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Without affordable housing, Vancouver risks becoming an economic ghost town

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Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#551

Earlier quoted context omitted.

It's not about raising more money, it's about fairly apportioning the tax burden. Why should two homeowners with the same value of property pay different amounts of taxes just because one is old and has owned the house a long time?

On the other hand, why should your tax bill go up simply because other people are willing to spend increasingly large amounts of money to buy a house like yours? It's not like income tax where your tax bill only goes up when you get more money to pay it with.

One can argue that it should be the opposite of an income tax.

If the value of your house goes up because you remodel the kitchen, then it seems fair that you should be able to pocket that value. You did the work, so your taxes should not increase.

If the value of your house goes up because the government opens a new light rail station nearby, then you did nothing to earn this, so it seems fair that society should be able to get higher taxes from you.

In a speculative bubble, you did nothing to earn the extra value, but---arguably!---neither did the government, so it is less clear cut.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#552

Earlier quoted context omitted.

As an established middle-aged software developer with a family living in Burnaby who cannot move now because of custody issues, I'm going to give you the same advice I give to all of the engineering co-ops I work with. You should move out of the Vancouver area as soon as you get your degree. I don't think that you're ever going to have a problem finding 1 bedroom accommodations in Vancouver because that's what develo…

Despite your persuasive argument, I like it here. The US is broken, politically and socioeconomically. The Senate will block any bills for a constitutional amendment to get money out of politics, and a Constitutional Convention will mean all amendments will be on the line, including the 1st Amendment (libertarians will cry "freeze speech") and 2A (gun owners will cry "the gubmint is taking our guns away"). I really d…

As a person who moved from Victoria to Seattle and then SF, that kind of stuff doesn't actually matter in practice.

What the gods of Mt.Olympus do does not matter to the common folk. Macro policy decisions to do things like go to war in Afghanistan only indirectly effect your tax bill, and if the news didn't report it and if refugees didn't immigrate, would you even know it was happening. That is real effect of what your worrying about.

Go live & work in Seattle for a year and you'll quickly come to learn there is no real difference between there and Vancouver. If you change the street signs and some brands, you wouldn't be able to tell the difference. If you really don't like it, you can always move back. But as a learning experience, you'll find it valuable for your world view, your career back in Vancouver and your wallet. If you have student loans, that exchange rate will be amazing to pay them off, and you could collect a down payment for a Vancouver 1 bedroom condo far faster. I used charles schwab debit cards and I paid no exchange fees paying off my canadian student loans.

Bread and Circus crap like guns and such are an entertainment sideshow and policy makers will do whatever they actually care about without much fanfare. In practice you will never see a gun on a civilian in NYC, SF or Seattle and people speak whatever is on their mind. The weather is also amazing in SF.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#553

Earlier quoted context omitted.

It's insane. The people who don't work live close to the business districts collecting social security paid for by the people who do work who have to commute in from afar for the privilege. Then the people who don't work vote themselves favorable property tax rules so they don't have to pay their fair share of keeping up the city.

I disagree. If the housing costs shoot way up, why should those people suddenly pay more money? Did a real estate bubble suddenly make it more expensive to police the area? I don't think so. The city doesn't need more money, it needs to stick to its budget.

It does, actually. The police, like all the other things the city does, needs buildings for its work and housing for its employees.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#554
post #549

Earlier quoted context omitted.

People live in worse and worse conditions. A single bedroom, that when built as the spare room for kids to play in or a visitor, costs £400/month. Myself and several friends have left London. Perhaps I've been replaced by a 21 year old British graduate, but this seems less likely than 10 years ago. https://www.gumtree.com/single-room-flatshare/london

Well, someone's replaced you, since the population is growing rather than shrinking. I've only been here 7 years (since graduation) but more and more of my similarly-aged friends are coming to London. I think it's young people rather than retirees, graduates rather than not, and I'm not sure I care whether British (though I think most are).

I lived in London for 10½ years, from when I started university.

Most incomers are young people, but not all are graduates — many come from Eastern and Southern Europe and work low-skill jobs. I put "British", but probably meant someone one would expect to live in London for a long time. I got to know a few construction workers from Poland and Romania, and none of them had any intention to stay — they were in London to make money, and several had wives/children 'at home'.

This can make a functioning city, but it's a change from London of 20 years ago, when it would be artists and musicians taking some of these cheap houses and I think fewer people were there to make some money and leave.

A good part of why I left is because it wasn't as interesting as it used to be. I wondered if I was getting old, but then, "of the 430 music venues that traded in London between 2007 and 2015, only 245 are still open" [1]. I certainly noticed that there were fewer gigs I wanted to see, and they'd moved from Friday/Saturday to weekdays.

The other part: I was working for a scientific charity, with charitable pay. I wasn't saving much money, even with living in a shared house, so decided I needed a new job. I wanted to continue writing software for science, so there weren't all that many jobs that interested me in London.

I now live in Copenhagen.

[1] http://www.theguardian.com/cities/2015/sep/09/the-slow-death...

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#555

Earlier quoted context omitted.

It's not about raising more money, it's about fairly apportioning the tax burden. Why should two homeowners with the same value of property pay different amounts of taxes just because one is old and has owned the house a long time?

On the other hand, why should your tax bill go up simply because other people are willing to spend increasingly large amounts of money to buy a house like yours? It's not like income tax where your tax bill only goes up when you get more money to pay it with.

The thing is, when the tax burden is evenly spread out, it will rise more in step with the amount of money needed by the city (as decided by voters), not so much the price of the house. Indeed, in a (largely mythical, I know) well-run city, the property tax (in pct) should go down as prices rise. Right now, many California cities are broke, and their only way of raising revenues is to soak the newcomers.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#557
post #496
post #488

Earlier quoted context omitted.

Why isn't every house incorporated (bought by a company, then have that company bought/sold instead of the house) ? Note: this is how it's done for a lot of houses in western europe, and there it's a 100% legal way to avoid this tax. The problem is that you're going to have to pay 30% company tax on profits, and it's hard to get a mortgage. However this can always be structured so there aren't any profits (e.g. by im…

Your primary owner-occupied residence is exempt from capital gains tax in Australia. If you put a corporation in the middle, that exemption might vanish? (I don't know too much about the legal shenanigans here.)

Correct plus you have corp fees and i dont think you can negative gear (claim losses aginst personal income tax) either if you decide to rent it out.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#558
post #488

Earlier quoted context omitted.

> This means you have people living in Sydney with multi-million dollar properties - which are just modest houses in now-desirable suburbs - who haven't paid any property tax since the 60's, and who can't move anywhere because they'd be up for so much stamp duty in one hit (easily 50-100k). I don't understand. When you're making millions on the sale of the property, how is 100k in stamp duty a problem? It's on the sa…

Why isn't every house incorporated (bought by a company, then have that company bought/sold instead of the house) ? Note: this is how it's done for a lot of houses in western europe, and there it's a 100% legal way to avoid this tax. The problem is that you're going to have to pay 30% company tax on profits, and it's hard to get a mortgage. However this can always be structured so there aren't any profits (e.g. by im…

Not sure how that would work for an owner occupier? Can a company provide free accomodation to it's director?

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#559
post #377

One of the main reasons of the housing crisis in the Bay Area is Prop 13 ( https://en.wikipedia.org/wiki/California_Proposition_13_(197... ) Prop 13 basically keeps the property taxes constant (or 1% increase) as the value of your house increases (doubles or triples). Your tax gets re-calculated only if you sell your house and the new owner starts paying potentially multiples of what the previous owner has been payin…

It's even worse in Australia, which most properties do not have a yearly property tax. So you pay a 'stamp duty' when you purchase the property, based on a % of the sale price. This means you have people living in Sydney with multi-million dollar properties - which are just modest houses in now-desirable suburbs - who haven't paid any property tax since the 60's, and who can't move anywhere because they'd be up for s…

Add to this the pension eligibility means test excludes your primary residence.

So if you sell your house to help fund your retirement then it is duely punished by missing out on money from the government.

Much better to refinance the house and live of that. Hence more tightly held homes.

Re: Without affordable housing, Vancouver risks becoming an economic ghost town

#560
post #549

Earlier quoted context omitted.

Well, someone's replaced you, since the population is growing rather than shrinking. I've only been here 7 years (since graduation) but more and more of my similarly-aged friends are coming to London. I think it's young people rather than retirees, graduates rather than not, and I'm not sure I care whether British (though I think most are).

I lived in London for 10½ years, from when I started university. Most incomers are young people, but not all are graduates — many come from Eastern and Southern Europe and work low-skill jobs. I put "British", but probably meant someone one would expect to live in London for a long time. I got to know a few construction workers from Poland and Romania, and none of them had any intention to stay — they were in London…

> Most incomers are young people, but not all are graduates — many come from Eastern and Southern Europe and work low-skill jobs. I put "British", but probably meant someone one would expect to live in London for a long time. I got to know a few construction workers from Poland and Romania, and none of them had any intention to stay — they were in London to make money, and several had wives/children 'at home'.

There's always been people coming to London for a few years to make money. Ten years ago maybe it was the Australians coming over here to work in bars and restaurants. I think construction workers would always have been moving around (certainly my dad did); there are probably more of them now than ten years ago but more construction is hardly a bad thing. I certainly don't think there are fewer skilled jobs for graduates than there were: the City has been adding more and more jobs and sprawling down to London Bridge, tech has boomed in Shoreditch, Bloomsbury and elsewhere, there's that huge new medical campus effort around King's Cross. The BBC has sadly been driven away for political reasons, but I don't think there's ever been a better time to be a graduate moving to London.

Where is cheap has changed. Music, indie theatre and groundbreaking art have been pushed further out, to Camden and Highbury and Shoreditch and Hackney and Brixton and Clapham. Soho is halfway to being Knightsbridge. But that's always been the way of these things.

> "of the 430 music venues that traded in London between 2007 and 2015, only 245 are still open"

I have no idea what the real numbers are, but I can tell that's a line designed to mislead, to make you think there has been a decline in the number of music venues without actually giving any evidence for it. How long did those 430 last, on average? What proportion of the music venues that traded between 1999 and 2007 were open in 2007? Indeed, how many music venues were open in 2007? What's the betting it was less than 245?

> The other part: I was working for a scientific charity, with charitable pay. I wasn't saving much money, even with living in a shared house, so decided I needed a new job. I wanted to continue writing software for science, so there weren't all that many jobs that interested me in London.

You pays your money, you takes your choice. Some jobs and some people are surely getting priced out of London. But the city as a whole is doing very well thank you.

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