Real Estate

Vancouver housing bubble?

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  • Jun 25th, 2017 8:29 pm
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Deal Addict
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Aug 7, 2007
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GTA
I'm kinda skimming through these last pages but why are comparisons being made between Japan and Canada? When Japan has 5-6 times the population of Canada and is massively smaller than Canada?
Deal Expert
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Oct 26, 2003
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ADRiiAN` wrote:
Mar 12th, 2017 5:17 pm
I'm kinda skimming through these last pages but why are comparisons being made between Japan and Canada? When Japan has 5-6 times the population of Canada and is massively smaller than Canada?
density of all world class cities are more or less similar
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Deal Addict
Feb 9, 2009
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Ban foreigners from buying property temporarily for now and the bubble would pop so fast and so quick..
Deal Fanatic
Jan 27, 2006
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Vancouver, BC
Here's a followup article to one in the Vancouver Sun a few months back about foreign buyers going to Seattle - 'This is Vancouver deja-vu': How Seattle's housing market is making way for foreign buyers

A few highlights -
In the months following the introduction of the landmark policy, business down south has been booming at a near exponential rate, according to Seattle real estate broker Dean Jones.
Jones says the introduction of a foreign buyers tax last summer almost immediately sent a ripple through Seattle's housing market. By the end of the year, roughly half of the luxury homes sold in the area were to foreign buyers, up from a third in 2015, and 25 per cent in 2014.
"Some of the savvy Chinese buyers understand the impact of becoming a preferred market place. They simply know the weight of that investment and what it can mean over time — even in as little as five years."
Penalty Box
Feb 13, 2017
494 posts
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Sanyo wrote:
Mar 12th, 2017 8:51 pm
Ban foreigners from buying property temporarily for now and the bubble would pop so fast and so quick..
For sure...lets also charge foreigners twice the sales tax on all products they buy.....or instead....lets just ban them all from ever stepping foot in Canada and have the bubble pop tomorrow!

#trump2020..make Canada great again
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Dec 13, 2016
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Sanyo wrote:
Mar 12th, 2017 8:51 pm
Ban foreigners from buying property temporarily for now and the bubble would pop so fast and so quick..
Let's also take away every Canadian passport and encourage local spending only....After all, good things grow in Ontario.
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Feb 9, 2009
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BiegeToyota wrote:
Mar 13th, 2017 9:44 am
Let's also take away every Canadian passport and encourage local spending only....After all, good things grow in Ontario.
Yep... it's called protectionism -- we do it with our banks and some other sectors (why dont we scream about that? Why cant a Chinese bank buy out a Canadian bank? Cause there's a reason for that...)-- if there is truly a lot of domestic demand, then it's time to ban foreigners -- China did the same thing for a long time and only recently had a new rule where you have to live a year in the country to own real estate... i dont even mind that
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Feb 9, 2009
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crocp8 wrote:
Mar 13th, 2017 8:41 am
For sure...lets also charge foreigners twice the sales tax on all products they buy.....or instead....lets just ban them all from ever stepping foot in Canada and have the bubble pop tomorrow!

#trump2020..make Canada great again
Why dont we change our protectionist laws on things like dairy, wheat and banking? Why cant a Chinese bank buy a Canadian bank?

Sometimes you need to do stuff to benefit YOUR OWN CITIZENS and not worry about what others think. If people want to immigrate here, great, if its just to speculate to buy property, its time to ban...
Sr. Member
Jan 14, 2009
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Vancouver, BC
Sanyo wrote:
Mar 13th, 2017 11:46 am
Why dont we change our protectionist laws on things like dairy, wheat and banking? Why cant a Chinese bank buy a Canadian bank?

Sometimes you need to do stuff to benefit YOUR OWN CITIZENS and not worry about what others think. If people want to immigrate here, great, if its just to speculate to buy property, its time to ban...
We should aim to eliminate the other protectionist barriers not add more.
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Feb 9, 2009
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zakarydoks wrote:
Mar 13th, 2017 12:29 pm
We should aim to eliminate the other protectionist barriers not add more.
Protectionist barriers are there for a reason -- almost every country has some kind of protectionism... nothing wrong with it.

There are certain sectors that I would say needs to open up (Dairy for example) but thats a topic for another thread.
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May 1, 2012
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Markham
Sanyo wrote:
Mar 13th, 2017 11:46 am
Why dont we change our protectionist laws on things like dairy, wheat and banking? Why cant a Chinese bank buy a Canadian bank?

Sometimes you need to do stuff to benefit YOUR OWN CITIZENS and not worry about what others think. If people want to immigrate here, great, if its just to speculate to buy property, its time to ban...
In a world of Globalization, we as Canadians should be looking at deterring protectionism... not add towards it. If you isolate yourself from the world, then the world in-turn will isolate you. This would lead to an abysmal economic situation in Canada that would essentially destroy our country. Think about North Korea or Eritrea kinda situation.

You are being very ignorant if you think that we should do what Trump is doing south of the border. Protectionism doesn't exist or work in this global economy. The protections you see that the Canadian Governement imposes onto the banking sector or telecommunications sector has more to do with Federal interests than it has to do with protectionism of the general populace. A few classes in macroeconomics or general business would do you well.
These free trade agreements between nations and continents are not there to stifle growth or price out local populaces. These free trade agreements are there to be inclusive of trade. No nation can sustain without foreign trade.
Deal Addict
May 31, 2007
3763 posts
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The investment we need from the world is building factories and business here to create jobs, not buying houses all up for a tax free gain to possibly move your family in leech of the social system and dilute our jobs market with too many immagrants. A bad loophole they need to plug and work on making Canada competitive for proper investment and growth.

We know how globalization shifts the jobs to the cheapest labour leaving the middle class more like the poor class now.
Sr. Member
Jan 14, 2009
675 posts
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Vancouver, BC
Sanyo wrote:
Mar 13th, 2017 12:39 pm
Protectionist barriers are there for a reason -- almost every country has some kind of protectionism... nothing wrong with it.

There are certain sectors that I would say needs to open up (Dairy for example) but thats a topic for another thread.
Protectionist barriers inevitably harms one group in order to benefit another group. Who decides which group should be harmed and to what degree? I don't even trust myself with that kind of power. Barriers toward North Korea IMO is justified because the situation is very critical. The bar should be set high. A small number of uncompetitive malcontents who cannot afford detached homes in the city centres of Vancouver and Toronto does not merrit government actions. Life is not a safe space.
Jr. Member
Jun 24, 2011
156 posts
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West Lafayette, Indi…
Sanyo wrote:
Mar 13th, 2017 11:46 am
Sometimes you need to do stuff to benefit YOUR OWN CITIZENS and not worry about what others think. If people want to immigrate here, great, if its just to speculate to buy property, its time to ban...
For every couple unable to afford a house due to high housing prices, there is a couple who can make a fortune on the sale of their house. I don't see how a lower price is generally good for the general public. Are homeowners not members of the public anymore simply because they made some right (lucky) financial decisions? Again, an argument can be made that foreign investment, though disruptive, is generally good for the Canadian economy as a whole in the long run. And don't forget, the Canadian goernment is openly selling Canadian citizenship for CDN$5mil, so the rich can get theirs one way or another and you're really just punishing the people on student and work visas.
Deal Fanatic
Jan 27, 2006
5870 posts
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Vancouver, BC
IndustrialKid wrote:
Mar 13th, 2017 5:01 pm
For every couple unable to afford a house due to high housing prices, there is a couple who can make a fortune on the sale of their house. I don't see how a lower price is generally good for the general public. Are homeowners not members of the public anymore simply because they made some right (lucky) financial decisions? Again, an argument can be made that foreign investment, though disruptive, is generally good for the Canadian economy as a whole in the long run. And don't forget, the Canadian goernment is openly selling Canadian citizenship for CDN$5mil, so the rich can get theirs one way or another and you're really just punishing the people on student and work visas.
Those are really isolated short term gains as a segment of the economy is really out of balance from the rest of the economy. If local incomes moved up even in a faction of the increases seen in the housing market, then you can argue that things are OKAY. However, high housing prices (and cost of living in general) causes difficulty to attract and keep talent in the local workforce. In addition, many of the purchases are for investment and not for immigration which effectively removes housing resources as well as ongoing financial stimulus through spending in the community from the local area as many of these properties are left empty (not even rented out).

You mention work visas but really only a small portion of the purchases are for work visas and as I mentioned before, the condition of the housing market (due to the high cost of housing compared to the salaries offered) makes it hard to attract talent from other parts of the country as well as the world.

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