“The older guests at the table decried the run-up in prices that makes it almost impossible for their children to buy on the West Side, while the kids looked to their parents as the lender of first resort to help them get into the market.”

“Recent conversation around the Kitsilano dinner table turned to — as it almost always seems to do — real estate and the role of foreign buyers in Vancouver.
The older guests decried the run-up in prices that makes it almost impossible for their children to buy on the West Side, while the kids (also at the table), looked to their parents as the lender of first resort to help them get into the market.”

– Peter Mitham in his article ‘Can We Combat Uncontrolled Offshore Ownership?’, Business in Vancouver, 23 Mar 2012

Prices reached heights over the last two years where even owners began to see how this could  negatively impact their own families.
Throughout the mania it has been common for down-payments to come from HELOCs on other properties. This leads to even more equity:price leverage for the  population as a whole.
– vreaa

6 responses to ““The older guests at the table decried the run-up in prices that makes it almost impossible for their children to buy on the West Side, while the kids looked to their parents as the lender of first resort to help them get into the market.”

  1. Of course parents with large savings will be looking to spend it, no better way than on the happiness of the children. If it means throwing it down the toilet, it’s seen better than waiting 5 years for things to (maybe) correct.

    But they aren’t speculators, are they?

  2. 4SlicesofCheese

    Cue Realitor Check to say everyone thinks they deserve to live on the west side.

  3. The older guests would be the first ones to start screaming if there precious single family neighbourhoods began to densify. I have no sympathy for these people at all.

  4. for the no sympathy guy

    reality check – let me explain it to you, the west side is the most affluent area of van. realtor’s call the mass amounts of affluent westsiders moving east of main street “west side refugees”. you don’t think these “refugees”, the ones paying seven figures for east side homes and then renovating them are going to drive up the costs? you’re a moron if you don’t start paying attention to what is going on in your city’s west side.

    • The article itself (noted above) by Peter Mitham is well worth the read. He is asking some of the right questions. We need to know with certainty there is a problem, what the scope of the problem is and then start looking at ways to address it. The city can help. What I see as a fundamental failure here is that we are not collecting the data necessary to even be in a position to argue one way or another. Yes, there are a lot of Asians living in Vancouver. Yes, they have bought or bid up some of the most expensive real estate….but is it a problem? At one time I lived in a West End apartment. Most of my neighbors were from mainland China. I rarely if ever saw them though and only knew they were Asian because the landlord said so. They rented for the address but did not actually reside there except on business trips. By doing so kept rental stock off the market and underutilized which only ever results in costlier rents where supply has been diminished. Nobody ever talks about the impacts on rentals but there is a similar phenomenon taking place in some key buildings. Don’t beieve it? Well just look at the rental buildings at night. Blacked out month after month. Tell me we don’t have a problem there too. I agree wholeheartedly with the ideas expressed by others that taxation should be imposed for absentee owners and renters. We can always add in exceptions for grannies and other situations but it is clear to me that the city, and in particular, its business and the revenues that the city might otherwise collect are being harmed by this growing practice of parking investment money in Vancouver for convenience and holding space that might otherwise be available to people who actually live and work here. It is time the city looked closely at what anecdotal information is already telling them. The story is in the records of energy use, electrical consumption, subscriptions to news services like papers, gas usage, parking and a host of other variables that can test whether there is a tenancy/owner or not. Lets get the facts.

  5. I mean, the Federal Government is showing leadership by doubling the level of commitment required for the investor immigrant program. Canada is entitled to a premium because it is one the top destinations for money due to our stable political climate and high standard of living. It is time for the Provincial government and the city to step up to the plate and also ask newcomers to pay a fair share if they are seen to be driving families out of Vancouver by virtue of money alone. It is not just a small issue. Vancouver is one of our major cities and it simmers with resentment. People want to see equity extended to the whole community, not just those with pockets full of loot.

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