4 ms·

Not an expert, but I've heard a lot of property purchases are a way for rich people in China to evade capital controls.

hackerboos 10y ago
It's not just capital controls. There is a lot of fraud in China that ends up being laundered in real estate here in Canada: http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals?__lsa=5505-e545 http://theprovince.com/business/real-estate/mysterious-wheel...
- mistermann 10y ago
  Toronto is now also completely out of control: http://www.greaterfool.ca/2017/03/04/its-official-its-a-bubble/ http://www.greaterfool.ca/2017/03/04/its-official-its-a-bubb... Normally there would be an epic crash in the near future, but I have come to the conclusion that this time really is different, and I'm not joking.
  - hackerboos 10y ago
    Shame the government of Ontario won't even consider the BC foreigner tax.
    - kspaans 10y ago
      Numbers I've seen suggest that the proportion of "foreign money" in Toronto is even lower than in Vancouver (mostly from GreaterFool.ca), so the tax may not have a large effect.
      - mistermann 10y ago
        My question would be: what is their definition of "foreign money", and how are they determining how much of it is involved in their housing market.
    - 234dd57d2c8dba 10y ago
      Open borders are important for the continued growth of the city. Taxing foreigners explicitly sounds pretty racist and is likely to shift investment to other regions.
- ryall 10y ago
  We've got the same problem here in Auckland (NZ). Now the 4th least affordable place in the world http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11785825 http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&obj...
  - mistermann 10y ago
    Out of curiousity, does Auckland also have 18 year old kids driving $100k++ sports cars with N (new driver) stickers as we do here in Vancouver?
lazyasciiart 10y ago
Strictly speaking it's not a way to avoid capital controls (which means limits on how much money you can take out of the country). It's a place to put money that has already escaped capital controls.
alva 10y ago
Not just China. Walking around the wealthiest areas of London I sometimes get a sickening feeling when I think about their occupants. The most beautiful houses and essentially palaces are largely owned by people who have raped their countries. Russians, Saudis, Qataris, Chinese oligarchs and politicians who are very successful thieves. These are mostly empty apart from a couple of months when the princes of the middle east come to escape the heat. I find it very sad to see things of such beauty being occupied by people who have stolen a countries wealth away from their poorest.

It's not just capital controls. There is a lot of fraud in China that ends up being laundered in real estate here in Canada: http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals?__lsa=5505-e545 http://theprovince.com/business/real-estate/mysterious-wheel...

mistermann 10y ago
Toronto is now also completely out of control: http://www.greaterfool.ca/2017/03/04/its-official-its-a-bubble/ http://www.greaterfool.ca/2017/03/04/its-official-its-a-bubb... Normally there would be an epic crash in the near future, but I have come to the conclusion that this time really is different, and I'm not joking.
- hackerboos 10y ago
  Shame the government of Ontario won't even consider the BC foreigner tax.
  - kspaans 10y ago
    Numbers I've seen suggest that the proportion of "foreign money" in Toronto is even lower than in Vancouver (mostly from GreaterFool.ca), so the tax may not have a large effect.
    - mistermann 10y ago
      My question would be: what is their definition of "foreign money", and how are they determining how much of it is involved in their housing market.
  - 234dd57d2c8dba 10y ago
    Open borders are important for the continued growth of the city. Taxing foreigners explicitly sounds pretty racist and is likely to shift investment to other regions.
ryall 10y ago
We've got the same problem here in Auckland (NZ). Now the 4th least affordable place in the world http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11785825 http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&obj...
- mistermann 10y ago
  Out of curiousity, does Auckland also have 18 year old kids driving $100k++ sports cars with N (new driver) stickers as we do here in Vancouver?

lazyasciiart 10y ago

Strictly speaking it's not a way to avoid capital controls (which means limits on how much money you can take out of the country). It's a place to put money that has already escaped capital controls.

alva 10y ago

Not just China. Walking around the wealthiest areas of London I sometimes get a sickening feeling when I think about their occupants. The most beautiful houses and essentially palaces are largely owned by people who have raped their countries. Russians, Saudis, Qataris, Chinese oligarchs and politicians who are very successful thieves. These are mostly empty apart from a couple of months when the princes of the middle east come to escape the heat. I find it very sad to see things of such beauty being occupied by people who have stolen a countries wealth away from their poorest.