Finding the ideal place to live is not easy, especially when we are talking about finding this place in another country. You always end up having doubts about the location, the price, the neighborhood, among other things including the rough market of Vancouver Real Estate. And if you’re ready to spend a season (or the rest of your life) in Vancouver, it’s likely to be one of your top concerns. But like every big city, Vancouver has many ways to find and find housing in its various neighborhoods and metropolitan areas. The city is accustomed to receiving students every month of the year, as well as immigrants from all over the globe, so you have nothing to worry about.
The overvaluation of the Vancouver market and, to a lesser extent, that of Toronto, is a result of a dynamic not very closely related to Canada. The most bizarre purchases are being made by crazy Chinese to take money out of China, which is one of the facts that inflated the real estate bubble in Canada. For most of us, it is easy to understand the process, especially when we see pretty bad shaped Downtown Vancouver Condos being sold for millions do Canadian dollars.
There is a government restriction that allows Chinese to send only $ 50,000 annually through legal channels. In addition, the Chinese investor expects there to be a currency devaluation, which results in mistrust of the credibility of his currency as a reserve of value.
A third component concerns the turbulent Chinese stock market, dominated by individuals, with prices totally unrelated and with high volatility, again generating mistrust as a viable option to reserve value. And finally, just like in many other countries out there, there is a lot of illegal money in China. This money must leave the country to be applied to something that has the role of a reserve of value and, at the same time, is difficult to detect by the Chinese authorities, in order to circumvent the $ 50,000 annual restriction. Click here.
Money laundering is partly responsible too!
There are reports that Macau, which has outperformed Las Vegas as the world’s largest game-volume city, has been used for money laundering. The Chinese come with large sums of cash, and the casinos are able to simulate large gains so that money has a lawful source.
The scheme is very similar to the purchase of winning lottery tickets, which I believe is still happening in some other countries. Everything indicates that the Chinese does not like to put money in tax havens and prefers the security of having a physical property. Vancouver is being described as Switzerland’s real estate. Chinese people pay cash and build legal structures so they do not appear as final owners.
What you should keep in mind when looking for Downtown Vancouver Condos
Canada was chosen for the devaluation of its currency and attractive prices compared to other comparable markets, such as New York. On a smaller scale, the same phenomenon also happens in California, Miami and New York, among others. If you have a property in Toronto and Vancouver and are thinking of selling, this is the time. We do not know when the bubble will explode, but it’s a matter of time. That is exactly why it is important to keep in tune with Vancouver MLS Listings. For more details, visit: https://placerealestate.ca/downtown-vancouver-condos/