What is really causing the exorbitant rise in real estate prices?
The housing price bubbles are growing at an alarming rate on the Lower Mainland. Is it the froth from the mainland that is inflating real estate values on Vancouver Island?
The Parksville Qualicum Beach area saw prices rise by 10.5 per cent, since the same time last year. Are we seeing the inflated effects of fiat money?
The central banks around the world, particularly in Asia, are creating gazillions of dollars’ worth of fiat currency (check out https://en.wikipedia.org/wiki/Fiat_money).
Fiat money is an intrinsically useless object or record, which is widely accepted as a means of payment; usually it is converted (laundered) into a tangible asset like real estate.
Foreign investment is fueling a big part of the superficial values being placed on our land and buildings. The winners in this money game are the countries that can create the most digital fiat currency.
The losers cannot afford to live in their own chosen community, because of over inflated prices and typically move to a more affordable region.
When the chickens come home to roost, and these money bubbles burst, will more reasonable values of real estate, emerge from and under the effervesce?
Trevor WicksQualicum Beach