Vancouver Sun: Student who flipped Point Grey property for $1.16 million profit prompts new call for stricter oversight for real estate

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September 14, 2016 | Derrick Penner

Quoted from the article:

Researchers for NDP housing critic David Eby have turned up property documents that show a homebuyer, listed as a student, bought a Point Grey property and within a year flipped it for a $1.16 million profit.

In other cases, Eby said, buyers listed as students secured mortgages on $40 million worth of real estate purchases in the expensive west-side neighbourhood with no indication of whether they reported income to support those loans.

In conjunction with an investigation by the Globe and Mail published Wednesday that uncovered internal documents showing where banks allowed foreign clients to take out mortgages without having to verify income, Eby said the information raises questions about how offshore buyers are influencing metro Vancouver real estate markets.

“Is Canadian banking policy enabling foreign students to flip houses in Point Grey?,” Eby said.

“I think this issue of bank lending is a huge part of the problem in terms of rapidly inflating house prices.”

Eby, who is also the MLA for Vancouver-Point Grey released the documents Wednesday at a news conference where he called on the province to step up its oversight of real estate transactions when it comes to buyers proving the sources of funds for property purchases.

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