Property Market - Unproductive Credit

A lot of Vancouver people have made their fortunes through property -- many still do -- but it has arguably come at the expense of a vibrant and healthy economy.

As the Vancouver economy continues to struggle -- and the likelihood of a recession grows by the day.

Governments have refused to do anything about the property parasite that continues to suck the life out of the economy.

Similar problem in Australia and California.
http://www.businessspectator.com.au/article/2015/5/29/australian-news/property-investment-sucking-life-out-economy

http://www.lao.ca.gov/reports/2015/finance/housing-costs/housing-costs.aspx

Building Less Housing Than People Demand Drives High Housing Costs. Vancouver is a desirable place to live. Yet not enough housing exists in the Greater Vancouver area to accommodate all of the households that want to live there. In these areas, community resistance to housing, environmental policies, lack of fiscal incentives for local governments to approve housing, and limited land constrains new housing construction. A shortage of housing  means households wishing to live there compete for limited housing. This competition bids up home prices and rents.  In addition to a shortage of housing, high land and construction costs also play some role in high housing prices.

The property transfer tax does NOT solve the 2 problems creating and sustaining unfordable housing and the inefficient car culture. Farmland speculation and micro land parcels speculation creating artificial land price pressure.

The first problem is when agricultural land is taken for housing and commercial development no money is set aside in a trust fund to return the land back to large efficient agricultural land plots. A result when communities population reduces the land remains unusable. This of course will be more critical as agricultural areas move with climate change. Actually the biggest problem here is farm land is sold at housing and commercial development prices. Which is much higher than the agricultural earning capacity of the land. The net result is land speculation becomes the major source of income for farmers. And farmers become less farmers and more land speculators.

The second problem is the land ownership is parceled up as small as possible to maximizing the developer/speculator profit. The land is parceled up so small that it cannot be redevelop with larger buildings without land speculators collecting connecting land into larger usable parcels at very high profits. The last house sold sets the price.

The solution is simple do NOT parcel land ownership to less than a block. Home owners are coop share owners of the block and vote as shareholders regarding redevelopment. And as shareholders the home owners share in the profits. This will eliminate the land speculation required to create larger connected lots necessary for larger buildings.