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canadian housing bubble
The entire economy - including government revenues and thereby the services offered by these governments - depends on wild property speculation. And everyone is praying that it can somehow be maintained.
The government of B.C.'s decision to impose a 15 per cent hike in Land Transfer Taxes for foreigners who buy real estate in metro Vancouver will do almost nothing to lower high housing prices. It will, however, generate even more money for a government that has already profited enormously from foreign nationals.
Shots fired! While our media has been pointing out how Chinese buyers are driving up real estate prices, the Chinese media has been dissecting our economy and government, and warning Chinese buyers of the dangers of owning Canadian real estate.
But it wouldn't exactly be a repeat of the U.S.'s housing bubble.
"This is a bubble. A very big bubble. And it is going to end in tears."
If the next Canadian government doesn't take serious pro-active measures to ensure that the cost of sheltering for Canadians becomes affordable, there is a good possibility where, in a not so distant future, foreigners may become major landlords of Canadian homes, dictating their prices and rentals. Effectively, they'll become in position to hold Canadians at ransom in their own country.
“Look at a city like Vancouver. How can a young couple even live in the city where they’re working? That’s not good for families and not good for the economy."
