4 ms·

In the defense of the narrative, they've spoken about Chinese money stashing in real estate in Toronto LOONNNGGG before Covid was even thought of.

bentlegen 6y ago
I understand it has been a popular narrative for a long time. Most studies have shown it’s a tiny percentage of home sales. There are also now significant taxes on foreign ownership, and statistics show this is having the effect of deterring buyers. “CBC's analysis suggests foreign buyers account for about 1.8 per cent of total home purchases in the GTA (Toronto plus the regions of York, Peel, Durham and Halton) since the tax was imposed in April 2017.” A common rebuttal to this is “well they use corporations to shield the true origin of the money”. Why not just park your money in the US where no such taxes exist and is overall less hostile to foreign ownership? https://www.cbc.ca/news/canada/toronto/ontario-foreign-buyers-tax-real-estate-1.5135338 https://www.cbc.ca/news/canada/toronto/ontario-foreign-buyer...
- DeBraid 6y ago
  > since the tax was imposed in April 2017 Base rate matters here. They are measuring `Sales subject to foreign buyers tax`, not the impact of foreign buyers. This percentage of foreign buyers THAT ALSO pay their taxes. The foreign capital that flows into residential real estate mostly held in numbered corporations which are not captured in the above data. > Why not just park your money in the US where no such taxes exist and is overall less hostile to foreign ownership? After 9/11 the USA (relative to Canada) got very serious about prosecuting money launderers. Tax rates are less important than getting dirty money clean. > government inaction is putting Canadian banks in an awkward position as they seek more growth south of the border. Americans are keenly aware that criminals exploit [Canada's] weaker laws. https://www.theglobeandmail.com/business/commentary/article-us-is-steps-ahead-of-canada-in-fighting-financial-crime/ https://www.theglobeandmail.com/business/commentary/article-...

bentlegen 6y ago

I understand it has been a popular narrative for a long time. Most studies have shown it’s a tiny percentage of home sales. There are also now significant taxes on foreign ownership, and statistics show this is having the effect of deterring buyers. “CBC's analysis suggests foreign buyers account for about 1.8 per cent of total home purchases in the GTA (Toronto plus the regions of York, Peel, Durham and Halton) since the tax was imposed in April 2017.” A common rebuttal to this is “well they use corporations to shield the true origin of the money”. Why not just park your money in the US where no such taxes exist and is overall less hostile to foreign ownership? https://www.cbc.ca/news/canada/toronto/ontario-foreign-buyers-tax-real-estate-1.5135338 https://www.cbc.ca/news/canada/toronto/ontario-foreign-buyer...

DeBraid 6y ago
> since the tax was imposed in April 2017 Base rate matters here. They are measuring `Sales subject to foreign buyers tax`, not the impact of foreign buyers. This percentage of foreign buyers THAT ALSO pay their taxes. The foreign capital that flows into residential real estate mostly held in numbered corporations which are not captured in the above data. > Why not just park your money in the US where no such taxes exist and is overall less hostile to foreign ownership? After 9/11 the USA (relative to Canada) got very serious about prosecuting money launderers. Tax rates are less important than getting dirty money clean. > government inaction is putting Canadian banks in an awkward position as they seek more growth south of the border. Americans are keenly aware that criminals exploit [Canada's] weaker laws. https://www.theglobeandmail.com/business/commentary/article-us-is-steps-ahead-of-canada-in-fighting-financial-crime/ https://www.theglobeandmail.com/business/commentary/article-...