“Recently when I was looking for a new rental, I came across numerous examples of recently-purchased foreign-owned houses that were being rented out. The most extreme example was a house on Wesbrook Cr that had just sold for $7M. It was a crappy house being rented for ~$2K/mo, but it was on a fantastic piece of land. I spoke to the rental agent, it had been bought by a family from China that was planning to hold the property and eventually build on it.”
– M-dash at VCI 27 Oct 2012 7:30pm
This strongly suggests that the buyers bought believing that similar properties would sell for considerably more than $7M in years to come.
So much so that they are shouldering considerable carrying expenses to simply hold the property.