The Design District Condos.House prices in Canada are soaring. Toronto, Canada has jumped to the first place and has become the world’s largest real estate bubble, with Vancouver ranking sixth, second only to Hong Kong, China.Please Visit: The Design District Condos to Get Your VVIP Registration Today!
Please pay special attention to: 1. Chinese mainland is not included in UBS’s evaluation. Chinese mainland has been excluded from international agencies evaluating the real estate bubble many years ago.
2. All the currencies in the text are Canadian dollars. At present, 1 Canadian dollar is equal to 5.25 yuan.
3. Toronto’s per capita annual income is nearly C $60, 000, and the average annual household income is more than C $110000, nearly 600000 yuan.
Over the past few years, as long as there is an influx of Chinese people to places, such as New York, San Francisco and Los Angeles in the United States; Vancouver and Toronto in Canada; Sydney and Melbourne in Australia, housing prices have risen with it. A few days ago, Vancouver City Councillor and mayoral candidate Peter Ladner made it clear that in view of the soaring real estate prices in Vancouver, the government should restrict foreigners, especially Chinese, from buying houses.
Overseas hot money has poured into the Canadian property market, pushing up house prices, which soared to the second largest in the world in terms of price-to-income ratio. In terms of rent-to-sales ratio, Canada has become one of the largest housing bubble markets in the world.
Among the most popular overseas home buyers in China, Canada ranks third. According to statistics, 50% of new houses in Toronto, Canada’s largest city, are bought by foreigners. In Vancouver and Toronto, 50% of apartment buildings are owned by foreign investors, and 15% of houses in Vancouver are vacant for a long time!
My colleague Mike is a handsome guy, born and raised in Canada, and a systems management engineer in my department, earning C $70,000 to C $80,000 a year, more than double the average income of his Canadian peers. Mike got married six years ago, then had a boy and a girl, and bought a big house three years ago. He lived a happy life and belonged to the typical North American middle class.
It turns out that house prices in Toronto have soared over the years, far exceeding the increase in local income. When Mike bought the house, the house price was already very high. In North America, house prices have remained between one and twice the average annual household income for many years, but when he bought a house, the price in Toronto was more than four times the couple’s annual income. According to North American living habits, children have to live in separate rooms when they grow up and enjoy their own independent space. Mike can only buy a big house. As a result, the balance between income and expenditure is tight, and as house prices rise, so does the property tax collected by the government. The worst part was that Mike’s wife was laid off a year ago and did not find a new job until six months later, but the salary was much lower than before, and the family income was reduced by a large chunk.
Come to think of it, Mike’s wife only earns enough to babysit, board and pocket money, while Mike takes home C $4000 a month after tax (in Canada, he earns more than C $70, 000 a year before tax and about C $50, 000 after tax, which is already a high-income group). Deduct several large expenses such as home loans, housing insurance, government rent, car loans and car insurance, plus travel, vacation and entertainment expenses. There is a shortfall of several hundred Canadian dollars every month, and we live beyond our means.
