Sunday, December 6, 2020

WHEN POVERTY-LEVEL INCOMES BUY $MILLION HOMES

Gordon’s research set out to solve a puzzle in Greater Vancouver and, to a lesser extent, Toronto. How can tens of thousands of owners who tell Revenue Canada they are low income (earning less than $44,000 a year) consistently afford homes valued in the $2- to $10-million range?

The new data revealed Richmond, West Vancouver, the city of Vancouver and Burnaby were epicentres of the foreign-ownership phenomenon: They have the highest housing prices, low average declared incomes and the largest proportions of non-resident owners.

 “This is a powerful corroboration of the idea that substantial amounts of income are not being declared in satellite family situations,” said Gordon, whose paper defines foreign ownership as “housing purchased primarily with income or wealth earned abroad and not taxed as income in Canada.”

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