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Will Vancouver Real Estate Burst? Local RE experts say NO!

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http://www.theprovince.com/business/Will+Vancouver+real+estate+bubble+burst/11160850/story.html

 

 

Large Wall Street investors who made billions when the U.S. housing market collapsed in 2008 now are betting that real estate values in Vancouver will crash.

But local real estate professionals believe the American investors are likely to lose their shirts betting against Vancouver property, which they described as a special market thriving on international demand.

The U.S. hedge fund investors, known as short-sellers, are betting against what they believe is a housing bubble in Vancouver, Toronto, Calgary and other Canadian cities.

They believe Canadians hold too much mortgage debt, and that Canadian banks, mortgage insurers and “subprime” private lenders will lose money on unpaid loans when property prices fall.

Short-sellers use complex financial arrangements to make rapid profits when publicly traded stocks fall in value. In this case they are betting against businesses connected to property and household debt.

They are also betting against the Canadian dollar, because they believe it will decline significantly in a housing bust.

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“The cross-currents are beyond crazy in Vancouver — it’s a mix of money laundering, speculation, low interest rates,”

<snip>

Count one of the world’s most influential investors — Laurence D. Fink, head of the world’s largest asset fund BlackRock Inc. — among those who believe Vancouver property is not only as good as gold, but better.

“The two greatest stores of wealth internationally today are contemporary art, and apartments in Manhattan, Vancouver and London,” Fink recently told a conference of investors in Singapore.

Jonathan Cooper of MacDonald Realty Vancouver said evidence is mounting that the city is, in fact, a special market.

Special places, all over the place.

 

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Special Places :)

Money Laundering...

 

I would also rather hold an apartment than having 5 Million in a bank account collecting -0,5% interest and if the bank collapses i am an unsecured creditor...

 

Martin Armstrong forecasts that luxury Real Estate will hold its value better but normal houses should peak this year all over the world. His 2007 peak -- 2012 low -- 2015 final-peak --  Forecast seems to be very accurate so far.

Edited by Swaize

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Martin Armstrong forecasts that luxury Real Estate will hold its value better but normal houses should peak this year all over the world. His 2007 peak -- 2012 low -- 2015 final-peak --  Forecast seems to be very accurate so far.

 

It's different here - prices double every two years!  :rolleyes:

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