SURPRISE...SUPRISE!!!

China once again is imposing restrictions on the yuan, making it very difficult to export the currency to conduct business or make Home Purchases in foreign countries!  

As reported in the Wall Street Journal’ “There appears to be a real crackdown on money flowing out of China,” said Jean Francis Harvey, global managing partner at Hong Kong law firm Harvey Law Corp., whose clients are encountering serious problems at moving mony out of China.’                                                                                        

So where is all the buying pressure going to come from for the over priced real estate in Vancouver and Toronto?

The Middle East? Last I heard they have been having some problems with the price of oil and they are not idiots! Much better use of funds to purchase good farming land where the climate is good for year round growing of crops and transport them via empty cargo ships back to their homeland.

So the better idea is to increase immigration of Syrian refugees, who arrive impoverished and completely dependent on the Canadian social safety net for health care and medication? Also special classes to teach them English/French and  essential classes on how to accomodate the social norms of a western country. After all Canada prides itself on No Assimilation!

Canadians have much at risk because they are incented to pay off their mortgages! There is No mortgage interest tax deductions and people are at the mercy of a changing interest environment every 5 years when mortgages must be renewed.

Obviously most people are searching for some rate of return especially when interest rates are so low and are facing the potential threat of negative interest rates.

Canadian home owners are paying very high property taxes as well, which are calculated on the house valuation.

SO AVERAGE CANADIANS, WHAT ARE YOU RECEIVING FOR THE MONEY? 

Source:Wall Street Journal article Yuan Crackdown Crimps Business by Wei Gu and Chun-Wei Yao March 9, 2016.