How are rich Chinese people making Vancouver unaffordable to live in

How are rich Chinese people making Vancouver unaffordable to live in

While other answers have stated the issue of rich immigrants and astronaut fathers, I would like to point that such phenomenal has been happening since 1990s with the HK immigration waves.Many Vancouverites complaint about those HK immigrants, their flashy & excess display of wealth, their rudeness and lack of Canadians cultures back then as well.Granted, the real estate situation has worsened since 2008 due to a flood of foreign money from Asia through immigration, and foreign students from China, helped in a huge part by the real estate boom / bubble in China, an appreciating housing market in Vancouver, a bubble mentality among Vancouverites themselves.

and zero interest rate policy.While Vancouverites think their city is the 3rd most expensive city in the world, it is actually not.The often cited Demographia survey of the world only included about 20 countries, which excludes mainland China.

If mainland China is included then Vancouver would be far far far down the list.While Vancouverites like to blame the foreign corrupt money flowing into its real estate market, the sad fact is that the vast majority of foreign money from China isn’t corrupt.It is simply money from the far larger China real estate bubble moving into the tiny Vancouver market.

As well, Vancouver being a popular, if not the most popular place for Chinese immigrants, it attracts a good portion of the 1% in China, which in absolute numbers and wealth far outweighs the local 1%.Many local people has caught the real estate fever thinking the never ending Chinese money will push the real estate prices higher forever.They have been leveraging themselves to the hilt buying condos / townhouses, etc.

It’s not uncommon to meet local people who are born and bred in Canada have multiple investment condos.Lastly, the local governments have been completely bought by the real estate development industry.Major civic municipal parties have 50%+ to even 75%+ of their campaign donation coming from real estate industry.

Our last premier Christy Clark often has 50% of her campaign donation coming from real estate industry.Therefore, development policies are geared towards profit maximization of developers, not towards actually developing a sustainable and livable city.Off course, for those who didn’t cash in are for a lack of better word jealous, and blaming foreigners is an easy and quick explanation of why the city is so un-affordable and ruined.

The real culprits are really government policies, zero interest rate policy, government bribery (aka.

The question is how are wealthy Chines making life unaffordable in Vancouver .The answer is that the city is awash in money not earned or directly taxed in this economy.The laws of supply and demand mean that there is a high demand for goods and services, particularly real estate, in this City.

People working and living and paying taxes here are pushed out by the ever rising costs.In a normal economy, prices could not continue to rise where wages did not remotely keep pace with price increases for goods and services.As long as untaxed foreign money keeps flooding in however, prices will continue to soar.

A second factor are astronaut fathers who park their money in real estate here along with a wife and a few children to be schooled and medically cared for at local taxpayer expense, while living, working and paying taxes elsewhere.Now others have answered” Who is to blame for this?” The answer of course is various levels of our government are responsible because they either quietly support it or turn a blind eye to it.

If you are referring to the phenomenom of rich Chinese entering realestate market and increasing the demand for private properties, I do not think that they are the ones to blame.Rich Chinese are simple the end-consumers in this market.They do not control it.

This is the thing about the wonderous free market: the price increases with the demand until somebody caps it.The only guilt of rich Chinese is that they have earned enough money to match any ridiculous price offered by the developer.The ultimate responsibility of regulating the market is with the government.

The simple answer is, in significantly raising the purchase cost of property prices.A welcomed bonanza if you already own property.A disaster you if you don’t and you want to buy.