July 08, 2016

Here’s why that government report on BC's real estate crisis is deeply flawed

Christopher WilsonRebel Commentator

Yesterday the British Columbia government finally released a long awaited report on BC real estate. This report was supposed to ease fears that foreign buyers are pricing locals out of the market, and claimed that only 5 per cent of sales were by foreign buyers.

However, the data they relied on was only from a three week period. Hard to identify trends or causation when the sample size is so limited.

But that’s not even my biggest issue.

It says 95 per cent of buyers are “local,” but did you know that none of the 41,000 millionaire Chinese immigrants who settled here between 2006-2011 are considered “foreign buyers”? I'll explain why.

The report makes no mention of one of the largest loopholes in Canadian immigration, the Quebec Immigrant Investor Program. This allows millionaire investors to pay Quebec a whopping $800,000 to be granted immediate permanent residency in Canada. While conditions state they must settle in Quebec, the majority end up here in Vancouver. Quebec gets the cash, we get the person.

You will have to forgive this free market enthusiast for feeling awfully protectionist on this issue. The market isn’t truly free when we allow foreigners to literally buy permanent residency in Canada through the Quebec Investor Immigrant Program, and bring with them heaps of cash of unknown origin.

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commented 2016-07-10 02:27:42 -0400
While there has been more immigrants from the mainland in recent years, it was the Chinese from Hong Kong who started the trend of moving to the nice areas of Vancouver.

More importantly, I really wish Chris did not jump on the rebel staff band wagon of having an ethnic community to scapegoat.

Ezra hates the Gypsies.
Faith hates the Muslims.
Tiffany hates the Palestinians.
And now Chris hates the Chinese.

At this rate, it won’t be long before Chris starts asking us to sign a petition to stop the Chinese from coming over and buying land.
commented 2016-07-09 13:16:23 -0400
Uh, these new immigrants are not from Hong Kong. It is not the 1980’s and the majority of new foreign buyers are from mainland China.
commented 2016-07-09 04:19:15 -0400
Real Estate Board showed that 3% of the purchases were foreign. That was last year. In April, 2016 CMHC said foreigners buy 5% of the apartments in Vancouver. Now the Provincial Government presents a study showing that 5% of the home purchases were foreign. Doesn’t that look like the same numbers cited by the Real Estate Board and CMHC? Statistics Canada said foreigners pay an average of $1.37 Mio/home versus $ 1.43 Mio paid by local Canadians. Again, this contradicts the myth about foreigners paying more than locals for homes. Frankly, it doesn’t matter how many studies show foreigners are not the major cause of higher real estate prices. The media, and leftists want to demonize foreign buyers. That’s scapegoating.

Vancouver real estate is pricey for three reasons. First, Vancouver is a desirable place. People come to Vancouver, like what they see, and buy houses. Second, the City of Vancouver imposes exorbitant development fees, averaging $500k/unit. (These stratospheric fees are detailed in Business Vancouver, June/15). Third, the City of Vancouver is glacially slow in approving new projects. That, in turn, creates a chronic shortage of housing, fueling higher and higher prices.

Here’s the reality: Vancouver will continue to attract foreign buyers. Nevertheless, we can increase the supply by streamlining the project approval process. Moreover, we must moderate the huge development fees, collected by the City. This means changing our municipal government, rather than ostracizing foreign buyers.
commented 2016-07-09 03:47:38 -0400
“Not a chance in Hell” indeed…. You have to b very “simple” living in the Lower Mainland not to recognize what’s going on… Any time that the Sun or Province do dare to tackle “the elephant in the room” they quickly come up with those “funny” stories about “poor students and their moms” owning multi-million dollar homes in Richmond, and claiming tax breaks for their “low incomes”… A note to Anonymous – of course they are “smart business people”… Indeed “smart”, but how about “honest” or “contributing to Canadian society”?…
commented 2016-07-09 01:44:46 -0400
The problem I have with this video, is that Chris makes the assumption that the rich Chinese are some kind of corrupt cronies. If he actually took the time to be informed, then he would know that these immigrants are mostly from the Hong Kong area, which is the most free market place in the world. The people that came over are likely just smart business people, which is how they got their wealth.

There is nothing wrong with what these chinese immigrants are doing. It is no different than a Canadian owning a home in another country. You still have to pay taxes on these homes.

Chris is starting to sound like a jealous leftist. No room for this on the rebel.
commented 2016-07-09 00:31:20 -0400
You are correct Christopher; only a fool would ever believe in such rubbish report.
The long time residents of lower mainland knows the reality, how our neighbourhoods have been changed forever. Nueavo riche chinese kids flaunting their dad’s wealth in 200k Lamborghini, Maserati & Bentley from multimillion dollar homes.
Most of the single family detached homes are sold above the asking price and bidding on these houses by chinese buyers has become common.
Many a chinese businessmen who bought these multimillion homes are not actually living or contributing anything (economically or socially) to Canada. They leave their wife, children & elderly parents here and go back to china to take care of their lucrative jobs or businesses and girl friends/second wife. Their children gets free education while parents receive pension & whole family receives free medical care without paying a dime into our economy. One would think our politicians doesn’t knows all this?? They do, but they’ve been bought by the strong land developer lobby so won’t say anything which would upset their multicultural agenda & high paying jobs.
The sense of Canadian society, heritage & values are dead what is left is a hotchpotch of multicultural society build on pompous & greed.
I don’t blame chinese or east indians or filipinos or mohammedans for this disarray as it was created by our politicians whom we elected & let them create this mess.
commented 2016-07-09 00:04:51 -0400
“Leaving out half the facts” is standard Lefty modus operandi. They do it ALL the time, starting with the MSM!!
commented 2016-07-08 21:23:34 -0400
Good report. I don’t think there has been any tracking mechanism for collecting the pertinent data. However, the flipping stats are very good (online interactive report generating) … it goes as far back as the 1970’s and can be filtered by area and time duration between flips ie <1 month, 3 months, 6 months… up to 5 years.
Since home prices are determined by supply and demand, it’s not surprising that the best city of the best country has outrageous home prices.. Justin and (God forbid) BC’s NDP in 2017, will turn this around the best that they can.
commented 2016-07-08 20:59:58 -0400
ah…you didn’t know about the rich Chinese problem…hehe.
yup…if you want to rent or buy a place in white rock, you’ll probably have to pay acuuna’s GF for it. they are a lot better at exploiting workers for monetary gain than we are.
commented 2016-07-08 20:34:53 -0400
Hell is the chance the liberals are taking
commented 2016-07-08 20:12:49 -0400
Unless I’m mistaken, that same program is how Mohammed Shafia brought his family to Canada. So now, four of them are murdered, three in prison, and the remaining children – - – who knows? Certainly not paying taxes.
commented 2016-07-08 19:47:23 -0400
Quebec on the take -- too funny
Quebec selling sovereignty of other provinces -— too funny


Bc and Quebec at each end blocking approved pipelines -— too funny