forma condos.House prices in Canada are soaring. UBS released the world’s largest real estate bubble city TOP10 report, Toronto, Canada jumped to the first place has become the world’s largest real estate bubble, Vancouver ranked sixth, second only to Hong Kong, China.Please Visit:forma condos to Get Your VVIP Registration Today!
Chinese account for a very high proportion of speculators in the London and Vancouver housing markets, at least 60% (perhaps as high as 70%). Please pay special attention to: 1. Chinese mainland is not included in UBS’s evaluation. Since many years ago, Chinese mainland has not been included in the evaluation of the real estate bubble by international institutions; 2, the currency in the article is Canadian dollar, currently 1 Canadian dollar is 5.25 yuan; 3, Toronto’s per capita annual income is nearly C $60, 000, and the average household income is more than C $110000, nearly 600000 yuan. Moreover, according to the Commercial Brokers Act and the Mortgage Brokerage Management Act, what CBC News found to be illegal, submitting fraudulent mortgage applications even violates the Canadian Criminal Law and is punishable by prison!
4, Bank of Canada warned mortgage customers: more people will trigger interest rates, monthly payments will be greatly increased! I can’t help thinking of the eve of the subprime crisis that triggered the financial tsunami 14 or 5 years ago. I would like to share with you an old article that I first published in China Economic Weekly a few years ago. ).
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.
In recent years, 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.
Recently, however, he seems to be a different person, often sighing like a diseased chicken. Normally, you can’t pry into other people’s privacy in Europe and America, but driven by strong curiosity, I can’t help asking him: Is something wrong?
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.
This is a very typical white family, life is step by step, go to school, get married, have children, then raise children, raise dogs, work, pay bills, listen to opera, watch movies, travel, lose weight, see a doctor, take medicine. In their view, life should be like this.