Sunday, June 9, 2013

It is not about Race...

There was an article in the Globe and Mail stating the obvious...that local incomes can in no way support our prices. In the comments section people have stated the second obvious point, that Mainland Chinese money coming here has distorted things.

Of course they could have also mentioned the two pillars of our under-ground, untaxed economy....drugs and construction.

Others have reacted to this anti-outside-investor mood and even arranged a talk tomorrow to address this.

Here's my two cents:

IT IS NOT ABOUT RACE.

Canadian is not a Race. It is a collection of races. The first people on this land were brown-skinned, then came whites and then yellows and then more brown, and they are all co-existing and mixing very nicely (after some early hiccups!)

To be Canadian is not have blue eyes or to be able to speak Salish, it is to have a commitment to this country.

That means an understanding that your responsibilities and obligations to this society should be at least as much as your expectations and entitlements. Many who have been born here forget that. 

However when we allow someone to bring big wads of un-taxed money here to buy an investment or financial sanctuary, we are doing several things:

1) We are helping force the locals, who are working and paying taxes, and running this society into either a precarious housing situation or a precarious financial situation to obtain secure housing.

The truth is that taxed money can never compete with untaxed and often corruptly obtain money. That money can come from anywhere. It has no racial ties. It can come from South America, China, the Middle East , Russia or India. ie it can accompany any race. All it does is cause a temporary rise in Realtors and Mercedes car salespeople commissions and bring in a chunk of property transfer tax, which is why Governments can never say 'enough'.

2) The result is that the local, taxed population who may be of Chinese or Indian or European extraction are putting themselves in deeper debt to compete with this hot money. This leads to increased risk for lenders, which in Canada the banking cartel has nicely downloaded onto the CMHC. The denouement of this could be very painful.

As you can see it not racial at all. IMVHO Conrad Black, who turned his back on Canada and is a convicted criminal, should never have been allowed back into Canada. Why this government decided they had to, remains a mystery to most of us.

3) Also by allowing huge chunks of capital to escape China, for example, and come here we are not only doing ourselves a dis-service, but the 1 Billion Chinese who still live on about a dollar a day.

We are not playing on a level field, we have properties left empty for investment purposes, we have the CMHC pushed to the edge by the bubble, and yet I doubt if there is anything that anyone will do about it. By the time our politicians hear the clamour over the calls of the special interest groups, it will be too late.

I want to end this post by saying once again, this off-shore buying is just ONE of the reasons for our bubble. Thank Flaherty for the CMHC monster. Thank Carney for 1% interest rates. It needed all three of these components to have the lunacy we have now.

There is much blame to go around.

21 comments:

  1. I agree. The HOT money could be in the pocket of a Russian or Chinese official or South American buyer. The problem is letting non-residents buy property so easily. Something which China and Switzerland and many other countries will not allow.

    ReplyDelete
    Replies
    1. See...it is not non-residents. It is a class of immigrants that are declared "resident", and income earner is never here and are apparently tax exempt because CRA never goes after them.

      Delete
  2. We're not allowing money to flow out of China. The Communist Party is despite their protestations and limits. If they own trillions in US debt and the US devalues their currency, I think they know it's better to own every house near the water in Vancouver, every apartment in the siexieme arrondissement of Paris and every unit on the Upper West and East side. So how to make this stop, I don't know.

    ReplyDelete
  3. Well said. Thank you.

    ReplyDelete
  4. I think maybe there is Hot money pushing up prices in certain areas, but I truly believe that the areas it does reach are places that were out of reach to the average citizen, even before this run up. I bought a house in 2005 and struggled to get a mortage for 275k. Around a month after I sold in 2009, I went into see my mortgage broker and now I was approved for more than double that. I'm maybe making 10 to 15% more than I was in 05 but not even close to double. Clearly easy lending due to CMHC and low interest rates have made most or all feel richer and able to start bidding wars and push prices out of economic fundamentals.

    ReplyDelete

  5. 387 new
    326 price change
    216 sold

    7714 detached
    9332 attached

    ReplyDelete
  6. 411 new
    249 price change
    236 sold

    7765 detached
    9342 attached.

    ReplyDelete
  7. Interesting Realtor note on a listing. MLS # V1012089

    "A very well priced piece of prime real estate not often available and located on a generous 60 x 132 lot on the SE corner of paradise. So many people will in years to come regret not making the effort to purchase this home, it honestly does not get any better for the builder or empty nester."

    ReplyDelete
  8. Hey fish

    How is fv doing?

    ReplyDelete
    Replies
    1. I haven't looked beyond the MAy numbers that I covered on a previous post. To be honest I have given up looking at the day to day numbers due to time constraints and boredom.

      When it comes, the correction will be unmistakable and then I may get a little more motivated. At present it is like watching a big boulder waiting to roll down the hill. It is so big and so many people have tried to keep it up there that many have given up hope, but really it just needs a small push to roll down.

      Delete
  9. Interest rates are moving up and yet some cannot hold back and see what happens to real estate - they just HAVE to buy

    401 new
    232 price change
    258 sold

    7780 detached
    9361 attached

    ReplyDelete
  10. My budget is 10 - 15 lacs. I want to buy a commertial shop. Can you please suggest me the location. Also please suggest me other option for an investment in my budget.

    ReplyDelete
  11. Nice...


    449 new
    282 price change
    188 sold
    7821 detached
    9386 attached

    ReplyDelete
  12. Totally and wholeheartedly agree with your post. I am an immigrant who made Vancouver home 20 years ago. Currently don't own anything. Came here to live, it is the last stop. Wanted to integrate, and paid taxes in full. This wave of filthy rich immigrants are like heroin for Vancouver's economy. Living in Vancouver West side, I can attest to their effect. They suck the life out of the neighbourhood.

    Canadians are just too nice for their own sake. My kid's school has a translator for all official school gatherings, while maybe 2 guys from HAM camp show up for the meeting in a gym full of people, and we have to listen to 20 minutes of translated speech.

    I encourage all Canadians of all races to be more assertive about their identity, and what they want out of their lives (remember you only live once). This especially applies to Vancouverites since we have far less history out here in the west than the rest of Canada. This situation is brought upon us by our government at all levels. They think HAM is going to renovate the city at the expense of every hard working Vancouverite, who on average earns $41,000 (got to be joking!), not to be able to own a place in a land that is mostly empty (BC is twice the size of France).

    If this had happened in anywhere else in the world people would be up in arms demanding legislative changes. Although, there are some in this neck of the woods who think property prices will Never fall. Maybe it was justified in 80s, with the World Expo, for the province to have a policy focused on land development. Not anymore I guess. This is becomming rediculous for anyone who really wants to be from here.

    ReplyDelete
  13. very nice your post.
    Thanks for share information.
    Victory Group has a world level housing project in Noida Sector 143.
    Victory Ace Sector 143 Noida


    ReplyDelete
  14. Top Ten Classified Website List, Pakistani Classified Sites, USA Classifieds, Indian Classifieds, Entertainment Articles, Entertainment News, Entertainment Pictures, Bollywood, Hollywood and Lollywood Pictures and Videos, Entertainment Latest updates, Hot Entertainment News and Pictures Funny Entertainment Pictures, lol Pictures, Funny Pictures and every thing you want...
    www.hotcurrentaffairs.com

    ReplyDelete
  15. Top Ten Classified Website List, Pakistani Classified Sites, USA Classifieds, Indian Classifieds, Entertainment Articles, Entertainment News, Entertainment Pictures, Bollywood, Hollywood and Lollywood Pictures and Videos, Entertainment Latest updates, Hot Entertainment News and Pictures Funny Entertainment Pictures, lol Pictures, Funny Pictures and every thing you want...
    www.hotcurrentaffairs.com

    ReplyDelete
  16. Classified Sites, Pakistani Classified Sites, USA Classifieds, Indian Classifieds, Entertainment Articles, Entertainment News, Entertainment Pictures, Bollywood, Hollywood and Lollywood Pictures and Videos, Entertainment Latest updates, Hot Entertainment News and Pictures Funny Entertainment Pictures, lol Pictures, Funny Pictures and Much More Fun Only on 1 Current Affairs Network
    hotcurrentaffairs.com

    ReplyDelete
  17. Make Money Online is very easy now, In Internet system we have now best earning system without any work, Just Invest some Money into your Business and Make Perfect Life time Earnings with this Business.
    Join Now for Make Perfect Business and Earn Money online from home.
    www.hotfxearnings.com

    ReplyDelete
  18. Latest cars and vehicles, Latest Mazda Models, Racing Cars, International Sport Cars, Concept Cars, PS-Pod, Strange Vehicles, Nissan, Royce Corniche, Ford Concept Cars, Strange Vehicles, Mercedes and More Sport Cars and Vehicles with Pictures and Info
    WorldLatestVehicles.blogspot.com

    ReplyDelete
  19. Want to Make Website or Software...? Any Type of Website and Software and Desktop and Web Based Applications.
    Want to Make Now, Just Contact us at Skype
    Skype : Jobz.Corner

    ReplyDelete