Affordability crisis? What affordability crisis? How the BC government fanned the flames of #Vanre
I’ll admit that when this came across my desk, I mused that one could resurrect that old series Lifestyle of the Rich and Famous, and shoot the entire thing in Vancouver…
It’s terribly hard being wealthy.
That’s why luxury real estate consultancy Knight Frank created a little report for their global clients called the Global Lifestyle Review: A comparison of favourable tax locations and lifestyle factors. The report is basically intended for the super rich shopping around for a new country to live in. It not only lists locations with favourable tax regimes for new residents- Canada is listed as a favourable country that offers tax breaks for new residents to their country on passive income and capital gains, or on pensions and/or income from employment- but compares other critical items like the cost of a bottle of premium champagne and the number of Michelin starred restaurants…
Not surprisingly, Vancouver made the cut. The graphic shows the increase in real estate prices up to December 2015,the cost of gas,hours of sunshine,cost of a cup of cappuccino and yes… the price of a premium bottle of champagne. Couple that with the favourable tax conditions, it’s no wonder the rich are flocking here.
But that’s not all.
Consider this Investor Presentation that Mike De Jong flogged on his investment tour earlier this spring, during the height of some really crazy real estate activity happening all over Metro Vancouver. ( we’ll be expanding on this document next week). Scroll through to see that it even includes MLS home sales activity and Canadian mortgage rules in the appendix!
Now. Think about the stories in the post I did last night. https://lailayuile.com/2016/07/16/things-that-make-you-go-hmmm-vanre-edition/ Some great work from the Van Sun on the Quebec cash for visa program. This is all,very much connected.
Keep in mind that for over a year, Clark has been saying that she would not support a luxury tax, or any kind of taxation on foreign investment or even absentee owners. The flip only came when outrage grew to such a point that she could no longer ignore it, so they must at the very least, give the appearance of doing something by giving Robertson what he asked for. And by doing so, she has someone to point a finger when investors complain.
This government has never had any intent to deal with this.There are dark issues here and they refuse to look at the stories of money laundering, of sketchy cash purchases. They’ve been busy fanning the flames abroad and across North America by promoting this insanity and hoping it wouldn’t catch up with them.
But it has, and how…..it’s going to be one interesting summer session in the legislature. And we’ll be sure to refresh the memories of those who miss it while on vacation, in the fall.
** If you haven’t, have a look at the first post on this, here: https://lailayuile.com/2016/07/16/things-that-make-you-go-hmmm-vanre-edition/