zlacker

But the "fraud" is slowing the bubble. Without capita controls, PRC buyers would operate like any other international buyer, except there would be a shit load more of them who would do more cash purchases and outbit everyone else. This fraud to circumvent capital controls is why wealthy PRC buyers who liquidated their extra multi million dollar tier1 units only bought 1 house in Canada instead of 3.

>>maxglu+(OP)
The article discusses how they're not just buying one home outright. Far more profitable to put downpayments on 3 or 4 homes and just push that money to pay those mortgages while AirBnBing and renting a couple of them.

>>FireBe+YV
The article discusses one incident of person with Canadian tax residency with multiple mortgages, where the leaker allege is typical, when number of net worth assessments in low double digit per year suggest it's not typical. Not with 30k new Chinese Canadian immigrants per year, or 150k home sales in Ontario. From my experience (I know many people who facilitate this process in ON/BC) PRC buyers typically are not renters / airbnbers, they either live in their units part time / full time (or their kids) or leave it empty. Renting/slumlording/airbnbing is largely Chinese _Canadian_ affair, emphasis on Canadian, i.e. not wealthy, middle class who needs to make their capital work to cover costs. They speak mandarin and can insert themselves into the machine. Generally PRC buyers / big bidders aren't playing the RE game in Canada to play landlord. They just want to hide some of their assets abroad. The allegation kind of skips over that distinction, are these "diaspora" PRC individuals or Chinese-Canadians with access to PRC RE networks doing ponzi mortgages to try to get wealthy off Canadian RE. In my experience, it's the Chinese Canadians, because the PRC buyers were busy speculating off much more profitable (at the time) PRC RE, especially if whistleblower is talking about 2015-now time period.