Quote:
Originally Posted by whatnext
Here's a nice little example from this weekend's Globe & Mail. It's why most people here will never be able to afford a house in much of Metro Vancouver:
Before Deborah Scott put her 1927 Kerrisdale house on the market in September, she had heard that accepted offers on houses on the west side were falling through.....She accepted another offer a little less than asking, for $6.288-million, which gave her an option to rent the house for two years. She was looking to rent back because she didn't want to move her kids too many times and they were already handling their parents' divorce. However, the buyer, from Richmond, couldn't get all the mortgage financing required and needed until spring to get the remaining money out of China, she was told. They gave her a $200,000 deposit and agreed to give her another $300,000 in December. To protect herself, she got it in writing that both deposits are non-refundable, to be held in trust by her realtor. If the subjects are not removed by the spring closing date, she will receive $500,000 for her trouble. The risk is, of course, that the market could plummet. But it was the only offer she got that worked for her.
"We got a notice on Friday saying they were having trouble getting their mortgage. They need a mortgage for $3-million, and they couldn't get it – they could only get $1.5-million. So they came back and said we can get our money out of China, but not until March. So now my closing date is March. That's high risk for us, but it offered me a two-year rent back."
To her dismay, the buyers plan on tearing the house down, but that was the case with all the offers, she says. Ms. Scott had purchased the house in 2000 because it is a character house in excellent condition. There are five houses near her that are set to be demolished and she estimates that one-third of the homes on her tree-lined street are empty...
https://beta.theglobeandmail.com/real-es...ellers-take-a-wild-ride/article36518216/
So as long as Canadians sit meekly back and let their governments allow this kind of 🞵🞵🞵🞵 we're all screwed. |
I am sure if the buyer went to our chartered banks, they would have had no problem securing financing. In my line of work which deals with FINTRAC, it appears from my experience chartered banks have no problem accepting "Students" and "Homemakers" who report $10,000 in income on their personal income tax return in Canada for a mortgage exceeding a million dollars, almost as if the lender knows they have unreported assets overseas (especially if the lender is the same ethnic background). On the other hand, average Joe reporting $70K in annual income has to prove themselves when obtaining mortgage financing which their income is subject to verification and solvency put under stress tests.
As per news stories online, at least 40% of Richmond residents live under the poverty line. CRA is taking notice of this. A leaked article last year indicated CRA auditors were working on assessing multi million dollar adjustments to income of people with wealthy businesses overseas but are not reporting their world income as is required in Canada. There's complete exploitation of our real estate being used to hide offshore wealth, and tax evasion. Probably been the case since the 90s.
Just the other day I came off an Air Canada jet to take the Canada line. A landed Chinese woman was taking selfies in front of the billboard at YVR that features Vancity condos including Vancouver House. I am not sure what to make of that behavior other than to think she was going to send a picture text message to her friends and family - Vancouver is open for hiding your wealth....let the games begin.
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