East Asians more likely to see racism in B.C. debate over foreign real-estate owners

During the 2014 civic campaign, COPE proposed a tax on vacant dwellings. The Vancouver Sun opposed the idea. I supported the proposal because it would force the municipality to study the issue and collect real data.

#donthave1million? Actually, home buyers don't need a million which might explain the high volume of sales since 2014.

There are almost 2000 detached houses in Greater Vancouver listed at mls.ca at under $1million. And almost 3000 houses, condos, townhomes and houses in City of Vancouver, Burnaby, New Westminster and Richmond are listed at mls.ca at under $500,000.

Some examples:
new 2 bedroom New West condo $389K http://www.rennie.com/ra/properties/417496/.

2 bedroom Van East townhome $465K http://faithwilsongroup.com/listing-details/listing-145967---201-2263-tr....

new 2 bedroom Chinatown condo $490K http://faithwilsongroup.com/listing-details/listing-204610---207-231-pen....

new 2 bedroom Marpole condo $499K http://faithwilsongroup.com/listing-details/listing-203854---802-8131-nu....

2017 2 bedroom downtowncondo $532K http://faithwilsongroup.com/listing-details/listing-204225---2903-1283-h....

Need a front yard, garage, less density? There are hundreds of houses $500 - $700,000 in Surrey, Delta, Pitt Meadows and Maple Ridge.

Why are some insisting that housing is "unaffordable," when clearly this is not the case at least for most of the 4,000 who buy < $700K homes every month in Greater Vancouver. While some choose to blame foreign investors/vacant swellings for our problems, about 300 fellow citizens bought a home in Greater Vancouver this past weekend and about 100 of them bought a condo.

Maybe it's time to stop blaming others.

Wow. What an incredibly biased article.

Firstly, why do people always play the easy 'racist' card? It's BS, plain and simple. I, nor many others couldn't care less where somebody is coming from, it just happens to be that most of the foreign investment IS coming from China, a country known for human rights abuses, taking huge advantage of criminal behaviour for personal gains (I've heard this directly from the mouths of 'investors' and real estate agents,)and buying homes to remain empty or tear down. Many park money here and their kids so they can drive outrageous luxury vehicles and contribute little back to communities or cities and leave. It's happened whether European, Japanese, American, etc. Those playing the racist card need to shove it back into their pocket.

Many Chinese in Vancouver will tell you how they are even frowned upon by the Richmond portion who do not like mixing. Asians and Indians who work so incredibly hard to make a better life in Canada are still looked at as second class by newcomers. Money talks in this culture but it would be the same whether it was any other nation buying up homes here so that Canadians cannot afford decent places without paying above $500,000 and not having an increase in salaries or drive from the suburbs while perfectly fine homes sit empty or get torn down.

A luxury tax alone won't cut it and the politicians know this. The wealthy can afford it. We need it introduce laws that down allow absentee ownership, fine those who funnel wealth here through ill gotten gains, and real estate agents and speculators who keep catering to those that don't live and work here.

Many Canadians (whether born or migrated) cannot comfortably afford to live in their own country because of this insane influx of wealth and greed and refusal of companies to up people's wages. It needs to stop and the crooks in political office need to go as well or they'll be nobody left in Vancouver but CEOs, financial analysts, lawyers, doctors, engineers, and a truly lower class taken advantage of to benefit the elite. Artists, tech workers, industry, and just about everybody else will vacate. So frustrating and sad.

As 'Anonymous' points out "There are hundreds of houses $500 - $700,000 in Surrey, Delta, Pitt Meadows and Maple Ridge."

I counted 6 detached houses with LAND in Surrey on MLS .. all UNDER $350,000.
Now these are smallish old ranchers without basements all a bit bigger than the 'tiny homes' people seem to think are the answer, but this is what people used to build and live in quite happily. Plus.. they are all on FREEHOLD property of 4000 square feet or more which is a generous city lot size . What's more they aren't in a strata.

Learn how to use www.mls.ca. It might change your thinking more than whining about affordability in Metro Vancouver west of Boundary.

As far as RACISM goes, I would check historical exchange rates for US dollar and Chinese Yuan before going off about racism.

If you are holding wealth in Chinese Rinmibi ( Yuan ) your currency has fallen against the US dollar...BUT.. so has the Canadian dollar fallen.

In 2013 the Yuan bought .16 Canadian dollars. Today, it buys .20 Canadian dollars.
That's a 25% INCREASE in buying power relative to the currency that our properties are priced in in only 2 years. It's even more if you go back to 2011.

So you're a Chinese looking to invest somewhere in the world, and Vancouver presents a safe, growing place to buy with a built in 25 percent discount. That allows you to pay a bit more to get the properties you want and if you believe the Canadian dollar will recover against the US dollar when the Saudis stop forcing the price of oil down, then you get that 25 percent back PLUS whatever amount the property has gone up. Of course it could go down, but you have a 25 percent cushion in that case, so the risk is pretty low.

Americans have a similar advantage.
THAT and the historically low mortgage rates are what are causing the prices of desireable properties to go up. Call it racist if you want, but really it's just exchange rates and normal human greed/risk aversion.

I think a tax on absentee landlords, with the proceeds going to affordable housing would be a very practical idea. The average percentage of income going towards housing in the rest of the country is somewhere around 30-40%, but in Vancouver it's more like 80%. Unless wages get a serious hike it is very difficult for middle class families to buy in Vancouver - I say that as a young condo owner looking to have a family.

That being said, the public discussion about this issue has been totally racist. I remember seeing a Vancouver Sun article talking about Asian foreign investors on the front page. I found it super offensive. As a city, we have to keep it classy and not zoom in on race when we talk about foreign investors.

This is a proproblem of semantics, specifically the word inherently. Recognizing a trend or unusually high concentration of a specific phenomenon isn't racist; making generalizations about personal character, and casting aspersions on a huge group of people based on the perception of a few? Sure, that's racist. Statistics are not.

The global top 1% of wealth are not a "race". Apparently 71% of "east Asians" understand that.

And keep in mind, the feds changed the immigrant investor program, so it now requires applicants to prove where their funds originated. Hardly anyone applied to tis new program.

Any "immigrant investors" arriving in Vancouver this year, got here via the Quebec program, which requires them to promise they will settle in Quebec. Yet follow-ups show that 90% of them settle in BC (Quebec keeps the loot).

That means that nearly every single "immigrant investor" arriving this year purchased their residency based on a lie.

It's less than honest for realtors to pose as regular citizens in public forums.

There is no racist about this unafforable housing. It is about common sense and affordable houses for all Canadians. Canada is the second largest country in the world, so the housing price from coast to coast should be similar, not a difference of $250K for single family house. Normal Canadians cannot afford $1 or $3 millions house. We are unable in the market, we cannot live in our city, imagine where our children will be.

The Liberal Party Madam Clark has known this problem, however she has done nothing. Does she work for the rich Chineses? What a shame!

Thing needs to be changed, politically. We have a vote but not the rich Chineses. Canadian houses belong to Canadians. So, let mobilize, and shape our future for our children.

To Unaffordable My...

You seem to be unaware that many jobs require a person to be living within the area. Simply buying and say Surrey and working in Vancouver often might not be allowed, it is quite common.

You also have to take into consideration houses that seem to be abnormally low priced are often old drug houses which can pose a massive health risk to anyone living there unless they knock the place down and rebuild.

Has anyone ran the numbers on what a mortgage would cost on a house even under $1 million.

Lets put this into perspective here. A person making just over $100,000 (myself), with near perfect credit, and a lot of disposable income, goes to my bank to inquire about a mortgage. Based on a low rate of 2.3% I'd qualify for a maximum of about $420,000. Now if I manage to find a partner who makes the same amount as me, we'd qualify for an $840,000 mortgage... Also remember, Mortgage lengths have changed, we can no longer get a 30yr mortgage.

Now:

1. How many couples in the entire lower mainland are pulling in over $200,000 between them? Median income is about $70,000 for a couple, not $200,000.

2. How many of these couples are going to come to the table with a huge down payment? Unless they've come across a massive inheritance, they're probably putting down the minimum of 5%

How many houses are lower than 1 million again? What was that about an $800,000 or so house? How does a couple with the average median income afford one? How do they raise a family?

It doesn't matter whether you go out to surrey or not for a $550,000 house, a couple with a median income of $70,000 will not be approved for the mortgage.