Want to make $275,000? In 3 months?

[Shawnski]

Let me first state, this very well may be legit, although it certainly doesn't smell like it....

Hamilton Liberal cabinet minister Tony Valeri more than doubled his money in three months when he flipped a property next to his home to the son of a prominent businessman with ties to the Liberal party.

Valeri, Liberal MP for Hamilton East-Stoney Creek, purchased the property on Ridge Road along the escarpment in upper Stoney Creek for $225,000 last April.

Three months later, Valeri sold the property for $500,000 to John Ng, son of Joe Ng, whose Hamilton-based engineering company has been a longtime supporter of the Liberals at the federal and provincial levels.

Valeri, Government House Leader prior to the election call, says there's nothing improper about his purchase or sale of the property.

"The transaction itself was conducted in a transparent fashion, with proper filings, proper disclosure," said Valeri.

"It was done with the advice of the (federal) Ethics Commissioner. "In fact, it was a real estate transaction like any other," Valeri added.

The 2005 property tax assessment for Davis's former lot is listed as $201,000. The 2005 assessment for Valeri's property next door is listed as $186,000.

http://www.hamiltonspectator.com/NAS...=1137107411672

Jason Kenney's letter to the Ethics Commissioner over it...

http://www.conservative.ca/media/200...ney-Letter.pdf

[Jayems]

Think they'd proof read the letter though...

that Mr. Valeri publicly declared the $225,000 Royal Bank mortgage on the property only on July 26, 2006

[Shawnski]

Saw that too, Jayems.

By the way, the listing this as a "recreational property" is pretty funny. What, did they need more room to play bocchi?

There are a ton of "Exempt Assets" where any politician can get around the ethics laws apparently. Section 10 on this link...

http://www.parl.gc.ca/oec/en/public_...t_of_interest/

[arsenal]

I thought that there where rules in Canada that prevented property "flipping", like those in the States. I know it is still possible, but don't you have to live in the house for at least 6 months before you are able to "flip" it?

[troutman]

Mortgage Fraud is a big problem in Canada:

http://www.lawsocietyalberta.com/files/reports/mortgagefraud.pdf#search='alberta%20mortgage%20fra ud'

[Shawnski]

Might have to explain the mortgage fraud angle here Troutman. There have been no allegations of it. And from what I have heard of that issue, it is more to do with identity theft.

[Bobblehead]

Originally Posted by arsenal

I thought that there where rules in Canada that prevented property "flipping", like those in the States. I know it is still possible, but don't you have to live in the house for at least 6 months before you are able to "flip" it?

You are thinking of what is needed to make a property your principle residence, which would then be exempt from capital gains.

As it is a secondary property, he would be required to pay the capital gains tax. (note: it is possible that CRA could view this as a business transaction and require the profit to completely taxed.)

[troutman]

Originally Posted by Shawnski

Might have to explain the mortgage fraud angle here Troutman. There have been no allegations of it. And from what I have heard of that issue, it is more to do with identity theft.

Right, I don't think this was a mortgage fraud situation. That typically involves a property that is flipped numerous times in short order at inflated prices.