Contents:

A key question is whether foreign ownership actually is inflating the market while locals whose income tax dollars pay for roads and hospitals are squeezed out. One third of the properties increased more than 50 per cent in price since — some of those more than doubled.

The price of one property went up 40 per cent, then per cent, in five years. Having trouble viewing this on mobile? Red markers indicate featured properties. The most revealing picture on tax avoidance emerged in court records from more than B. Essentially, CRA rules say a non-resident who buys and sells Canadian property must pay capital gains and other taxes on earnings from those investments. Some cases indicate that millionaires buy properties through relatives in Canada and then claim in their tax returns to be non-residents — which means they pay no Canadian taxes on their worldwide income.

The court concluded Mr. The court concluded that Mr.

Ho bought several properties in the Vancouver area. He put one in Ms. In that scenario, no one pays the B. Ho became a Canadian citizen years ago and signed up for B. Sze told The Globe and Mail. She testified at one point she owned 16 properties in B. The judge called Mr. Follow me on Twitter: This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe. If you would like to write a letter to the editor, please forward it to letters globeandmail.

Readers can also interact with The Globe on Facebook and Twitter. Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments. Read our community guidelines here. African and Mideast Business. ETFs Up and Down. Letters to the Editor. The Real Estate Market.

Finally, both the energy and the financial crisis can be triggered by a single geopolitical event, such as a successful Iranian blockade of the Straits of Hormuz e.

As I wrote here, China bear Andy Xie appeared to be have changed his tune in a CNBC interview. Credit Suisse Analysis Of Likely Impact If China Imposes A Andy Xie Tells CNBC China Real Estate Market Will Not Crash. 27, , AM Mish pointed out today that China may face hard landing. A little review of history of Hong Kong real estate market and recent slowdown in the United States, together with the never-ending bear market.

The risk of cascaded collapse would not exist if Pax Americana faced fewer challenges, or if its foundations were still strong and wholesome. They are most definitely not in our era of permanent deficits, tight oil supplies and imperial overstretch. But at least the US will recover quickly, right? Though a US dollar collapse will restore competitivity to some of its older industries, global resource constraints will prevent it from ever fully recovering.

Why should increasingly scarce energy sources continue feeding the office plankton of American suburbia, as opposed to Chinese factory cities whose products the entire world wants? Contrary to popular commentary, China is unlikely to be hurt much by an economic collapse in its prime market. Though ebbing US demand for Chinese goods will hurt coastal regions, create unemployment and incite low-level protests, it is unlikely to reach a critical level since China can refocus development efforts on the interior and raising domestic consumption there are numerous signs that this is already happening.

Mitigating these developments will require a great deal of capital and ingenuity, things China is fortunate to have in abundance. On to our third scenario.

REIT Stock Investing and Analysis

After that, there is a permanent zastoi — unlike in previous emerging market crises, a significant recovery will be impossible in the new world of neo-mercantilism and energy constraints. What is the probability of each of these scenarios happening? In my opinion, Scenario 1 is pure fantasy. Scenario 3 is what I really believe will happen and what I tend to write about on this blog.

In any case, the general outline is clear: This breakout will be all the more dramatic under the American collapse scenario: Are Chinese statistics manipulated? Moscow is only the 4th most expensive city if you count the cost of things expats enjoy like Starbucks, sushi restaurants, movies and nights out at clubs, and luxury apartments. And this is a comparison based on multiple parts of the U. One more thing to add here: In short, all those baby boomers and Gen Xers who jacked up real estate prices with dirt cheap Fed credit expecting Gen Yers to fund their retirements from non-existent high paying middle class jobs are going to lose their shirts.

Um duh, in most of the rest of the industrializing world this is still the case as in high-real estate cost Europe but Western Europe in particular always lacked for enough land hence the mass emigration of Irish and Germans to the Americas in the 19th century. Lastly there is one more prospect that Anatoly and I would agree to disagree about: A Jacksonian, probably from the Western states, who will appear tough on terrorism while dialing down U. The fastest way America could slash its trade deficit and enjoy at least a modest recovery once the bubbles completely deflate is to export more energy — specifically to China and Asia.

Cheap Iranian oil developed by the Chinese is in fact a competitor to heavier oils coming out of Canada, Venezuela, and possibly the U. Thus I see an American Putin probably a general or colonel in the U. Army in Afghanistan or Iraq right now telling the Sierra Club to shove it after Utah makes some noises about defying EPA writ when unemployment starts hitting the Recession-insulated Beehive State hard.

Great article, interesting stuff. Asia expert gives his take on the coming collapse of the American empire, an article tangentially related to China:. I agree with most of this, except that I think that debt will be a far more important proximate cause of the coming US and European economic collapse than anything to do with oil. The current levels of public and private debt are unprecedented in world history.

I doubt it will be an attack on Iran. Depression-level unemployment figures, government workers not getting paid, civil unrest — scary stuff. This means that there will be more violence this time. The human mind is almost the only natural resource that counts. Intelligent people will always find a way of taking resources away from unintelligent ones, either through outright imperialism or through trade. As far as peak oil goes, China is entirely capable of switching most of its consumption to nuclear.

The European withdrawal from Africa has created a vacuum, which the Chinese are now starting to fill. The most sane, rational policy for the US — and the West in general — is to make Iran its principal ally in the Middle East. It does not and can not therefore export the psycho-Islam that Saudi Arabia does to western Muslims. Arguably, boosting the only possible Shiite power in the Middle East is the best way to prevent the Muslim world uniting.

Containing China's real estate bubble

In fact, it could even be useful if Iran tests a nuke. It would cause the Sunni states not prepared to accept Shiite preeminence to spend waste large sums of money launching their own nuclear programmes. Of course it might raise the chances of suitcase nukes in London etc… hmmm….

Saudi Arabia is a culturally primitive society. If the House Of Saud falls, it will probably be replaced by an even more primitive Islamist government. Iran is a sophisticated society, which, for the moment, has the Ayatollahs in charge.

Foreign investors avoid taxes through Canadian real estate.
Challenges for Chinas Development: An Enterprise Perspective (Routledge Contemporary China Series)!
.
Gutted (Gus Dury Book 2).

If the Ayatollahs fall, they will probably be replaced by a more sophisticated government. It was noticed some time ago how many Chinese were returning to China, especially after completing a technical or business education here, where it once might reasonably have been expected that indicated an intention to secure work here or in the United States.

Many Chinese, especially the young, current-events-aware demographic, say the opportunities are simply more abundant in China. They left Hong Kong pretty much as it was, designated it a special economic zone, and encouraged the big western business investors to stay — which most of them did.

I was in Hong Kong in , and the sense of wealth and vigor is palpable. Those who I admire as being able to see into the future better than others suggest this — while a smart and successful pitch in its own right — is also an incentive aimed at…. Come on back, and nothing will change. You can keep your regional government, you can keep your flag, you can even keep your military. I predict Taiwan will revert to Chinese control within the next 15 years; maybe less. Now all they need do is drop into the conversation their mulling about switching to the Euro for their benchmark currency, and the Dow falls like a rock.

They said it was a mistake, of course — Comrade Wu in accounting, such a cut-up, but he was only joking — but the message was clear. The tar sands is an excellent example, where operations have essentially killed the Athabasca and Peace rivers. That policy is amendable; countries just need to refuse to sell until more sensible practices are adopted. The Chinese are pragmatic, and will change as much as they must. US presidents have been helping build up China for decades — hell, arguably since Nixon.

American corporations have been setting up shop there since the s. They did it for different reasons, but mostly for the chance to cash in on what must sooner or later become an enormous emerging market with an appetite for American goods.

In this, again to a degree, they were right. China during the reign of other American presidents usually owed America gratitude. Under Bush, America gave up the high ground. In which President of Iraq Saddam Hussein has decided to switch to Euro from dollar for oil payment receipts. Americans are not stupid enough to invade China, no matter which currency they decide to use! This is a good summary: China is far more open than the USSR.

As such, maintaining good relations with China is a priority amongst the US political elites.

Everyone is Still Underestimating China, by Anatoly Karlin - The Unz Review!
Foreign investors avoid taxes by buying real estate in Canada - The Globe and Mail.
!
REIT Stock Investing - Real Estate Investment Trust Information | Seeking Alpha.
.

Furthermore, it is now transferring some of its accumulated foreign currency reserves to buy up land, mineral resources and even governments beyond its borders that will enable it to keep growing in a world of scarcer resources — unlike weaker and less far-sighted developing nations. As soon as China feels that it no longer needs the US market, the Chimerica arrangement will come to an end. If so, will this be a peaceful transition? I am guessing there will be a feeling of cultural shock in so called western liberal democracies.

You very briefly mentioned the challenges that AGW and peak energy presents to China, but seemingly this did not factor significantly into your end conclusion of continuing explosive Chinese economic growth. I know that the Chinese government has begun to take the environment more seriously and made some interesting token efforts recently new Green cities initiative — but considering the scale, impetus, and practices of the Chinese authoritarian?

I think the biggest challenges for China will come at around By that period, all hydrocarbons should enter into rapid decline corollary: The key question is whether the world — and in large part, China itself — will be quick enough to transition to a sustainable energy system and perform the geoengineering to contain warming from veering into catastrophic levels. I have often felt that the hysteria of the anti-Russia lobby for the last ten years since Putin started out in charge was in part a misdirection play or an attempt to give the hawks something to do to keep their Military Industrial Complex gravy trains going while China bought up America.

As late as many neocons were looking ahead to the big confrontation, call it Cold War II, between America and China. Owning Iraq was supposed to be their trump card, along with the Colored Revolutions across Eurasia.

The Globe and Mail

But they failed, and never really asked themselves how it would be possible to wage a new Cold War against an opponent who has the capability to wreck your debt-saddled financial system in one stroke. Chinese econometric statistics may not be manipulated by the reporting agencies but there is a high likelihood they are wrong for any number of reasons related to the consequences of reporting entities reporting the truth.

Recently Credit Suisse independently estimated Chinese income is understated by 10 trillion yuan annually , which reflects the rampant corruption among party and state officials. Gao Xu says only that the statistics are consistent. Every statistician knows to throw away the outliers. Just because published statistics are made to be consistent doesnt mean they are accurate.

Thats an important question, will it be a peacefull trnasition? Will the pentagon actually dissapear witha whimper instead that with a bang? Over at First Things there is a debate about whether the Chinese government is cooking the books. I have met too many Vietnamese or Chinese of late in the U. So we have a bit of a quandary here. I honestly do not know. Much of the countryside is not that poor, either, with basic utilities almost universal and reliable though car penetration remains minimal.