The Decline of Vancouver.

I'll play Cap'n Obvious here.

A house, because it's the land we are really talking about, is worth what the market will pay.

You can't add up the cost of paint, canvas and wood to find out what a Picasso is worth.

Not entirely true. Land prices have real constraints that extend beyond dollar value - or what market is willing to pay.

This is particularly pertinent if you see prices being paid for developable land right now. The foreign money is starting to hit the pocket books of the monied local developers.

The newcomers are willing to build at record low profits, or no profit ( see story about local developer building to launder money) paying record high prices for buildable land. This is rubbing the incumbents the wrong way, because they, finally, are being affected by insane land values.

Recent example of this can be found along Cambie street. Due to the up zoning of the corridor new developers were paying 3 million for single family lots that the week before were selling for 1.2. Obviously a component of this increase comes from the increased density potential - but density is limited by;

- community plans
- maximum allowed FSR
- height restrictions
- community amenity contributions, etc.

Even in the most extreme of land lift scenarios the price of that dirt is constrained by those factors. Since land is one of your largest input costs, you need to ensure you pay a price that leaves room for profit when above factors are taken into account. If you search back a couple years when the Cambie up zoning was initiated you will see the outcry by local developers about land prices along Cambie.

Even the city warned the "novice" developers that the prices being paid for potential assemblies would likely not leave any profit from developing, and likely result in losses.

This is something that only happens when someone has other reasons for purchasing land - better to loose 30% of laundered money on a losing development. You now get to keep 70% of this illegal money.

Part 2 of this is where demand for these condominiums is coming from?

By some accounts 25% of Coal Harbour, and other luxury parts of town is sitting empty. Artificial demand, creates artificial land prices.

This is a massive compounding effect, that works insanely against locals trying to make a life of it.

increase in ppty taxes. as the assessed value goes up so does the amt of ppty tax paid by the owner.

Property taxes go up mostly to cover rising municipal expenditures, not because assessments rise. Where you can get hit is if your assessment goes above $1.1 million (its the threshold in BC at which homeowner grants are clawed back at a rate of $5 for ever $1000 in value above the threshold). The threshold is currently at $1.1 million but it has also risen with increasing property prices.

So if your home was assessed at $1 million last year and $1.2 million this year, your property tax bill will increase for a total $1000 this year. Typically year-on-year increases in property tax are about a flat 5% for people under the threshold, based on the municipal budget for the upcoming year.

Property taxes go up mostly to cover rising municipal expenditures, not because assessments rise. Where you can get hit is if your assessment goes above $1.1 million (its the threshold in BC at which homeowner grants are clawed back at a rate of $5 for ever $1000 in value above the threshold). The threshold is currently at $1.1 million but it has also risen with increasing property prices.

So if your home was assessed at $1 million last year and $1.2 million this year, your property tax bill will increase for a total $1000 this year. Typically year-on-year increases in property tax are about a flat 5% for people under the threshold, based on the municipal budget for the upcoming year.

yeah i get that. switch wasn't clear on the point being made by Punky and asked about an increase in what and suggested capital gains. i simply tried to clarify Punky's point that he was referring to an increase in ppty taxes and that means more revenue for local govt's.

it's a strangely long fucking explanation for what was a relatively straightforward comment.

the only positive is the funny comment by Bryan on the danger tax.

City Hall is listed on MLS!!!

http://vancouver.craigslist.ca/van/atq/5065401177.html

For Sale: Vancouver City Hall. Cash only, please. No Questions asked.

Condition: fair

Vancouver–the Cayman Islands of Real Estate! ™

The Government of British Columbia Inc. (“BC Gov Inc.”) is a leading real estate agency and owner of boutique development-region Greater Vancouver™. As the least scrupulous real estate agency in North America, we have a proven record of helping our clients–the global elite–diversify their portfolios and realize above-average return on investment through unfettered real estate speculation. At BC Gov Inc., we believe that “Housing is for Hedge Funds,”™ not humans, and that “community” is merely a feel-good euphemism for “commodity.” By willfully neglecting our legal power to curb international real estate speculation in Vancouver, and by failing to prioritize Vancouver residents over international investors, we are actively pursuing our mandate to serve the global elite by “Selling out the Next Generation of British Columbians.”™

BC Gov Inc. is now expanding its bordello-like business model to further maximize return on investment for our global clientele. That’s right, we have just listed Vancouver’s nominal seat of power–City Hall!

Vancouver City Hall, located at 453 West 12th Avenue, would make an excellent addition to any investment portfolio. For maximum convenience, may we suggest leaving it empty while it appreciates in value?

If you are an anonymous international investor with boatloads of cash and no intention of living in or contributing to Vancouver in the long-term, you are just who we are looking for! As the new owner of City Hall, you will be responsible for standing by silently while the local populace is cowed into submission through perpetuation of the following absurdities:

(1) Although the Canadian citizens who currently call Greater Vancouver home are a remarkably diverse group–largely of European, East Asian and South Asian heritage–any policy that prioritizes these citizens over international investors is paradoxically Racist, with a capital R.

(2) Although many nations and cities around the world have enacted common-sense laws to protect residents from international real estate speculation, in Vancouver, we are uniquely and inexplicably unable to do any such thing.

The following “undesirables” need not respond to this offer:

(1) Citizens of modest income who seek to live in, work in, and generally contribute to the city.

(2) The younger generation of Vancouverites, who should stop whining and accept that their living standards will be lower than their parents, because, well. . . Please leave now.

Above all, you must never allow citizens of Greater Vancouver to realize the following:

It is possible to be pro-immigration, pro-multiculturalism, and pro-Canadian citizen, all at the same time; the housing needs of people who wish to live in and contribute to the city’s economy and community should be prioritized over the investment needs of the global elite; Vancouverites are the collective owners of this city, and should not be indirectly forced to leave because someone, somewhere, somehow, has a bunch of money; and most importantly, you must never let it be known that British Columbians–as the people ultimately responsible for BC law–can stand up and say “NO.”

Please direct all comments and inquires to @christyclarkbc and @MayorGregor via Twitter.

"According to CIC, business immigrants have accounted for seven per cent of Canada’s total immigration since 1980 and in 2010 investor-class immigrants — who, as a condition for entrance, were required to prove net worth in the millions and invest $800,000 in Canada — accounted for 88 per cent of all business immigrants.

According to CIC, investor immigrants reported average earnings of about $18,000 in their first year and just $28,000 after 15 years. After three years, only 47 per cent of such immigrants reported any income. The Canadian average is 67 per cent.

After five years, only 39 per cent reported income, suggesting investor immigrants may leave the country (or declare non-residency) after the citizenship process is complete.

More troublesome for Young is that similar rates of income after 15 years are found with the spouses and children of the initial, principal applicant.

“It’s particularly worrisome considering that the biggest cohort (40 per cent) of dependents upon arrival is made up of children aged 10 to 19. These (children) would be 25-34 after 15 years, and should be earning good money. But they aren’t.”

As well, Young adds, “the same phenomenon of a decline in tax-reporting rates could be seen in spouses and children, suggesting some of them, too, head for the exits.”

“The issue is not with immigrants or immigration in general, it is with wealth migration schemes in particular. Should Canada wait for the grandchildren of investor immigrants to join the workforce before seeing the supposed benefits of millionaire migration?” asked Young on his blog.

Originally developed decades ago, immigrants coming through these out-dated programs are not required to demonstrate important skills, like official language ability (French or English), that are integral to Canada’s modern economic immigration programs. A recent survey concluded that immigrant investors have the lowest official language ability of any immigrant category, including refugees. That hinders their successful integration into Canadian society. Other data on immigrant investors indicate they bring limited benefits to the Canadian economy and are less likely than other immigrants to stay in Canada over the medium to long term," stated Burchett."

A "racist" anti-Chinese Hong Kong newspaper is laughing at us (you can read them with facebook sign-on) …

http://www.scmp.com/comment/blogs/article/1819499/exposing-bogus-analysis-ignores-role-foreign-money-vancouvers-housing

http://www.scmp.com/comment/blogs/article/1715970/refugees-earn-more-chinese-millionaires-canada-why-bother-wealth

http://www.theprovince.com/news/Refugee+immigrants+reporting+higher+incomes+than+investor/10853238/story.html

http://www.richmond-news.com/news/refugees-reporting-more-income-than-investor-class-immigrants-1.1777295

Our chickens coming home to roost.

My assessment shows the house as 42% of total assessed value. But the house is less than 4 years old.

That does highlight an important aspect of home ownership that many don't really understand: a principal residence is actually two different assets - the house (a depreciating asset) and the property (subject to market valuation, though usually appreciates over time.

It's generally and article of faith that the property value appreciates faster than the building value depreciates, but that's no guarantee.

Is your property freehold? My structure is assessed at like 5% of my total assessed value. But my house is a 100 year old PoS holiday cabin circa 1910 with several add-ons over the last century and my lot is one of the larger (and more level) ones on the street.

Our chickens coming home to roost.

And Christy Clark is the Manchurian Candidate.

Opinion: Double property taxes for vacant properties

they can all ducking fie

Says the guy who is unemployed by choice and just took a big vacation.

You see no problem when a house that is worth 250,000 is selling for 800,000?

Do you plan on raising a family in a one br apartment in east van?

Nope. I plan to raise a family out in the sticks in a house and already have the down payment ready. I've been working my ass off and saving ever since I came to China not just chasing tail like some people think. I gave up on ever buying a house in Vancouver years ago and I don't know why people still cling to that stupid city.

Nope. I plan to raise a family out in the sticks in a house and already have the down payment ready. I've been working my ass off and saving ever since I came to China not just chasing tail like some people think. I gave up on ever buying a house in Vancouver years ago and I don't know why people still cling to that stupid city.

There are still a few people who believe in fighting for things they believe in here.

Is your property freehold?

Yes.

There are still a few people who believe in fighting for things they believe in here.

All for a place that's just going to be underwater in 25-50 years.

All for a place that's just going to be underwater in 25-50 years.

It's okay, we'll be able to sue the oil corps to pay the trillions needed for ocean defences.

All for a place that's just going to be underwater in 25-50 years.

Not all of it, some of us will have waterfront property.