Controversy is brewing in Vancouver as many residents are blaming buyers from China for soaring house prices and irritation that they are taking advantage of a Canadian tax loophole by putting homes in the names of relatives or corporations, thereby avoiding paying little or no income or capital gains tax. The controversy has been simmering since last year, when city officials began to crack down on foreign buyers, who were accused of using loopholes to avoid taxes. As we have previously noted, the economic slowdown in causing Chinese investors to put their money in more secure areas instead, such as foreign real estate.
Controversy is brewing in Vancouver as many residents are blaming buyers from China for soaring house prices and irritation that they are taking advantage of a Canadian tax loophole by putting homes in the names of relatives or corporations, thereby avoiding paying little or no income or capital gains tax. Many of the houses being snapped up by Chinese buyers are not huge mansions but rather family homes, that are now being priced out of the market for locals, whose taxes pay for the local public services. As we have previously noted, the economic slowdown in causing Chinese investors to put their money in more secure areas instead, such as foreign real estate.