The Canadian Housing Boom Fueled by China’s Billionaires

Post by throwaway201607 » Wed, Aug 03, 2016, 3:48 PM UTC

linkregister wrote: post #88

throwaway201607 wrote: post #73

There are some simple fixes to people's issues. 1) Charge more for everything 2) If you cannot get a good deal, then leave. 3) Stop playing games where you sacrifice yourself trying to compete against people who sacrifice very little but have much. These billionaires are flippant about these things because it cost them nothing (personally) to get the wealth. When you make $64M a year, a $4M condo is nothing. But when…

Great, tell my relatives to say goodbye to their elderly parents they support. Also tell them to leave their clients behind. Oh! And hurt their school-age children socially by moving them to a different region. Not all people have the same mobility that you do. This is a situation that many people need to stand and address, not vote with their feet.

Post by 49para » Wed, Aug 03, 2016, 4:01 PM UTC

mrtron wrote: post #165

skylan_q wrote: post #142

Earlier quoted context omitted.

Canadian Mortgage and Housing Corporation. They insure the banks against mortgage default. People pay a small premium on their monthly mortgage payments so that if they default, the bank is insured for the cash difference of the outstanding amount on the mortgage. As a result, banks in Canada face no risks from mortgage default so there's no reason to deny a mortgage. Over 90% of mortgages made in the past decade are…

I get what you are saying, but so far things are going very well. By 2010 CMHC had an annual financial surplus of more than $2 billion.[6] CMHC is the largest Crown Corporation in terms of assets with some $26 billion in holdings as of 2008-2009. If you think this insurance can cause Canadian banks to be more risky in their lending - I don't think that is currently the case.

Post by geoka9 » Wed, Aug 03, 2016, 4:09 PM UTC

restalis wrote: post #126

Gustomaximus wrote: post #50

Earlier quoted context omitted.

This lacks recognition. So many factors could come into play. E.g. The downstream effects of house prices has to hit entrepreneurship. Previously a bunch of people would be in a good place to take a couple years off to start a business mid-career. Now people have these huge mortgages where your ability to start a business is hampered by your ability to get a financial buffer to take this year or 2 off. And lets not f…

I was very tempted to just play devil's advocate here, but then I come to think there might be more than that. So... "Now people have these huge mortgages where your ability to start a business is hampered by your ability to get a financial buffer to take this year or 2 off." How will they manage? By learning to adapt, which will be a critical ability in their careers as entrepreneurs. Say, they can start modest, wit…

Post by Mikeb85 » Wed, Aug 03, 2016, 4:17 PM UTC

serge2k wrote: post #184

miguelrochefort wrote: post #135

Earlier quoted context omitted.

This is accurate. The company I work for had to put French stickers on every key of every keyboard. They had to put stickers on the microwave oven as well...

I hate Canadian bilingual keyboards so much.

Post by theorique » Wed, Aug 03, 2016, 4:21 PM UTC

thinkingkong wrote: post #26

The interesting parts about foreign buyers is that the best story always seems to highlight the super rich, but its not like mansions are the only things going up in price. I'm sure that a price increase in land results in a "rising tide" effect for all homes, but because someone is willing to spend 64M on a mansion, does it mean condo's should be worth more too? The city is pretty, but there aren't exactly a massive…