4 ms·

Yeah, I mean, real estate in BC (where he bought one of his properties) is notoriously corrupt, and lucrative. Most real estate bought in BC is paid in cash, of

Yeah, I mean, real estate in BC (where he bought one of his properties) is notoriously corrupt, and lucrative. Most real estate bought in BC is paid in cash, often by some dizzying maze of LLCs or whatever the Canadian equivalent is. Essentially money laundering and investment rolled into one.

sbarre 3y ago
> Most real estate bought in BC is paid in cash, often by some dizzying maze of LLCs or whatever the Canadian equivalent is. This is provably false. It's not "most" real estate, it has only recently approached 30% or so, and only in hot markets like Vancouver and Victoria. There's a money laundering problem in Canadian real estate for sure, but let's try to be reasonably accurate in our statements, shall we?
- margalabargala 3y ago
  Holy cow. 5% would be high. 30% is dizzying. You're saying that if I pick a random recently sold BC property, there's a one in three chance it's bought with cash? That's not a money laundering problem, that's a money laundering infestation.
  - sbarre 3y ago
    Again, not across all of BC, but in hot markets like parts of Vancouver and Victoria.. It sounds high but it seems to be normal enough? I found this with some quick Googling: https://www.thestreet.com/housing/a-surprising-number-of-homes-are-bought-for-cash https://www.thestreet.com/housing/a-surprising-number-of-hom... https://www.washingtonpost.com/business/interactive/2023/all-cash-buyers-housing-market/ https://www.washingtonpost.com/business/interactive/2023/all...
  - beambot 3y ago
    1 in 3 U.S. Homebuyers Are Paying All Cash, the Highest Share in Nearly a Decade Just over one-third (34.1%) of U.S. home purchases in September were made in cash, up from 29.5% a year earlier and the highest share in nearly a decade. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. https://www.businesswire.com/news/home/20231108812516/en/1-in-3-U.S.-Homebuyers-Are-Paying-All-Cash-the-Highest-Share-in-Nearly-a-Decade https://www.businesswire.com/news/home/20231108812516/en/1-i...
    - gruez 3y ago
      AFAIK "Paying All Cash" doesn't necessarily mean the buyer has $1M (or whatever the purchase price of the house) saved up. It just means their offer isn't contingent on them securing a mortgage, and they have the money secured somehow (probably through a preexisting loan). https://www.bankrate.com/real-estate/all-cash-offer-upfront-underwriting/#how-to-make https://www.bankrate.com/real-estate/all-cash-offer-upfront-...
      - Scoundreller 3y ago
        100%. Not unusual for a multi-property investor to buy “cash” through a cheque on their line of credit to close quickly (you’ve already decided you want to properly and quick close can be a competitive advantage). Then arrange the mortgage later, possibly after some capital-value improving… improvements.
    - margalabargala 3y ago
      Huh. Apparently it's my expectations that are wrong, not the market. Thanks, I learned something today!

sbarre 3y ago

> Most real estate bought in BC is paid in cash, often by some dizzying maze of LLCs or whatever the Canadian equivalent is. This is provably false. It's not "most" real estate, it has only recently approached 30% or so, and only in hot markets like Vancouver and Victoria. There's a money laundering problem in Canadian real estate for sure, but let's try to be reasonably accurate in our statements, shall we?

margalabargala 3y ago
Holy cow. 5% would be high. 30% is dizzying. You're saying that if I pick a random recently sold BC property, there's a one in three chance it's bought with cash? That's not a money laundering problem, that's a money laundering infestation.
- sbarre 3y ago
  Again, not across all of BC, but in hot markets like parts of Vancouver and Victoria.. It sounds high but it seems to be normal enough? I found this with some quick Googling: https://www.thestreet.com/housing/a-surprising-number-of-homes-are-bought-for-cash https://www.thestreet.com/housing/a-surprising-number-of-hom... https://www.washingtonpost.com/business/interactive/2023/all-cash-buyers-housing-market/ https://www.washingtonpost.com/business/interactive/2023/all...
- beambot 3y ago
  1 in 3 U.S. Homebuyers Are Paying All Cash, the Highest Share in Nearly a Decade Just over one-third (34.1%) of U.S. home purchases in September were made in cash, up from 29.5% a year earlier and the highest share in nearly a decade. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. https://www.businesswire.com/news/home/20231108812516/en/1-in-3-U.S.-Homebuyers-Are-Paying-All-Cash-the-Highest-Share-in-Nearly-a-Decade https://www.businesswire.com/news/home/20231108812516/en/1-i...
  - gruez 3y ago
    AFAIK "Paying All Cash" doesn't necessarily mean the buyer has $1M (or whatever the purchase price of the house) saved up. It just means their offer isn't contingent on them securing a mortgage, and they have the money secured somehow (probably through a preexisting loan). https://www.bankrate.com/real-estate/all-cash-offer-upfront-underwriting/#how-to-make https://www.bankrate.com/real-estate/all-cash-offer-upfront-...
    - Scoundreller 3y ago
      100%. Not unusual for a multi-property investor to buy “cash” through a cheque on their line of credit to close quickly (you’ve already decided you want to properly and quick close can be a competitive advantage). Then arrange the mortgage later, possibly after some capital-value improving… improvements.
  - margalabargala 3y ago
    Huh. Apparently it's my expectations that are wrong, not the market. Thanks, I learned something today!