# Rich vs Poor vs REIT's vs Rentals vs Foreigners



## new dog (Jun 21, 2016)

As you know the BC government introduced the 15 percent tax on foreigners and the empty house initiative.

The problem in Greater Vancouver and probably Toronto, is high house prices no one can afford, foreign buyers, Quebec $800,000 investment that gets foreigners in, lack of rentals and empty houses that can help with rental stock and so on. Another problem is professionals and workers needed in these cities can't afford to live or find rentals there.

What to do? The 15 percent tax could help but also anything hurting the market hurts home equity and potentially putting people under water.

How about using Canadian only REITS that can take some of those 15 percent tax dollars and use that with developments that put a percentage of low income and affordable in with normal housing. Also creating rental space as well with the plan. Of course you don't want ghettos, so this is why you use the percentage measures. The REITS can only be purchased by Canadians and there will also be other tax advantages to this as well as Canadian pension funds get in. 

I hope this makes sense as I have tried to condense it as much as possible but get across arguable points to discuss.


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## Berubeland (Sep 6, 2009)

You want to use the 15% tax grab on foreign residents to fund affordable housing, it make sense but it will actually go into general revenue, in a how much more can we profit of the real estate market money grubbing initiative.


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## Just a Guy (Mar 27, 2012)

In a market as skewed as Vancouver, you want to take money from the tax to subsidize the poorest of the poor, give them decent housing...what about the people just above the poorest of the poor? Should they pay through the nose for housing?

The reason you don't have affordable housing in places like Vancouver or GTA is that there is too much demand in the incomes above the poorest of the poor. When housing is too expensive, people will look for something they can afford, that means pushing out the lower end.


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## new dog (Jun 21, 2016)

I suppose it could be done from the poor as in rental space to helping people to own homes. I am sure there are creative ways to make it work using that pool of money. Like berubeland pointed out it would have to go in a special fund outside general revenue.

The government has made the carbon tax revenue neutral even though I have argued against it.


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## sags (May 15, 2010)

Land in Vancouver and Toronto has become too valuable for low income housing. 

Most of the value in many homes is in the land and owners of the land are going to demand full value for it.

A REIT entering the market with a big pile of cash, would drive prices up further. Another well heeled buyer in the marketplace scenario.

Unless Vancouver can start building out to sea............where would they build low income property ?

Low income high rises don't seem to fare well over time. 

One thing the government can do is to facilitate companies to locate in less crowded areas. Work attracts workers.

Basically what I am saying is that I am not sure cramming more people into urban areas that are already crammed full is the best idea. People are already cramming into 300 square foot condo. Maybe the next step is a bed in a closet with a communal washroom. 

There is no shortage of land or affordable housing in many areas of Canada. There just isn't any work to draw people to live there.

Most of us live along a thin line along the US border, while the rest of Canada is mostly vacant.

Going out west, I drove for hours and hours in places and didn't see a single house.


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## Eclectic12 (Oct 20, 2010)

sags said:


> ... There is no shortage of land or affordable housing in many areas of Canada. There just isn't any work to draw people to live there.
> Most of us live along a thin line along the US border, while the rest of Canada is mostly vacant.
> Going out west, I drove for hours and hours in places and didn't see a single house.


I get the basic point ... but I suspect if I were in the Vancouver area - I'd be able to find a much better climate/more interesting place in other areas of BC versus the areas being driven through.


Cheers


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## Rusty O'Toole (Feb 1, 2012)

It comes down to the old law of supply and demand. The demand is there, the supply isn't. That is what makes shortages and high prices. 

When you have a country like Canada, with lots of land, lumber, building materials of all kinds, skilled labor available, and you have a housing shortage look for a political reason. If you do you will find lots of them.

With the possible exception of Vancouver which is restricted by its geographic situation.


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## Eclectic12 (Oct 20, 2010)

IMO it's more than restriction on geography ... where one has piles of $$$, climate/scenery stokes the demand even further.


Sure ... I know of people who planned to move to Vancouver, fell in love with a small town in Manitoba (as well as prices) but that's few and far between.


Cheers


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## new dog (Jun 21, 2016)

There really is not a lot that can be done except to crush the market. The BC government did the tax because of the election next year otherwise it would probably have done nothing.


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