My Opinion : Average Canadians Need to borrow More to keep up with CCP, Money Launderers In Vancouver . Average Canadians are borrowing way to much to keep up with overvalued Housing ! Wages need to be tied to incomes .
Money laundering is the process of taking illegally obtained money and making it appear as if it came from a legitimate source. China has been identified as one of the major sources of money laundering activities around the world. In recent years, there has been increasing evidence that Chinese money laundering activities have contributed to the rise in housing prices in Vancouver, making it unaffordable for many Canadians.
Vancouver has long been an attractive destination for wealthy foreign investors looking to park their money in real estate. The city’s mild climate, natural beauty, and stable political climate have made it a popular choice for those seeking to invest in property. However, in recent years, the city’s housing market has become increasingly expensive, with prices skyrocketing to levels that are out of reach for many ordinary Canadians.
One of the factors that have contributed to this surge in prices is the influx of Chinese investors into the Vancouver real estate market. Over the past decade, Chinese buyers have become the largest foreign investors in the city’s real estate market, accounting for up to a third of all property purchases. While some of these investors are legitimate, there is growing evidence that many of them are engaged in money laundering activities.
Money laundering from China to Vancouver typically occurs in one of two ways. The first is through the use of “underground banks” or “black market banks” that operate outside of the formal banking system. These banks provide a way for Chinese nationals to move large amounts of money out of the country without triggering regulatory scrutiny. The money is typically transferred to offshore bank accounts, often in tax havens, before being reinvested in Vancouver real estate.
The second way that money laundering occurs is through the use of “over-invoicing” schemes. In these schemes, a Chinese business will invoice a Canadian business for goods or services at a much higher price than the actual cost. The excess money is then transferred to offshore accounts before being reinvested in Vancouver real estate. This type of money laundering is difficult to detect because it appears to be a legitimate business transaction.
The impact of Chinese money laundering on Vancouver’s housing market has been significant. Inflated housing prices make it difficult for Canadians to afford homes, particularly in Vancouver, where the average home price is over $1 million. This has led to a housing affordability crisis, with many people being priced out of the market. The problem is particularly acute for young people, who are finding it increasingly difficult to purchase their first home.
The impact of Chinese money laundering on Vancouver’s housing market is not limited to the affordability crisis. There are also concerns that the influx of foreign buyers, particularly those engaged in money laundering, is distorting the market and making it more difficult for locals to purchase homes. This is because foreign buyers, particularly those who do not intend to live in the properties they purchase, are willing to pay higher prices than locals, driving up the cost of homes for everyone.
Moreover, the influx of foreign buyers has also been linked to rising rents in Vancouver. This is because many foreign buyers purchase properties as investments and then rent them out, driving up demand for rental properties and pushing rents higher.
The impact of Chinese money laundering on Vancouver’s housing market has also been felt beyond the city itself. The influx of foreign buyers has been linked to a surge in luxury home prices in other parts of Canada, including Toronto and Montreal. This has led to concerns that the problem of money laundering from China is not limited to Vancouver but is a more widespread issue that requires a national solution.
Efforts to address the problem of money laundering in Vancouver’s housing market have been ongoing for several years. The British Columbia government has introduced a number of measures to crack down on money laundering, including the creation of a real estate regulatory body, increased enforcement of anti-money laundering laws, and the imposition of a foreign buyers