Vancouver Mayor Angry Over Vacant Home Tax Failure

Vancouver Mayor Gregor Robertson is angry at property developers who are avoiding the new Vacant Home tax he launched this fall.

mayor-gregor-robertson-vs-condos
Vancouver’s Mayor Robertson wants to end the Condo Futures market immediately

When the Tax against foreign ownership was  introduced there was an immediate dive in the market that indicated it was working.  Read More  Vancouver home sales drop nearly 33% in September
 Now it has been revealed that  Sales continued as property developers found a way to avoid the city’s meddling altogether.

The Condo Futures market copied the pork bellies, AirBnB, Bitcoins, Uber

Greedy and creative Vancouver developers mixed virtual reality with commodities and created Condo Futures. Rather than build properties that will owe the tax, they are selling un-built virtual condos.  Offshore investors who loved the safety of Canada for their investments, now can avoid all property tax and even maintenance costs.

vancover-fake-condos-1
Construction sites sit empty as builders sell virtual condos based on the blueprints

“The tax really opened our eyes to new possibilities” says a property insider. “we were building for people who had no intention of living in our homes, so why build them? We mixed AirBnB  and Uber for renting things they don’t have, Bitcoins for starting their own economy and the Chicago commodities market where people invest in pork bellies that aren’t even born yet”  

The result is the continuation of a lucrative market for property developers without adding anything into the economy. Mayor Robertson is furious with the developments but so far there is not much he can do about it. Early warnings against government intervention in free markets may now be ringing true.

vancouver-fake-condo-2
Builders without land are selling virtual extensions on existing property

Real estate insiders say this may be the fastest growing trend in the business. Only a few large developers are involved with thousand of offshore investors so they have been able to keep it hidden.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s