That's a simplistic view. Prices are HIGH throughout Canada, but you're right not exorbitant. Locals across Canada outside of Vancouver/Calgary/Toronto are somewhat immune to HAM (Hot Asian Money) Fear. There are simply fewer Asians in those places. Places like Vancouver/Toronto have high immgrant populations. It's easy to spread mania when 40% of your population "looks different." As such, locals (Asian Canadians included) are more affected by "alleged reports" that all the property is being bought up by China. The same tactics and strategy can't work the same in Windor, ON... Kamloops, BC, or Red Deer, AB.choclover wrote: ↑Mar 8th, 2017 11:18 amIt is no secret that wages in Vancouver do not even come close to supporting the real estate market prices. Clearly, the cash that is pushing the prices up must be coming from somewhere. And if the exorbitant prices were due to low interest rates, the prices would be exorbitant all over Canada, which they are not. Will be interesting to see if the cash that pushed the prices up stays in Vancouver real estate or moves elsewhere.
Of course it's not ONLY cheap money that has led to this. There's a BIG portion of FOMO and HAM Phobia that plays into it as well.
A small HAM tax in BC doesn't prevent a Chinese Millionaire from buying a property here. IT's a footnote, to them.
Calgary has been in the doldrums for a long while now... no HAM tax there. Their RE is connected to oil prices, somewhat.
The cash IS coming from somewhere else. Mostly DEBT. It's just that this affects places like Vancouver/Toronto more, because there is a more visible interest from the Asian community and there are larger Canadian-citizen Asians in these places. Also, over the last 20 years, RE has become a speculative buy, instead of an investment. This perception is part of what has changed. Unfortunately, speculative plays can end up badly for those that overleverage themselves.
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