How long are we willing to wait?In my humble opinion, the first priority is to curb tax evasion on assignment sales. That might require more documentation at closing hopefully not causing too much inconvenience. Due to lack of knowledge I am not able to outline the precise steps which need to be taken.
Secondly, as has been suggested before, some kind of a capital tax on real property for owners who have no other income in Canada may be levied. This is targeting owners whose property values are incommensurate with their incomes. But we have to make sure not to hit retirees with this.
Whatever we do we have to keep in mind that bubbles are temporary phenomenon so rules and regulations introduced must work through boom and bust cycles without interfering with the normal operation of the real estate market.
I personally do not believe this problem needs to be fixed, but we are a democracy so the people do what they voted for. It was not so red hot last year but surged over the past few months. It was never very affordable but recent surges caused this to hit the news and gain widespread attention now. Capital outflows far outpaced trade surplus and Vancouver RE is one of the parking spots for the money. This condition like every bubble is not sustainable. Capital outflow in itself is not as evil as pundits purport, but residential RE is one of the poorest possible asset to invest in from a country's strategic standpoint. If I were the leaders of a country with substantial foreign reserves I would have wanted the money to invest in resources and infrastructure if it has to flow out of my country anyway. If Canada understands this is a transient condition that may be curbed quickly down the road, then the right course of action from a strategic standpoint is to absorb all that money and sit out the surge, letting market forces readjust the price afterwards. That is free money for the benefit of Canada and I don't see why we should resist or reject it, and there is a price you have to pay to park money here as if we were a Swiss bank. The only justification to intervene is if the price increases become permanent but 1, in the long run capital outflow is not unlimited, and 2, in the short run an unexpected policy change may curb it overnight.
Eventually, you will have to relocate because you can't afford to upgrade and live here.The neat thing about Canada is there's freedom to move so go to another city if you want a dirt cheap house lol
Totally agree - all the criminals from China are quite jealous of our life here... so they move. I don't blame them, I'd hate to live in China too!lots of jealous people that want what others have lol