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Canada Offers Haven To Capital Flight From Brexit

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Toronto and Vancouver are Canadian cities as relatively safer property havens now that London. “Brexit’s good for us, not for them,” said Anita Springate-Renaud, owner of Engel & Völkers’ brokerage in Toronto, who expects to field calls from clients seeking to redirect their investments. “We are a safe bet.” “You have this phenomenal amount of capital that’s looking to be placed in commercial real estate, and it’s very fluid,” said Kriter. “Foreign investors view Canada as an island of certainty.”

Any additional trickle of demand into Vancouver and Toronto could prove a headache for Canadian policy makers. “It’s something we’re going to have to talk about because there are concerns about overheating,” said Royal LePage’s Dinani. “We’ll likely see more capital inflows into these cities, so what is that going to look like? In Vancouver, the price of a detached home rose 37 percent in the past year to C$1.5 million ($1.2 million). In Toronto, the average price of a detached property rose 19 percent. “We’re in early days -- it’s hard to sift through how the variables are going to play out,” said Sotheby’s Henderson.

“But capital will look for more attractive, stable markets. And Canada is still very much a bargain.” Bloomberg

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On a recent trip to Canada, it was interesting to read the local newspapers in relation to their own housing crisis. Could have been a copy and paste from our own London/SE media.

It's not as if lack of land can be an excuse? So clearly a crisis the politicians just love to have. Disgraceful.

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I can kind of understand why Vancouver itself is toppy, with the sea to the west, the harbour to the north, and the river to the south, it's all a bit squeezed. Yet it's still the best climate that Canada's got to offer, it's a really nice place to live, and there are (relatively) short flights to Asia with millions of wealthy Chinese who'd give their right arms for a secure Vancouver bolt hole. So there's at least some logic underpinning property prices in the city itself.

Whats less logical is that if you make the leap across the Fraser River, and get into deathly dull dormitory towns like Richmond, or even further out like Surrey, you still don't get much for your money.

http://www.remax.ca/bc/richmond-real-estate/na-10940-2nd-avenue-na-wp_id147927268-lst/

http://www.remax.ca/bc/richmond-real-estate/na-12320-flury-drive-na-wp_id147572705-lst/

http://www.remax.ca/bc/surrey-real-estate/na-32-18181-68-avenue-na-wp_id147846102-lst/

http://www.remax.ca/bc/surrey-real-estate/na-6687-128b-street-na-wp_id148088851-lst/

Even if you're a super commuter and go over to say Vancouver Island, then prices are still higher than I'd expect. And why you'd do that I'm not sure because Vancouver Island is just weird, a sort of graphic novel mix of strip clubs and motorbike gangs with retirement villages and wilderness trails.

http://www.point2homes.com/CA/Home-For-Sale/BC/East-Wellington/3709-Cavendish-Blvd/26947923.html

http://www.point2homes.com/CA/Home-For-Sale/BC/Nanaimo/6268-Garside-Road/23981097.html

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Even if you're a super commuter and go over to say Vancouver Island, then prices are still higher than I'd expect. And why you'd do that I'm not sure because Vancouver Island is just weird, a sort of graphic novel mix of strip clubs and motorbike gangs with retirement villages and wilderness trails.

http://www.point2homes.com/CA/Home-For-Sale/BC/East-Wellington/3709-Cavendish-Blvd/26947923.html

http://www.point2homes.com/CA/Home-For-Sale/BC/Nanaimo/6268-Garside-Road/23981097.html

I really like that "walk score" feature on the listings - tells you how car-dependent houses are.

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Canada has lots of room for expansion.

And banks willing to lend.

A really hip prime minster in tune with the nations younger generations.

Plus is in the top for natural resources.

Why not invest?

(hellish winters, lots of taxes, expensive energy, hours from nowhere, the same pressures on health and social welfare as UK, poor holiday entitlement & generally poor employment perks, expensive housing in the sexier cities...)

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I can kind of understand why Vancouver itself is toppy, with the sea to the west, the harbour to the north, and the river to the south, it's all a bit squeezed. Yet it's still the best climate that Canada's got to offer, it's a really nice place to live, and there are (relatively) short flights to Asia with millions of wealthy Chinese who'd give their right arms for a secure Vancouver bolt hole. So there's at least some logic underpinning property prices in the city itself.

There's also some logic that Vancouver is one of the last places you should be considering if you're after a real estate 'haven' from Brexit.

The Really Big One

"In fact, the science is robust, and one of the chief scientists behind it is Chris Goldfinger. Thanks to work done by him and his colleagues, we now know that the odds of the big Cascadia earthquake happening in the next fifty years are roughly one in three. The odds of the very big one are roughly one in ten. Even those numbers do not fully reflect the danger—or, more to the point, how unprepared the Pacific Northwest is to face it."

[Kathryn Schulz's New Yorker article above caused quite a storm when it was published in July last year, but although some scientists felt that she had exaggerated the possible consequences of a magnitude 8.0/9.2 earthquake for cities such as Seattle and Portland, they agreed that the science was sound and that the effects on coastal regions will be devastating.]

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All to the good if the capital leaves the UK. That said, Canada is pumped up like a helium balloon and ripe for sudden deflation. Carney worked his magic over there before coming over here.

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“Brexit’s good for us, not for them,” said Anita Springate-Renaud, owner of Engel & Völkers’ brokerage in Toronto, who expects to field calls from clients seeking to redirect their investments.

"Good for us" must mean the fees her brokerage will earn.

They're welcome to the "investments" and higher house prices and the "benefits" it will all being to their economy.

Edited by billybong

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"Good for us" must mean the fees her brokerage will earn.

They're welcome to the "investments" and higher house prices and the "benefits" it will all being to their economy.

Tax to fund pensions, benefit, NHS, military, moat cleanings etc... has to come from somewhere.

A hiatus of monies from the UK is bad news for everybody, regardless of its origins because our government has made it 'legal'.

Granted bankers are generally scumbags, however; this will cost UK jobs and tax revenue so economics trumps morals here.

Certainly not the future that the UK needs. More taxation for the plebs, less for corporate? Big nope.

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Where I live, about an hour's drive north of Toronto, the market has gone nuts. People needing to put offers in when viewing or risk losing out, 15% YOY increase etc. If you want an SFH in Toronto you need a million dollars now, hence the push north. Could end up being a perfect storm for me. I spent the weekend back in the UK and will definitely be moving back early next year, so will hopefully flog my place for top dollar here, shift the cash over to the UK with a stronger dollar, then play Mr Vulture if the market in the UK collapses (my thoughts are that the elite will help engineer this to punish the Brexiteers and at the same time set the stage for a second referendum.)

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Where I live, about an hour's drive north of Toronto, the market has gone nuts. People needing to put offers in when viewing or risk losing out, 15% YOY increase etc. If you want an SFH in Toronto you need a million dollars now, hence the push north. Could end up being a perfect storm for me. I spent the weekend back in the UK and will definitely be moving back early next year, so will hopefully flog my place for top dollar here, shift the cash over to the UK with a stronger dollar, then play Mr Vulture if the market in the UK collapses (my thoughts are that the elite will help engineer this to punish the Brexiteers and at the same time set the stage for a second referendum.)

The rat race hasn't changed much since I lived in TO, just the ferocity of it seemingly.

I never lived north of the city. Only went through it to get to Lake Simcoe on the weekends.

The influx of Chinese money in the 2000's did the same. Condo's everywhere and suburbs popping up overnight.

Toronto survived the Nortel/telecom bust, NAFTA, and is a very desirable city for young folk to live in. Great clubs & venues, fantastic multicultural festivals, amazing summers. (sh1t winters)

Back in the day where I lived in the Beaches / east side it was feckin lovely. That changed when the Greenwood racetrack got developed as did everywhere else.

I remember seeing little wooden war era homes being sold for $half million or more about the city. That was the que to leave.

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https://www.theguardian.com/cities/2016/jul/07/vancouver-chinese-city-racism-meets-real-estate-british-columbia

Over the past year, the price of a single family house in Vancouver increased by an incredible 30%, to an average of $1.4m. It’s just the latest, most dramatic jump in an already dramatic long-term trend that has turned the beautiful but unassuming Canadian city into one of the world’s least affordable, with a housing price-to-income ratio of 10.8. That’s third after Hong Kong and Sydney, and well ahead of London, which ranks eighth at 8.5.

Canada has long targeted “anxious” money from Asia. Right now, if you invest a five-year, interest-free amount of $800,000, you can effectively buy citizenship. (By contrast, a similar scheme in Britain, the Immigrant Investor Programme, offers citizenship for between £2m and £10m.) Such programmes have driven the globalisation of Vancouver’s real estate market. They were created in the 1980s with Hong Kong’s elite in mind: millionaires arrived by the thousands from Hong Kong ahead of the 1997 handover to China, and there was tension in Vancouver then, too.

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  • The Prime Minister stated that there were three Brexit options available to the UK:   34 members have voted

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