Thursday, July 28, 2016

Human Behavior Triggers The Transition From Boom To Bust #BoomBustCycle

The cycle of boom and bust always includes a period in which rich outsiders drive the price of something beyond the accepted norm. After that, government, an organization that lacks the ability to time the transition from night and day by assuming infinite prosperity, taxes that something, thus, triggering the crash. The locals, once 'price out the market' during the boom, are now faced with the difficult decision of buying 'cheaper' property during the bust period when jobs and salaries contract. Only the minority that does not depend on government leadership or action profits from human nature.

Headline: Wealthy overseas buyers to face new real estate tax in Vancouver

Vancouver residents will soon get a larger cut from the real estate shopping spree that's taking place in their city, courtesy of wealthy overseas buyers that are snatching up property there.

The British Columbian government on Monday approved a new 15 percent tax on foreign property buyers in metropolitan Vancouver, as a surge in real estate purchases by rich foreigners — particularly the Chinese — has caused many locals to say they've been priced out of the market.



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