Crawl Across the Ocean

Friday, August 24, 2007

Vancouver: Number 1 and Number 6

According to the Economist, Vancouver is the world's most livable city.

Meanwhile, Forbes has photos from the 10 worst cities in the world for overpriced real estate, and here we are only #6 (with a Forbes computed real estate p/e ratio of 28.61) , although with the U.S. mess still unfolding, we should pass L.A. any day now.

(Forbes link via the comments at Vancouver Condo Info)

Says Forbes,
"Vancouver has one of the lowest rental yield rates of any city measured, at 3.19%, despite high prices. Across Canada, despite the same tax system, the effective annualized return rate resulted in a much better P/E of 16.31. Owners need to be aware that such a large spread keeps the rental market strong and the market for sellers more stagnant. The pool of buyers remains relatively small as renters can get the same property at significantly less cost and invest the difference."


  • Canada has the same tax system across the country? Has Forbes never heard of provincial governments?

    Hell, property taxes are mostly municipal! Kind of important.

    By Anonymous Anonymous, at 8:55 AM  

  • A fair point, although I think what they meant was taxes relating specifically to real estate investment (e.g. capital gains tax rules, mortgage interest deductibility, etc.)

    By Blogger Declan, at 12:08 PM  

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