Real Estate

Locked: BC set for major crackdown on Vancouver property market

  • Last Updated:
  • Dec 12th, 2019 2:31 am
[OP]
Member
Jun 23, 2009
255 posts
377 upvotes
Toronto

BC set for major crackdown on Vancouver property market

Looks like foreign buyers and speculators are going to be in a pile of hurt coming in the next few months and drive the housing market even lower.
Global & Mail:
http://archive.is/jdugp

For 2020, he says we should expect to see those policies put to use to flush out buyers that have been failing to declare global income, as well as speculators who’ve been dodging their fair share of capital gains tax. Speculative buying in recent years has driven up prices for local income-earners and shut them out of the market.
But the new collection of income tax data and identification of property ownership allows government to cross-reference with Canada Revenue Agency, Mr. Kurland says. The data, combined with recent changes to Quebec’s Immigrant Investor Program (QIIP), will have the effect of softening Vancouver’s high-end property market even further, the Vancouver-based lawyer says.
He adds that we shouldn’t expect another wave of buyers from Hong Kong who might be seeking refuge from current conflicts with Beijing.
Mr. Kurland says that people holding high-end properties who haven’t been transparent about worldwide income may choose to unload those properties instead of face an audit, bringing more supply onto the market.
“That’s how you get these multi-million dollar homes that are barely occupied,” he says. “Under the old way, if you had six of them, you declare each one as your personal residence. For each one you say, ‘I’m resident here for income tax purposes and I don’t have to pay capital gains,’ when in fact, none of the above is true. They are not income tax residents, so they [are not allowed] a capital gains exemption and it’s not their principal residence. But no one checked. It was an honour system. But no longer.
“So the multiple property holds are now all subject to this new game. Their choice now is, ‘How do I unravel my holdings without taking a bath?'”
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24 replies
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
Racism, xenophobia and hatred of the Chinese is in full display in Vancouver. Anyone should be able to go to Vancouver and buy property.
Deal Addict
Sep 19, 2009
2068 posts
864 upvotes
Toronto
Applesmack wrote: ... Anyone should be able to go to Vancouver and buy property.
except local income-earners ?
Member
Mar 20, 2017
297 posts
592 upvotes
Applesmack wrote: Racism, xenophobia and hatred of the Chinese is in full display in Vancouver. Anyone should be able to go to Vancouver and buy property.
It's kind of funny. I'm ethnic Chinese, but was born in Vancouver over 40 years ago. My sister is also, of course, ethnic Chinese but she doesn't speak the language. But when she showed up at an open house, the "locals" just assumed she was bidding with overseas money. Funny thing is, like many of the white locals, she works a crappy office job that barely pays more than the city average. She stretched herself so thin to bid and purchase a SFH in Vancouver. Faced with the same FOMO, she bought more than she could realistically afford. Luckily she ate rice and beans for a few years before she got a couple of promotions at work. But to her neighbours, she is a symbol of the 'overseas money' problem. LOL. She's just as broke as the rest of them. I left Vancouver 20 years ago when it started to go crazy. Not just property values, but crazy in terms of the empty, vapid materialistic, real housewives instagram lifestyle that Vancouver has become. I don't miss it for a second. You couldn't pay me enough money to go back.

History is full of examples of what happens when the "local" population starts looking for a scapegoat
Last edited by E39M62 on Dec 11th, 2019 7:32 pm, edited 2 times in total.
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
andrew4321 wrote: except local income-earners ?
These 'local income earners' are some of the most privileged people in the world. Tell me more about the struggles of being born Canadian. It is their own laziness that they are incapable of competing against the Chinese in a fair market.
Deal Addict
Sep 19, 2009
2068 posts
864 upvotes
Toronto
Applesmack wrote: These 'local income earners' are some of the most privileged people in the world. Tell me more about the struggles of being born Canadian. It is their own laziness that they are incapable of competing against the Chinese in a fair market.
Yes, every Canadian's dream is to compete with workers in countries where they make $2 a day. Lazy indeed.
Newbie
Feb 4, 2004
95 posts
62 upvotes
Applesmack wrote: These 'local income earners' are some of the most privileged people in the world. Tell me more about the struggles of being born Canadian. It is their own laziness that they are incapable of competing against the Chinese in a fair market.
If you mean competing with corrupt Chinese officials earning their money from ill gotten gains is fair, all the power to you brother.
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
strike66 wrote: If you mean competing with corrupt Chinese officials earning their money from ill gotten gains is fair, all the power to you brother.
This is typical racist rhetoric. Their gains are just as fair as yours. They just come without the privilege of being raised in Canada. All the Canadians buying Chinese goods are what make the Chinese wealthy.
Newbie
Feb 4, 2004
95 posts
62 upvotes
Applesmack wrote: This is typical racist rhetoric. Their gains are just as fair as yours. They just come without the privilege of being raised in Canada. All the Canadians buying Chinese goods are what make the Chinese wealthy.
I should become a criminal and launder money to make it in this city, its all fair afterall
Deal Guru
Jun 26, 2011
13717 posts
3757 upvotes
GTA
Applesmack wrote: Racism, xenophobia and hatred of the Chinese is in full display in Vancouver. Anyone should be able to go to Vancouver and buy property.
Correct me if I'm wrong but aren't the foreign property ownership rules far more restrictive in China? Does that make China racist and xenophobic too?
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
strike66 wrote: I should become a criminal and launder money to make it in this city, its all fair afterall
Another common piece of racist rhetoric that Chinese are only successful because they are criminals. * There are about as many Chinese criminals as there are white rapists and drug addicts in Vancouver.

I'd rather live beside wealthy and peaceful Chinese any day.
Last edited by MrDisco on Dec 12th, 2019 12:35 pm, edited 2 times in total.
Reason: don't make this personal
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
RolandCouch wrote: Correct me if I'm wrong but aren't the foreign property ownership rules far more restrictive in China? Does that make China racist and xenophobic too?
In many ways yes, but the policies of other countries are irrelevant. Canada is a nation of immigrants and needs to be open to all people.
Deal Guru
Feb 9, 2009
10836 posts
9234 upvotes
Applesmack wrote: Another common piece of racist rhetoric that Chinese are only successful because they are criminals. * There are about as many Chinese criminals as they are white rapists and drug addicts in Vancouver.

I'd rather live beside wealthy and peaceful Chinese any day.
These people dont realize that local gangs (Hell Angels, Mafia, etc) launder far more money into real estate than corrupt chinese officials lol
Newbie
Feb 4, 2004
95 posts
62 upvotes
Applesmack wrote: Another common piece of racist rhetoric that Chinese are only successful because they are criminals. *. There are about as many Chinese criminals as there are white rapists and drug addicts in Vancouver.
Which means there are tons
Last edited by MrDisco on Dec 12th, 2019 12:36 pm, edited 1 time in total.
Reason: quote was edited
Deal Guru
Jun 26, 2011
13717 posts
3757 upvotes
GTA
Applesmack wrote: In many ways yes, but the policies of other countries are irrelevant. Canada is a nation of immigrants and needs to be open to all people.
Maybe I misread and missed something. I thought immigrants could still move here and buy property.
Deal Addict
Dec 23, 2010
1849 posts
910 upvotes
Moon
RolandCouch wrote: Maybe I misread and missed something. I thought immigrants could still move here and buy property.
Only after obtaining permanent residency. They are subject to tax until they are permanent residents and simply living in BC is not enough. There is no reason that should even be the case as well. As a country of immigrants anyone in the world should be able to purchase property in Canada and then move to the country later. More money in the country is better for all. Better for home owners (this is obvious), better for buyers (market is more stable and makes buyers feel secure in their investment), better for government (more tax money), better for business (a wealthier society is one that spends more in local business). Who is it bad for? The lazy and the worthless in our society. Those who simply refuse to work as hard as others and want the government to fix all their problems. Fact is if you can't afford Vancouver and you are a privileged Canadian there is no reason why you can't move to a cheaper city. But the privilege and entitlement among the lazy is so high that they can't even manage that. Canadians in Vancouver need to start checking their privilege (Literally! CHECK WHAT YOUR PRIVILEGE ALLOWS YOU TO DO!) and actually take advantage of the many opportunities available to them outside of Vancouver.
Deal Guru
Feb 29, 2008
13923 posts
10193 upvotes
E39M62 wrote: It's kind of funny. I'm ethnic Chinese, but was born in Vancouver over 40 years ago. My sister is also, of course, ethnic Chinese but she doesn't speak the language. But when she showed up at an open house, the "locals" just assumed she was bidding with overseas money. Funny thing is, like many of the white locals, she works a crappy office job that barely pays more than the city average. She stretched herself so thin to bid and purchase a SFH in Vancouver. Faced with the same FOMO, she bought more than she could realistically afford. Luckily she ate rice and beans for a few years before she got a couple of promotions at work. But to her neighbours, she is a symbol of the 'overseas money' problem. LOL. She's just as broke as the rest of them. I left Vancouver 20 years ago when it started to go crazy. Not just property values, but crazy in terms of the empty, vapid materialistic, real housewives instagram lifestyle that Vancouver has become. I don't miss it for a second. You couldn't pay me enough money to go back.

History is full of examples of what happens when the "local" population starts looking for a scapegoat
As I have said, this only became an issue when a certain racial group was impacted. I feel sorry for the Chinese Canadians who are just trying to make a living who get grouped with the "evil", "corrupt", foreign buyers.

Let BC implode.
Deal Guru
Feb 29, 2008
13923 posts
10193 upvotes
strike66 wrote: I should become a criminal and launder money to make it in this city, its all fair afterall
Why is this garbage allowed?
Member
User avatar
Oct 31, 2019
420 posts
540 upvotes
Why aren't hst exemptions on newbuilds below a certain price threshold ever discussed seriously? Housing is necessary for survival in Canadian winters so construction needs to be incentivized, especially with immigration levels at current levels..... obviously prices skyrocket when adult population growth exceeds housing stock growth. Basic food items (fruit and meat) are taxed at favourable rates - why not housing? I guess headlines like this takes little effort but placates the naive voters who think rich foreigners are the only reason for high prices.

Every coworker of mine whose family isn't well off enough to help them buy a home complains a lot about pricing regardless of race. I have a feeling that a lot of posters here who go on tirades about entitled Canadians are over the age of 40 and bought when entry level pricing was about a 3rd of what it is today in Toronto. Imagine starting university 5-7 years ago then watching entry level housing roughly double by the time you start working - wouldn't you be upset?
Sr. Member
Jun 28, 2018
857 posts
595 upvotes
Toronto
Low rates, central bank interventions, private equity/institutional buyers, green policies constraining land, speculators trying to jump on the monopoly game, foreign hot money, domestic and foreign money laundering, .... crooked realtors (2017) https://www.theglobeandmail.com/real-es ... e36224482/

List goes on.

I don't know if sellers really complained when prices were hot and they could unload onto someone else.
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:

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