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When I read the article, it doesn't seem to say that Chinese cash is propping up real estate prices. Rather, Chinese drugs get smuggled into Canada, the Canadi
by PakG1 9y ago
When I read the article, it doesn't seem to say that Chinese cash is propping up real estate prices.
Rather, Chinese drugs get smuggled into Canada, the Canadian proceeds from selling those drugs then get loaned to homeowners who don't have Canadian money themselves, and then when the home sells, the Canadian money goes back to the lender. If the lenders can be paid back, they don't get paid back with Canadian cash or Chinese cash in Canada. They get paid back with Chinese cash in China.
Of course, the question might arise how did the homeowners get enough money to buy the property in the first place. Well, that's probably Chinese money. Getting enough money out of China for a down payment should only take a few years with a $50,000 per year limit.
OK, so maybe Chinese money is paying a lot of down payments, and maybe drug money is being loaned out to homeowners. But where does the money to buy the home when it's later sold or foreclosed come from? Drug money, Chinese money, or other? That's the real question for figuring out what's causing real estate prices to soar.
- mistermann 9y ago> When I read the article, it doesn't seem to say that Chinese cash is propping up real estate prices. Try this one on for size: http://www.timescolonist.com/news/b-c/explosive-b-c-court-case-details-seven-migration-scams-1.23144703 http://www.timescolonist.com/news/b-c/explosive-b-c-court-ca... And the only reason it came to light was because it is a civil suit between individuals, the Canadian legal system most definitely isn't trying to catch anyone breaking laws as described in this story. Despite confessions on record in Canadian court, there will not even be an investigation of these people, as there won't be for those laundering hundreds of thousands of dollars in casinos in broad daylight, or paying people (and getting reported to the media with extensive reporting in the newspaper) for phony job offers for immigration scams. All of this very clearly has the blessing of all levels of government in Canada. Whether it is merely for the much needed economic boost or if there's something more sinister in play, we'll never know.
- PakG1 9y agoI believe Chinese cash is contributing to soaring real estate prices in specific cities worldwide, though I do not believe it's the sole root cause. That being said, I was attempting to clarify what the article was discussing, not my personal perspective on what causes real estate prices to soar in Canada.