This realtor points out that a percentage of Chinese buyers of Vancouver RE are speculators. We expect that, like local cash-flow negative speculators, these owners will end up selling into a falling market as the premise for buying (rising prices) disappears. This will add currently unquantifiable momentum to prices on the descent. -vreaa
Lily Korstanje, Magnum Projects, interviewed while promoting the ‘River Green’ development in Richmond, on Global TV 12 Jun 2010 -
“The way things are at the moment, I think we would be selling to around 50%, for sure, to the Mainland Chinese people. These Mainland Chinese people not only live in China a lot of them are stationed here [in Vancouver] already… Either they’re upgrading their homes, or they’re buying a second home, or buying for investment purposes.”
” These Mainland Chinese people not only live in China a lot of them are stationed here [in Vancouver] already… ”
The investor category gives CIC $400K interest-free loan for 5 years, that he recoups from our free education for his children, rebates for low-income family (property tax rebates- PST tax rebates) no fee medicare for wife + 2 kids + 2 sets of seniors from both spouses. The savings far exceed the 2.6% interest from a 5-year GIC with BMO.
The husband then leaves his entire family here and returns to China to carry on with his business there below the radar of ..
This subject has been done to death. Some guy whose 6-inch is warm and fuzzy at night thought this PC incorrect to discuss in English.
The editor of one Chinese newspaper who attacks Mr Harper at every opportunity in her blog is one other who supports this category of immigration, claiming that it is good for China – Canada relation. Her newspapers publishes weekly a thick issue of GV real estate for sale. Go figure.
All these stories of people buying investment properties kinda makes me smile. Since I am convinced prices cannot be sustained at these levels these buyers just add to the downward potential. When prices do falter they will likely try to get out before things get worse. Then the race to the bottom begins.
“The way things are at the moment, I think we would be selling to around 50%, for sure, to the Mainland Chinese people. These Mainland Chinese people not only live in China a lot of them are stationed here [in Vancouver] already… Either they’re upgrading their homes, or they’re buying a second home, or buying for investment purposes.”
How is buying a 1 bedroom condo for $550,000, upgrading? WTF???? This wreaks of speculation to me!!!
The Mainland Chinese angle reminds me of the dot com boom: “if we can capture a mere 1% of the market with our online pet food ordering business we’ll make BILLIONS!!!” Now it’s, “If we can get a mere 1% of Chinese millionaires to buy here we can keep Vancouver’s property inflated by BILLIONS forevahhh!!!”
Its the media’s last ditch effort to trick ignorant buyers with misinformation. Real estate fund the media!