Comments on: What do the Chinese know about investing in property? http://www.crikey.com.au/2009/10/30/what-do-the-chinese-know-about-investing-in-property/ now with extra source Sun, 12 Feb 2012 09:16:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Roger Clifton http://www.crikey.com.au/2009/10/30/what-do-the-chinese-know-about-investing-in-property/#comment-43582 Roger Clifton Fri, 30 Oct 2009 06:43:35 +0000 http://www.crikey.com.au/2009/10/30/what-do-the-chinese-know-about-investing-in-property/#comment-43582 Could it be that foreigners are laundering money by pouring local earnings into real estate and then selling it tax-free? That would give them 30% of extra incentive to buy it. Perhaps an accountant might set the record straight here, lest I besmirch honest suckers entering a mugs game. On the other hand, it might a good time to introduce a pay-as-it-grows tax on real estate. Apart from blocking any laundering of foreigners' profits, it might deflate the RE bubble before it becomes one more item too big to fail. Could it be that foreigners are laundering money by pouring local earnings into real estate and then selling it tax-free? That would give them 30% of extra incentive to buy it. Perhaps an accountant might set the record straight here, lest I besmirch honest suckers entering a mugs game.

On the other hand, it might a good time to introduce a pay-as-it-grows tax on real estate. Apart from blocking any laundering of foreigners’ profits, it might deflate the RE bubble before it becomes one more item too big to fail.

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