1. Foreign investors invest their money in Canadian housing market/real estate.
2. More than 1 million new immigrants plus 100k students are brought in Canada, without making the housing arrangements.
3. Bank doesn’t give interest on deposits so, real estate and US stock market is only way to earn interest on investment.
4. More than 70% of the population are rentals/ tenants so, rental property business is very profitable.
5. There’s no capital gain tax on primary home so, people move to new home and make it primary home before selling in order to evade capital gain tax.
The next two or three generations, we could buy ourselves affordability – if we can get the government to make tax and zoning changes.
a. Property taxes for overseas owners
b. Allow building on Vancouver’s West Side.
c. Making sure you vote, loud and proud, may be one answer.
Average wage earners cannot buy homes in Vancouver unless
1. They have inherited a fair bit of money
2. They have parents or friends who can ‘lend’ them money (to be paid back after the mortgage has been paid back)
3. They get together with a larger number of friends to purchase a house.