Vancouver offers just about everything an individual could wish in a city – diversity, all the amenities, culture, and a strong job market, as well as easy access to world-class entertainment. However, like everything else, this chance comes with a drawback – very costly Vancouver Real Estate prices.
1. Biased Information
As you read about the various aspects of the Vancouver Real Estate market, several common names make headlines. However, with all this data swapped, there are a few cases where those who benefit from the housing bubble, namely real estate developers, provide financial contributions and support to these significant public figures.
In contrast, outspoken people with authority in the state of the Vancouver’s real estate market who are not funded by outside interests do not receive flattering media exposure. So, makes it hard to find a fair source of information when it comes to information about the expensive Vancouver Real Estate market.
2. Foreign Real Estate Buyers
A 2019 Vancouver census revealed that 8% of Vancouver’s condos were owned by non-residents. Also, the Canadian Housing and Mortgage Corporation released findings indicating that a total of 11% of Vancouver’s condominiums are entirely owned by a non-resident, an aggregate of wholly-owned residential properties, and partial.
The impact is not isolated when wealthy foreign buyers enter the Vancouver Real Estate market. With each sale the rest of the Greater Vancouver area is affected, driving up home prices accordingly to lower availability.
3. Vacant and Abandoned Vancouver Real Estate
While a lack of affordability still persists in bustling downtown Metro Vancouver, there are 15% of Downtown Vancouver Condos reportedly sitting vacant or barely occupied by non-permanent tenants.
This means much of the Vancouver Real Estate is mainly used as an investment or to retain funds from those who are currently seeking to occupy the property or not occupy it. Therefore, there are fewer options for valuable residential space that could be occupied by people looking to reside in Vancouver.
4. Real Estate Regulations
A number of regulations have been put in place in Vancouver’s housing market; however, some are not strict sufficient to really mitigate the problem of the unaffordable Vancouver Real Estate market.
The outcome of lax regulations rapidly translates to real estate agents looking another way when buyers don’t comply, as many fines don’t come close to the hefty commissions the agent gets. Actually, the sanctions are just a slap on the wrist instead of a true and effective deterrent. Know more!
5. Money Laundering
It is unfortunate that the truth of the Vancouver real estate market has some ties to money laundering. Real estate is a viable way to launder money abroad for some property owners. The two governing bodies that have a role in the control of housing and finance are the Financial Transactions and Reports Analysis Center (FINTRAC) and the Canadian Real Estate Association (CREA).
One of the ways real estate agents should take steps to prevent money laundering is to require valid government-issued identification, evidence of source of income, and not report huge cash transactions. As a result of FINTRAC investigations, these findings were discovered.
6. Flipping Houses for Profit
Buying a home is a long process for the typical homebuyer and requires a lot of thought. However, what has become gradually apparent in the Vancouver Real Estate market is the outcome of fast house sales that then make highly profitable sales in a short time.
This tactic commonly used in highly competitive housing markets is usually called Shading Flipping but is officially called Assignment Sales. This certain type of sale allows the current property buyer to sell his or her property ownership to another buyer, even before the first sale is confirmed. While this is often not possible in many other provinces, Vancouver Real Estate is exempt from this sort of regulation, making it simpler for real estate to be seen as an income-generating game, instead of a place of residence. You can know more at: http://www.winthropmahomes.com/top-12-tips-selling-downtown-vancouver-condo/