Vancouver, BC is the centre of attention in regards to its price in real estate. It is a bust city that is prospering more than ever in its population and job economy. People are flocking there in large crowds to get a job and find a place to live, a feat that is making itself much easier said than done. As the price of a huge continues to rise in this booming city, people’s thoughts are wandering to why, in fact, they are as high as they are. The main reason is supply and demand, but there is another one waiting to be learned about, too: money laundering. This is a darker cause as to why the prices are continuing to rise, much to everyone’s dismay.
With the decrease of the worth of the Canadian dollar, many other countries are taking advantage of this decrease and purchasing stock at a lower price. Amongst the crowd, is the Chinese, a group that is profiting by the decrease in the dollar to be a way for them to get rich in their own increasing price of their currency.
The thought is that the Chinese are coming into BC and buying up a load of commercial real estate, purchased by companies that aren’t all above board. While there is nothing wrong with these companies, the deals between these Chinese industries and the real estate deals are sketchy to many of those who are paying attention. The tide of Chinese and Asians that are going to be doing this is just beginning, unfortunately. As the Canadian dollar dips lower and lower, more and more of those outside of the country (and continent) are paying top dollar to be able to come in and buy up residential and commercial real estate, at little expense to themselves when you factor in the exchange rate.
For those who are from Vancouver or Canada natively, this is an unsettling factor that has raised many questions for those reporting on the issues. If this does, in fact, become a trend, how are the rest of the people searching for homes and businesses supposed to compete? A Burnaby realtor asks: how is any of this legal in the bigger scheme of things?
As the price of real estate continues to climb, tensions are growing with it, both without the knowledge of the potential money laundering, and more so with that knowledge. It is making everyone interested in the market edgy and nervous, as no one knows for sure when or where this rise is going to end. Many people are being pushed out of the market simply because it has gone too high for them and are instead turning to rental situations, which is causing it’s own array of problems.
As the rest of Canada enjoys a lull in the house prices around them (other than Toronto, ON) everyone waits to see what is going to become of this money laundering situation. Whether there is money laundering going on or this is just a bunch of Chinese officials that are looking to get rich quick (or a combination of the two), there are serious concerns that are starting to take root amongst all of those looking for a place to call home in Vancouver’s busy streets.
If you are a seller, there is plenty of people around who will grab up your home and allow you to travel, but if you are a buyer, Vancouver is quickly becoming a huge zone that is well out of your comfort zone, meaning that people are looking at having to commute for hours into work each day because they are forced to live well outside the outskirts of the city. All eyes are on the market as the number rises, and people are left wondering whether or not the cause of the real estate climb is important or not: after all, it’s already high, so while the reason is important, the more important problem is when will it come back down?