Quote:
Originally Posted by Tapioca
I will add a couple of points from experience and observation.
Official statistics don't capture the class of immigrants who don't work but bring over millions in cash. It's not just the Chinese, the Saudis are here too especially if you spend time downtown - the number of covered up women with kids is plainly evident.
Of course, drug dealers who prefer to rent newer buildings can easily keep the condo market afloat too. My building was heavily invested by first-time homeowners who rented their suites out to dubious tenants.
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the rich immigrant class of purchaser gets 99% of the attention, but buys 1% of the properties - they cannot affect the housing market, they're too small.
if you think about it, consider arizona, las vegas, florida after the downturn - they are what people think vancouver is today, with investors buying up all the property and affecting the price - does not happen. prices in those places tanked, something like 50%+ of sales were to investors out of state (huge number were canadian, including myself) - guess what, prices stabalized, but the real ramp up in prices (from HUGELY below long term average, and hugely below cost to rebuild) was driven by locals who now have the confidence and ability to buy properties again.
look at california - prices are really high there, it's locals. the number of investors in the US are decreasing relative to locals as prices go up and yields have become unattractive, risk adjusted - this is the case for me.
as for drug dealer renters, and i am by no means an expert, but drug dealing is like any business, as is being a gangster - the top 'executives' make all the money, they'll be the flash ones in nice houses paying for everything in cash (until they go to jail or get killed) - but all the drug pusher foot soldiers still live at home with their mum's because they make no money. drug dealers won't ever have any material effect on the rental market.
again, 99% of the attraction in news articles/media, 1% of reality