Speculating With Vancouver SFHs – “He invites investors to either to buy the properties at a certain price, or join him to build where investors are either guaranteed 20% return, or 50% profit.”

The recent ‘Richmond Review’ article about a ‘miffed’ Richmond seller who’s former property was immediately put on the market as a flip, stated:
“The company behind the deals, New Land Strategies Corp. [owned by Ze Yu Wu], 703-6081 No. 3 Rd., has upwards of 10 similar Richmond properties currently available.”

unicas at RE Talks has this to add 15 Feb 2011 9:28pm
“I wanted to post about this guy before this article came out. And he is not alone. This is how he works. He has full page ads on cheap free Chinese newspaper that are mostly read by mainlanders. On this ads, there are about 10-12 properties, mostly in richmond, some in vancouverWest . He put specifics why these properties are good investment, including big lot, close to good school etc. On the ad, the guy offers $5K tips to lead about properties fitting into such specifications that someone wants to sell. He invites investors either to buy the properties at a certain price, or join him to build where investors are either guaranteed 20% return, or 50% profit. Investors will have 50% of title of the property. For each of such joint investment, the cash requirement is around $500K. Apparently some of those properties have been taken, he would put a taken flag on the ad, like realtors put sold sign.
There are other chinese groups doing the same thing. Only difference is percentage of payout to investors. And there are ready buyers for such houses. As I mentioned in another thread, most builders are asked about the houses they build in Richmond before completion.
Many parts of richmond is like construction site now, with many house being built. It is crazy, like gold rush.”

16 responses to “Speculating With Vancouver SFHs – “He invites investors to either to buy the properties at a certain price, or join him to build where investors are either guaranteed 20% return, or 50% profit.”

  1. It’s shocking and sad when something as fundamental to human life as shelter becomes the object of runaway speculation (gambling) like it’s some cheap stock.
    The more I read this blog, the worse I feel for Vancouverites. This distortion will bring tremendous financial pain, and every day longer the mania lasts, the greater that pain will be.
    You guys have become an escape valve for tremendous pressures building in China. You are at the mercy of global economic forces much larger than you can handle.
    Just keep in mind a truth that most people know, but willingly forget during the “good times”: If something is too good to be true, it probably isn’t.

    • “…an escape valve for tremendous pressures building in China…”

      You can say that again, Snats… And don’t think the ‘Yellow Emperor’ hasn’t noticed… His mandarins are currently/furiously trying to stem the ‘flow’…

      [ChinaDaily] – ‘Naked officials’ must bare it all about families

      “BEIJING – “Naked officials” – the name given to public servants whose spouses have taken up residence abroad and who are suspected to be more prone to corruption – will soon be subject to more scrutiny, according to a senior discipline official… Naked officials are believed to have a greater tendency toward corruption because the presence of their spouses overseas makes it convenient for them to funnel bribe money and other ill-gotten gains out of the reach of local authorities. If caught in their misdeeds, such officials also have an easy means of escape: they simply take up residence with their spouses abroad. “…

      http://tinyurl.com/6kn5zvh

      [WSJ] – China Revises Property Indexes

      “BEIJING—China’s statistics agency said it will stop publishing the country’s much-watched official index of national property prices, scrapping a set of data whose accuracy was widely questioned but which also had become a rallying point for public anger over rapidly rising housing prices.”…

      http://tinyurl.com/6bjpw4n

      • [ChinaDaily] – ‘Naked officials’ must bare it all about families

        “BEIJING – “Naked officials” – the name given to public servants whose spouses have taken up residence abroad and who are suspected to be more prone to corruption – will soon be subject to more scrutiny, according to a senior discipline official… Naked officials are believed to have a greater tendency toward corruption because the presence of their spouses overseas makes it convenient for them to funnel bribe money and other ill-gotten gains out of the reach of local authorities. If caught in their misdeeds, such officials also have an easy means of escape: they simply take up residence with their spouses abroad. “…

        http://tinyurl.com/6kn5zvh

        Nemesis, thanks for posting that.

      • Wow, this is jaw-dropping.

      • Thanks for posting that. This agrees my worry mentioned on a previous post that a lot of these investors are shady characters relocating money. Can’t be good for the city’s character to have an influx of corrupt officials and black market business types.

      • Wow, nice catch.

        I was contemplating that a year or two down the road when China is trying to raise cash, that they would decide tracing down all this money that left the country would be profitable. After the bubble runs its course a million will return to being rather a lot of money again back home. Especially if it is real cash, not a leveraged financial instrument.

        But the authorities got there earlier than I thought they would. Fun times.

        For the record, Dong was shipping money to his wife in the U.S.
        http://www.china.org.cn/china/2010-07/29/content_20599800.htm

      • Dong Yuejin, the official convicted of embezzling $88m in the recent trial, sent money to his wife who lived in…

        the US, not Vancouver. Too bad, would have been an interesting data point.
        http://www.china.org.cn/china/2010-07/29/content_20599800.htm

    • “It’s shocking and sad when something as fundamental to human life as shelter becomes the object of runaway speculation ”

      You think that’s sad? Look at food. The 2007-08 commodities bubble produced a lot of malnourished children in Africa. This is coming to the rest of the world. Nobody is safe from the financialization plague. You’re either part of it or you’re destroyed by it.

  2. well doesn’t this just “explain” all the stories about “RICH CHINESE INVESTORS”??? maaawwaaaa haaahaaa a fool and his money are soon parted……

  3. Perhaps we should join some European leaders and claim “Multiculturalism has failed!” Accomodation gone too far. Are these people paying taxes? Maybe only property taxes if that! Really needs to be more regulation around what is happening here.

  4. Of course you’d come over with this sort of attitude. I doubt our wise federal government is going to cull the business class visas (unlike the other ones they’ve been going at this week).

    http://www.bjreview.com.cn/nation/txt/2011-01/23/content_327912.htm

    • Yikes, RN! – did you read all of that piece in your link?… I do believe you’ve unearthed a quote that may one day come to rival, if not surpass, ‘My husband buy three, I buy three!’…

      “The earlier you immigrate and the more children you have, the easier for you to earn your investment back.” – Liu Jianyu, Shanghai-based immigration consultant [who told Xinmin Weekly if a Chinese family wants their children to receive education in Canada, immigrating by investment is cheaper than paying the tuitions as a foreign student. Liu said the saved education costs plus government childcare subsidies could amount up to more than 1.4 million yuan ($210,000) if the family moved to Canada right after the child’s birth.]…

  5. Appreciate the insights Nemesis and 29. If we had any journalism in this city someone would follow this up and connect the dots for the public. The Straight is the only local publication I can think of that might give this story it’s due.

  6. Go meet them on the 15th day (last day) of CNY
    Sat. Feb 19, Bonsor Community Centre, 6550 Bonsor Ave, 27:30-22:00 hours, 6048888888
    Vancouver Builder Assoc – they say that they builders, developers, investors and building material suppliers.
    http://preview.tinyurl.com/48kdyuc

  7. Sometimes, in the course of my research/analysis, the temptation to conflate becomes irresistable…

    [ChinaDaily] – Beijing tightens restrictions on flat buying – Non-locals have to pay income tax for 5 years before purchasing home

    “BEIJING – The Beijing municipal government released a package of rules on Wednesday to restrict home purchases in the capital and rein in soaring property prices. “…

    http://tinyurl.com/6dvd7ku

    Yet, as harsh as those rule changes may seem, they pale in comparison with the ritual income verification/mortgage pre-approval process – “Chuanzhang” – currently practised in Ding’an county in South China’s Hainan province…

    http://tinyurl.com/6zamozm

    😉

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