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Vancouver home sales plunge nearly 33% last month, real estate board says

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Canadian Realestate Magazine | 04 Oct 2016, 10:54 AM Agree 0
The Real Estate Board of Greater Vancouver says home sales in Metro Vancouver in September plunged by 32.6 per cent compared to the same month last year
  • MF | 04 Oct 2016, 12:15 PM Agree 0
    Some people will take a politicized line and leer at the discomfort of foreign investors having to pay a 15% tax, rendering the investment uneconomic in many case.

    But if those who rejoice at foreign investors' discomfort are really concerned at housing affordability, they should take note of this.

    This is what canadianrealestatemagazine.ca says today in another article:

    'The Urban Development Institute’s CEO and president Ann McMullin said that taxation is not the key to more affordable housing and urged all levels of government to increasing supply.

    “If governments truly want to see affordable homes in our communities, they need to make it easier for developers to build housing,” she said, highlighting that demand-side measures will curb job creation in the construction sector.'

    One might speculate in various ways about various hidden rationales for this 15% tax. (These might include - though never to be admitted: hostility to foreigners - many of whom are ethnic Chinese; contempt for the spirit of NAFTA; the voracious desire of politicians to put up taxes, etc.) One could speculate at length.

    But as a tool to achieve affordable housing?

    No.

    It hasn't worked in the past.

    And it won't work now.

    The politicians should admit that punitive Venezuelan-style / Jaganist Guyanese-style measures against foreign investors is more likely to give the Canadian real estate market a pariah status in the eyes of international investors than it is to strengthen the market and the economy.




    • Warren | 04 Oct 2016, 05:43 PM Agree 0
      These are homes. People that reside here need them. A person that does not reside here does not need a home here. Very simple No hostility in that basic fact.
  • Ddzalepa | 04 Oct 2016, 04:30 PM Agree 0
    With the amount of money foreign investors have a 15% tax should not deter investment. Maybe the Vancouver real estate market has peaked and these declines in the market just coincendentally have occurred at the same time.

    The city of Toronto implemented a double land transfer tax a few years ago and that tax did not slow the market down nor affect real estate values.

    Unless some land owner wants to give land to a developer to build affordable housing within the limits of Canada's two major cities affordable housing is not a reality.

    Look around this country there is plenty if affordable housing available.

    And I cannot recall one business publication in the past century that has ever stated that taxation is the pathway to economic prosperity.
  • MF | 04 Oct 2016, 11:11 PM Agree 0
    Warren, Sir: Who owns your house: you? or the government? Who owns your savings and assets? you or the government?

    You just answered, 'The government', because you argued that someone who buys a house, does not really own it, but the government does.

    The more that governments see defeatism, the more that politicians will dare to advance expropriatory "soultions".

    And it has never worked before for politicians to administer home ownership better than the owners. But this is what you are logically advocating.

    This is what canadianrealestatemagazine.ca says today in another article:

    'The Urban Development Institute’s CEO and president Ann McMullin said that taxation is not the key to more affordable housing and urged all levels of government to increasing supply.

    “If governments truly want to see affordable homes in our communities, they need to make it easier for developers to build housing,” she said, highlighting that demand-side measures will curb job creation in the construction sector.'
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