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Taxpayers Also Victims Of ‘hot Money' Behind Canada's Condo Bubbles

Financial Post  |  Posted: 05/07/2012 9:01 am

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Financial Post:

The condo bubbles in Toronto and Vancouver are caused by foreign speculation and are making housing unaffordable and creating financial risk for the country in terms of government-insured mortgages. But there’s another issue of vital concern to taxpayers.

There are three times more condo high-rises being built in Toronto than in New York City and seven times’ more than in Chicago. This boom is not the market at work, but is manipulation by “hot money” from abroad.

Read the whole story at Financial Post

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Filed by Daniel Tencer  | 
 
 
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HUFFPOST SUPER USER
Voices in the Wilderness
51 Fans
02:33 PM on 05/07/2012
It should be a simple matter for CRA to require the issue of T5008's for the sale of real estate options just as is required of brokerage firms for their customers' sales of shares. Unless, of course, some of the big players are also big donors to the party. How Chinese we are getting.
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HUFFPOST SUPER USER
Mad Hatter 1
607 Fans
01:33 PM on 05/07/2012
It's a lot more than just "Tax Fraud" when it comes to the housing market.
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HUFFPOST SUPER USER
Warren Yuill
Jesus Built My Hot-Rod
210 Fans
01:15 PM on 05/07/2012
It all comes down to occupancy.
How many finished units are sitting empty.
Nobody builds apartments any more so there has to be a demand from renters.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
294 Fans
 
10:42 AM on 05/07/2012
Everyone knows these foreigners have inflated the countries housing market Yes the government could look more seriously at foreign investment in the real estate market.. Yes Canadians could hold off buying instead of panic bidding to get a house they will probably never pay off. When Hong Kong was being turned back to mainland China many people from Hong Kong came to Canada. My neighbour bought three houses. One inToronto, one in Winnipeg, and one in Vancouver. Since the political uncertainty never materialized he has since returned to Hong Kong. The Winnipeg house he sold and his kids moved to the other two. He had big bucks and that was in the ealy nineties. I can't imagine those house prices today.
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parrotfish
369 Fans
09:45 AM on 05/07/2012
Read the article and it makes no sense. I think someone who wrote this attended the weekend pot appreciation festival at Queens Park and partaked a bit too much.

Yes there is a bubble brewing but extrapolating that to massive tax fraud is a stretch.
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