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HAM vs BCM
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02-08-2015, 04:42 AM,
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RE: HAM vs BCM
Good post crabman. Whether foreign investment in and of itself constitutes a bubble - for instance, the Swiss property market is almost all foreign investment, but it's been just plain high for decades simply because of Swiss tax laws, privacy/secrecy, etc... - what you say is I'm sure correct. If we look at the UK, and specifically Edinburgh where my wife and I used to live, the same phenomenon is evident: my wife owns a small condo in a working -class area and values are actually down 10% since 2007 in non-adjusted terms; by contrast, my 3-bed attached in a quiet neighbourhood near the city centre has gone up in value by 50%. There's no doubt whatsoever in the UK that this is foreign investors. Two small follow-on points: 1 - in the UK, no-one tries to deny the role foreign investors play in the market. Instead, people look at the issue of access to affordable housing. 2. - I actually managed to get Garth Turner to agree with me on his blog that HAM has played a significant role in Vancouver, a topic he otherwise seems to consistently refer to as racist. I got him to agree by asking him to consider what happens when a rich Russian buys a top-end house in London... put simply, the previous owner takes their massive gains, buys a bigger place in a slightly less ritzy area and then buys a couple of investment properties. Two effects: 1. prices go up further down the chain but 2. and more dangerously in my view access to ownership becomes increasingly limited to a small cadre of those who can afford it. Effect 2. is definitely happening in Vancouver from my direct personal experience; I know of a number of people who have cashed out from North Van and bought in the gulfs/sunshine coast, though less so in the last few years as these areas are perceived to be "lacking in value growth potential" - something which recommends them in my book. And don't even get me started on the North Van Realtor who approached me in a Starbucks in Surrey two weeks ago and said, "Come to North Van and buy - lots of white people are moving there..." racist much? :-) Cheers, good post - Jimmy
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Messages In This Thread |
HAM vs BCM - by crabman - 03-27-2014, 11:20 AM
RE: HAM vs BCM - by Skook - 03-27-2014, 04:55 PM
RE: HAM vs BCM - by crabman - 03-28-2014, 02:13 PM
RE: HAM vs BCM - by Alexcanuck - 03-27-2014, 05:39 PM
RE: HAM vs BCM - by Skook - 03-27-2014, 05:54 PM
RE: HAM vs BCM - by crabman - 02-06-2015, 08:18 AM
RE: HAM vs BCM - by JimmyWW - 02-08-2015, 04:42 AM
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