RICH CHINESE WANT TO BUY HAPPINESS — BY EMIGRATING ( Part 2 )
Back to my premise .
It only made geo-political sense for BC (and mostly within Metro Vancouver ), for Hong Kong residents to choose if their choice was Canada. Then it only became a matter of policy changes to open the border doors. Simply speaking, objectively, I think the vested interests within BC foresaw a couple of things….that BC had been in an economic slump in the early 1980’s, and future projections did not look good.
However, realizing that there were Billions of Dollars In Hong Kong looking for a new home…the question was HOW to attract them ? Previously, Canada had restrictions on foreign ownership of land. IMHO, that is a very prudent and key policy. With such policy, we can create internally regulated market forces that allow people to have a crucial facet to a rooted and stable community..the ability to own a home. Housing “may” be deemed a commodity, but unlike Metals, Oil, Crops……etc, it should not be subject to Global forces…as I stated , what are borders for, to establish Nations.
I am not implying subsidy, but the normal market forces where the home price should be at the 3:1 ratio..ie the average home price should be approx 3 X’s the average family income. Of course, this further implies ( 2 ) income families as the base reference…whereas say 40 years ago….one family incomes were more the norm (and coincidentally, homes were much cheaper .
However, by allowing amendments , and more porous borders immigration was effectively a means for vested interests to get their hands on what many refer to as Hot Asian Money ( HAM ).
When the Expo lands were sold , ie literally given away….to Billionaire Li Kai Shing, something didn’t seem right. There were comments that this purchase was his endorsement of BC, and his fellow Hong Kong citizens would now come in waves post 1986.
I am not sure what happened, but at the time my understanding was that to immigrate one had to invest in a business.ie CREATE something new…not simply buy what already existed. To be honest, I can’t really recall and new major long term industries being created that added to the economy. I do recall one wealthy Asian businessman buying the local Pepsi Franchise….and then selling it and tripling his investment. Yes, there are some small companies here and there but many of them cater to the Asian clientele. I don’t see any large manufacturing plants etc.
Unfortunately we have been lulled to sleep under a spell. I am not against real estate as an investment, but my blogs make both direct and indirect inferences of what the core home ownership represents….that most people want stability and roots….and create community, not be forced into an UNcertain nomadic lifestyle and become a human tumbleweed. I would submit this is an Either /Or choice ….not both….If you want affordability, then no out of country ownership, only citizens.
The HAM most certainly benefitted minority facets in BC, ie those that had owned homes and literally became overnight millionaires. Most certainly the construction industry has benefitted via the McMansions built, and the multi-family units, ie condos and hi- rises . There are some other collateral benefits and economic ripples, but in hindsight, in the long term, I think we are going to pay the piper now, all the signs are there.
( To Be Continued )