Every year 100s of billions dollars of black money/corruption money goes from the 3rd world countries to the rich countries. Terrorist financing got the west to monitor the movement of black money but they still have left loop holes and were not going after developed countries and other tax haven countries. Panama leaks and other data breaches have started shining a light on this and the developed countries have had to do something.
Billions in 'unknown' funds flowing into Canada's housing market [video]
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Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#42This isn't new, nor is it only related to China. Mexico, Russia, many middle east countries, and whole slew of other places has poured billions of cash into Canadian real estate. It's done via regulated banks who turn a blind eye because there nothing illegal about how it's being done. The are skyrises being built in every major city in which 95% of the tenants are not Canadian, and they sit practically empty. Some city blocks are a virtual ghost town of empty buildings the most Canadians can't even afford.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#43This has to stop, unfortunately a lot of people like the money coming in, and politicians often don't have the most effective policies.
I think the inflow is fine, but there should be hefty taxes associated with the fact that the property is made valuable by the civic infrastructure in place in the country which only citizens are paying for.
One thing they could do is build apartment buildings in less sensitive areas, and designate them as 'foreign ownership allowed'.
Literally buildings would get built and remain largely empty, as a form of 'investment' (this happens in China) and so long as it wasn't affecting local prices too much, it'd be fine.
I wonder if they should pick a spot in Southern Ontario and declare it such a 'zone' where they only build 30 story buildings for this purpose.
Of course, the nature of the economic waste is laid bare.
It might be more appropriate for the local governments to be selling a special kind of bond or some other financial instrument designed for this purpose.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#44House prices were soaring in Canada during the pandemic and the media couldn’t blame foreigners for once because of travel restrictions. Also the news reported on the rise of anti-asian racism. They should look in the mirror for blaming high r.e. prices on foreigners when it was proven that they only made up a small percentage of the market.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#45Earlier quoted context omitted.
How does people investing in housing change how much housing is available? They just rent it out.
> They just rent it out. This is not the case in some prominent housing markets (London & NYC come to mind). There are owners who purchase the properties as a way to store wealth in the US. These dwellings frequently sit empty most of the time.
The Dutch had a great system where buildings that had been empty for over a year could be squatted.
https://en.wikipedia.org/wiki/Squatting_in_the_Netherlands
I learned about it after a trip to OT301 with some friends from the CouchSurfing meetup in Amsterdam in 2013. Apparently the law has changed though, and now people are being criminally charged for squatting empty buildings.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#46When the fed suppresses interest rates and back stops the mortgage market, residential realestate starts to look like risk free treasuries with a ~9% yield.
God forbid we have a housing market correction.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#47New Zealand has a similar housing problem. House prices are skyrocketing and pricing out young people. A 25-30% rise in the past year has meant few people are saving fast enough to get a deposit. But two or three years ago the govt. banned overseas buyers. There is no reason to suggest the ban is not effective. It even bans non-permanent residents, so plenty of legitimate residents (work visas) can't purchase propert…
There are several factors driving housing prices, it doesn't mean that one vector shouldn't be regulated.
Also, it may be possible for people to side-step regulations as often the reality on the ground tells a different story.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#48Should housing be a primary vehicle for investment and the de facto way of making money? Or should it serve as a necessity and basic aspect of life?
In Australia if I recall correctly, foreign buyers are only able to buy newly built homes. Canada would benefit from a similar rule, it would stimulate more housing and not impact the demand for existing homes.
I sincerely hope this is incorrect.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#49Home owners will be happy to hear this. Not yet home owners like me are screwed because rents to damn high and I can’t afford to save up for a down payment. Sorry bud.
They shouldn't be though.
What they don't realize is that the 'step above' them is getting way out their ability to move into, and they're getting stranded in the tranche they are in.
It's a big new problem with globalism that needs to be addressed.
Re: Billions in 'unknown' funds flowing into Canada's housing market [video]
#50Surely a role played by Chinese Govt. Why no one talks about that?
Ironically it's people trying to get money away from the CCP etc. that is driving this.