Billions in 'unknown' funds flowing into Canada's housing market [video]

Post by thevagrant » Fri, Jul 30, 2021, 12:06 PM UTC

vkou wrote: post #131

cheesecake_luvr wrote: post #54

Earlier quoted context omitted.

Overseas buyers just get permanent residency and citizenship and buy houses. A few years ago you just needed ~$NZ5m invested in the country and you get permanent residency. There is no way the prices are driven by domestic money. My factory supervisor brother has a house in Mangere Bridge, a blue-collar suburb, built for ~$100k 20 years ago is now well over $1m. It is batshit crazy. I hear of eye-watering prices in M…

> There is no way the prices are driven by domestic money. How can you be so sure? With the way mortgages work, and the way people who bought starter homes ~10 years ago are more than capable of affording a downpayment on a bigger home, you don't actually need a large amount of domestic money for housing prices to be bid up into the stratosphere.

Post by nemo44x » Fri, Jul 30, 2021, 12:09 PM UTC

syshum wrote: post #222

nemo44x wrote: post #200

Earlier quoted context omitted.

Interest rates have steadily fallen for about 40 years. So the 2x income idea is badly outdated as it assume interest rates around 15%. When you consider inflation and interest rate decreases, owning a home today is essentially the same as it was 40 years ago in most markets. There are some outliers but overall the inflation adjusted monthly payment isn’t that different. It’s just that a bigger part of that payment i…

>>So the 2x income idea is badly outdated as it assume interest rates around 15%. I 100% disagree, what is badly outdated is the idea that someone can actually afford 2x income home at 15% interest. Doing that would mean likely the inability to have an emergency fund, or save for retirement. The metrics banks use today to determine "affordability" put people in terrible situations. the focus is on the monthly payment…

Post by refurb » Fri, Jul 30, 2021, 12:10 PM UTC

forgingahead wrote: post #148

spfzero wrote: post #73

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This. China has no safe place for people to save the money that they have made, by whatever means. Anywhere you put it in there, it can go away in an instant if the government wants to take it away from you. We don't understand this in the west, but whatever you have, in some countries, is fair game for people with friends in high places. It's not just China, but Russia and many other countries are like this. If you…

There are severe and onerous asset forfeiture laws in many Western countries, not to mention the catch-all magic phrase of "eminent domain". If any government anywhere wants something from you, it will take it. You will not be able to outlast via the courts or whatever legal means you think are available, rather you'll likely burn all your available finances fighting it.

Post by thevagrant » Fri, Jul 30, 2021, 12:13 PM UTC

Mandatum wrote: post #71

redstripe wrote: post #36

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I don't know anything about the situation over there but did they really ban it? For example this bloomberg report talks about foreign ownership via holding companies. So are foreigners not able to hold stakes in NZ companies or are NZ companies not able to hold realestate (doubtful?).

Yeah all you need now is an IRD number, a NZ bank account or a corporation. All 3 you can setup without setting foot in the country. To those that say that's not possible, it very much is. There's little checks and balances, and COVID's made it even easier. It's lip service and the government does nothing to help track it. The most investigative journalism that's gone into it was a few years where people tried to loo…

Post by akudha » Fri, Jul 30, 2021, 12:17 PM UTC

pkorzeniewski wrote: post #168

tolbish wrote: post #3

Should housing be a primary vehicle for investment and the de facto way of making money? Or should it serve as a necessity and basic aspect of life?

I'm disgusted by the whole real estate market, people buying dozens of apartments and houses just to rent them - and hence increasing prices for people who just want something on their own instead of making rich people richer - is destructive for society, especially for young people. Owning a roof over your head shouldn't require an average person to work their ass for half of their lives.