China's Millionaire Migration

[calculoso]

Originally Posted by Winsor_Pilates

Not quite how it works.

1)You don't just get the deposit. When a buyer defaults, the seller still have to go through a legal process and essentially sue to get the deposit.
Considering it's a foreign buyer who is backing out, that will be very difficult to do.

Didn't think it was quite as easy... but if the lawsuits can't/don't go through, does this mean there is a lot of money just tied up "in trust" and not accessible to anyone?

Originally Posted by Winsor_Pilates

2)Using the same numbers as an example and assuming they successfully sue for the 5% deposit:
That local home seller gets $50,000 from the defaulted deposit; but they now have the completing of their $1.5M purchase come up and haven't sold their current home.
They have no way of completing that sale and will have to default on their 5% deposits which is $75,000.
Net result is a $25,000 loss and lots of headache for that local home owner. All of that is assuming they can even successfully get the defaulted deposit released to them and not factoring in legal costs.

Or they can see if that $50k can be used as a temporary bridge loan until they can again re-sell their current home.

[Mr.Coffee]

Originally Posted by snootchiebootchies

Yeah, I don't think Calgary is high up on the list anymore. Foreign nationals, like Maritimers/Ontarians/Saskatchewanians, immigrated to Calgary and bought homes because there was a prospect of a job or a job was already awaiting them. Without the jobs, there is very little reason for foreigners to buy homes here.

Let's hope so! Less people = better.

[squiggs96]

Originally Posted by blankall

Quite frankly, I don't think a non-resident should be allowed to buy a property in Canada ever. They certainly don't qualify for a mortgage. I have little sympathy for a non-resident buying a 500k vs. a 5 mil property in cash.

On that note, do you think a Canadian should be allowed to buy a property in another province and/or country? I don't have any foreign property right now, but one day I'm hoping to buy a vacation property somewhere in the States. I'd be pretty sad if I wasn't allowed to. I'd also be pretty choked if I bought somewhere in Hawaii, and two weeks before closing was told I'd have to pay 15% more, because of a newly legislated tax that I won't be able to recuperate when I sell the property.

[Wormius]

It's an interesting question. I don't feel like I have any right to own property outside of Canada, so I guess I would understand and accept another country's policy on that.

[blankall]

Originally Posted by squiggs96

On that note, do you think a Canadian should be allowed to buy a property in another province and/or country? I don't have any foreign property right now, but one day I'm hoping to buy a vacation property somewhere in the States. I'd be pretty sad if I wasn't allowed to. I'd also be pretty choked if I bought somewhere in Hawaii, and two weeks before closing was told I'd have to pay 15% more, because of a newly legislated tax that I won't be able to recuperate when I sell the property.

It's interesting that you'd use Hawaii as an example, as they have by far the most protectionist property laws in North America. Much of the land is reserved for Hawaiians and much of the land can only be leased, and not bought.

Basically, Hawaii has property laws that work in the best interest of the people that reside there.

As for the Vancouver example, the issue is that too many of the homes are just straight up investments. Many sit empty, while the government has to pay for the infrastructure to support them - roads, power lines, sewage - etc... Also, basic research on the area, would tell you that investing in property in Vancouver is doing so at the expense of the people who reside there. If that isn't a consideration for you prior to investment, I'd have little sympathy for how "choked" you'd be when you weren't immediately able to recuperate your investment.

Once again, I don't see why foreigners should have property rights in any jurisdiction.

[pria(kin)16]

Not to derail the thread but I was shocked to read this article today about "baby houses" in BC

15% of babies born at Richmond hospital are to foreign Chinese mothers so that the babies become automatic Canadians, that is mind blowing to me

http://www.nationalpost.com/m/wp/new...ate=2016-07-28

Non-resident births at hospitals in the Vancouver Coastal Health (VCH) region account for 1.5 per cent of births, according to confidential briefing notes, but at the Richmond Hospital, they accounted for 15.22 per cent, based on the latest fiscal year statistics.

[squiggs96]

Originally Posted by pria(kin)16

Not to derail the thread but I was shocked to read this article today about "baby houses" in BC

15% of babies born at Richmond hospital are to foreign Chinese mothers so that the babies become automatic Canadians, that is mind blowing to me

http://www.nationalpost.com/m/wp/new...ate=2016-07-28

Non-resident births at hospitals in the Vancouver Coastal Health (VCH) region account for 1.5 per cent of births, according to confidential briefing notes, but at the Richmond Hospital, they accounted for 15.22 per cent, based on the latest fiscal year statistics.

You'd probably also be shocked to know that it was discussed on the previous page.

[pria(kin)16]

Thanks for that. I didn't see anyone mention the numbers and it was personally surprising for me to read about what are essentially commercial facilities that are marketed to Chinese nationals to have Canadian babies, I guess that was unreasonable. I'll stop commenting before you patronize me again.

[Winsor_Pilates]

Originally Posted by blankall

Quite frankly, I don't think a non-resident should be allowed to buy a property in Canada ever. They certainly don't qualify for a mortgage. I have little sympathy for a non-resident buying a 500k vs. a 5 mil property in cash.

Yes they do; you need a 35% downpayment as a non resident.
It's pure fiction that all of these buyers are cash buyer, mega millionaires.

[squiggs96]

Originally Posted by blankall

It's interesting that you'd use Hawaii as an example, as they have by far the most protectionist property laws in North America. Much of the land is reserved for Hawaiians and much of the land can only be leased, and not bought.

Basically, Hawaii has property laws that work in the best interest of the people that reside there.

As for the Vancouver example, the issue is that too many of the homes are just straight up investments. Many sit empty, while the government has to pay for the infrastructure to support them - roads, power lines, sewage - etc... Also, basic research on the area, would tell you that investing in property in Vancouver is doing so at the expense of the people who reside there. If that isn't a consideration for you prior to investment, I'd have little sympathy for how "choked" you'd be when you weren't immediately able to recuperate your investment.

Once again, I don't see why foreigners should have property rights in any jurisdiction.

I had no idea Hawaii had those laws. I haven't looked too hard into buying there, but I know of a few acquaintances who own on the island. I did look at a place in Lahaina, but it turned out to be a timeshare where you got it for 2 calendar months in a year, six months apart (e.g. January and July). I thought Maui would be a nice place to own a condo, but if the laws are as protectionist as you say, then I'd likely not purchase there.

I understand the reasons to curb foreign ownership in Vancouver, as I live and own here. I just think if you have a set contract, based on the laws at the time, it is poor form they change the rules on you. If the federal government decided on December 15th to raise my personal income tax rate by 15% to fund a shortfall, I'd be enraged. I get that's not a perfect comparison, but I still dislike the retroactive changes. I don't think they're fair, no matter where you come from.

I get we all have different views. I'm just not opposed to foreign ownership. I think getting them to pay more in PTT is a good thing, but I wish it was on a go forward basis.

[blankall]

Originally Posted by Winsor_Pilates

Yes they do; you need a 35% downpayment as a non resident.
It's pure fiction that all of these buyers are cash buyer, mega millionaires.

Fair enough.

Curious about this now. Any mortgage experts here who can identify the limits on this?

Anyways, in Vancouver the problem is the people putting down cash immediately. They aren't getting mortgages. Unless there's some kind of mortgage system that allows you to get hundreds of thousands prior to having a specific property in mind.

[MillerTime GFG]

Originally Posted by blankall

Fair enough.

Curious about this now. Any mortgage experts here who can identify the limits on this?

Anyways, in Vancouver the problem is the people putting down cash immediately. They aren't getting mortgages. Unless there's some kind of mortgage system that allows you to get hundreds of thousands prior to having a specific property in mind.

The banks I know that are doing it are TD, Scotia, and National Bank. NB no longer does it through the broker channel (due to some fraud), but their requirements for qualifying were 35% down, and 12 month's PIT in a Canadian account.

[blankall]

Originally Posted by MillerTime GFG

The banks I know that are doing it are TD, Scotia, and National Bank. NB no longer does it through the broker channel (due to some fraud), but their requirements for qualifying were 35% down, and 12 month's PIT in a Canadian account.

You basically need 35% down plus a year of payments (plus taxes) in the bank? I guess from the banks perspective they can always seize the property on default, and they probably get to charge a higher than usual interest rate.

[MillerTime GFG]

Originally Posted by blankall

You basically need 35% down plus a year of payments (plus taxes) in the bank? I guess from the banks perspective they can always seize the property on default, and they probably get to charge a higher than usual interest rate.

I imagine the rates are on par with the rates anyone else has access to, though I'm not 100% as I've never done a foreign purchase.

[Locke]

Originally Posted by blankall

You basically need 35% down plus a year of payments (plus taxes) in the bank? I guess from the banks perspective they can always seize the property on default, and they probably get to charge a higher than usual interest rate.

Thats a lot of cash.

[Pointman]

Originally Posted by savemedrzaius

I know so many people over here who have done this. Most go to the States though. I don't get why if you are born in a country while on a travel visa that has expired you get citizenship. Many countries don't have this policy. Canada and America are 2 of the few. It's time to change this or people will keep taking advantage of us.

I did that myself, my daughter holds a US passport and I consider this to be one of the biggest achievements of my life. I didn't get the "expired visa" part though, we did it on actual current visa. Furthermore, we got the visas after straightforwardly telling the embassy about our intentions. It's perfectly legal as long, as you don't lie and self-pay for all the services.

I do not see it as "taking advantage on you" in any way. Your country will receive a good up-and-coming teenage girl, who would be raised in middlee-class environment and would be looking to contribute to US/Canada. I don't see anything bad or wrong about it. It's not like we are raising some poor religious extremist like some refugees are.

[rubecube]

Jesus.

http://www.theglobeandmail.com/news/...ticle31892652/

Nine students with no apparent source of income bought $57-million worth of single-family homes in Vancouver’s tony Point Grey neighbourhood over the past two years, according to records compiled by British Columbia’s Opposition New Democrats.

The NDP said the purchases are more evidence that authorities have let the region’s housing market overheat beyond the reach of most locals.

[Locke]

Originally Posted by rubecube

Jesus.

http://www.theglobeandmail.com/news/...ticle31892652/

Seems legit.

[Fuzz]

Something about a barn door seams appropriate here...

[V]

Are these the same people that Trudeau is going to give free education to?