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.

vancouverrich

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/

 

 

7 thoughts on “Affordability crisis? What affordability crisis? How the BC government fanned the flames of #Vanre

  1. Pingback: Things that make you go… “Hmmm”, #Vanre edition – Laila Yuile on people, politics and life in B.C.

  2. Hawgwash

    Too bad the government couldn’t grab some of that money, establish a prosperity fund and pay off the debt.

    Doesn’t it seem odd that Housing Minister Coleman is MIA on this file?
    He doesn’t usually miss an opportunity to demonstrate his IQ.

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    1. Laila Yuile

      The net proceeds from those Panda Bonds should be reinvested right back into paying for BC services, not the provinces investment office in China. That would be a good start.

      Like

  3. e.a.f.

    speaking of affordability, looks like the federal Liberals had an “affordability crisis” and sent el gordo packing. On the CBC news this morning. Wonder how the province is going to look with him and Christy and her cabal both in residence?

    Wonder if he’ll set up a lobbying group, start selling real estate in China, get a nice job with the provincial government. Its the least Christy could do for el gordo. She gave Gordon Wilson a nice job. Certainly she could do no less for el gordo?

    This morning’s Vancouver Sun has an interesting article about how it would appear money gets from China to Vancouver. It isn’t the intent of the article. its about how some one in China lent 2 people in Vancouver $10M to be repaid, not in China, but in B.C. Now the ones who received the money aren’t too inclined to “pay it back”. The ones who received the $10M own 10 properties in the GVRD, 3 of them highly desirable vacant lots.

    The article makes it pretty clear that whatever Christy brings into law, along with Mayor moonbeam nothing is going to work short of a ban on ownership of more than one property by non Canadian citizens and making it harder for people to become Canadian citizens, i.e length of time living in the country and restricting that one property to a condo. If very strict measures are not taken we Canadians will not own our own country and will find we have more and more homeless and we won’t even be able to live in a provincial campsite. No wonder the homeless prefer to use court house lawns.

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  4. zalm

    It’s funny how the BC public pension plans, formerly an irritant that the government couldn’t wait to disparage in the last couple of campaigns is now a selling point to Asian investors. Yet deJong still won’t sign the CPP deal. Mealy-mouthed doesn’t even BEGIN to describe the man.

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  5. Pingback: Millionaires, money and political influence in BC: What you should be reading this week. – Laila Yuile on people, politics and life in B.C.

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