Real Estate

Vancouver housing bubble?

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Deal Expert
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Oct 19, 2003
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Toronto (Bloor West …
popbottle wrote: Nice cars and a fancy house make you uncomfortable ?
People are always the most comfortable surrounded by their socioeconomic equals or close enough. Most of the time people don't have a choice in the matter though.
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Apr 20, 2011
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Vancouver
choclover wrote: Are you saying that if the tenants are a nuisance, there is a risk that the neighbours will report the situation to the City?
Yes it's possible if they're really annoyed.
[OP]
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Dec 3, 2004
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Vancouver
Vancouver real estate prices not the fault of foreign buyers, says new report
http://www.cbc.ca/news/canada/british-c ... -1.3108197

Interesting that they keep reiterating that investment of all metro Vancouver properties is about 5%. But what is the percentage for a specific market, like, say, detached homes in the city of Vancouver? Doubt we will ever see those numbers release. It would probably be closer to 40%???
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May 1, 2012
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Markham
adamtheman wrote: Vancouver real estate prices not the fault of foreign buyers, says new report
http://www.cbc.ca/news/canada/british-c ... -1.3108197

Interesting that they keep reiterating that investment of all metro Vancouver properties is about 5%. But what is the percentage for a specific market, like, say, detached homes in the city of Vancouver? Doubt we will ever see those numbers release. It would probably be closer to 40%???
I don't think you understand the word "Foreign." There are those people who have no vested interest in Canada (as well as no residence ambitions) and only buy properties for investing. These people are "foreign" buyers.

The Asians you see buying a house in Vancouver or the Indians you see buying in Coquitlam are actually Canadians or legal residents. They are ... guess what? Canadian!

Get it?
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http://business.financialpost.com/perso ... -vancouver
"The million-dollar average detached house has become synonymous with the real estate market in Canada’s most expensive cities. But despite all the handwringing in the media about the rocketing price of houses, new data show that the seven-figure price tag is hardly the new normal."
Deal Expert
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Oct 19, 2003
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Toronto (Bloor West …
popbottle wrote: http://business.financialpost.com/perso ... -vancouver
"The million-dollar average detached house has become synonymous with the real estate market in Canada’s most expensive cities. But despite all the handwringing in the media about the rocketing price of houses, new data show that the seven-figure price tag is hardly the new normal."
So, news flash, that house in the middle of nowhere is not going to cost a million dollars any time soon? Shocking revelation there in that article.
[OP]
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Anikiri wrote: I don't think you understand the word "Foreign." There are those people who have no vested interest in Canada (as well as no residence ambitions) and only buy properties for investing. These people are "foreign" buyers.

The Asians you see buying a house in Vancouver or the Indians you see buying in Coquitlam are actually Canadians or legal residents. They are ... guess what? Canadian!

Get it?
And... that means that 5% of properties in Metro Vancouver are being purchased by foreign investors who don't live here or have legal residence whatsoever. Get it? Let me know if you don't understand.
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May 1, 2012
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adamtheman wrote: And... that means that 5% of properties in Metro Vancouver are being purchased by foreign investors who don't live here or have legal residence whatsoever. Get it? Let me know if you don't understand.
Oh no I fully understand that, it's the second part which makes you sound ignorant:
But what is the percentage for a specific market, like, say, detached homes in the city of Vancouver? Doubt we will ever see those numbers release. It would probably be closer to 40%???
Just because they look foreign, doesn't mean they are foreign. Get it?
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Apr 9, 2006
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GT-EH
Anikiri wrote: Just because they look foreign, doesn't mean they are foreign. Get it?
But if it looks like a duck, walks like a duck, quackes like a duck, it must be a...
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Apr 20, 2011
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Vancouver
Anikiri wrote: Oh no I fully understand that, it's the second part which makes you sound ignorant:



Just because they look foreign, doesn't mean they are foreign. Get it?
Everytime Vcbuzz posts something on Facebook about housing the haters come out!
Sr. Member
May 26, 2010
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adamtheman wrote: And... that means that 5% of properties in Metro Vancouver are being purchased by foreign investors who don't live here or have legal residence whatsoever. Get it? Let me know if you don't understand.
Not quite. Taking the issue of this not being hard data, and being compiled from a "collection of available data and analyses":
Foreign investment is less than five per cent of the market in Metro Vancouver
The number they are sending out is in the 0%-4.99% region. That is less than 1 in 20 transactions. Such a rate, even if correct (again, there is no hard data) can not drive a market that has pricing that is irrational.

The market is being driven by Canadians taking on huge amounts on debt, not a foreign contingent of investors purchasing in under 5% of sales.
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Feb 5, 2013
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mattieuk wrote: Not quite. Taking the issue of this not being hard data, and being compiled from a "collection of available data and analyses":



The number they are sending out is in the 0%-4.99% region. That is less than 1 in 20 transactions. Such a rate, even if correct (again, there is no hard data) can not drive a market that has pricing that is irrational.

The market is being driven by Canadians taking on huge amounts on debt, not a foreign contingent of investors purchasing in under 5% of sales.
That 50 million purchase in Pt Grey was by a HK businessman but qualified as local since the family lives here and goes to school here, even though his business is located in HK and the money is made there.
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Sep 9, 2003
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Burnaby
mattieuk wrote: The number they are sending out is in the 0%-4.99% region. That is less than 1 in 20 transactions. Such a rate, even if correct (again, there is no hard data) can not drive a market that has pricing that is irrational.

The market is being driven by Canadians taking on huge amounts on debt, not a foreign contingent of investors purchasing in under 5% of sales.
I disagree with you, especially living on the west side of Vancouver. The percentage of Asians here is rising to Richmond levels.

Economics calls it the multiplier effect, where influx of money on the top end allows the original local seller to buy another property elsewhere at a high price, which cascades downwards as everybody down the chain now has more money to spend
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May 26, 2010
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bankonit wrote: That 50 million purchase in Pt Grey was by a HK businessman but qualified as local since the family lives here and goes to school here, even though his business is located in HK and the money is made there.
Again, I would point out that there is no hard evidence collecting this data - so qualifying someone as "local" is neither here nor here, as the definition isn't being collated in any meaningful manner.
crimsona wrote: I disagree with you, especially living on the west side of Vancouver. The percentage of Asians here is rising to Richmond levels.

Economics calls it the multiplier effect, where influx of money on the top end allows the original local seller to buy another property elsewhere at a high price, which cascades downwards as everybody down the chain now has more money to spend
Many people in Vancouver do disagree with me - especially now that the Mayor has started throwing his hat into the ring giving the unproven phenomenon of foreign investors spearheading the rampant real estate market more credit. I just won't be moved from my position until there any evidence released showing this information about the supposed phenomenon. On the other hand we do have ample information about increasing household debt, mortgage levels and borrowing trends which mirror interest rates.
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http://www.vancitybuzz.com/2015/06/vanc ... le-survey/
"While housing and cost of living metrics likely went against Vancouver’s favour, the Monocle ranking gave “intangibles” a greater emphasis including culture, closing time of bars, price of dining out, and proximity to seas, lakes and mountains.

With a greater focus on these metrics, Vancouver, Paris, Lisbon and Geneva have risen in the rankings while Helsinki, Munich and Zurich have taken a fall."

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