When do you think the Vancouver housing bubble will explode and come crashing down ?

[inane]

Even if they go back to what they were a year ago, it's still a hell of a lot more than what's reasonable...

[Rush17]

This whole housing stuff is nutty.  Guess that's what you pay be on the coast these days.  

[taxi]

http://www.theglobeandmail.com/real-estate/the-market/chinas-citic-bank-tries-to-seize-real-estate-assets-in-canada/article30637786/

 

Quote

China CITIC Bank Corp Ltd has launched a Canadian lawsuit to try to seize the assets of a Chinese citizen the bank claims took out a multimillion-dollar loan in China then fled to Canada, the lender’s Vancouver-based lawyer said on Monday.

The bank is looking to seize numerous Vancouver-area homes, valued at some $7.3-million, along with other assets, according to the lawsuit, which was filed in the Supreme Court of British Columbia in Vancouver on Friday.

The defendant, Shibiao Yan, owns three multimillion-dollar properties in a Vancouver suburb and lives in a $3-million Vancouver home owned by his wife, according to court documents.

 

 

The beginning of the end? The Chinese government is going after the money. Apparently this guy took out a $10,000,000 loan, fled the country with it, and put it all into Vancouver Real Estate.

[tbone909]

On 7/17/2016 at 9:41 AM, Rush17 said:

This whole housing stuff is nutty.  Guess that's what you pay be on the coast these days.  

Only on the left coast are they nutty. The Atlantic region is filled with homes for dirt cheap. The only problem is trying to find a job that is full time.

[Rush17]

2 hours ago, taxi said:

http://www.theglobeandmail.com/real-estate/the-market/chinas-citic-bank-tries-to-seize-real-estate-assets-in-canada/article30637786/

 

 

 

The beginning of the end? The Chinese government is going after the money. Apparently this guy took out a $10,000,000 loan, fled the country with it, and put it all into Vancouver Real Estate.

Straight up gangster lol. 

[taxi]

15 hours ago, tbone909 said:

Only on the left coast are they nutty. The Atlantic region is filled with homes for dirt cheap. The only problem is trying to find a job that is full time.

Toronto isn't any better than Vancouver. NYC is getting out of control too. 

[mpt]

On July 21, 2016 at 9:59 AM, taxi said:

Toronto isn't any better than Vancouver. NYC is getting out of control too. 

As long as rich people want to live in these cities, prices will be high.  There might be a correction but it will be slight and never "crash" per se.  This isn't like Calgary where people only go there for high jobs due to the richness of oil.

[Realtor Rod]

A client of mine is in China right now. She said there are Vancouver real Estate bull boards everywhere in China right now.

[Warhippy]

14 minutes ago, Realtor Rod said:

A client of mine is in China right now. She said there are Vancouver real Estate bull boards everywhere in China right now.

I shoot digital walk throughs for 3 companies/agencies in vancouver that are never marketed in Canada.

 

They send my files over for print and market them out of Beijing and Hong Kong.

 

This is not news as a lot of people have watched the line ups during sale days for new condos and miss the fact that the people in line for purchase(s) are either agents or stand ins for the real owners.

 

It's actually amusing when it all comes down to it knowing just how much money is really involved from over seas vs what the government swears is going on

[SaintPatrick33]

On 7/20/2016 at 6:36 PM, tbone909 said:

Only on the left coast are they nutty. The Atlantic region is filled with homes for dirt cheap. The only problem is trying to find a job that is full time.

On 7/21/2016 at 9:59 AM, taxi said:

Toronto isn't any better than Vancouver. NYC is getting out of control too. 

 

 

You do realize  that the "Atlantic region" is places like Nova Scotia PEI etc.....Canada really does extend past Toronto bud

[taxi]

1 hour ago, SaintPatrick33 said:

 

 

You do realize  that the "Atlantic region" is places like Nova Scotia PEI etc.....Canada really does extend past Toronto bud

If he was referring to Atlantic Canada sure. Toronto was a bad example I'll admit. NYC is definitely in the Atlantic though.

[taxi]

On ‎2016‎-‎07‎-‎23 at 11:48 AM, mpt said:

As long as rich people want to live in these cities, prices will be high.  There might be a correction but it will be slight and never "crash" per se.  This isn't like Calgary where people only go there for high jobs due to the richness of oil.

The issue is how many of these rich people are actually living here?

 

If it's just an investment, they can pull the investment out and put it elsewhere much easier than if they were living here. People underestimate how even a 5% sell off of houses would affect the market. To say Vancouver could "never" have a housing crash is just false. You could say that people on go to Calgary due to the price of oil, but realistically less than 10% of the population there is transitory. What happens in Vancouver when 20% of the people who were buying homes here for investment purposes are now selling those homes.

 

The current climate in Vancouver definitely has the potential for a downward spiral at any time. Right now investors see a graph that shows huge year over year returns. When the graphs start to show a slow down or a dip, you could easily see a situation where one investor after the other pulls their money out.

[mpt]

6 hours ago, taxi said:

The issue is how many of these rich people are actually living here?

 

If it's just an investment, they can pull the investment out and put it elsewhere much easier than if they were living here. People underestimate how even a 5% sell off of houses would affect the market. To say Vancouver could "never" have a housing crash is just false. You could say that people on go to Calgary due to the price of oil, but realistically less than 10% of the population there is transitory. What happens in Vancouver when 20% of the people who were buying homes here for investment purposes are now selling those homes.

 

The current climate in Vancouver definitely has the potential for a downward spiral at any time. Right now investors see a graph that shows huge year over year returns. When the graphs start to show a slow down or a dip, you could easily see a situation where one investor after the other pulls their money out.

Like NYC and Toronto, as long as people want to live in Vancouver the markets will stay strong.  Even in 2008, NYC didn't see major crashes when other cities did.  Empty houses from foreign investment doesn't make up 20% of the real estate market in Vancouver.  You can dream that it's going to come down, but it's not going to come down a lot.

 

It will have to be a perfect storm for Vancouver to crash.  Foreign investments pull out, bank of Canada increases prime lending rates significantly, and BC's economy tanks putting many BC'ers out of work.  If all 3 happen then yes we would likely see a major correction, but it's unlikely.

[Realtor Rod]

25 minutes ago, mpt said:

Like NYC and Toronto, as long as people want to live in Vancouver the markets will stay strong.  Even in 2008, NYC didn't see major crashes when other cities did.  Empty houses from foreign investment doesn't make up 20% of the real estate market in Vancouver.  You can dream that it's going to come down, but it's not going to come down a lot.

 

It will have to be a perfect storm for Vancouver to crash.  Foreign investments pull out, bank of Canada increases prime lending rates significantly, and BC's economy tanks putting many BC'ers out of work.  If all 3 happen then yes we would likely see a major correction, but it's unlikely.

Sales have cooled, as they tend to do in the summer months. Prices remain high. Avg time on market stretched from 6 days to 11 days in the last 2 months. I agree with much of your post. It will  take quite a bit to completely cool of lower mainland real estate.

[taxi]

13 hours ago, mpt said:

Like NYC and Toronto, as long as people want to live in Vancouver the markets will stay strong.  Even in 2008, NYC didn't see major crashes when other cities did.  Empty houses from foreign investment doesn't make up 20% of the real estate market in Vancouver.  You can dream that it's going to come down, but it's not going to come down a lot.

 

It will have to be a perfect storm for Vancouver to crash.  Foreign investments pull out, bank of Canada increases prime lending rates significantly, and BC's economy tanks putting many BC'ers out of work.  If all 3 happen then yes we would likely see a major correction, but it's unlikely.

Not true. NYC metro area housing prices fell over 30%. Adjusted for inflation that's an even bigger number. Yes, prices in more desirable areas didn't fall as much as the rest. But that also means that if prices were down 30% overall, and the most desirable areas didn't fall much, then the least desirable areas fell by even more than 30%.

 

For Vancouver that might mean that ultra-desirable areas like Kits and Yaletown might now see much of a fall, but areas like Burnaby, East Van, Coquitlam, Surrey, etc... would be even more vulnerable.

 

Once again, I don't think you'll ever see rock bottom prices. But if you just bought a house in Burnaby for 1.5 and a few months later it's only worth 1 mil, that's a bit of an issue. 

[taxi]

BC introduces 15% transfer tax for foreign buyers:

 

http://www.news1130.com/2016/07/25/bc-brings-in-15-property-tax-for-foreign-buyers/

 

Pretty substantial but could be difficult to enforce.

[Warhippy]

41 minutes ago, taxi said:

BC introduces 15% transfer tax for foreign buyers:

 

http://www.news1130.com/2016/07/25/bc-brings-in-15-property-tax-for-foreign-buyers/

 

Pretty substantial but could be difficult to enforce.

Read the framework 

 

Students.  Existing family members.  Resident caretakers and homemakers will be exempt.

 

Hey Ling Ling sign here so I can avoid the tax k.  You only need to be 10% owner

 

It's for show imo because the loopholes are so big you could shoved Clarks ego piggybacking Trump's self involvement through it with room to spare

[taxi]

13 minutes ago, Warhippy said:

Read the framework 

 

Students.  Existing family members.  Resident caretakers and homemakers will be exempt.

 

Hey Ling Ling sign here so I can avoid the tax k.  You only need to be 10% owner

 

It's for show imo because the loopholes are so big you could shoved Clarks ego piggybacking Trump's self involvement through it with room to spare

Link?

http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

 

http://www2.gov.bc.ca/assets/gov/taxes/property-taxes/property-transfer-tax/forms-publications/is-006-additional-property-transfer-tax-foreign-entities-vancouver.pdf

 

From what I'm reading the tax applies to all foreign nationals, which is defined as:

 

A person who is not a Canadian citizen or permanent resident of Canada, including a stateless person.

 

Students do not qualify as permanent residents. I don't see a single thing about residents or caretakers being exempt. 

 

Quote

Anti-avoidance provisions exist and will be enforced to ensure all foreign entities report and pay the additional tax as required, including examining circumstances where Canadians hold property in trust for a foreign entity or are trustees where a beneficiary may be a foreign entity.

 

Failure to pay the additional tax as required or purposely completing the general or additional property transfer tax return with incorrect or misleading information may result in a penalty of the unpaid tax plus interest and a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison. The penalties apply to anyone who participates in tax avoidance.

This also means merely putting the property in someone else's name is not enough. We'll see how aggressively they pursue this.

 

[Warhippy]

51 minutes ago, taxi said:

Link?

http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

 

http://www2.gov.bc.ca/assets/gov/taxes/property-taxes/property-transfer-tax/forms-publications/is-006-additional-property-transfer-tax-foreign-entities-vancouver.pdf

 

From what I'm reading the tax applies to all foreign nationals, which is defined as:

 

A person who is not a Canadian citizen or permanent resident of Canada, including a stateless person.

 

Students do not qualify as permanent residents. I don't see a single thing about residents or caretakers being exempt. 

 

This also means merely putting the property in someone else's name is not enough. We'll see how aggressively they pursue this.

 

You have to be deluded to think there won't be major MAJOR loopholes involved because strip away real estate and the only thing propping up the Vancouver economy is the ports.

[Dion Phaneuf]

You don't need any real estate knowledge or connections within the larger circle to know that this tax is extremely easy to bypass.  Tons of loopholes, no need to be creative either.  

 

On certain purchases, paying the tax will only slightly make a dent in your profits.