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> Yan says there may be some solution—a mix of remedies, new laws, purpose-built rental housing, tax adjustments and so on—that does not mean a collapse in Metr
by gerbilly 8y ago
> Yan says there may be some solution—a mix of remedies, new laws, purpose-built rental housing, tax adjustments and so on—that does not mean a collapse in Metro Vancouver’s real estate prices.
There never will be a solution because no one will vote for a government that will bring down the value of their home.
- arcturus17 8y agoWell, unless you exclude most voters from home ownership...
- cheez 8y agoNever thought of it this way
- ArchD 8y agoI never understood the point of having a 'high-value' home that you can't sell anyway because you need a place to live. Sure, you can say you can move somewhere cheaper and pocket the difference. The problem is that until you actually do that, the cost of living will likely follow the property price increase and hurt your wallet. Unless most of the homeowners own more than one property.
- vpribish 8y agohome prices have appreciated far faster than the cost of living during most of people's lives.
- pascalxus 8y agodon't expect this to continue. In the very very long term, price appreciation of housing will always match inflation.
- mistermann 8y agoIn the long run, and in the aggregate (planet earth), but in a globalized world with capital from external economies (China) flowing into specific, highly desirable local economies, this old rule of thumb doesn't rule hold up anymore.
- sgt101 8y agoIn aggregate you might be right, but the issue is that people want to live in specific places and are willing to spend their disposable income to get what they want. As more and more people cross the threshold of absolute poverty more and more money is chasing the same physical assets. Housing is not a commodity asset.
- Bekwnn 8y agoI know a few people who have bought condos here recently; they just want to live here. While I'm sure most of the market is investment based, there is also a decent chunk of people who just want to live here, even if a lot of them are priced out of the market at the moment. I'm curious what the %s are.
- AdamM12 8y agoHome equity line of credit (HELOC) rates are cheaper than credit cards so can finance large purchases w/ the equity in your home.
- izend 8y agoThe Vancouver voters elected the NDP government in the last election who have brought in a Vacant Home Tax, a Foreign Speculator Tax and a School Tax on homes over $3 million. And hopefully they will investigate the money laundering through the casinos. Finally, Vancouver home prices are down over 15% in the over $2 million category. There are several buyers who have lost money on properties purchased in 2016 which was the peak of the market.
- jdavis703 8y agoI’m guessing most folks in Vancouver aren’t millionaires though, so as long as the policy only impacts millionaires it may not be as politically unpalatable as deliberately crashing home values for everyone.
- yazaddaruvala 8y agoSurprisingly a large percentage of families in Vancouver are millionaires. But it’s all from real estate appreciating.