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Originally Posted by hillbillyreefer
And with the 15-20% appreciation/year in the value,that’s $150-200000 in profit/yr. Who cares about 1% that’s not even a blip in the grand scheme of things. Like I said 1% isn’t going to slow anything down, I’d wager it will heat things up, greedy people recouping their taxes.
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You're assuming that market speculation is the primary driver of the actions though. It's not at all clear that's true, many factors are at play. There's been a big drive to move money out of China and into safer hidey holes all over the world. If you consider it that way the result is the same as your point, paying 1% to maintain your investment is nothing, look at what mutual funds get away with charging.
Quote:
Originally Posted by hillbillyreefer
Politicians pandering to the stupid while actually doing nothing.
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So actually there's an argument to be made that by increasing the costs required to maintain this they aren't doing nothing, they're increasing the market's exposure significantly. If I have 2 mil of my money sheltered from the Chinese market / government in a Vancouver condo that causes significant concern for the people setting monetary policy there. In recent years they've taken action to close some of the loop holes people are using to move money into Canada so that might make it much harder for the owners of these investment properties unable to pay the taxes. This mostly ineffective lever put in place to put a brake on speculation might actually end up combining with higher interest rates and policy changes in China to make a lot of investments untenable. If those things to combine to tip the market it's going to be a bloodbath.