Opinion – “This is what I hear: Vancouver house prices are determined in China. The house can become the main life investment.”

“This is what I hear: Vancouver house prices are determined in China. Vancouver houses can be bought right in China. Many, with even a bit of money or more, want one foot in China and one outside, and Vancouver is the main place. A new Chinese middle class is becoming prosperous, but the lower class has not. Only a redistribution of wealth to the lower class prevents violent revolutions, of which the west has gone to the extreme of redistribution. In China, many see that situation. Also, for children’s education opportunities. In China, without a good education, such as engineering, computer science, etc., life will most likely be poor. And that education is hard to get in China, but easy to access in Canada. More and more, the available university seats in China, are taken unfairly, by the ruling classes.” and
“In Canada, the mortgage interest is not tax deductible, but there is no capital gains tax when you sell your principal residence., and I prefer it that way. The house can become the main life investment. The city is behind in mass transit and efficient transportation, to and from areas farther from the city center, where more affordable housing could be built. To avoid 2-4 hours driving, living close to the city center is abnormally attractive, which is multi-family residence for most. It now takes two good incomes to rent, and the city’s skyline is mostly high rise condo and apartments. Compare to Calgary which is far ahead on mass transit and highways, allowing quick commute from far out in all directions, where one good income is ample to afford rent in the center, and where the skyline is dominated by office and business buildings. Some maintain the distortion in Vancouver was partly deliberate by socialist planners, to promote multi residence buildings as the norm, to benefit the environment.”
– two comments from Russell Turner at ‘Mish’s blog, ‘Global Economic Analysis’, 20 Nov 2011

3 responses to “Opinion – “This is what I hear: Vancouver house prices are determined in China. The house can become the main life investment.”

  1. Actually, mass transit in Vancouver is quite good for a city the size that it is. Compare it to Toronto, a massive city spread all over, with only 2.5 subway lines! You can hop on the SkyTrain in Surrey and be in Vancouver in no time. Yes, you’d have to catch a bus to get to UBC and that can get crowded but certainly no worse than Toronto.

    What the real problem with “far flung” regions in the GVRD is is that there is ZERO culture outside the bounds of Vancouver itself… maybe none East of Nanaimo St and South of the middle of Richmond. Unless you count Starbucks as a cultural mecca…

  2. The middle class in China can barely afford a small apartment there and a pay of RMB 8000/month is considered to be pretty good in Shanghai. RMB 8000 is less than $1500 CAD. I don’t think we need to worry about the middle class.

    Even a multi-millionaire can’t really afford a house in Vancouver West Side as most houses past Oak now costs over $2M+. No, you need to have a worth of at least $10M CAD and generate probably at least $500K CAD/year to have a house here with wife and kid and not be robbing Peter to pay Paul. There aren’t that many in China. So what if you only got $5M and want to leave or at least have one foot in west? Well you go to the good old US of A, assuming that not all of your money is dirty money like Lai Changxing.

  3. “It now takes two good incomes to rent”
    I don’t think so.

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