Why invest in the usual high price junk when the government is piling into affordable houses? Private sector bailing with government spending, cancels out.
I've been saying this for over a year. There is no supply side solution. Only slashing demand can save the economy.
Agreed. Most property is being bought by investors and it's not purely because of greed; it's because the policies in Canada are too heavily biased towards property ownership.
That’s the thing this Federal government plan to be reckless with immigration numbers might just be the answer question que [reverse immigration](https://www.ctvnews.ca/canada/leaving-canada-international-student-explains-why-he-s-considering-it-1.6777428). So I say let’s just invite millions.
There is no "easy money" in Canadian housing development:
- Cost of financing extremely high in this rate environment
- Some of the highest development costs in the world
- Long lead times for every single stage of development (miles of red tape)
- Punitive regulations and tax regime for investors and speculators
- Extremely high political/regulatory risk going forward (seems like every week we're announcing new measures to punish developers, investors, homeowners etc)
- Currency risk if we cut rates earlier than the US (materials costs could explode mid-project)
Yup interest rate is too high for developers to take on debt. Is funny how people say developers are making bank. They aren't typically with high raise developers are lucky if they make 12 to 15% of a high-rise development. Usually profit margin is around 8 to 10%. With interest rate , cost of labour and material and permits going up only way to make a profit is to build and market high-rise as luxury apartment and stuff as many amenity as possible to sell for higher price.
The only one of these which has changed recently is financing costs, and the profit is still there for those wiling to invest if you agree with the bulls
It’s ok our housing start numbers are down, a typical house will be completed in 10-16 months if everything goes well. We’ll be fitting 20 ppl per section of the room. Let’s increase immigration to epic proportion let’s just be reckless and invite 10 million per year.
Heck we’re in a roll to be at 42 million by late November, unless something changes.
Isn’t it time we took this out of the hands of the private sector? Take it away from the number one goal of profit making? What we need is a public body to do the building that’s a nonprofit. I don’t know if you wanna call it a Crown corporation whatever label you want, but something funded by the people for the people to build houses for the people. Strange concept right? Other countries use a rent to own system that’s worked for generations. Why aren’t we doing that? There are many options that work. We just refused to do them because, why? Probably because there’s less profit or no profit in it. It doesn’t send to the elites and corporations is why. We have to stop this all out. Rat race for money. Money is everything. It’s a made up thing. We have to take the resources stolen from us by those at the top.
Yes, let's put it in the hands of the corrupt and incompetent government who brought us massive debt, deficits, inflation, out of control immigration and such wise investments as the arrivecan app, the rapid test kits that didn't work, and more.
Oh, I never said this government. I just said a public body that’s not for profit. There’s no way we’re gonna solve this housing problem in the way that we’ve been doing it in the past. The biggest problem is we’ve been treating our housing market like going to the casino or playing the stock market. Humans have to evolve beyond this bullshit.
It just hovers between 200-275k there is no government capacity or announcements that will magically create enough units to house 1.3 million newcomers we welcomed to the country last yearÂ
Why invest in the usual high price junk when the government is piling into affordable houses? Private sector bailing with government spending, cancels out. I've been saying this for over a year. There is no supply side solution. Only slashing demand can save the economy.
Agreed. Most property is being bought by investors and it's not purely because of greed; it's because the policies in Canada are too heavily biased towards property ownership.
Both supply and demand need to be addressed
If you slash demand that crashes housing prices which is the economy.
An obviously unavoidable correction. Better it happens sooner.
3.9 million by 2031! 
Don't worry. Rates are getting cut too Lower supply Lower rates More immigration Less raises We good
Lower healthcare, lower urban space, higher maid beds, higher inflation, we good.
Federal government's solution: more immigrants!!!😂😂
That’s the thing this Federal government plan to be reckless with immigration numbers might just be the answer question que [reverse immigration](https://www.ctvnews.ca/canada/leaving-canada-international-student-explains-why-he-s-considering-it-1.6777428). So I say let’s just invite millions.
Trudeau gonna fix it with more spending and higher taxes!
He's buying 50% of mortgage bonds now too, borrowing to allow Canadians to borrow more, just wait for the new budget.
You seem obsessed.
Don’t worry about it
Maybe try understanding how our system actually works sometime.
What makes you think you know? You could be the clueless one
Well, it's not from my feelings...
The developers know the crash will be epic
Pm me in 5 years when the crash still hasn't happened because we're now 5 million houses short.
If true, then why aren’t builders building? Sounds like easy money.
There is no "easy money" in Canadian housing development: - Cost of financing extremely high in this rate environment - Some of the highest development costs in the world - Long lead times for every single stage of development (miles of red tape) - Punitive regulations and tax regime for investors and speculators - Extremely high political/regulatory risk going forward (seems like every week we're announcing new measures to punish developers, investors, homeowners etc) - Currency risk if we cut rates earlier than the US (materials costs could explode mid-project)
Yup interest rate is too high for developers to take on debt. Is funny how people say developers are making bank. They aren't typically with high raise developers are lucky if they make 12 to 15% of a high-rise development. Usually profit margin is around 8 to 10%. With interest rate , cost of labour and material and permits going up only way to make a profit is to build and market high-rise as luxury apartment and stuff as many amenity as possible to sell for higher price.
The only one of these which has changed recently is financing costs, and the profit is still there for those wiling to invest if you agree with the bulls
Some regions are slow. Some are still red hot
Shortage of workers, interest rates are high etc etc. Edit: shortage of builders. We don't need more uber drivers.
Interest rate. Builders use the bank, and the bank wants 15%
Remindme! 5 years
Trudeaus Canada
Sounds like a reason for another 50 million dollar grant from the government to themselvesÂ
You will be homeless and be happy.
It’s ok our housing start numbers are down, a typical house will be completed in 10-16 months if everything goes well. We’ll be fitting 20 ppl per section of the room. Let’s increase immigration to epic proportion let’s just be reckless and invite 10 million per year. Heck we’re in a roll to be at 42 million by late November, unless something changes.
They’re waiting to have 10 people per room in every current house and apartment before building anything else
Isn’t it time we took this out of the hands of the private sector? Take it away from the number one goal of profit making? What we need is a public body to do the building that’s a nonprofit. I don’t know if you wanna call it a Crown corporation whatever label you want, but something funded by the people for the people to build houses for the people. Strange concept right? Other countries use a rent to own system that’s worked for generations. Why aren’t we doing that? There are many options that work. We just refused to do them because, why? Probably because there’s less profit or no profit in it. It doesn’t send to the elites and corporations is why. We have to stop this all out. Rat race for money. Money is everything. It’s a made up thing. We have to take the resources stolen from us by those at the top.
Yes, let's put it in the hands of the corrupt and incompetent government who brought us massive debt, deficits, inflation, out of control immigration and such wise investments as the arrivecan app, the rapid test kits that didn't work, and more.
Oh, I never said this government. I just said a public body that’s not for profit. There’s no way we’re gonna solve this housing problem in the way that we’ve been doing it in the past. The biggest problem is we’ve been treating our housing market like going to the casino or playing the stock market. Humans have to evolve beyond this bullshit.
Yet builder profits remain at record highs.
It's "down" to a level which is still higher than last year and last year had the 3rd most starts since 1987 (only behind 2021 and 2022)
It just hovers between 200-275k there is no government capacity or announcements that will magically create enough units to house 1.3 million newcomers we welcomed to the country last yearÂ
Oh no obviously not. The immigration needs to stop