Wednesday, April 18, 2012

Interesting BNN spot

The Media has been in a frenzy (finally) about Mainland Chinese buyers. We are reading that 13/15 high priced British property homes recently sold went to them, and about the megahomes on the westside- fixed, flipped and left empty.

Well Andrew Bell of
BNN interviewed David Choi a well-known realtor who deals in the Mainland Chinese market.

What was interesting was the absolute lack of any remarks from the interviewer or interviewee about the ethics of allowing people, on occasion wealthy fugitives from China, to buy these properties with untaxed (maybe illegal) money and then leave them empty. Even while saying that China itself had restricted people to buying ONE home only.

It was like they had a right to do it, and 'Oh no' What would happen it they quit.

Andrew Bell did try and (gently) ask at the end about locals who maybe getting resentful about the huge prices being paid for homes which are then left empty and what did his guest think about that. It didn't even seem to register with him! He went on about how the Chinese investors were running out of good properties to buy and may have to buy homes to renovate.

Clearly no one is in the least concerned about home prices shooting out of the reach of those working and living here and EVEN WORSE that homes are being left empty in an area of tight housing and high homelessness. Not the Federal Government, and definitely not our good-as-useless Premier who has no real platform of ideas as far as I can see.

This is the free-market taken to the level of lunacy. Even Singapore has property restrictions. Why not just sell of the whole city to these 'investors' and the rest of us can be bused in from Abbotsford to clean the streets, protect their property, treat their illnesses if they visit and mow the lawn.

Yes, offshore buyers are just a part of the problem, however this is a curse no city wants, especially one that needs tax-paying, consuming people to stay vibrant (forget the arts which have died in this town) and which has pressure to house those who have chosen to make their lives here (from all back-grounds).

Start with below-inflation-interest rates, mix in the CMHC insurance, lengthen mortgages, have banks with no skin-in-the-game and finally top off with endless off-shore tax-unpaid, hot dough and have an almighty bubble.