As fellow Pacific Rim jurisdictions, there has been an encouraging investment environment between Vancouver and centers of Chinese money for a while now. The presence of investors from Hong Kong and Shanghai has been notable for some years and the benefits of all that investment has certainly contributed to the wealth of the city.
The recent past, though, may prove to be just the tip of the proverbial iceberg, in light of developments on the Chinese stock market. In an age old macroeconomics move, the Chinese government is looking at a devaluation of its currency to generate some foreign investment of its own. That though isn’t good news for notoriously thrifty Chinese savers. Money stored away in savings is like coins leaking out of a hole in one’s pocket when the currency is being systematically devalued.
As a consequence, those Chinese savers are looking for somewhere safer to place their money. Some are likely to buy into the more stable U.S. dollar – though whether that’s a good idea is open to debate in many circles. A perhaps surer bet, and one with a certain pedigree among Chinese investors, is to take advantage of the lower Canadian dollar and enter the thriving Vancouver real estate market.
It would make a lot of sense for such investors to look to real estate assets in a city which has long been receptive to Chinese property buyers. The Chinese government does have capital control restrictions; so one needn’t necessarily anticipate an avalanche of such investment. Given the large volume of savings among the Chinese, though, even a relatively small proportion of such savings, invested into the Vancouver real estate market, could have a perceptible impact on prices.
What are the lessons of all this for watchers of the Vancouver real estate market? For one thing, do not expect the downturn in the Canadian dollar to result in a drop in the value of Vancouver real estate. Also, be prepared for a growth of purchases for investment purposes. And, if you’re seriously considering getting into the Vancouver real estate market, either as a homeowner or investor, if you sit on the side lines, anticipating a cooling off of that market, you could be in for a very rude surprise. Indeed, you could miss your window of opportunity entirely.
The financial forecasters can’t agree on what exactly is going to be the fallout for the Vancouver real estate market of the downturn in the Chinese stock market. But turning a blind eye to its likely reverberations is not a sound strategy for anyone hoping to buy real estate in Vancouver in the years to come.
If that’s your hope, you need experienced professionals to guide you through the process now more than ever. Let us help you make the smart choices. Please contact us at Sales@MyHomeSearch.com.
You all probably know her; daytime talk show host, comedian, actress and one the TV’s top personalities “Ellen DeGeneres”. With an estimated net worth of $300+ million dollars it’s not surprising that she recently purchased an $18 million dollar house located in Trousdale Estates, Beverley Hills, California. Hey? The pricing seems pretty identical to the Vancouver Real Estate market don’t you think?
This single story “rancher” has 8,500 square feet of living space with four bedrooms, six bathrooms and was designed by Hall Levitt – a well sought after American architect. This beautiful home has it all: a monolithic entry colonnade, a soaring marble atrium, 15 foot floor-to-ceiling glass walls, a glorious outdoor living space and a custom made outdoor pool.
Lets just have the pictures speak for themselves (Please Note that the images are not the greatest):
Are you looking to purchase a home similar to Ellen DeGeneres’s? Although we may or may not be able to find you a home that is identical to it in the Greater Vancouver or the Fraser Valley Region, but we will try our best to find you a beautiful custom home that best suits your needs; so please don’t hesitate to contact our professional real estate team at Info@MyHomeSearch.com
