$186M Spent on Real Estate, But Who Benefits?

💸$113M Fraud Highlights Offshore Money in Vancouver

• A Supreme Court case involves a $113-million fraud linked to the murder of a wealthy Chinese patriarch, Changbin Yang, by his business partner, Long Ni.

• Long Ni promised a 50% return by investing in coal mines but instead funneled funds into real estate in Metro Vancouver.

• Eight properties in Vancouver and Burnaby, valued between $1 million and $10 million are disputed.

• At the peak of offshore buying between 2016 and 2019, Chinese buyers accounted for up to one-third of Vancouver property investments.

Why This Matters: This underscores the urgent need for governments to track offshore funds and enforce anti-money laundering regulations. It also highlights how foreign capital inflows have contributed to inflationary pressures in Canada’s real estate market.
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📉 Canadian Rents Hit 15-Month Low in November.

• Average asking rent in Canada fell to $2,139 in November, a 15-month low.

• This represents a 1.6% year-over-year decline and a 0.6% drop from October.

• Ontario experienced the steepest declines, with rents down 6.4% year-over-year to $2,351; two-bedroom apartments fell 7.6%.

• Rents have fallen 2.2% over the past three months.

• Despite the decline, rents are still 6.7% higher than two years ago and 18.8% higher than three years ago.

• Alberta rents rose 3.7%, Saskatchewan saw a 12.1% increase, and Manitoba’s rents climbed 7.9%.

Why This Matters: Investors in Ontario and B.C. may face challenges in secondary markets due to declining condo and house rents. Stable or rising rents in smaller provinces like Saskatchewan and Alberta suggest potential market opportunities.

🏘Canadian Home Sales Jumped 26% Last Month

• Canadian home sales in November 2024 rose 26% year over year.

• Active listings reached 160,000, up 8.9% year over year.

• Months of inventory fell slightly to 3.7, below the long-term average of 5.1 months, indicating a balanced market leaning toward sellers.

• New listings declined 0.5% month over month after a 3% drop in October.

Why This Matters: The rebound signals increased buyer sentiment, particularly in major markets like Toronto and Vancouver. Improved mortgage policies and rate cuts will also reduce financing costs and increase investor cash flow potential.

📝 Canada Rolls Out New Mortgage Rules for First-Time Buyers

• Canada’s new mortgage rules aimed at improving housing affordability took effect on Sunday.

• The insured mortgage price cap increased for the first time since 2012, from $1 million to $1.5 million, allowing buyers of homes above $1 million to qualify for smaller down payments.

• First-time buyers and buyers of new builds with insured mortgages can now access 30-year amortizations, up from the previous 25-year limit, reducing monthly payments.

• Refinancing options expanded for properties up to $2 million to build additional dwelling units, supporting housing density.

Why This Matters Longer amortization terms could increase demand for investment properties as more buyers enter the market. The risk of short-term price inflation highlights the importance of timing investments strategically.
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💸 Global Affairs Canada Bought $186M in Real Estate.

• Purchases include over 400 properties in 70+ countries, such as luxury homes, vacant land, and properties in politically unstable areas.

• $41 million was spent on three properties in Kabul, Afghanistan, later abandoned to the Taliban after Canada’s withdrawal in 2021.

• $58 million has been allocated to 23 staff accommodations in London, UK, since 2015.

• $38.4 million has been spent on official residences since 2014, including $2.4 million in New Zealand, $3.8 million in Barbados, $2.5 million in Trinidad and Tobago

• $9 million spent on a luxury condo in New York for Consul General Tom Clark.

Why This Matters: Government spending on luxury properties during a domestic housing crisis undermines public confidence and highlights misaligned priorities. The lack of transparency and foresight in these acquisitions emphasizes the risks of overreliance on government-driven real estate investments.

 🤔 WTF of The Week

People who bought pre-construction homes, hoping to flip them for a quick profit, are now stuck as prices flatten or drop.

If they can’t sell or get financing, they could lose their deposits, face lawsuits, or be forced to sell for less than they paid.

Here’s a harsh reminder that real estate speculation can be risky, especially when the market turns.

🛠 Our Trusted Providers

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