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reallyreal
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Re: The real estate technique fuelling Vancouver's housing m

Wed Feb 10, 2016 3:37 pm

^^what nationality do you want it to be :) ? they are probably canadian citizens. or did you mean what race they are? maybe they could be canadians of chinese origin but judging by the for sale signs not all of them are chinese, maybe most of them. why does it matter anyways. First it was foreign buyers to blame, now it's foreign realtors. Keep grasping at those straws!!

anyways, it appears the foreign boogeyman is not always the ones truly to blame here. I said all along they were getting ripped off and paying too much. It's unfortunate that they are vilified for it.

another thing I wanted to remind is that just because a foreigner is rich, it doesn't mean it's money laundering or proceeds of crime, or communists are coming to make Canada communist like some people actually think. This is straight up capitalism. A fortune was made out of country.

the unfortunate reality is canada doesn't have enough people or economy to make anyone rich. You have to sell your wares and innovations outside of Canada. Even the smartest ones here leave for other places to make more money. there just isn't enough industry due to, again, the low population. If you were a business would you want to set up shop here with all the expense, regulations, taxes, weak market. It's a recipe for failure. The resources we do have, we sell to other countries because we don't have enough consumers of those products. And we can be sure the very few rich home grown canadians do live in prime properties there are just very few of them. Bottom line is if we need people to live here to populate canada, we have a choice of bringing in wealthy people or not so wealthy. As hard as anyone wants to admit, we'd prefer people bring money than not.

What did you expect in "the best place on earth". Of course they will come.

All the angry people hoped for a crash 10 years ago. I guess they didn't think it was worth it to buy then so definitely not now. They either did not recognize the value or were spending their income elsewhere.

Currently with no more excuses left to blame, the main and only target is some "make believe" foreign dirty money boogeyman to blame. The desperation is clearly evident and people are laughing at them big time.

The reality is Canada is kept poor. Low population and huge land mass are an issue. Property sales and development is one of Canada's main revenue and industries.

Of course other countries can strike it rich with much bigger populations to market to. They also have more technology innovation.

Canada just can't compete and it is unfortunate
That's naive, no?
 
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Dragonslayer
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Re: The real estate technique fuelling Vancouver's housing m

Thu Feb 11, 2016 5:58 pm

For those of us that don't know, what is daisy chaining?
Consecutive People taking a position then screwing the next person to arrive...rinse,repeat

No...I won't draw you a picture
 
VanLord
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Re: The real estate technique fuelling Vancouver's housing m

Thu Feb 11, 2016 9:18 pm

It isn't against the law to assign a contract
Not paying taxes on the assignment is though.

When people move to Canada, they should learn the laws. Or is that too racist for you?
The article is a bit misleading in saying the transaction is tax-free. They realtor would need to pay taxes on his income from the commission and the flippers would be on the hook for the capital gain. Does the CRA not track this?

Also I'm not feeling bad for the sellers here. They didn't do their homework on the value of their home, obviously they didn't pick the proper realtor. The first people in the story made nearly 5 million dollars off their home, and are upset about that fact that the home ended up selling for 6.2. Sure that is upsetting but to bad so sad, they are still set for retirement with 5 million in their pocket.
 
Arrow
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Re: The real estate technique fuelling Vancouver's housing m

Thu Feb 11, 2016 9:55 pm

The transaction probably is tax free because there is no market or exchange in assignments and no reporting system.
The provincial government is upset because property transfer tax is being evaded. The deal goes to the conveyancing lawyers showing the accepted offer price and property transfer tax is paid on that. If Mrs X doesn't tell anyone that not only did she pay the accepted offer price but she also paid $250,000, say, to Mr A to buy the deal who's to know?
Last edited by Arrow on Thu Feb 11, 2016 10:44 pm, edited 1 time in total.
 
whattodo
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Re: The real estate technique fuelling Vancouver's housing m

Thu Feb 11, 2016 10:15 pm

Hey everyone Canada revenue Agency (CRA) is useless!

How would they know if a property has been assigned & flipped? They didn't know about it in 2006 -2007 when everyone was selling assignments on pre-built condo's. Unless someone tells CRA about this they will have no idea. The realtors would need to track this & report it on something similar to a T4 slip for CRA to know what's happening. Canadian income tax rules are based on declaring your income. If the income is not on a tax reportable slip then CRA will be unaware of the income. For example, CRA requires construction companies to issue T5018 slips to contractors. You know why ... because none of these contractors were declaring their income. CRA gets a copy of the T5018 slip so they can make sure the income is claimed on the contractors tax return. They need a method to track these assignments.

CRA will check if you claim auto expenses or donations of your tax return. Small dollar amounts and a big waste of time. But, foreigners claim no income from outside of Canada. What is CRA to do? Fly to China & figure out the foreigners income?

As I said CRA is useless!
 
tdma800
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 8:16 am

lmao at the people whining about federal taxes. higher prices bring more taxes for the city which is what really counts and pays for schools too
 
reallyreal
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:03 am

Yet you whine about racism :D ... like some cheese with it?
 
tdma800
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:06 am

http://www.vancouversun.com/business/co ... =bcc3-07e2

OMG!! someone buying a property - doesn't bother me
 
whattodo
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:06 am

tdma,

You don't get it. No matter who owns the house & no matter what the price is the city will get its property taxes. So, if prices were lower & locals could buy the houses the the city still collects property tax. So, property tax is a neutral event.

What matters is what other taxes are paid to contribute to our local society. A local family may earn $100,000 income. Between income taxes & GST/PST on consumption this family may pay up $40,000 in total taxes.
The foreigner will only pay GST/PST & no income tax. The foreigner would have to spend $350,000 in Canada to pay the same total taxes as the local family. And as many studies show this is not happening. The foreigners visit here a few times a year, leave their house empty, AND don't spend that much money when they are here.

http://www.vancouversun.com/news/Dougla ... story.html
 
tdma800
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:11 am

Higher prices keep taxes lower for everyone else and pay those city salaries and pensions instead of fiddling with federal taxes that are paid out in transfer payments to other provinces. Even the steretypical OMG empty house will pay for school spots that it dosent need.
 
tdma800
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:13 am

Oh and for the jealous people out there that 'foreigner' who doesn't live in it pays far more taxes than a Canadian which pays nothing at all when he or she sells their own place.
 
reallyreal
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:19 am

Oh and for the jealous people out there that 'foreigner' who doesn't live in it pays far more taxes than a Canadian which pays nothing at all when he or she sells their own place.
Right - they certainly declare all their income and pay all their taxes. :D :roll: Criminals don't normally pay taxes.
 
tdma800
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 9:22 am

Its the buyer that withholds it not the seller
 
whattodo
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 10:56 am

The buyer only with holds 25% of the selling price IF the seller admits they are non-resident. The foreign sellers say they are Canadian residents to avoid this. Because they say they are Canadian residents then the house is their primary residence. Then they avoid capital gains tax. But, they don't live here! By the way the principle residence exemption in ONLY available to Canadian residents not foreigners.


If they are Canadian residents they must report their worldwide income on their Canadian tax return. Obviously, this is not happening.


DO you see the problem here??? Again CRA is useless! But the foreigners are lying & this is tax evasion.
 
VanLord
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Re: The real estate technique fuelling Vancouver's housing m

Fri Feb 12, 2016 3:39 pm

hmm sounds like we need to send in the Civil Forfeiture office to confiscate all these homes as proceeds of crime.

Funny how Gregor and his band of idiots are claiming a flippers tax is what is needed, while Christy claims nothing should be done, if only Justin would clamp down on existing tax laws and rules. Some basic reporting and tracking would close all these loop holes and likely go a long way towards slowing down the housing madness.

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