Canada’s real estate industry is in trouble. According to the Canadian Real Estate Association, July marked the lowest in national sales.

The Association believes the slowdown in Vancouver may have spread to different parts of Canada.

The number of transactions in Canada between June and July had fallen by 1.3 per cent nationally. In July, a 2.9 per cent drop was noted. Fraser Valley and Greater Vancouver slipped at about 6.7 per cent and 14. per cent respectively in home sales.

Analysts said Vancouver is the one with the biggest issue for the downfall.

“The real eye-catcher is the fact that mighty Vancouver has been largely responsible for the recent cooling, with seasonally-adjusted sales now falling in five straight months, albeit from gaudy record levels at the turn of the year,” BMO senior economist Robert Kavcic wrote in a note to clients.

Despite the drop in sales, prices of homes continued to increase. The average price for a house in July reached about $480,743, a notable 9.9 per cent increase compared to the previous year.

“Where these two cities will go in the months ahead is where the story starts to get quite interesting,” Kavcic wrote.

“As noted, Vancouver has already seen its market loosen up quite a bit recently, and the new tax could pile on to take some momentum out of price growth.”

The newly-mandated 15% property tax on foreign buyers may also scare off possible real estate buyers from joining the fray this year.

According to TD Bank Economist Diana Petramala:

“TD Economics’ forecast assumes residential sales fall an additional 14 per cent to 20 per cent due to the tax, not only as foreign buyers leave the market, but as domestic players get spooked and move to the sidelines,” Petramala said.

“Overall, home prices are expected to fall by almost 10 per cent between now and the end of next year.”

Pimco has sent out a warning to all investors that the capital flows that supported the US real estate market since the 2008 Financial Crash is decreasing slowly.

Pimco states it is with the volatility in public markets, tightened regulations, maturing loans and uncertain foreign capital flows are creating huge blasts of volatility for the United States commercial real estate.

Deutsche Bank’s own analysis warned about the decline in commercial real estate in the United States noting that several measures of on-the-ground spending neared 90% of the levels where they peaked from 2002 to 2008.

Pimco said the new rules since the financial crisis would prompt banks to slim down to ensure liquidation and creation of new markets where necessary.

The process of liquidation is somewhat limited as hedge funds that tried to sell their positions in February to banks didn’t manage to do so due to the lack of a market.

Pimco advises investors that there will be a huge shuffle. Investors who understand real estate would see the storm as a ‘welcome one’ while others might want to sell their current positions to prime themselves for the upcoming ‘storm’.

Due to a very weak sterling and favourable tax rates, Maltese English school students plan to leave for the United Kingdom. However, observers have yet to note a trend that can predict Maltese students are favouring the United Kingdom.

In Malta, language travel services have a huge VAT of seven per cent for students and 18 per cent VAT on all other services.

Statistics show that students in 2014 increased by 3.4 per cent in Malta. About 74,992 students arrived in 2014. By the end of the year, the number has reached 77,550.

According to a government spokesman:

“At the moment this shift is not yet being felt for the simple reason that sterling started taking a downward turn only recently. However, we are sure that if this pattern persists, especially if a Brexit occurs, tour operators and agents will be even more inclined to opt to send students to the UK as they have always done every time sterling weakened.

“In the UK, no VAT is levied and this already makes it more competitive. And now, the looming 50c per person per bed night tax that the government is so adamant on introducing will only serve to increase the competitive disadvantage of Malta as an ELT destination,” the spokesman said.

It has always been the case among millionaires; you’d see their two-digit roomed mansions in the news or the Internet. You hear about property and business acquisitions by a certain Western millionaire. Real estate, for good or for bad, had always reaped positive results. They may take some time to pay, but why are millionaires and nest-egg masters always going for the high road?

An Alternative (Sturdy) Investment

“Real estate is generally accepted as an alternative investment [by high-net-worth investors],” says Simon Jochlin, portfolio analytics associate at StennerZohny Investment Partners, part of Richardson GMP in Vancouver.

“It has the characteristics of an inflation hedge: yield, leverage and cap gains. It does well in upwardly trending markets, it pays you to wait during market corrections and typically it lags equities in market declines – it buys you time to assess the market.”

Is A More Logical Choice

“For example, if you own a rental condo, and the one across the hall goes on sale for 30 per cent less than you think it’s worth, you wouldn’t automatically put yours on the market and sell, too, because you think there is a problem. Indeed, you may actually buy the other condo,” said Senior Vice President and Portfolio Manager at Raymond James Ltd. Darren Coleman.

“And yet when a stock drops on the market, instead of thinking of buying more, most people automatically become fearful and think they should sell.”

Gives More Leverage

Coleman added that “Banks love to lend against it. Over time, this lets you own a property with a much smaller investment than if you had to buy all of it at once.”

Unknown to many, banks mean to acquire as much property as they can. But to consider a millionaire a financial “pushover” of sorts when it comes to acquiring assets (because they can pay), would be blasphemy. But if indeed a millionaire slips up on a property, the bank is more than willing enough to buy, improve and re-sell the property at a higher rate relevant to its immediate environment.

The changing perspectives from classic to modern in today’s younger generation, particularly in where individuals want to live and work, can change in 10 years. At such a time, Europe’s real estate will adapt and answer the change. Possible solutions can be economically and technologically-advanced, paving the way for advancements in real estate.

According to analysts, Generation Y, Millenials and Generation Z have used technology and the Internet since their childhood. The need for open information and sharing of goods and information is present.

Commercial property demands may fall in Europe in the next 10 years. However, there may be an increase in smaller households, affordable housing and easy access of public buildings.

About 60 per cent of people wish to live in urban areas compared to the 30 per cent who wish to live in the cities in the 1950s. It is possible technology and the developing use of Internet and information-sharing.

Green buildings may also crop up as a result. Plenty of Generation Y, Millenials and Generation Z have a strong sense of sustaining the planet. They have been taught to value the reduction, reusing of items and recycling during their younger years.

With important events abound in Malta for November 2015, Malta’s government declares its addition of defence assets to support Malta’s security operation for the Valletta Summit on Migration and the Commonwealth Heads of Government meeting (CHOGM).

According to the Maltese Ministry of Foreign Affairs:

“There are no known specific threats for these events and these measures are precautionary.”

The Ministry said the agreement signified the “enduring ties and shared interests as members of the EU” for both UK and Malta.

What Is the Valletta Summit and CHOGM 2015?

The Valletta Summit

With an unexpected number of migrants persecuted or fleeing from war in Africa and the Middle East, the EU has chosen to confront the numbers and take in the refugees with an integrated and co-operative system.

The Valletta Summit on Migration to be held on November this year will address the migration flow challenges, urging governments of the world to collaborate and create efforts to overcome the challenges mass migration, religious persecution and even climate change brings.”

The Commonwealth Heads of Government Meeting

Before the Paris Summit would be the Commonwealth Heads of Government Meeting. The CHOGM would discuss issues on democracy, human rights, good governance, free trade, global development and world peace. The CHOGM is held every two years.

UK and Malta Relations

Malta was once a British colony in history. In the 50s and 60s, Malta gained independence from the United Kingdom and occasionally, the two countries are not economically linked or collaborating.

With the upcoming international events to be held in Malta, the United Kingdom steps up its support for security for its own personnel.

In the wake of the hacking of dating service provider Ashley Madison, a data dump revealed ex-Tory MP Damian Green registering himself in the service provider’s website. The former Minister for Police and Criminal Justice denied ever using the website. He denied the AOL address he used to create the account.

The MP, married, said: “I don’t know anything about this. It’s nothing to do with me.” He added, “I have never registered for an account with Ashley Madison.”

“I don’t know who has used this account. I’ve had so many email accounts over the years. I may have had an aol address many years ago,” said Green.

Investigators found the birth date used in the Ashley Madison account is three years after the MP was born. However, the security question contradicted the earlier evidence as it uses Green’s mother’s maiden name Lyons as a security question.

The Impact Team, which breached Ashley Madison’s servers and website in July, had dumped the details of 36 million fling-seeker, where 1.2 million are British nationals. The database contains 100 people using and addresses to sign up for Ashley Madison accounts. Some related to the US government and military had also signed up for the service.

Private sector addresses from IBM, HP, Cisco, Apple, Intel, Microsoft, Samsung and Qualcomm were also found in the hacking database.


According to Malta Tourism Minister Edward Zammit Lewis, effort is needed to elevate Malta’s reputation as an affordable key holiday destination to attract more travellers. Along with Corinthia Group Chairman Alfred Pisani in the Business Insider conference, Malta is a unique Mediterranean destination.

He said Malta should have better rates should its quality improve.

“If we believe in our capability and maintain values in what we do, we will eventually and slowly improve,” he said.

Pisani said that Malta’s move to high-end tourism was possible if a change in enforcement and high-end establishments come to fruition.

Lewis said

“Many owners of entertainment establishments are now shifting to investments in accommodation and as such, cleaning up the area would be in their interest.”

He was also pretty confident that Malta had no troubles with its economy or development, but he sees that there is room to grow for tourism improvement. Lewis believes the country hasn’t reached its full potential during the summer months with just a 2% growth capacity.

Lewis also encouraged increasing the number of tourists outside Malta. Currently it only has 12% accounted for. He pointed out the government is trying to secure a direct flight deal with China. However, Malta President For Tourism Hospitality and Leisure Philip Fenech said culture must be improved else the quality of tourism in Malta, and tourists, can suffer.

Malta’s economy is built on services, its construction industry and a small part of it made by its financial industry.

It has performed well for many years as it has improved its banking system to international standards and offer very amicable tax arrangements for foreign companies.

Read more about Malta’s progress with this infographic!

Ireland donates its recently-decommissioned LE Aoife to the Maltese armed forces. Its role will be to assist in the Mediterranean refugee rescues. In exchange, the Maltese armed forces must cooperate with Ireland in military exercises and handling defence matters.

The transfer of LE Aoife from the Irish Naval Service would also include personnel training. Maltese military personnel will be sent to Ireland to attend a joint training mission

Ireland Minister for Defence Simon Coveney and Malta Minister For Home Affairs and National Security Carmelo Abela attended a meeting of EU defence ministers in Riga. They agreed to cooperate more closely with each other.

Coveney explained that Malta needed a new ship to assist in the patrolling of the Mediterranean Sea.

“Recent tragic events in that part of the Mediterranean have underlined the significant challenges which need to be addressed by the international community and Ireland is very keen to play an active part in this regard,” Mr Coveney said.

“The refugee crisis represents a significant challenge for the EU and that while Ireland was not in the front line of the response to the crisis we were pleased to be in a position to support the response in this manner,” he added.