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Overheard Asian Buyer Speaking to Realtor at Open House

real estate open house asian buyers

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#1 akimbo

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Posted 18 March 2017 - 07:07 PM

Very crowed open house today in the 1000 block Bank Street.  While we were looking, I overheard an Asian buyer who had cornered the realtor.  I couldn't quite make out what the prospective buyer was saying, but the realtor was saying, "Um, that's not really legal here . . . No you can't really do that."  Ten minutes after I'd gone through the house, the buyer continued to pressure the realtor, until the realtor said something like, "Well, I'd have to talk to the owner, but we don't really do that here. . .  it's not really legal... "   

 

Perhaps it may have been a cash offer, probably one that doesn't pass thru the banks.  Hang on to your hats folks it's the Vancouverization of Victoria, where money talks and all else goes out the window.  I'm sad to see it, because it's why I left the mainland.  As the steamroller begins, there is resistance from some principled, honest sellers and realtors, then all-out greed breaks out and nothing but money talks.  Then follows the rapid flipping of homes, the emptying out of neighbourhoods, and the bulldozing of houses. . .  Minor fines are no deterrent to wealthy Asians.  We need the foreign buyer tax NOW in Victoria.  It's all well and good to be open minded, and generously spirited, but after a while you may find yourself the last (tax-paying) person left  standing on your block. 



#2 VicHockeyFan

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Posted 18 March 2017 - 07:22 PM

Jeepers, Akimbo, I think it's not as dire as you make it out to be.

 

They would not avoid a property transfer tax, and once they settle in here they pay taxes like us.

 

Now maybe they wanted a sale off the books, and I believe like any transaction over $10,000 in cash, it has to be reported.


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#3 Matt R.

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Posted 18 March 2017 - 07:38 PM

What's illegal about buying a house with cash?

Matt.

#4 akimbo

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Posted 18 March 2017 - 09:34 PM

Well, I presume, since the realtor was saying it wasn't legal, that there was an attempt to avoid required scrutiny in the potential transaction.  Doesn't surprise me at all, having heard about the crazy things that asian buyers get away with in the lower mainland.  The concept of taxation is foreign to them. 



#5 Sparky

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Posted 19 March 2017 - 05:26 AM

This topic intrigues me. I would very much like to know what the questions were that the real estate agent was responding to.

 

Was this the agent? http://www.wendymoreton.com/

 

Was this the house? https://www.rew.ca/p...eet-victoria-bc



#6 Mike K.

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Posted 19 March 2017 - 07:29 AM

Perhaps the buyer wanted the home purchased in someone else's name in order to avoid the PTT?

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#7 VicHockeyFan

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Posted 19 March 2017 - 07:33 AM

What's illegal about buying a house with cash?

Matt.

 

Nothing.  But you have to report it to Big Brother.


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#8 akimbo

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Posted 19 March 2017 - 07:56 AM

This topic intrigues me. I would very much like to know what the questions were that the real estate agent was responding to.

 

Was this the agent? http://www.wendymoreton.com/

 

Was this the house? https://www.rew.ca/p...t-victoria-bcI

I can't quite say if that was that realtor, but that was the address. 

I'm not up on my realty law, but years ago when I was desperately looking for an affordable home in Vancouver, an older realtor took me aside and explained that I didn't have a chance, because buyers were approaching them with suitcases full of cash--not just Asians, but, at that time there were drug lords also laundering their money.  He explained to me that, although they were not supposed to take cash, they do.  Some cultures are philosophically opposed to paying taxes, and/or to having their cash traced in any way through bank transactions, etc.  And there is a reason for that.  I love Victoria for its old-fashioned ways, but lets not be naive.  BTW, isn't it interesting that Bob Rennie is the BC Liberals campaign manager.  You do the math.  : /



#9 Szeven

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Posted 19 March 2017 - 01:19 PM

I can't quite say if that was that realtor, but that was the address.
I'm not up on my realty law, but years ago when I was desperately looking for an affordable home in Vancouver, an older realtor took me aside and explained that I didn't have a chance, because buyers were approaching them with suitcases full of cash--not just Asians, but, at that time there were drug lords also laundering their money. He explained to me that, although they were not supposed to take cash, they do. Some cultures are philosophically opposed to paying taxes, and/or to having their cash traced in any way through bank transactions, etc. And there is a reason for that. I love Victoria for its old-fashioned ways, but lets not be naive. BTW, isn't it interesting that Bob Rennie is the BC Liberals campaign manager. You do the math. : /


I really find the literal suitcase of cash to be highly unlikely. How do you deposit 40,000 $20 bills? Even 10,000 or so at a time it would take years.

#10 VicHockeyFan

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Posted 19 March 2017 - 01:21 PM

^ Banks have money-counting machines.


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#11 Mario Lemieucous

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Posted 19 March 2017 - 01:41 PM

I am a licensed realtor in Victoria. Can't speak for all companies, but mine won't allow any deposits paid in cash. Once had a contract with a $5 deposit and had to get a cheque.

#12 dasmo

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Posted 19 March 2017 - 02:05 PM

Maybe the cash is a payoff to the seller to sell for a higher price on record but then give cash back to the buyer. This both gooses the value of their investment and gets them a cheap loan of a few hundred grand to pay off their other debts. That is illegal...

#13 VicHockeyFan

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Posted 19 March 2017 - 02:08 PM

^ I assume that's only illegal if you are taking out a mortgage, and being dishonest about the down-payment and price.



#14 johnk

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Posted 19 March 2017 - 03:07 PM

Very crowed open house today in the 1000 block Bank Street. While we were looking, I overheard an Asian buyer who had cornered the realtor. I couldn't quite make out what the prospective buyer was saying, but the realtor was saying, "Um, that's not really legal here . . . No you can't really do that." Ten minutes after I'd gone through the house, the buyer continued to pressure the realtor, until the realtor said something like, "Well, I'd have to talk to the owner, but we don't really do that here. . . it's not really legal...

Perhaps it may have been a cash offer, probably one that doesn't pass thru the
banks. Hang on to your hats folks it's the Vancouverization of Victoria, where
money talks and all else goes out the window. I'm sad to see it, because it's why I
left the mainland. As the steamroller begins, there is resistance from some
principled, honest sellers and realtors, then all-out greed breaks out and nothing
but money talks. Then follows the rapid flipping of homes, the emptying out of
neighbourhoods, and the bulldozing of houses. . . Minor fines are no deterrent to
wealthy Asians. We need the foreign buyer tax NOW in Victoria. It's all well and
good to be open minded, and generously spirited, but after a while you may find
yourself the last (tax-paying) person left standing on your block.

That's a shedload of extrapolation from a few overheard sentence fragments.

Edited by johnk, 19 March 2017 - 03:12 PM.

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#15 dasmo

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Posted 19 March 2017 - 03:29 PM

^ I assume that's only illegal if you are taking out a mortgage, and being dishonest about the down-payment and price.

Sure. If there is no mortgage it makes no sense since the scam is to get cash for cheap and even free since the asset inflates because of the recorded selling price. You give the seller 20k in cash and get 200k back. Then you can use that to have another down payment and 20k do it again.

#16 spanky123

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Posted 19 March 2017 - 04:26 PM

That's a shedload of extrapolation from a few overheard sentence fragments.

 

Agreed. May have just been a run of the mill offer to bribe the realtor to find out what the highest offer was. :-)


Edited by spanky123, 19 March 2017 - 04:26 PM.

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#17 Jill

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Posted 19 March 2017 - 05:00 PM

^^Like one of those Three's Company episodes where Mr. Roper hears something through the plumbing.


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#18 akimbo

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Posted 19 March 2017 - 05:06 PM

Criticisms about my comments are fair game, but let's not be naive.   What makes you think that Victoria is immune to what's happened to Vancouver and Toronto?  Do you want a city of empty homes where hard-working Canadians cant find housing?   Our laws have have yet to catch up with all the dirty tactics wealthy Chinese buyers have up their sleeves, and shame on the realty business who have turned a blind eye to it all.  I hope it doesn't take 15 years for Victorians to wake up, because, by that time, it's too late.  And, other than property taxes, what taxes are they paying?  Recently the news reported they are getting GST rebates (that would be from our taxes folks) because, despite being able to pay cash for homes, their declared income is peanuts.  I understand that situation is currently under review.  The feds are starting to wake up to the abuse, the BC Liberals are too tied to the real estate industry to make any real changes.  It's up to urban jurisdictions to lobby for foreign buyer taxes to stem the outflow of Canadian families who can no longer afford to live in our cities. 



#19 VicHockeyFan

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Posted 19 March 2017 - 05:37 PM

How do you mean by "full of empty houses"?  I'm sure we are unlikely to get to the point where we have 15% empty homes.  And that would be just fine, if our politicians would let us build 15% more than they do now.  That would be major win-win.



#20 sdwright.vic

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Posted 19 March 2017 - 05:46 PM

^ Ya know just recently a realtor on this site celebrated the fact that Yates on Yates wad going to be two market for sale towers instead of one rental and one for sale. It kinda feeds into the intire "screw the little guy" thing. Sorry bUT I can't celebrate the move from rental to realtor making in a profit... especially since I know fo a fact they are one of the biggest felons in not paying there far share.
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