jail) down to Driving with undue care and attention( $1000 or 6 months in jail)……

A year after the accident…..Theres a deterent

Crown Council ignored the police recommendations for criminal charges.
Several cyclists hit, one killed when a Porsche Cayenne inexplicably crossed the road and struck them head on …….

http://www.google.ca/url?url=http://www.cbc.ca/news/canada/british-columbia/richmond-cyclists-accident-1.3839054&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjM2_Lm1InYAhVK3WMKHcwIDy8QFggUMAA&usg=AOvVaw1wOlAxYIl0NM7KzYueJK_L

#274 thesecondcomingofjohngalt on 12.14.17 at 12:14 pm

#135 David on 12.12.17 at 10:31pm

Wow! That was quite a mouthful of sanctimonious garbage you spewed forth, I’m very appreciative of the fact without the recent few decades of foreign investment in the lower mainland , and in particular Vancouver that I would have had to endure living in as you so intelligently described “a mouldy hick town”, I did however manage to get a decent education,and trade by working extremely hard, this at the time(mid eighties) enabled me to qualify for a mortgage on a modest house,and make manageable payments on it that represented about a quarter of my gross income, which used to be a standard metric of mortgage qualification in the eyes of most major financial institutions. Now in my late fifties,and a modestly successful career in my industry I wonder how someone in their mid twenties with a trade/career could realistically afford to live in Vancouver without a lot of help,and having to spend all ,or most of their income/s on mortgage payments. The common theme of this blog is the nature of the real estate market in the lower mainland, and the greater Toronto area, and investment strategies, and tax planning, and I’m presuming to invite intelligent conversation on these matters. I’m a little disappointed Garth that you allowed this comment of David on your blog, it is juvenile, and plainly a form of race baiting.

#275 AGuyInVancouver on 12.14.17 at 1:29 pm

#274 thesecondcomingofjohngalt

Well said!

#276 rainclouds on 12.14.17 at 4:54 pm

Apparently everyone gets it aside from the hapless do nothing BOC Governor

https://wolfstreet.com/2017/12/14/debt-binge-of-canadian-households-hits-new-high-as-home-values-hit-first-quarterly-decline-since-q1-2009/

#277 Till on 12.14.17 at 7:34 pm

I have no trust in Canada, so I’m thinking about moving my money elsewhere. No pun intended.