Foreign Investors in Vancouver

Foreign Investors in Vancouver Get Discounts

Steve Saretsky -

What’s the discount for foreign investors in Vancouver?

It’s true, foreign investors in Vancouver are receiving some pretty big discounts. I’m not literally talking discounts from the Government or the seller himself. However, the Canadian dollar just fell below 69 cents for the first time in 15 years. After the exchange rate it becomes more than a 40% discount for anyone south or east of the border. You would have to be crazy not to consider investing in Vancouver. This coupled with the unsteady Chinese economy will probably spur more Chinese to get their money out of China and into Vancouver real estate. With Vancouver real estate at such a discount it makes me wonder why anyone would be calling for the bubble to burst. A recent report is calling for the market to “slow” they site a 9% growth in prices this year. In case you didn’t know, 9% is still a very steep incline, but I guess that’s nothing to the 20% we saw this year. With nowhere for Canadians to go and huge discounts for anyone outside of Canada, one would have to think the money will stay in investment friendly cities like Vancouver. What do you think?

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The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

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The Saretsky Report. December 2022