The Canadian Housing Boom Fueled by China’s Billionaires • Hacker News Board

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#211

Post by Raphmedia » Wed, Aug 03, 2016, 5:27 PM UTC

system16 wrote: post #45

Mikeb85 wrote: post #35

Earlier quoted context omitted.

Nothing wrong with language laws, people just need to stop being lazy. Learning a second language isn't that hard.

Learning to order lunch or talk about the weather in a second language is not that hard. Communicating at a professional level takes years of practice. For most people - especially mid-career adults with limited time - that's not going to happen.

I work in tech in Montreal.

People speak in english. You can speak english all day if you want. My clients speak in english. We speak in english. We create websites that are 100% english for clients who are based in the USA.

What isn't allowed it having a workplace where the local (who can't speak english) have no chance of being hired because of the language. That is also why the employer must provide all workplace tools with french label. All else is lies, stereotypes and people not understanding the law.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#212

Post by alsocasey » Wed, Aug 03, 2016, 5:29 PM UTC

geoka9 wrote: post #185

restalis wrote: post #126

Earlier quoted context omitted.

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…

> The city is getting stuffed by each passing day with rich kids. What are you waiting for? My impression is that many of those buyers don't even set foot in Vancouver. It's just an investment for them.

I think this is true, but it's also the case that businesses that cater to the very rich are doing very well. My wife works for a luxury retailer who's Vancouver location is seemingly supporting the entire company with it's sales. Revenue has basically tripled over the past 4-5 years.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#213

Post by skylan_q » Wed, Aug 03, 2016, 5:32 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.

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.

This is 100% exactly how the US crash happened through Fannie Mae and Freddie Mac.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#214

Post by Deinumite » Wed, Aug 03, 2016, 5:37 PM UTC

happyslobro wrote: post #8

I think that the real problem is that so many people are trying to concentrate into the densest areas. That creates huge pressures, which are reflected in the price of space. Take a look at the cities with populations below 100K. You will find lots of people who live great lives, despite not being rich. For those of us who grew up in these little island towns, living in a place like Vancouver is downright depressing,…

And yet the other day there was an article on here about Canada's issue hiring high tech workers.

The thread was filled with a ton of programmers that left Toronto / Canada to go to Silicon Valley because the wages are so much higher.

Yeah I'm going to make probably less than half of what someone in Silicon Valley can make but living in a medium sized Canadian city means my cost of living is obviously much lower.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#215

Post by Deinumite » Wed, Aug 03, 2016, 5:38 PM UTC

hx87 wrote: post #178

greenshackle wrote: post #163

Earlier quoted context omitted.

> bicycle > Canada That's great, except for the 7 or so months out of the year when it's not. If flukus prefers dense areas that's his deal... arguing about preferences is dumb.

What's wrong with riding in the winter? You have to make sure you have the right clothing and equipment, but that's about it.

We tend to get quite a bit of snow in Canada, and it is pretty cold. I'm not sure if riding in the winter is common elsewhere but where I live in Canada I don't ever see cyclists in the winter.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#216

Post by skylan_q » Wed, Aug 03, 2016, 5:38 PM UTC

mrtron wrote: post #210

49para wrote: post #183

Earlier quoted context omitted.

So $26B in holdings to insure $1.372T in outstanding mortgages, that seem pretty low but since the taxpayers will cover the rest, I guess it's fine to continue handing out subprime mortgages.

I havent looked in detail lately - but I believe they issue bonds and the bond holders would be covering the impact of a market crash. You would prefer if there was not such an insurance system required for home owners putting less than 20% down?

You would prefer if there was not such an insurance system required for home owners putting less than 20% down?

I know I would. It would be like the 90's again where banks had to only loan out to people who they thought wouldn't default.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#217

Post by aianus » Wed, Aug 03, 2016, 5:39 PM UTC

kohanz wrote: post #145

aminok wrote: post #105

Earlier quoted context omitted.

Billionaires buying houses does not increase housing costs. You do not need to purchase a Single Family House in Vancouver to have housing. You can buy a condo, the prices of which are totally uncoupled from SFHs, or rent. If foreign investors were leaving the houses they buy empty, and thus removing units from the housing stock, you might be able to make a case for foreign investment negatively impacting Vancouver h…

> You can buy a condo, the prices of which are totally uncoupled from SFHs If domestic buyers can't afford SFH's and shift their attention to condos, this increases demand for condos, thus raising the price. It is practically impossible for the two to be "totally uncoupled".

> this increases demand for condos, thus raising the price

Condos are not supply-constrained. You can tear down like 6 detached houses and build 240 condos in that space.

In Toronto they're making over 100,000 new units a year: http://business.financialpost.com/personal-finance/mortgages...

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#218

Post by greenshackle » Wed, Aug 03, 2016, 5:45 PM UTC

hx87 wrote: post #178

greenshackle wrote: post #163

Earlier quoted context omitted.

> bicycle > Canada That's great, except for the 7 or so months out of the year when it's not. If flukus prefers dense areas that's his deal... arguing about preferences is dumb.

What's wrong with riding in the winter? You have to make sure you have the right clothing and equipment, but that's about it.

Where I live it is unsafe for multiple reasons. Almost no one does it.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#219

Post by aianus » Wed, Aug 03, 2016, 5:51 PM UTC

erdevs wrote: post #25

Isn't pretty much the same thing happening in San Francisco, too? Alongside all the other drivers of increased home prices there. I think SF has shot up the ranks to become one of the most expensive cities in the world now, right?

You can work in SV and sort-of maybe afford a house in/around SF eventually. There is no industry in Vancouver except selling houses and cars to rich foreigners. A software developer in Vancouver earns less than US$60k.

Re: The Canadian Housing Boom Fueled by China’s Billionaires

#220

Post by guardiangod » Wed, Aug 03, 2016, 6:07 PM UTC

chocolatebunny wrote: post #159

lpaone wrote: post #30

What isn't talked about in this article is the effect this is having on the other industries in the city aside from real estate. I believe that Vancouver has potential to be THE tech hub in Canada. Unfortunately, wages are very low compared to the cost of housing, and so the cost of living is super high. Combine that with extremely low vacancy rates, and it is very hard to attract talent from out of town. In fact, ma…

I don't understand how Seattle hasn't had a big housing problem compared to the valley or Vancouver. They have a decent tech sector and they're in close proximity to Vancouver.

(I am Chinese, is living in Vancouver, and know many mainland Chinese.)

In the eye of a mainland Chinese, an US citizenship is worth significantly less than Canadian citizenship. Take it for what you will, the bottom line is, no one wants to be an US citizen.

The difference in application fee is dramatic, as a Canadian citizenship application fee (to the middleman) costs 3x more than the US counterpart (Green Card).