It’s simple, says Tsur Somerville of UBC Centre for Urban Economics and Real Estate.

“If you want Winnipeg-level house prices here, all you have to do is tear down the mountains and fill in the ocean.”

Well, that puts slow or stop to the steady influx of people — though the massive loss of amenities if our landscape were to be suddenly levelled might do that automatically.

“Depending where you draw the circle,” Somerville says, “70 per cent of the land isn’t developable. It’s mountains or water or the United States.”

Then, on top of this insurmountable geographic limitation, add the relentless population growth that, in good years and in bad, ranges from 1.3 to 1.5 per cent a year.

“The higher the population of a city, the higher the house prices,” he says. “If we lose 70 per cent of the land, our metropolitan area of two million will have the same house prices as a seven-million metropolitan area. Because people have to commute the same distance.”

The myths

Does this mean there’s no truth to some, or all, of the pervasive myths? You know, the ones that maintain our housing costs are driven by rich immigrants looking to get families and/or mistresses out of Hong Kong or other Asian cities. Or by criminals laundering ill-gotten gains. Or speculators. Or empty nesters who reap big tax incentives to not budge from big houses on the best land. Or all that acreage tied up in parks and the Agricultural Land Reserve. Or the rules and fees imposed on developers. Or the property transfer tax on all home sales, and the HST on new ones. Or the civic amenities for which buyers pay through the nose. Or imprudent young buyers willing to take on massive debt. Or an inherent result of a good economy. Or ….

One reader even suggests it’s the fault of public employees, who are so numerous and so well paid they over-invest in property. And an academic study on my desk argues it’s the high hidden cost of the city’s ubiquitous “free” parking.

This short series will look at several of these myths, which collectively point one finger or another at most Metro residents, no matter which group we fall into. The conclusion is, in short, that many of them are, like all good myths, rooted in a little truth. But none come close to matching the impact of the Law of Supply and Demand.

“That’s why, even if the economy collapses, house prices don’t tank,” says Jock Finlayson of the B.C. Business Council. “You get some drop, but it’s typically modest because there’s a growing population and there just isn’t a lot of land.”

Maintaining demand

What helps maintain this demand, says Cameron Muir of the Real Estate Council of BC, is that much of the population growth stems from international immigration, and it, unlike internal migration, tends not to follow the business cycle.

“When the economy is performing weakly, immigrants still come,” Muir says. “This not only bolsters our population, but also housing demand.”

And: “Our immigrants tend to be the cream of the crop,” Muir says, citing statistics showing 55 per cent of Canada’s investor immigrants come to B.C., mostly to Metro Vancouver.

But for people already here and newcomers who don’t arrive with money, Finlayson notes, “Incomes aren’t that high here. They’re less than in Calgary, Edmonton, Toronto, Ottawa or London, Ontario. But our houses cost a lot more. So people cope by getting less house. They commute farther than they would in another community. Or they get less space than they would settle for in another city.

“They live in condominiums and raise children, which is not common in other parts of the country.”

Or, in the case of a growing number of young people, they’re coping in a far more worrisome way, says Andy Yan, a planner and researcher with Bing Thom Architects.

Yan has looked at what’s happened with housing in a few other high-priced cities.

In Hong Kong, which ironically is seen as a bastion of free enterprise, 60 per cent of the people live in government-subsidized housing, he said.

On the other hand, prices in San Francisco shot so high that demand has flattened or even decreased over the last 20 years, and huge numbers of the city’s workers live somewhere else and commute in daily.

Two-thirds of Metro’s people also live outside the City of Vancouver, though we haven’t yet hit the downward pressure on price seen in San Francisco.

Instead, Yan sees a lot of young Vancouverites, especially those who have an artistic bent and who thrive on the energy of a vibrant city core, packing up to leave for Montreal or Toronto simply because it’s cheaper to live there and pursue creative goals.

“Because Vancouver is going through a very destructive real estate market,” he says.

“High housing costs have a great way of killing innovation and creativity. Can the next Facebook or the next Apple computer really come from Vancouver if you’re too busy trying to pay the rent?”

The upshot, he says, is that Vancouver is increasingly seen by the young as a nice place to hang out for a couple of years, but not a place to settle down.

“That’s serious. You’ve got to think about what’s down the road. They’re not going to be here to support us, to pay for our social infrastructure and all of that.”

Article source: http://www.vancouversun.com/business/There+million+reasons+high+real+estate+prices+Vancouver/3425136/story.html#ixzz0xL7RTmOm

The strengthening of the government has led to thousands of people from all over the world to migrate to the country. Consequently, the demand of property has gone up and in the coming years, the rapidly rising demand would further appreciate the value of properties. There are thousands of homes as well as offices for sale that one could choose from.

The reason that one should consider while investing in the real estate market of Canada are:

1. The rising level of average income- Investing in a country where the average gross income is increasing at a rapid rate is always a wise decision. This would mean the value of the property would also increase in the same pattern.

2. Booming market- Areas around the region that is flourishing also benefit to a great extent. One could invest in neighboring regions as well to reap benefits in the long run. You need to look from myriad options that are available to select the deal. There are several owners who offer home and offices for sale at affordable rates.

3. Updating oneself about the latest statistics and information related to various economic developments in the market helps in making a wise decision.

Hence, if you are one of those who are willing to invest in the increasing value of property rates in Canada; this is best time to do so.

To know more about a wide range of Canadian properties,
Visit Home For sale Quebec.
Article source: http://EzineArticles.com/?expert=Narendra_Kumar_Singh

It wasn’t so very long ago that business owners were choosing to purchase large, extravagant buildings for their base of operation. Business owners, who certainly are used to operating on extensive lines of credit, were very comfortable taking out large mortgages, knowing that credit lines were being readily extended in a business -friendly economic climate. The over-extended company was often still considered for a mortgage option with the idea that it was promoting commerce and entrepreneurship. Owners were ready to capitalize on low interest rates and buyer-accessible mortgage terms. A system of checks and balances was not necessarily in place. In this current climate, things are vastly different. Companies who had previously operated under mountains of debt are no longer allowed to simply increase that amount with no scrutiny. In fact, an overall tightening in the banking industry has created a significantly more rigid loan approval process. Business owners are now finding it much easier to secure approval for property leases rather than property mortgages. Leases offer greater financial flexibility for the common business owner. This is very appealing to business owners and lenders in this unpredictable economic environment… >>>>>>>

read article completely on…. blog.theestateinfo.info

The very best deals are typically in the markets that are hardest hit. If you want to know where to investigate for investments, you should check out the following five U.S. cities for the best real estate deals:

#1 – Detroit, MI – The city hardest hit by the economy, Detroit, experienced 4.8 times the national average for foreclosures last year. Homes in this city start from as low as $1,400.00. No, that’s not a typo. They literally start from as low as one-thousand four-hundred dollars. That’s about $1.22 per square foot. It would cost you more to build one of these houses. So, how could you not invest in rental property in this city with prices this low? Detroit, however, is not known for its safety. No, on the contrary, it’s actually the second most dangerous city in which to live in the whole U.S. of A. Regardless, you have to admit, that is some pretty tempting pricing on that Detroit real estate. Keep in mind, you don’t have to live there to invest, and there are property management companies that you can hire to manage the property for you.

#2 – Stockton, CA – This city has 4.8% of its households in some form of foreclosure action. Homes in Stockton start from as low as $20,000, and rent for as low as $390 per month. That’s a record low for even the Stockton area. Speaking of records, there a record number of homes being auctioned off in this area, too. It’s unfathomable. Who would not want to invest in this area? Unfortunately, this city is not known for being safe, either. Stockton ranked number eight on the list of the most dangerous metropolitan areas in which to live. There are some very good deals here, though, so you may want to pencil one of these auctions into your busy investing schedule.

#3 – Las Vegas – No, it’s not true. Au contraire, everything that happens in Vegas does not stay in Vegas where a 4.2% foreclosure rate has been noted. This once very booming city that sprawled with new growth is now somewhat stigmatized. Due to exceptionally rapid growth, home values became over-inflated over such a short period of time that when the real estate crash abruptly occurred there, it left many home owners holding the bag on homes that won’t be worth their purchase price for years to come. In spite of this, there are still lots of good deals in this market. Home prices start from as low as $126,000. Las Vegas is also ranked fourth on the list of most dangerous metropolitan cities.

#4 – Riverside-San Bernardino – California has been one of the states hit hardest by the down economy in regards to real estate. Average home prices still beat out the national average, but individual home prices have plummeted. Homes start as low as $25,000 in these markets, record lows for both. San Bernardino is the twenty-fourth most dangerous city and eighth most dangerous metropolitan city, although, Riverside did not fall within the top cities for crime.

#5 – Sacramento – Ranked fifth in the list of best cities to buy real estate is Sacramento. Midtown Sacramento, a.k.a. The Grid, has hip bistros and shops that cover the twenty-four square blocks at its center. Even this area of Sacramento holds exceptional real estate investment opportunities, including commercial properties. Home prices start at an incredible low of $15,000 in this market. This city did not fall within the top cities for crime.

The plant was available for an entirety purchase through Tuesday, October 13,
2009. No party completed the entirety purchase protocol; therefore the plant
will be sold piecemeal at auction. The auction manner of sale will include
offering all real estate as one tract and the equipment or equipment lots
individually. The auction will offer buyers the opportunity to bid in person or
live via the internet.

Altra Nebraska, LLC began construction of this facility in 2006 and work halted
in November 2007 when additional financing could not be obtained due to unseen
economic challenges. The plant was expected to be one of Nebraska`s largest
ethanol plants, employing more than 50 persons and utilizing more than 36
million bushels of corn for feedstock. The liquidation of the assets comes as
part of the Chapter 11 filing in August.

Potential buyers are encouraged to attend the open houses:

Monday, October 26,10 a.m. to 5 p.m.

Tuesday, October 27, 10 a.m. to 5 p.m.

Other times by appointment.

Details of the sale are available at the Maas Companies auction website,
maascompanies.com or by contacting them directly at (507) 285-1444.

Maas Companies Inc. is an international marketing company located in the U.S.A.
with extensive experience in successfully marketing industrial plants,
equipment, and real estate, hospitality and commercial properties worldwide.

Maas Companies Inc.
Tyler Maas, (507) 285-1444 (U.S.A)
Website: maascompanies.com

Copyright Business Wire 2009
Source