No more “pay to play” for Canadian citizenship: what will it mean for Vancouver real estate?

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Vancouverites have always been pretty cautious in expressing an opinion about foreign real estate investors in the city.  Those who have tackled the elephant in the room have even been called racist.  I think we’re a generally kind bunch here in this city (forget about those who stab each other over taxis or set cars on fire when their hockey team loses).  We apologize when someone bumps into us on the bus, for heaven’s sake.  For the most part, we’ve remained pretty quiet around investor immigrants contributions towards the absurd property prices in Vancouver…until now.

The South China Morning Post recently reported that Canada has put the kibosh on the Investor Immigrant Visa Program.  When CBC posted the story on their Facebook page, the floodgates of comments, supporting the government’s decision was astounding.  Low and behold, it turns out, we do have an opinion about this. For the most part, it would seem that people are very happy with this decision…many saying it’s about time.


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I think in the short term, we will see little change to the Vancouver real estate market as a result of this decision.  We may witness a surge of listings as homeowners sitting on assets worth millions try to cash out before the foreign money train comes to a halt.  Perhaps, those who own property at the moment might try to sell, holding their earnings in the hopes that we’ll see a correction in the market as the investor immigrant influence decreases.  In the long term, however, it’s tough to say what the result might be.

What do you think?  Are you surprised by people’s opinions on this?  What impact do you think the government’s decision will have on the Vancouver real estate market?

 

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3 Comments

  1. It’s about bloody time I say! I know the Government has a backlog of applications so lets just hope this is not a temporary respite because there is not enough space in this comment section for me to lay down facts and statistics the Government doesn’t want you to know about that proves this situation has been a huge factor in escalating real estate prices way above a market norm.
    With Mayor Moonbeam forgetting his roots and selling Vancouver’s soul to mainland China, I am glad that someone in our local Government started using their brains and saw what a disaster in the making this situation was…..

  2. This is temporary. Those who are making money from this will find other ways (loopholes) around it to continue raking in the dough; I’m sure even Immigration Minister Jason Kenney will get on board with them, provided his pockets are filled. Chris Alexander said, “Find the one that fits best for your situation” – from http://news.ca.msn.com/top-stories/chris-alexander-says-canadas-doors-still-open-to-rich-chinese – as a way of encouraging wealthy Chinese to find another way to get into this country.
    If any of you think the real estate market in the Vancouver area is going to cool down anytime soon to a point where the majority of the middle class can afford housing, you’re wrong. There are forces behind the scenes that will keep the market artificially inflated for a long time to come because they know what a cash cow it is.
    Just because the news LOOKS good, does not mean it is. Police are corrupt, so are politicians…why would members in the Canadian government be any different?

  3. I agree with this policy change and wonder what things might have been like today had this happens 10-15 years ago. Unfortunately I think this will only open the door for another group of individuals to have their go at our local real estate with perhaps less competition. That’s what happens when we live in such a desirable part of the world…

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