Montreal, Warren Buffett, Vancouver discussed on Masters in Business


French English separatism in Montreal Montreal. So then I realized what the problem was and at that particular point in time that would have made been ninety six or ninety seven pricing did not really reflect the problems that were going on. But by ninety seven ninety eight they did. And that's when I made my first purchase. So in other words that dual language mandate helped to drive real estate prices lower. Well, it was it was it was a confluence of events that there was an extended recession, but certainly. The fact that the Anglophiles led by the Seagram family had made a decision to pull out of of Montreal was not positive. And in fact, the first property I bought was from Seagram from Seagram's owned entity. And what do you what do you think of Montreal today? You know, I think it's a fantastic city. I often say it's France and North America, and it's booming. It's got a great tech center sector. I think it's a wonderful place. And some folks have said that Canada had come through the financial crisis without any of their banks blowing up they have far fewer banks a lot of concentration in the four or five largest banks. But a whole lot more regulation and a home lot more oversight. The good news is their banks are all in pretty good shape. The bad news as a lot of people pointed Canadian real estate is. One of the bigger bubbles in the world. What what are your thoughts on that? Well, it's true that cap rates in Canada have compressed great deal. And I haven't been able to buy any new income property there for five or more years. So I certainly agree that the market has has very expensive. Does that mean, it's a bubble? Maybe I think the bubble that's referred to is sometimes a construction boom in Toronto Toronto has traditionally absorbed fifteen to twenty thousand new units a year, which is extraordinarily. And they've been doing it for almost twenty years say have that much immigration to the city. They have that much immigration both international as well as domestic and people wonder how long can this continue without some sort of a? A breather since I started going to Vancouver for a conference about a decade ago. I just think that's a fantastic city. It's beautiful. The weather is nice. The people are nice. The architecture is great. It's right on the bay. Some people have described that as a China induced bubble a lot of folks out of China can get money out of the country to buy real estate, and they the locals complain about these si through towers brand new buildings go up there fully sold. Nobody's living in them. What what do you see is happening in in Vancouver? Well, the history of of the largest development project that I know of Vancouver was of course, owned by Li Ka-shing who's perhaps the wealthiest person in in in Asia. I think he's Hong Kong based he also owns ten percent of CIBC one of Canada's largest banks. So so his presence. And he's legendary he's the Warren Buffett of of of Asia, and certainly has a lot of investors an apartment owners who have followed him and who have bought the complexes that he that? He's built there. And it's I haven't been there recently. But enormous so there is a very close tie to to to China to Asia. And of course, it's it's convenient because you can fly fly there easily being west coast city, and I can imagine that today with with the Chinese currency controls that that will affect the Vancouver market. In fact, I think I've read a little bit that it already has a clearly the ability of the Chinese to to buy outside the market is as being severely reduced and compromised at the moment. So you you mentioned you have invest. It's in real estate outside of North America. Where where are you putting money to work in either Europe or South America or Asia what what catches your fancy these? Well, my most recent they really to places that I would think about I is Holland all in was at the end of a long recession about two or three years ago banks weren't lending and a lot of the local real estate companies were very compromised by the losses that they took during during sustained recession. So real estate was very cheap in Holland, and nobody had the ability to execute on it Miot..

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