I have had conversations with a few filthy rich business owners on this topic. Real estate is probably the only thing they think they fully understand both here and back home. There are too many unknowns for them in other types of investments. They are very alert about scams. One of them bought 6 houses and 2 condos including 2 in British Properties, 2 in South Surrey and 2 in Richmond, in one year. He told me actually he really wanted to do some active business here. He really wants his son to do something rather than fooling around. But he is afraid of traps. He did once put 200k in a restaurant, but end up lost all of it in 6 months. Another guy who also bought and sold half a dozen houses in the past few years, was more ambitious. He does not know English. His secretary does all the translation. He made an offer on a major revenue property/business, wrote a cheque for 7.5 mil as down payment and thought he had rest of financing in place. He was wrong or his secretary translated wrong. He had a bank offering letter for the financing. but it was not a commitment letter and the bank backed off. He was totally screwed. Just an example of the kind of stumbling they encounter in a totally different business environment. That is why they all park their money in real estate.by gse36 » Thu Jan 24, 2013 7:54 pm
I would think that you would want a series of offshore bank accounts/investments as they are more liquid. Real estate is not liquid, has a trail, and if the heat is on, you cannot quickly cash out and take the money elsewhere. There is fear that CRA (or other governments) may cooperate with Chinese government and this may lead to seizing assets or freezing assets. So obviously something non traceable is ideal.
What brilliant reasoning. Already Jesse can see the future when he couldn't before. He's an expert on Chinese RE as well as Vancouver RE. There's no doubt that there will be a surge in RE supply in Vancouver.If prices don't rebound substantially I have a hard time seeing why a bank account wouldn't be the preferred option over such an obviously depreciating asset. Or maybe... Vancouver's market is a giant sausage party.