The latest data shows that 70% of all Single Family Homes in Vancouver are now being sold to offshore buyers from Mainland China as a way to park their money in our safe economy, thus turning our communities into a speculative stock market where our children can no longer afford to buy a single family home in their own hometown.
There is nothing wrong with diversity or immigrants choosing to move here. Canada has a long history of supporting new Canadians. However, this is about foreigners using our housing market as an investment to launder their money in our real-estate markets. Foreign buyers often pay way more than asking price in order to make a quick deal, with some individuals paying Canadian “smurfs” a 3% commission to help them illegally get their money out of China. Houses often stay empty and neglected, destroying our community with each new foreign real-estate purchase, and making the dream of a single family home unobtainable to most Canadians living in Vancouver. That’s not right.
Think this is an exaggeration? Check out this article on the exclusive PLS real-estate website targeted to wealthy Asians looking to invest in Canadian Real-Estate. Think there are other factors? Not according to UBC Geography Professor Dr. Ley who proved, in his book Millionaire Migrants, that there is a near 100% correlation to our housing prices and Foreign Real-Estate investment. He found that all domestic factors such as interest rates and local incomes have no significant affect on driving up prices at all.
Australia has taken action to curb this abuse. Meanwhile in White Rock, the role of the Official Community Plan (OCP) is to protect communities and value of citizen’s homes. The OCP Working Group responsible for reviewing the OCP is made up of ten individuals: Seven of which are either directly involved in the real-estate industry or are friends of someone on Council, or both. Hardly the kind of Community Representation that one might hope for!
What do you think?