“My neighbor is a dentist, probably in his 70s. He owned a house in Shaughnessy, custom built decades ago, which he recently sold. The buyers, from Beijing, viewed the house for 20 minutes, then wrote a cheque for the entire asking price. He says he made more on the sale of that house than he made in his entire career as a dentist. I asked him why he doesn’t sell his current house too. He says that, because he can defer the property taxes, he can live in it essentially for free, and the property tax bill that his heirs will be faced with in 20 years pales in comparison to the capital appreciation that the house will experience by then.”
– from Jeff Murdock, via e-mail to VREAA, 21 Aug 2011
Thanks, Jeff. A remarkable story.
The appreciation in the price of a house overshadows monetary gains from an entire professional career of honest labour. Breathtaking, actually.
What are the consequences for the society?