If you’re a seller or a real estate agent in Vancouver, you’re probably loving these overpriced bungalows and million-dollar crack shacks.

But, if you’re a buyer, well let’s just say, that’s another story.

Many have been pushed out of the market due to foreign ownership.

“Real Estate Board of Greater Vancouver, last year the average price of a detached home in Metro Vancouver rose 11.2 per cent to $887,000. On the West Side, the average home price rose 20.7 per cent to $1.99 million. And according to a recent Re/Max report, the sale of Vancouver homes worth more than $2 million rose by 118 per cent in the first four months of 2011.”

If you ask any economist as to which country best resembles our mortgage and real estate model, they would say, Australia.

“In recent years, Australian cities have experienced Vancouver-style real estate booms, with housing prices soaring from Sydney to Melbourne. Like here, buyers from China help drive Australia’s speculative real estate market. Faced with mounting public pressure, in 2010 the Kevin Rudd government introduced strict regulation aimed at foreign ownership. Under the new rules, the Foreign Investment Review Board (FIRB) screens foreigners (including temporary residents and students) to determine their land purchase eligibility. Foreigners can’t buy existing properties and must build on vacant land within two years of purchase or face government-ordered sale. Scofflaws face capital gains confiscation. Finally, before foreign homeowners leave Australia, they must sell. No more overseas landlords Down Under.”

Australia actually caved to mounting pressure.

Imagine the thought, making home ownership more affordable for people who live, work and raise families here!

But, is it too late?

Would real estate prices in Vancouver BC crash.

Would mortgage rates start to rise?

If you look closely at Australia, the answer would be NO.

I’m curious to hear your thoughts?

Go ahead and leave a comment below.

Mark Fidgett,

Your Vancouver Mortgage Broker For Life