Chinese investors fuel population growth in B.C.


By Todd Coyne, Vancouver Sun June 29, 2010


The population of Canada has surpassed 34 million, and British Columbia again has the highest rate of growth among the provinces.
According to new Statistics Canada figures, B.C.'s population grew by 16,626 people in the first four months of the year, bringing the total to 4,510,858 residents.
The largest driver of this immigration boom?
Chinese investors.
According to the B.C. government's most current statistics, Asian immigrants made up nearly three-quarters of new arrivals to B.C. in 2009 (29,455 of 41,434).
Of these, 9,375 were Chinese, ranking China well ahead of second-place India's 6,078 immigrants and the third-place Philippines' 4,623.
Perhaps most surprising, however, is that well over a third of these Chinese immigrants -- 3,977, to be exact -- are categorized as financial investors.
Compare this with the 101 Chinese immigrants classified as entrepreneurs.
Or the mere 42 and 64 investors from India and the Philippines, respectively, and a picture begins to emerge of a new kind of migrant to Canada's West Coast.
According to Henry Yu, an associate professor of history at the University of B.C. who specializes in Chinese immigration, the new wave of Chinese investors are, in fact, coming more for lifestyle reasons than investment opportunities.
"I'll tell you: What they're not coming here to do is to make a lot of money. It's very hard to make money in Vancouver compared to, say, Shanghai or Beijing," said Yu.
"So even though government programs may be opening doors to them as business investors, it's not actually a great place to invest to make high returns."
It is a good place, however, for economic and social stability, higher education, and a better quality of life, Yu said.
According to Yu, although most of the Chinese investors coming to B.C. are still chiefly wealthy, business-oriented men, they are turning their backs on China's booming economy, opting instead for "the good life" in the Lower Mainland.
And, when they can, they're bringing their families.
"During earlier waves you had a different set of ethnic Chinese from Hong Kong, and these were very different people that were coming in the late '80s, early '90s because they wanted to basically have a way out ... in case things went sour after the handover.
"And they stopped coming, basically, in 1997."
According to Yu, those who are still coming to Canada with ambitions of wealth are bypassing Vancouver and heading for Toronto.

tcoyne@vancouversun.com
© Copyright (c) The Vancouver

Second Homeownership and Interest in Vacation Rentals Continue to Remain Strong through Economic Recession

RISMEDIA, June 4, 2010—Second homeowners who rent their homes to travelers, on average, generate more than $35,000 in rental income each year, according to HomeAway, one of the world’s leading online vacation rental marketplaces which recently released its quarterly “HomeAway Vacation Rental Marketplace Report.”
On average, second homeowners are renting their properties to travelers 20 weeks a year, and the rental income generated is helping many owners offset mortgage and upkeep costs. In fact, the HomeAway report found 38% of owners generate enough rental income to cover 75-100% of their mortgage. Nearly two-thirds (63%) of owners earn enough to cover at least 50% of their mortgage.
“Owning a vacation property is not just for older Americans or the affluent. Many owners are discovering they can offset the costs of the home by renting to travelers when they’re not using it themselves, and they’re having good success lining up renters by marketing their homes online,” says Tom Kelly, Real Estate expert and author of How a Second Home Can Be Your Best Investment. “The rental income they earn can go toward paying the mortgage, home insurance, utilities and general maintenance.”
According to the HomeAway report, several markets around the country have seen significant increases in new vacation rental listings. For the fourth consecutive quarter, both New Orleans and Austin, Texas appear in the top 10 destinations with the largest increase in new listings. Sunset Beach, N.C. retains its top position from the last quarter and Telluride, Colo. dropped a spot from second to third.
More second home owners turn to renting their homesTop Markets with Largest Increase in New Vacation Rental Listings:

-Sunset Beach, N.C.
-Austin, Texas
-Telluride, Colo.
-New Orleans
-Sevierville, Tenn.
-Jackson Hole, Wyo.
-West Hollywood, Calif.
-Truckee, Calif.
-Whitefish, Mont.
-Eden, Utah

And despite the sluggish economy, second homeowners in these markets and throughout the country find that travelers are continuing to book stays, due in large part to the value afforded by a vacation home compared with a traditional hotel. Approximately 62% of second homeowners report their bookings for this summer are about the same or higher than last summer.
Now’s the time to buy vacation real estateGiven the success second homeowners have renting their homes to travelers, some are considering buying additional properties. Of the owners who cover 50% or more of their second home’s mortgage with rental income, 38% of them say they had considered buying an additional vacation home within the past year.
“There’s never been a better time in the past seven years to ‘buy low’ with the prospect of eventually ’selling high,” says Kelly. “Prices are down in just about every location, and mortgage interest rates are hovering at some of the lowest levels in history.”
Coastal areas, mountain and city destinations lure travelers looking for vacation rentalsWhether looking to buy a vacation home or just rent one for a personal vacation, finding the right destination is important. Miami and New York, again, rank in the top five most popular destinations to rent a vacation home this summer, based on traveler inquiries made on HomeAway.com between February and April 2010.
The top five most popular summer travel destinations include:Orlando, Fla.New York, N.Y.Cape Cod, Mass.Miami, Fla.Myrtle Beach, S.C.
However, when it comes to the fastest growing destinations among travelers, Beverly Hills and West Hollywood reappear as emerging hot spots, growing 119% and 130% respectively–compared to the same time last year in which they had already grown by 239% and 196%.
Emerging travel hotspotsTop 10 destinations with the largest percent increase in traveler interest from Q1 2009 to Q1 2010Telluride, Colo. (270%)Marina del Rey, Calif. (267%)New Orleans (220%)West Hollywood, Calif. (130%)Boca Raton, Fla. (129%)Cambridge, Md. (128%)South Yarmouth, Mass. (121%)Beverly Hills, Calif. (119%)Windham, N.Y. (108%)Flagstaff, Ariz. (107%)
Home-like experience of a vacation rental also big draw for travelersIf choosing between a vacation rental and a similarly priced hotel, 77% of travelers say they would choose a vacation rental over a hotel because of the home-like experience.
Deals and discounts on top of value provided by vacation rentalsWhile fewer vacation homeowners are offering deals or discounts this summer (55%) compared with last summer (66%), there are still plenty of deals to be had.
Of those owners who are offering deals this summer:

-43% plan to offer a specific percentage off the rental rate
-44% plan to offer a specific dollar amount off the rental rate
-31% plan to offer a free night with the purchase of a specific number of nights
-24% plan to offer free cleaning services
-11% plan to offer complimentary products or services, such as free tickets to a theme park
-10% do not plan to require a minimum-night stay