Vancouver’s Wealthy Real Estate in Limbo After Federal Program Is Nixed
Vancouver’s wealthy neighborhoods might be taking a slight price reduction over the next year, experts are saying. In February the government ended its Immigration Investor Program that allowed wealthy immigrants into the city in exchange for an $800, 000 cheque. The program was unsettling for many Vancouverites but it nonetheless had a dramatic impact on the local economy. Most, if not all, of these wealthy immigrants choose Vancouver for their home base and in turn drove up the price of real estate in the city. However, Immigration Lawyer Richard Kurland expects a price drop of $2 million or more in the cost of homes in wealthy neighborhoods once the effect starts trickling down to the marketplace. For those already residing in Vancouver what changes can they expect from the turnaround of this program?
For those living comfortably in one of the dwindling middle class neighborhoods in Vancouver there won’t be as much as a shock wave felt from the change. Experts and the local government do not expect the average Vancouverite to be directly affected. In fact, the individuals at highest risk are the upper echelon persons and families who have made Vancouver a summer home or simply an investment. They may face serious losses if they keep their properties for an extended period of time. Since millionaires tend to live in the same neighborhoods, these are the locations in Vancouver real estate that will likely feel the squeeze.
How about the rest of the city? Will the overall price of real estate fall with the discontinuation of the program? Experts have mixed answers to these questions. What can be known is that the market for real estate and other easily impacted markets like car dealerships will see a slight decrease in the number of sales they make. Without the steady influx of wealthy immigrants coming from countries like China and the oil rich nations of the Middle East, the luxury market can’t help but influenced. However, the city sees it as a method to regain the immigration of individuals who want to stay in Vancouver over the long haul. Since 1986 wealthy immigrants have driven up the cost of living in the city and now they will no longer set the trends.
For the average middle class family this move by the government might be a good one. However, individuals working in real estate and the luxury market are less than thrilled with the change. Although it could take several years to truly feel the effects of the law reversal.