Won't happen unless Toronto and Vancouver become undesirable places to live somehow. The amount of land is fixed, the population is growing, why are people surprised housing is growing less affordable?
Questions: 1) HOW MANY OF THE SOLD UNITS WERE PURCHASED BY FOREIGNERS FROM OUT OF THE COUNTRY? 2) HOW MANY OF THE SOLD UNITS WILL BE “OWNER OCCUPIED” vs RENTAL/INVESTMENT UNITS?
Foreigners means from out of the country. If there were from in the country they wouldn't be foreigners, it's redundant to mention that they're from out of the country. It's like saying the naked people that have no clothes.
@@HepCatJackas opposed to “ foreigners” that live in Canada and if you were an immigrant like me I’m sure you’ve been called that more than once and in not a nice way 😂
We have the most over-valued and inflated real estate market in the world and the banks have been doing everything to keep it there... artificially... but the market has it's own will, as they'll find out.
As a construction worker who does condos/ underground garages for condos I'll tell you this - price is high because of - curruption (building materials go missing or foreman lunch tabs.) once my machine sat at a job for a week at 2 grand a day just because they didn't want me to have to reschedule bringing my equipment there. Another is safety bribes (bribing people with the ability to slow or shut you down)
When a city has a “housing shortage” luxury condos are the last type of housing it needs. The city needs to find a way to get developers to build cheap low rise buildings with affordable rents.
To be fair, luxery condos don't get put up over night. The process of getting through the red tape to start to build is expensive and long. So this process starts years beforehand.
Unfortunately when there's a shortage, the priority becomes whatever makes the highest margins. You saw it with vehicles in the last 2 years. What needs to happen is municipalities need to stop getting in the way. Two thirds of building proposals were denied in the last 2 years!!
Toronto is finished. Go downtown, it's a scary place to be these days. Mentally ill homeless people and drug addicts everywhere. How many amazing restaurant and businesses went belly up post covid? The vibe of the city is depressing. The Zombie apocalypse you see in downtown L.A or San Francisco is coming to Toronto soon.
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Canada is dying so fast.. the prices are so stupid. Toronto is mediocre at best but the housing prices were so absurd. It’s going to keep crashing Just look at assignment sales( houses and condos )... people are losing their life savings already. Good luck to all the people who are still invested and optimistic.
Toronto is a shit hole I've lived in the west my whole life you couldn't pay me to live in the east. Canada is going down the toilet but I'd rather live on the good end of the toilet.
Developers call all new builds luxury! Many are built with builder grade quality products which are not high end! The developers have been ripping people off for decades! However people want to live in new move in ready suites. The developers have built and marketed their products to make a huge profits and it worked for a long time! The thought of renting or buying older units that fit a new buyers budget seem to have been lost over time!
But, but it’s all about that granite countertop! My husband bought old shack , demolished and with my help, built new house. Took us 7 years, only summers and after work to finish that huge project. Absolutely everything was built by him. People can’t believe we did it and house is very beautiful, elegant, European ( we are from E). I was also responsible for sensible shopping and budgeting. This whole project cost is: land $96 000, building around 70 000, I’m natural decorator and spent on furniture around 10 000, no more! But it is so gorgeous! We finished bathroom for only $4000, but looks like $ 30 000. I bought second hand kitchen for.. $500 from some high tech billioner ! And her applayences , high end, 4 pieces for $700. You really have to have some skills and there is no limit what you can do. And it is only 30 min from Ottawa. I know that we are once in few millions who could do this, but why people are so stupid and agree to pay top $$$ for average shoebox?
Land use regulations and zoning restrict unit creation and housing supply. There isn't enough competition and that's driving up the cost of housing. Let developers build and prices will come back in line with building costs.
Ur absolutely right. Most of these new developments are such bad quality and the suites are tiny at least that's how it is in Vancouver. I've seen many condos needing repairs year after year water leaks mould and the walls are so thin u can hear everything outside ur door on the floor
Housing prices are unlikely to significantly decrease until there is a substantial increase in housing supply. In Canada, there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2024 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable, but others say it's risky. Any advice?
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You're right! With the help of an experienced coach, I made some changes in my investments. I started with $321k, and now I have more than $750k by investing in stocks, ETFs, and bonds. I think housing prices won't go down much until there are more houses available.
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You're right! With the help of an experienced coach, I made some changes in my investments. I started with $321k, and now I have more than $750k by investing in stocks, ETFs, and bonds. I think housing prices won't go down much until there are more houses available.
In 1973, a 21/2 rented for $90/month. 50 years later, it's $3000/month. No one's salary rose at that level. How could this massive shift of wealth from individuals to landlords happen?
There's a ton of problems as to why, from municipal permits costing millions, to delay in construction due to lack of trained workforce; on top of that the interest on their debt quadrupled. Simultaneously the average buyer has so much debt and faces similar financial problems due to rising inflation and interest rates hike. So upgrading or first time buying for everyone is out the question. Foreclosures are up and banks still want the millions for the house that was liened out to the consumer so repos are just as expensive with no buyers, placing pressure on the banks. We have every single leader in this nation from Federal Ministers to Provincial ones down to the municipal government who all kept demand high and supply low so their wealth could grow.
After the 2007 subprime lending crash, many people who build homes found other lines of work and never returned to construction. There was for a long time an oversupply of inventory from demand that collapsed.
I think the problem here is "luxury condo". I think developers need to start having the cash to cover before they start contruction rather than having debt.
Debt is important because, among other things, it allows central banks to effectively manage the economy back to full employment and low inflation rates when there are economic shocks like COVID-19 and the financial crisis. Debt is a tool, it just needs to be used correctly; developing is in many ways like entrepreneurship. There are big risks involved and if it goes well everyone wins, and if it crashes, too bad but they can start over again and hopefully they'll execute better or have a better idea.
@@TheXConor yes but no one is using debt for economic shocks or just for startups. They are using it for everyday operation. The way its supposed to be done is you take loans in bad times and pay it off in good times. What we are doing is taking loans in good times and then taking even more and bigger loans in bad times and just not paying them off.
@ADobbin1 Let me clarify, one nice thing about debt is that the Fed can buy and sell low-risk debt to stimulate or restrict demand for additional marginal capital from businesses and individuals. Cheap debt/low rates mean people want to borrow more, and vice versa. Interest rates are just a charge for using the capital that underlies the bond, and I don't see much of a problem if debt is used productively. For example, if you have a company that has 1 Billion equity and 1 Billion debt with a 5% interest rate paid out once a year, then the equity gets the difference between the return on invested capital for the entire business minus the interest paid on debt. The difference in return is fair because if the enterprise loses money, the equity holders lose money first, while the debt holders are safer since they get paid first. The only problem with debt is that you have to actively manage it and ensure you don't take on too much; default rates for debt are usually less than 10% for even the most risky debt, meaning for every bond issued 90% are able to manage it.
Is nobody else sickened by the fact that the government makes more money off of a new development than the private enterprise taking on all the risk? And for what? Some rubber stamping, reviews and approvals. It's disgusting.
There isn't a housing crisis in Toronto. We have lot's and lot's of empty condos here . There is an affordable housing crisis in Toronto. Cue the real estate market here swirling the bowl. About time.
Because they are unaffordable. An small one bedroom condo in North York is going for 2500+, in some cases up to 3000. Even outdated apartments with no washer/dryer in half a decade old low rises are $2200 a piece. That's insane. I make a pretty decent wage, yet I am struggling to pay rent. I cannot imagine how people with 40-50K annual income can afford to live here.
@@AcuraAddictedSo Bidenomics record inflation is making Canadians poor also. You better hope President Trump wins next election. Biden has literally destroyed the world economy.
People need to realize that nobody can afford to buy luxury real estate anymore. Plus the value is just horrible. $4million for just a box in the sky??!! Seriously?? When the economy is good and everybody is making money, sure nobody cares but when people have no money to spend, nobody would want to buy it. Nowadays, people need affordable housing. So instead of spending all that money to build things that nobody can afford to live in, how about you build something that everybody needs??
most of who will purchase the outlandish space are people who live in nefarious careers in the house of cards or do underhanded illegal shit anyway ... maybe a good portion to asian buyers.. nobody questions where the money comes from when it comes to investing but everyone wants a homeless displaced person vetted like some how rich people are good and homeless people are bad .. we live in one whacky world
nothing is for sure about asset price and inflation in Canada, but one thing is for sure that is rent will just keep rising due to supply shortage, especially 2-3 years later due to significantly lower housing starts now. there is almost no other approach left other than a great reset to make a lot of leveraged property owners to lose their pants, a great reset to kick start a new healthy cycle. Yes, ironically you need deflation, which is the thing modern credit driven capitalism scares the most even more than inflation (remember the fiscal stimulus and free pay cheques during covid?), to put everything back to where they are supposed to be. You need a lost decades or two like Japan to restore so called affordability, and suppress leveraged credit driven speculation. Heard too much numbers talk by economists and expert, but it is really not that complicated. When you have cheap money for so long time, house investing demand is way higher than normal interest rate era, that extra artificial demand causes a rising inflationary spiral inside the whole real estate industry including rent, building cost, property tax, etc. If it's just the supply shortage that is causing the price to go up in such a speed, then how do you explain the fact that most of the similar or bigger city in US has way better affordability?(and ironically Americans thinks their affordability is one of the worst in history) how do you restore so called housing affordability, unfortunately it is not likely to be done by increasing housing supply, because building more houses in short period pushes building cost higher not lower due to lack of construction labours. the likely way to restore housing affordability is artificially lower the housing investing demand. Someone would argue that if you kill all the landlord, then who can supply those rental units? well, if the enough number of landlords has 2-10 condo units cannot pay their debt, they are forced to sell their properties at a heavy discount(not a good example but kind like US 2008). Was 2008 a bad thing? yes of course, so many people lost their home, job, money. But did it restore affordability in US? yes it did. Whether it will happen in Canada or not? only god knows.
I think you’re right but I’m not sure the government is brave enough to let that happen. Too much of our economy is tied to housing. The economy isn’t dynamic enough
I don’t really think 2008 in the US can be compared to the current situation in Canada. Most of what you’ve said here is pretty on point though. I do think that maintaining higher interest for a longer period of time will help cool the housing market and provide a more soft landing. Currently demand has tanked the market will adapt but just slowly.
@@carbb5760 it is not an apple to apple comparison, and I am not trying to compare these two. The point here is simply I don't see a way to restore affordability other than triggering a balance sheet recession, whether the detail is similar to any previous bubbles in other countries is not that important. I am also not making an conclusion that Canadian housing market will have to correct due to high interest rate. Depends on who people are, how old are people, they will be benefited or hurt from different outcome end up happening. To summary: - if affordability is to be restored which benefits renters who want to own home, or younger generation who are about to join the housing market, higher for longer until something break badly is what will benefit them. and it will hurt current home owners badly, especially those high leveraged speculators, for example pre-construction flippers. - if affordability is not to be restored. monetary policy will not be restrict enough, inflation target will be abandoned, debt will be reduced not through productivity growth but through higher inflation. housing price will be elevated but so as carrying cost as well as taxes. relatively it is benefiting current home owners, but it hurts the long term growth even more, because it is mainly the younger people taking the consequences and suffering. How can they be more productive and spend more, and have more babies when they have to live with their parents? I am not in either camp, all I am saying is there is NO easy path for Canada which has become a country that is lack of innovation but a lot of speculations. I am actually considering leaving the country for good
How about TURDEAU stop sending billions overseas to fund the war and send those billions to build affordable housing?! I don’t like govt controlling housing but this is the quick fix we need! Or put those billions of tax dollars back into the hands of Canadians and let them decide what they want to do with it and feed the economy!!!!!!!
Very good comment. The Feds are pumping billions into helping finance projects that are supposedly going to be “ affordable” rental housing. “ Affordable” is defined as based on the local income of the local population - meaning whatever the going rate is rentals. Ie Income $100 k, rental at 30% of income = affordable is then $30k per year. Lots of BS on that one guys. Some rentals in these projects are already being limited in how many units actually will be rentals, as compared to condo units.
The Fed sets the rate for risk-free bonds on the federal debt, which all other debt is benchmarked to since it's an opportunity cost. They buy and sell those bonds and other securities like mortgages to ensure that inflation is stable and people can find work. Land use policy and zoning is why housing is expensive in Anglophone countries. Inclusive zoning or hierarchical zoning in Europe and Japan is why housing is cheaper there.
They're doing the same thing that everyone else working does - they're looking for the biggest payout for the least amount of effort. The magic of capitalism is that when everyone does that in a competitive market, people are most likely to see lower prices because there are more options available to choose from. Developers building when prices rise rapidly reduces the rate of price increases and can lower prices too. Land use and zoning regulations are the reason for high rents, not greedy developers.
also, I feel that perhaps its the wrong type of housing being developed for the demographic that needs it and are the gears that make the city run. Not the people at the levers - but the devs are always trying to shoot for the sky...literally/figuratively
There's no such thing as the wrong kind of housing getting built. If it's profitable to build, it's because someone is willing to pay and both parties to the transaction are benefitting. The corollary is that the person in the new unit doesn't take up an older unit that a person making less money can afford.
It’s a shame see this project struggle so much. What they are trying to do is something that is too rare in this city. Top tier architect and only 416 units in such a big tower. I watched the original presentation and the level of care and detail in making it a truly great building was amazing. Any other developer in Toronto would have just crammed 1000 units into a standard glass mid range tower. I hope they manage to pull it off in the end without discarding their original vision.
BS….never was anything other than a square tube meant for rich people. Most of whom will never actually live there. Just like Manhattan - now a people desert as the rich prefer to actually live elsewhere.
Why not just allow 2 towers to go up? Is that really so impossible? Land use and zoning laws make it so that nothing gets built because of the inflated costs of dealing with government regulations. These laws are designed to block development, and only the rich can afford to circumvent them. YIMBYs are about taking the power back and making it easier to fix this problem.
I know nothing about real estate other than being an ordinary Toronto home owner. But I do know incompetence and inefficiency when I see it and that best describes the Toronto construction industry. I have watched in horror as the house next door was demolished and replaced with a new shiny bigger house. They destroyed my property in the process. House mostly ok, everything around it including 40 foot in ground pool into a sink hole. The damage was caused by incompetence of the developer. My insurance hired a developer to fix my place. Now 3yrs later with multiple incompetent twists and turns they have spent $5m and it will not be finished until the end of 2024. Zero project management. Endless rental of equipment that is abused or idle. Wasted material. There have been too few workers in an over heated market and it degraded in competence.
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Of course, they're sitting on $1.6 billion in debt. All those downtown buildings are tied up in some crazy mafia. Teams of supposed professionals, where one is an assistant getting 20 bucks an hour, while the foreman logs it like they're both full-rate pros. Two pros at full rate, that's 2x$49.25 = $99.50. They hand over $75 to $80 to the pro, who then gives $20 to the assistant, and guess who pockets the difference? Plus, the hourly workers don't produce like the piecework pros do. It's ridiculous. I came from NYC and I've never seen such nonsense before.
when there is a great imbalance, the universe will find a way to make it right. Not surprised to hear that greed is teaching those fools a tough lesson.
I moved back to Canada in 2019 after 25 years in Asia (Hong Kong and Manila). I was executive director of two public companies in the real estate development and holdings business. We also had building materials supply businesses. My friends do cNement work for high rises and malls. What amazed me upon returning to Canada is how slow construction workers are in Canada. I was astounded. Materials expensive. Bureaucrats ridiculous. Regulations stupid and workers slow. People in Canada and US have no idea what kind of competition they face overseas.
@@DcuWcy Are you addressing me? In Hong Kong there were very few work place injuries. I don't have data for the Philippines but I don't think injury and death rates significant which is a bit surprising. I dare say injuries from fireworks on New Year's eve one day exceeded work place injuries for 5 years.
My sense is that the top tier condos were selling to very rich foreigners, primarily Russian and Chinese. (please- I am not hinting that these foreigners were non-legit). I think our federal immigration policy may have curtailed a lot of these foreigners from arriving. . . . It is obvious that the sudden escalation in construction costs have caused havoc. Planning and budgeting a project 3 or more years in advance takes on huge risks. Kudos to the developer who took a huge risk - went from dry-cleaning services to high-end condo developer and was taking on his next big risk of graduating into mega-high rise top tier developer. We need people like this. But it appears that the knock-on economic effect of covid has hit him hard. . . . The key issue is affordability and viability.... I would like to imagine the city of Toronto, the Province, developers and contractors need to sit at a table and work out the what can be done to make a new viable model to address our housing needs.
Apparently they are saying high interest rates will be around for a long time. In some ways it's really bad but at least it's stopped this condo crazed development in the city where developers are getting rich from demolishing good rental stock replacing it with luxury condos. There's a problem if the average 30 year old cannot move out of their parents basement or has to move out to some cornfield to buy a house.
@@FestinaFirefly 🙄Yea high interest rates compared to what we've had for the last 15 years. And yea don't worry I know the meaning of really high interest rates. I lived through the 22% mortage rate. So please I know my history.
I keep telling people; the land at the S/E corner of Yonge and Bloor IS "cursed". It is an old native burial site known as "Sand Hill". The site was desecrated by English settlers/developers in the mid 19th century. Bones were scattered and mixed with mortar. The facts are documented in Henry Scadding's book Toronto of Old. The site is marked as "Sand Hill" on early maps.
There were two common graveyards. There was a "potter's field" where Yorkville is now; a.k.a. The Stranger's Burial Ground. All the burials in Yorkville were moved to the newly opened St. James Cemetery on Parliament St. When it came time to develop Sand Hill they were not the least bit concerned as they mixed the bones of First Nations burials with the mortar used for the foundations of houses and shops.
well in the GTA area all these preconstruction townhouse complexes are mysteriously going up in flames. no one is investigating this and it seems fishy
investors represent over 50% of the market and they ain't buying anymore. not to mention airBnB soon to be banned in ontario so thing are about to get real bad for them. looks like developer Vandyk on the verge of bankruptcy as well
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It's just that building. I work high-rise and these guys under bid on an extremely complicated to build project. They ran out of funds half way because of it. The projects going bankrupt are bidding low trying to grab projects and end up shooting themselves in the foot.
I can’t but help laugh when I told a Lady from Toronto that Trudeau deficit spending will cause a Hugh correction in the housing market in Toronto Her answer was I don’t understand deficit spending
That makes no sense. Real estate developers have different ways to finance such projects. They can borrow from the bank, they can issue bonds and sell them, they can water down their stocks and sell the on the stock market. The Federal Deficit isn't an issue for this. Projects planned years in advanced would have locked in low fixed rates for 25 years. If there is anything that will cause a correction it's those Air B n B renters who overpaid for houses they leveraged up on to make short-term rental properties and they're unable to find tenants because the market is over-saturated. These kind of renters started by renting out a spare room in their home that they live in anyways, but purchasing entire houses to rent the whole thing is a big risk to take. The Provincial govt is clamping down on these illegal hotels (there are regulations to follow for the hospitality business) and they're causing a bubble in housing prices.
@@HepCatJack It’s looks like your another one that doesn’t understand basic economics When government over spend in good economic times it’s like throwing gas on the fire Causing inflation with inflation comes higher costs and the only way to control inflation is by raising interest rates With higher interest comes higher mortgage payment, and the cost of doing business With higher cost comes cuts to jobs higher unemployment This means less people qualify to buy homes and higher mortgages The higher the rate goes this causes people lose their homes The more homes that go on the market down goes the value In the early nineties houses in the Toronto area were selling for half their original value This is what called a correction
Vanity project developers have done it to themselves with the aid of corrupt municipal leaders. Housing should not be a commodity as a standard rule. The people don’t want to feed the ever-expanding greed of the developers. Good on them, I hope the properties stay empty as a reminder of what toronto doesn’t need more of.
Inflation is a small problem the bigger picture to the problem is that the project is a LUXURY and the market for it is low at the moment. We have the homeless problem, people are leaving Toronto because it is too expensive for housing. Most people coming into Toronto are starting from scratch; therefore building affordable appartments would be a better move rather than a luxurious building. It is true that the project manager has many successes but that was prior Covid which affected the canadian population and the market stability.
I live down the street from the Grand Central Mimico dev. Always thought it was a cool spot and excellent for commuters. But there hasnt been ANY progress in the last like 4 years. Its just half built land and potholes. Meanwhile, like 5 three-in-ones have gone up o the queensway in the same time pandemic be damned.
I predict that eventually, some of these condo buildings will turn into government housing when oeoke are into able to afford their mortgage and rent. The city will buy up these buildings for cheap and turn them info affordable housing. If you take a look at most of the low income housing areas in Toronto, many of those highrise buildings didn't start out as Toronto housing buildings. They were condos that people ran away from when the area turned bad.
@@ILoveTinfoilHats understand, but conditions are good for a creative developer to undercut sale prices with development that is actually affordable. Everything is too high, agreed. But that's what is generating an opportunity for a disruption.
Bankruptcy is GOOD for business, imho. Assets that are presently being poorly managed will be sold at auction, likely at bargain prices, to new investors who can attempt to fix the previous owners' problems. This is ordinary competitive capitalism in action. Lessons will be learned by all who carefully observe this latest fiasco.
Incompetent Joe Biden’s record inflation pushed wages/labor and material costs up. Canadians better hope president Trump is re-elected and can fix Biden’s damage quickly, before the next recession hits.
1:22 WHAT!? Mizrahi?? There is 100% some shady dealings with that company. They have a project in Ottawa, ON that makes NO sense. Thats all I'll say regarding the matter.
That is what happens when developers are getting to greedy Real estate prices everywhere are insane out of touch and the market needs a big adjustment When young people with higher education can’t afford a home than there is something terribly wrong with this I am a capitalist but this is the greedy bad side of the system and it needs to be stopped They will not do it on their own but a real down turn in real estate will
The problem is land use policy and zoning making affordable housing unprofitable. Look into it. NIMBYs block everything because they're greedy and want to exclude people from opportunities.
Developers want condos so they get their profits out quickly but not building rentals. In Kitchener over 70 %are condos. They buy up old houses 10 at once if they can, evicting poor !
I'm seeing a lot of bad arguments in the comments section. The biggest problem consists of land use restrictions and zoning. This is encouraged by tax policy incentivizing homeownership, and when people pile in too much of their life savings into their home because they're incentivized to, they vote in favor of NIMBY policies that restrict new supply of housing to protect and increase the price of their home. NIMBY restrictions make building everything except for high-end housing uneconomical. Basically, the cost to build to regulatory requirements pushes up the cost to build above what could be charged for the unit and it doesn't get built. Markets are very good at allocating resources, but government and local control prevents meaningful change on this issue. Housing markets are like musical chairs, except the chairs vary in quality and you have to pay up for better units. If you build more high-end units, people in the currently existing best units in the area typically move up into the newer best building. Over time, if 1000 new units get built at the top end, that means that 1,000 people who would otherwise be living in the old best tower (now the second best) move up, and this process continues across an entire metro region. "Just build more housing" ought to be the motto.
the keyword is a shortage of "affordable" housing in Toronto. not many new immigrants to Toronto can afford a condo north of a 1M let alone 3 or 4 million dollars.
i know someone who bought 3 condos in this building; at one point the developers offered to purchase their 3 units back at a higher price, but they declined......i understand why the offer was made.....the project seems amateurish and plagued with GREED....
Is it possible the unbuilt units could become rentals as a way of getting long term cashflow to balance out the construction costs over a 25 year period?
A 2 bedroom 1000 sq ft concrete box sets you back about $2000 in rent a month, no new condo comes even close to good old apartment rentals. In this down equity market you can cover $24k a year rent with just $200k dividend portfolio at 12%. Squeezes out $600k or 300% premium than a $800k condo with a roof top swimming pool that no body ever uses
This not accurate at all. My GF lives in 1 bedroom (600 sq. ft.) condo in Downtown Toronto and it costs her $2,500 per month. I myself, live on the Las Vegas strip in the penthouse of a top tier casino for $4,700 a month. Toronto is not worth it right now whether renting or buying. Many Canadians I know are buying homes in places like Florida instead.
The Future of cities should not entertain the building of mega buildings, at all !! Cities of the future must take in account for costs and maintenence these monstrosities, people can't afford these (new) maintenance fees now let alone 30 years from now .. buyer be ware !!!!
Nuts in pricing real-estate, world recession / no jobs can sustain these prices in canada or usa. Will spiral 25% by next year as layoffs contribute to downfall and continue to drop to 40% as defaults and crazy high property taxes are unsustainable in following years. Thus liquidate and move to a low cost nation to dodge the turmoil, then come back in 4 years to pick up the affordable housing. Real Estate crisis every 10 years.
Incompetent Biden’s record inflation is destroying the world economy. Whether you like it or not Canadas economy is very tight with US economy. You better hope president Trump wins the next election to fix Biden’s economic disaster. 33 trillion in debt. Bank failures. Crypto meltdowns, US financial rating lowered, high interest rates, low bond rates, record trade imbalances.
Pigs get fed, Hogs get slaughtered. Only shame is the folks who will suffer are the contractors who will be stiffed while these developers will just rename the LLC and move on to the next. We need to make these folks have accountability and have some sort of Bond system to protect the people who actually build the thing .
Woe to all the fools who bid up the price of housing to such extremes. May the price of housing collapse 30% and not recover for decades.
60 percent yeah
ain't that the truth :)
I'm praying for even more of a 30% drop! Lesssgoooo!! 🎉
Let's say 90%. 😆
Won't happen unless Toronto and Vancouver become undesirable places to live somehow. The amount of land is fixed, the population is growing, why are people surprised housing is growing less affordable?
Questions:
1) HOW MANY OF THE SOLD UNITS WERE PURCHASED BY FOREIGNERS FROM OUT OF THE COUNTRY?
2) HOW MANY OF THE SOLD UNITS WILL BE “OWNER OCCUPIED” vs RENTAL/INVESTMENT UNITS?
This comment should be at the top.
Foreigners means from out of the country. If there were from in the country they wouldn't be foreigners, it's redundant to mention that they're from out of the country. It's like saying the naked people that have no clothes.
@@HepCatJack sorry, I agree!
@@HepCatJackas opposed to “ foreigners” that live in Canada and if you were an immigrant like me I’m sure you’ve been called that more than once and in not a nice way 😂
@@HepCatJack so is arguing semantics.
We have the most over-valued and inflated real estate market in the world and the banks have been doing everything to keep it there... artificially... but the market has it's own will, as they'll find out.
australia may be worse
@klnrklnr4433 doubt.
@@klnrklnr4433 part of the 5 eyes....we all suffering mate
Nowhere close to accurate. Do some actual research into the US... all of the US.
As a construction worker who does condos/ underground garages for condos I'll tell you this - price is high because of - curruption (building materials go missing or foreman lunch tabs.) once my machine sat at a job for a week at 2 grand a day just because they didn't want me to have to reschedule bringing my equipment there. Another is safety bribes (bribing people with the ability to slow or shut you down)
Well said. Excessive and ridiculous regulations make corruption necessary. Like the pharmaceutical industry.
When a city has a “housing shortage” luxury condos are the last type of housing it needs. The city needs to find a way to get developers to build cheap low rise buildings with affordable rents.
agreed we need more no frills builds and missing middle rentals
hell I would even live in that and I make just under 10k a month living at my parents house.@gormenfreeman499
disaster, they ruined the country. @gormenfreeman499
@gormenfreeman499they shouldn't work for minimum wage then.
To be fair, luxery condos don't get put up over night. The process of getting through the red tape to start to build is expensive and long. So this process starts years beforehand.
Toronto doesn't need luxury condos....it just need affordable apartments & houses.
Unfortunately when there's a shortage, the priority becomes whatever makes the highest margins. You saw it with vehicles in the last 2 years. What needs to happen is municipalities need to stop getting in the way. Two thirds of building proposals were denied in the last 2 years!!
Toronto is finished. Go downtown, it's a scary place to be these days. Mentally ill homeless people and drug addicts everywhere. How many amazing restaurant and businesses went belly up post covid? The vibe of the city is depressing. The Zombie apocalypse you see in downtown L.A or San Francisco is coming to Toronto soon.
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Canada is dying so fast.. the prices are so stupid. Toronto is mediocre at best but the housing prices were so absurd. It’s going to keep crashing
Just look at assignment sales( houses and condos )... people are losing their life savings already.
Good luck to all the people who are still invested and optimistic.
Yup, we suffer the mental disease of leftism en masse in Canada and the consequences will be dire.
Condos maybe, but detached houses under $2M will continue to be limited in supply.
honestly moving to Florida so much cheaper
Toronto is a shit hole I've lived in the west my whole life you couldn't pay me to live in the east. Canada is going down the toilet but I'd rather live on the good end of the toilet.
@@markandlewmost people who live in Toronto can’t just pick up and move to Florida. I doubt most would want to, either.
Developers call all new builds luxury! Many are built with builder grade quality products which are not high end!
The developers have been ripping people off for decades! However people want to live in new move in ready suites.
The developers have built and marketed their products to make a huge profits and it worked for a long time!
The thought of renting or buying older units that fit a new buyers budget seem to have been lost over time!
But, but it’s all about that granite countertop!
My husband bought old shack , demolished and with my help, built new house.
Took us 7 years, only summers and after work to finish that huge project.
Absolutely everything was built by him. People can’t believe we did it and house is very beautiful, elegant, European ( we are from E).
I was also responsible for sensible shopping and budgeting. This whole project cost is: land $96 000, building around 70 000, I’m natural decorator and spent on furniture around 10 000, no more! But it is so gorgeous! We finished bathroom for only $4000, but looks like $ 30 000. I bought second hand kitchen for.. $500 from some high tech billioner ! And her applayences , high end, 4 pieces for $700.
You really have to have some skills and there is no limit what you can do. And it is only 30 min from Ottawa.
I know that we are once in few millions who could do this, but why people are so stupid and agree to pay top $$$ for average shoebox?
Land use regulations and zoning restrict unit creation and housing supply. There isn't enough competition and that's driving up the cost of housing. Let developers build and prices will come back in line with building costs.
Ur absolutely right. Most of these new developments are such bad quality and the suites are tiny at least that's how it is in Vancouver. I've seen many condos needing repairs year after year water leaks mould and the walls are so thin u can hear everything outside ur door on the floor
Glad the TH-cam algorithm suggested your videos. Great content. Keep it up!
thank you 🙏
in 2010 you coul dbuy a 3000 sq ft house for 300k. 1.8 MILLION AND THE SECOND BED DOESNT EVEN HAVE A BATHROOM. THATS CRAZY.
Welcome to money laundering.
All things that go up must come down, including real estate
They should just market to various organized crime syndicates so they can wash a tremendous amount of money.
Canada.The great laundromat.
It’s organized crime syndicates building them
start with the federal and provincial government, then maybe OSSTF
LOL
What you're describing is the real estate market in Canada for the past two decades. Oh I guess that was the joke.
Housing prices are unlikely to significantly decrease until there is a substantial increase in housing supply. In Canada, there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2024 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable, but others say it's risky. Any advice?
Consider investing in stocks especially during a recession. While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
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In 1973, a 21/2 rented for $90/month. 50 years later, it's $3000/month. No one's salary rose at that level. How could this massive shift of wealth from individuals to landlords happen?
Rent controls stopped rental buildings. That is the main reason more rentals were never built.
Huge info source ... thanks will pass on to my son a carpenter in GTA ... this speaks to where the work is going and likely ending.
Remember Giraffe condos? It is still a abandoned building at Dundas west and Bloor!
There's a ton of problems as to why, from municipal permits costing millions, to delay in construction due to lack of trained workforce; on top of that the interest on their debt quadrupled.
Simultaneously the average buyer has so much debt and faces similar financial problems due to rising inflation and interest rates hike. So upgrading or first time buying for everyone is out the question. Foreclosures are up and banks still want the millions for the house that was liened out to the consumer so repos are just as expensive with no buyers, placing pressure on the banks.
We have every single leader in this nation from Federal Ministers to Provincial ones down to the municipal government who all kept demand high and supply low so their wealth could grow.
After the 2007 subprime lending crash, many people who build homes found other lines of work and never returned to construction. There was for a long time an oversupply of inventory from demand that collapsed.
I think higher taxes is the solution said every leftist.
I think the problem here is "luxury condo". I think developers need to start having the cash to cover before they start contruction rather than having debt.
We have to see what the feds do, as their about to make policies to accelerate builds.
the world and companies revolve around debt, esp new developement.
Debt is important because, among other things, it allows central banks to effectively manage the economy back to full employment and low inflation rates when there are economic shocks like COVID-19 and the financial crisis. Debt is a tool, it just needs to be used correctly; developing is in many ways like entrepreneurship. There are big risks involved and if it goes well everyone wins, and if it crashes, too bad but they can start over again and hopefully they'll execute better or have a better idea.
@@TheXConor yes but no one is using debt for economic shocks or just for startups. They are using it for everyday operation. The way its supposed to be done is you take loans in bad times and pay it off in good times. What we are doing is taking loans in good times and then taking even more and bigger loans in bad times and just not paying them off.
@ADobbin1 Let me clarify, one nice thing about debt is that the Fed can buy and sell low-risk debt to stimulate or restrict demand for additional marginal capital from businesses and individuals. Cheap debt/low rates mean people want to borrow more, and vice versa.
Interest rates are just a charge for using the capital that underlies the bond, and I don't see much of a problem if debt is used productively. For example, if you have a company that has 1 Billion equity and 1 Billion debt with a 5% interest rate paid out once a year, then the equity gets the difference between the return on invested capital for the entire business minus the interest paid on debt. The difference in return is fair because if the enterprise loses money, the equity holders lose money first, while the debt holders are safer since they get paid first.
The only problem with debt is that you have to actively manage it and ensure you don't take on too much; default rates for debt are usually less than 10% for even the most risky debt, meaning for every bond issued 90% are able to manage it.
Is nobody else sickened by the fact that the government makes more money off of a new development than the private enterprise taking on all the risk? And for what? Some rubber stamping, reviews and approvals.
It's disgusting.
There isn't a housing crisis in Toronto. We have lot's and lot's of empty condos here . There is an affordable housing crisis in Toronto. Cue the real estate market here swirling the bowl. About time.
If there’s a housing shortage than why do I see so many listings piling up?
Price
Because they are unaffordable. An small one bedroom condo in North York is going for 2500+, in some cases up to 3000. Even outdated apartments with no washer/dryer in half a decade old low rises are $2200 a piece. That's insane. I make a pretty decent wage, yet I am struggling to pay rent. I cannot imagine how people with 40-50K annual income can afford to live here.
@@AcuraAddictedSo Bidenomics record inflation is making Canadians poor also. You better hope President Trump wins next election. Biden has literally destroyed the world economy.
People need to realize that nobody can afford to buy luxury real estate anymore. Plus the value is just horrible. $4million for just a box in the sky??!! Seriously?? When the economy is good and everybody is making money, sure nobody cares but when people have no money to spend, nobody would want to buy it. Nowadays, people need affordable housing. So instead of spending all that money to build things that nobody can afford to live in, how about you build something that everybody needs??
luxury condos, no luxury jobs and no luxury pay.
most of who will purchase the outlandish space are people who live in nefarious careers in the house of cards or do underhanded illegal shit anyway ... maybe a good portion to asian buyers.. nobody questions where the money comes from when it comes to investing but everyone wants a homeless displaced person vetted like some how rich people are good and homeless people are bad .. we live in one whacky world
5M for 1500sqft is insane even at todays prices, you can get a bigger house on the subway line for half the price
nothing is for sure about asset price and inflation in Canada, but one thing is for sure that is rent will just keep rising due to supply shortage, especially 2-3 years later due to significantly lower housing starts now. there is almost no other approach left other than a great reset to make a lot of leveraged property owners to lose their pants, a great reset to kick start a new healthy cycle.
Yes, ironically you need deflation, which is the thing modern credit driven capitalism scares the most even more than inflation (remember the fiscal stimulus and free pay cheques during covid?), to put everything back to where they are supposed to be. You need a lost decades or two like Japan to restore so called affordability, and suppress leveraged credit driven speculation.
Heard too much numbers talk by economists and expert, but it is really not that complicated. When you have cheap money for so long time, house investing demand is way higher than normal interest rate era, that extra artificial demand causes a rising inflationary spiral inside the whole real estate industry including rent, building cost, property tax, etc. If it's just the supply shortage that is causing the price to go up in such a speed, then how do you explain the fact that most of the similar or bigger city in US has way better affordability?(and ironically Americans thinks their affordability is one of the worst in history)
how do you restore so called housing affordability, unfortunately it is not likely to be done by increasing housing supply, because building more houses in short period pushes building cost higher not lower due to lack of construction labours.
the likely way to restore housing affordability is artificially lower the housing investing demand. Someone would argue that if you kill all the landlord, then who can supply those rental units? well, if the enough number of landlords has 2-10 condo units cannot pay their debt, they are forced to sell their properties at a heavy discount(not a good example but kind like US 2008). Was 2008 a bad thing? yes of course, so many people lost their home, job, money. But did it restore affordability in US? yes it did. Whether it will happen in Canada or not? only god knows.
I think you’re right but I’m not sure the government is brave enough to let that happen. Too much of our economy is tied to housing. The economy isn’t dynamic enough
I don’t really think 2008 in the US can be compared to the current situation in Canada. Most of what you’ve said here is pretty on point though. I do think that maintaining higher interest for a longer period of time will help cool the housing market and provide a more soft landing. Currently demand has tanked the market will adapt but just slowly.
@@carbb5760 it is not an apple to apple comparison, and I am not trying to compare these two. The point here is simply I don't see a way to restore affordability other than triggering a balance sheet recession, whether the detail is similar to any previous bubbles in other countries is not that important. I am also not making an conclusion that Canadian housing market will have to correct due to high interest rate.
Depends on who people are, how old are people, they will be benefited or hurt from different outcome end up happening. To summary:
- if affordability is to be restored which benefits renters who want to own home, or younger generation who are about to join the housing market, higher for longer until something break badly is what will benefit them. and it will hurt current home owners badly, especially those high leveraged speculators, for example pre-construction flippers.
- if affordability is not to be restored. monetary policy will not be restrict enough, inflation target will be abandoned, debt will be reduced not through productivity growth but through higher inflation. housing price will be elevated but so as carrying cost as well as taxes. relatively it is benefiting current home owners, but it hurts the long term growth even more, because it is mainly the younger people taking the consequences and suffering. How can they be more productive and spend more, and have more babies when they have to live with their parents?
I am not in either camp, all I am saying is there is NO easy path for Canada which has become a country that is lack of innovation but a lot of speculations. I am actually considering leaving the country for good
How about TURDEAU stop sending billions overseas to fund the war and send those billions to build affordable housing?! I don’t like govt controlling housing but this is the quick fix we need! Or put those billions of tax dollars back into the hands of Canadians and let them decide what they want to do with it and feed the economy!!!!!!!
@@zhiliangxing7538 you summed it up so well there. A lot of people seem to be in denial that there will be pain, one way or another.
Jenny Coco is also the woman behind Bridging Finance, currently in all sorts of legal trouble for fraud
Sounds about right.
What's the difference between bankruptcy and receivership?
Very good comment. The Feds are pumping billions into helping finance projects that are supposedly going to be “ affordable” rental housing. “ Affordable” is defined as based on the local income of the local population - meaning whatever the going rate is rentals. Ie Income $100 k, rental at 30% of income = affordable is then $30k per year. Lots of BS on that one guys. Some rentals in these projects are already being limited in how many units actually will be rentals, as compared to condo units.
The Fed sets the rate for risk-free bonds on the federal debt, which all other debt is benchmarked to since it's an opportunity cost. They buy and sell those bonds and other securities like mortgages to ensure that inflation is stable and people can find work.
Land use policy and zoning is why housing is expensive in Anglophone countries. Inclusive zoning or hierarchical zoning in Europe and Japan is why housing is cheaper there.
Does anyone actually feel sorry for these greedy developers?
I feel sorry for many of those who were planning to have a job for these projects
hell no.
They're doing the same thing that everyone else working does - they're looking for the biggest payout for the least amount of effort.
The magic of capitalism is that when everyone does that in a competitive market, people are most likely to see lower prices because there are more options available to choose from. Developers building when prices rise rapidly reduces the rate of price increases and can lower prices too.
Land use and zoning regulations are the reason for high rents, not greedy developers.
@@TheXConoryou never answered the question….
lol@@Hemant.s
Thanks for the update. How you show that view of Toronto skyline?
also, I feel that perhaps its the wrong type of housing being developed for the demographic that needs it and are the gears that make the city run. Not the people at the levers - but the devs are always trying to shoot for the sky...literally/figuratively
There's no such thing as the wrong kind of housing getting built. If it's profitable to build, it's because someone is willing to pay and both parties to the transaction are benefitting. The corollary is that the person in the new unit doesn't take up an older unit that a person making less money can afford.
Young people today have no chance to own.
On the plus side no big mortgages mean more frapacinos.
But they can have 5 video streaming services to pay monthly.
It’s a shame see this project struggle so much. What they are trying to do is something that is too rare in this city. Top tier architect and only 416 units in such a big tower. I watched the original presentation and the level of care and detail in making it a truly great building was amazing. Any other developer in Toronto would have just crammed 1000 units into a standard glass mid range tower. I hope they manage to pull it off in the end without discarding their original vision.
Yeah - it's a real shame this art project isn't viable. . . /s
BS….never was anything other than a square tube meant for rich people. Most of whom will never actually live there. Just like Manhattan - now a people desert as the rich prefer to actually live elsewhere.
It will get finished. May take a little longer, but it will get finished at the full height.
Why not just allow 2 towers to go up? Is that really so impossible?
Land use and zoning laws make it so that nothing gets built because of the inflated costs of dealing with government regulations. These laws are designed to block development, and only the rich can afford to circumvent them. YIMBYs are about taking the power back and making it easier to fix this problem.
I know nothing about real estate other than being an ordinary Toronto home owner. But I do know incompetence and inefficiency when I see it and that best describes the Toronto construction industry.
I have watched in horror as the house next door was demolished and replaced with a new shiny bigger house. They destroyed my property in the process. House mostly ok, everything around it including 40 foot in ground pool into a sink hole. The damage was caused by incompetence of the developer.
My insurance hired a developer to fix my place. Now 3yrs later with multiple incompetent twists and turns they have spent $5m and it will not be finished until the end of 2024. Zero project management. Endless rental of equipment that is abused or idle. Wasted material.
There have been too few workers in an over heated market and it degraded in competence.
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Of course, they're sitting on $1.6 billion in debt.
All those downtown buildings are tied up in some crazy mafia.
Teams of supposed professionals, where one is an assistant getting 20 bucks an hour, while the foreman logs it like they're both full-rate pros.
Two pros at full rate, that's 2x$49.25 = $99.50.
They hand over $75 to $80 to the pro, who then gives $20 to the assistant, and guess who pockets the difference?
Plus, the hourly workers don't produce like the piecework pros do.
It's ridiculous. I came from NYC and I've never seen such nonsense before.
when there is a great imbalance, the universe will find a way to make it right. Not surprised to hear that greed is teaching those fools a tough lesson.
I moved back to Canada in 2019 after 25 years in Asia (Hong Kong and Manila). I was executive director of two public companies in the real estate development and holdings business. We also had building materials supply businesses. My friends do cNement work for high rises and malls. What amazed me upon returning to Canada is how slow construction workers are in Canada. I was astounded. Materials expensive. Bureaucrats ridiculous. Regulations stupid and workers slow. People in Canada and US have no idea what kind of competition they face overseas.
Curious how often people died at work-sites, or was that not information you were privy to.
@@DcuWcy Are you addressing me? In Hong Kong there were very few work place injuries. I don't have data for the Philippines but I don't think injury and death rates significant which is a bit surprising. I dare say injuries from fireworks on New Year's eve one day exceeded work place injuries for 5 years.
My sense is that the top tier condos were selling to very rich foreigners, primarily Russian and Chinese. (please- I am not hinting that these foreigners were non-legit). I think our federal immigration policy may have curtailed a lot of these foreigners from arriving.
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It is obvious that the sudden escalation in construction costs have caused havoc. Planning and budgeting a project 3 or more years in advance takes on huge risks. Kudos to the developer who took a huge risk - went from dry-cleaning services to high-end condo developer and was taking on his next big risk of graduating into mega-high rise top tier developer. We need people like this. But it appears that the knock-on economic effect of covid has hit him hard.
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The key issue is affordability and viability.... I would like to imagine the city of Toronto, the Province, developers and contractors need to sit at a table and work out the what can be done to make a new viable model to address our housing needs.
Apparently they are saying high interest rates will be around for a long time. In some ways it's really bad but at least it's stopped this condo crazed development in the city where developers are getting rich from demolishing good rental stock replacing it with luxury condos. There's a problem if the average 30 year old cannot move out of their parents basement or has to move out to some cornfield to buy a house.
"High interest rates"? We have just lived though the lowest rates in the history of civilization. Even 6% is normal. Heck, my mortgage was 7.1%.
@@FestinaFirefly 🙄Yea high interest rates compared to what we've had for the last 15 years. And yea don't worry I know the meaning of really high interest rates. I lived through the 22% mortage rate. So please I know my history.
What’s gonna happen to that half done structure now?
Illegals can move in.
I wonder how many airb&b they can cram into that building
all hail the bankrupt chain that finally might but a damper on the insanity in this country.
I keep telling people; the land at the S/E corner of Yonge and Bloor IS "cursed". It is an old native burial site known as "Sand Hill". The site was desecrated by English settlers/developers in the mid 19th century. Bones were scattered and mixed with mortar.
The facts are documented in Henry Scadding's book Toronto of Old. The site is marked as "Sand Hill" on early maps.
this is some cool historical context I'd never heard. thank you for sharing this
There were two common graveyards. There was a "potter's field" where Yorkville is now; a.k.a. The Stranger's Burial Ground. All the burials in Yorkville were moved to the newly opened St. James Cemetery on Parliament St. When it came time to develop Sand Hill they were not the least bit concerned as they mixed the bones of First Nations burials with the mortar used for the foundations of houses and shops.
🤣
Isn't THE ONE on the S/W corner of Yonge and Bloor?
No problem, [they] can make that up in volume sales. No problem. Everything is fine, nothing to worry about. Just ignore [it]. No worries.
Mortgage rates have doubled and grocery chains are gouging people for food.
well in the GTA area all these preconstruction townhouse complexes are mysteriously going up in flames. no one is investigating this and it seems fishy
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good point thanks
Why?
What a bot comment
investors represent over 50% of the market and they ain't buying anymore.
not to mention airBnB soon to be banned in ontario so thing are about to get real bad for them.
looks like developer Vandyk on the verge of bankruptcy as well
Very curious about Ghery's project in toronto and how this plays out too.
So if the developer is going bancrupt imagine home owners and ppl tryin to buy
Hi, How we can Get That Developers Doc you showing in your video. Thanks
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No building in the world should have more than six storey, it is as simple as that
It's just that building. I work high-rise and these guys under bid on an extremely complicated to build project. They ran out of funds half way because of it. The projects going bankrupt are bidding low trying to grab projects and end up shooting themselves in the foot.
Fascinating times with so many wildcards.
Truly, things changing by the week
Not really when tornado hits you! First one coming? Massive lay offs for WFH lazy.
I can’t but help laugh when I told a Lady from Toronto that Trudeau deficit spending will cause a Hugh correction in the housing market in Toronto Her answer was I don’t understand deficit spending
That makes no sense. Real estate developers have different ways to finance such projects. They can borrow from the bank, they can issue bonds and sell them, they can water down their stocks and sell the on the stock market. The Federal Deficit isn't an issue for this. Projects planned years in advanced would have locked in low fixed rates for 25 years.
If there is anything that will cause a correction it's those Air B n B renters who overpaid for houses they leveraged up on to make short-term rental properties and they're unable to find tenants because the market is over-saturated. These kind of renters started by renting out a spare room in their home that they live in anyways, but purchasing entire houses to rent the whole thing is a big risk to take. The Provincial govt is clamping down on these illegal hotels (there are regulations to follow for the hospitality business) and they're causing a bubble in housing prices.
@@HepCatJack It’s looks like your another one that doesn’t understand basic economics When government over spend in good economic times it’s like throwing gas on the fire Causing inflation with inflation comes higher costs and the only way to control inflation is by raising interest rates With higher interest comes higher mortgage payment, and the cost of doing business With higher cost comes cuts to jobs higher unemployment This means less people qualify to buy homes and higher mortgages The higher the rate goes this causes people lose their homes The more homes that go on the market down goes the value In the early nineties houses in the Toronto area were selling for half their original value This is what called a correction
Vanity project developers have done it to themselves with the aid of corrupt municipal leaders. Housing should not be a commodity as a standard rule. The people don’t want to feed the ever-expanding greed of the developers. Good on them, I hope the properties stay empty as a reminder of what toronto doesn’t need more of.
Not sure why they would still be investing in luxury properties. Luxury market is dead. They can make billions on affordable housing, though.
"Luxury" is the new Basic.
Inflation is a small problem the bigger picture to the problem is that the project is a LUXURY and the market for it is low at the moment. We have the homeless problem, people are leaving Toronto because it is too expensive for housing. Most people coming into Toronto are starting from scratch; therefore building affordable appartments would be a better move rather than a luxurious building. It is true that the project manager has many successes but that was prior Covid which affected the canadian population and the market stability.
"and the economy should balance itself"
That's the very same way of thinking that has driven the Canadian economy into the ground!
I live down the street from the Grand Central Mimico dev. Always thought it was a cool spot and excellent for commuters. But there hasnt been ANY progress in the last like 4 years. Its just half built land and potholes. Meanwhile, like 5 three-in-ones have gone up o the queensway in the same time pandemic be damned.
I predict that eventually, some of these condo buildings will turn into government housing when oeoke are into able to afford their mortgage and rent. The city will buy up these buildings for cheap and turn them info affordable housing. If you take a look at most of the low income housing areas in Toronto, many of those highrise buildings didn't start out as Toronto housing buildings. They were condos that people ran away from when the area turned bad.
You overestimate the government
The market is wide open for affordable development. Otherwise, current prices are ridiculously too high!
Affordable development doesn't make the money. Until demand for everything else is built, it's not coming.
@@ILoveTinfoilHats understand, but conditions are good for a creative developer to undercut sale prices with development that is actually affordable. Everything is too high, agreed. But that's what is generating an opportunity for a disruption.
@@philipberthiaume2314 its not generating any opportunities at all. if everything is 300k overpriced, I wouldn't call 200k a "discount"
if they go bankrupt, then do people who invested not get their money back?
Yes, just like the crypto investors get their money back.
Bankruptcy is GOOD for business, imho. Assets that are presently being poorly managed will be sold at auction, likely at bargain prices, to new investors who can attempt to fix the previous owners' problems. This is ordinary competitive capitalism in action. Lessons will be learned by all who carefully observe this latest fiasco.
Does anyone have any info on the Broccolini construction company? Are they in a similar rough position as other developers?
From the signs I see around I’d say no, there are a bunch of warehouse developments starting. But that’s just my from the road observation lol
really doesnt mean anything re the tallest if your bankrupt and dont finish the dev.
sky tower basically has already been approved at the full height increase they asking for.
Nice presentation, clear, concise, and accurate.
Wow - I get inflation is a key here but the cost of construction rose significantly after 2020, I wonder why?
Incompetent Joe Biden’s record inflation pushed wages/labor and material costs up. Canadians better hope president Trump is re-elected and can fix Biden’s damage quickly, before the next recession hits.
1:22 WHAT!? Mizrahi?? There is 100% some shady dealings with that company. They have a project in Ottawa, ON that makes NO sense. Thats all I'll say regarding the matter.
That is what happens when developers are getting to greedy
Real estate prices everywhere are insane out of touch and the market needs a big adjustment
When young people with higher education can’t afford a home than there is something terribly wrong with this
I am a capitalist but this is the greedy bad side of the system and it needs to be stopped
They will not do it on their own but a real down turn in real estate will
The problem is land use policy and zoning making affordable housing unprofitable. Look into it. NIMBYs block everything because they're greedy and want to exclude people from opportunities.
Developers want condos so they get their profits out quickly but not building rentals.
In Kitchener over 70 %are condos.
They buy up old houses 10 at once if they can, evicting poor !
I'm seeing a lot of bad arguments in the comments section. The biggest problem consists of land use restrictions and zoning. This is encouraged by tax policy incentivizing homeownership, and when people pile in too much of their life savings into their home because they're incentivized to, they vote in favor of NIMBY policies that restrict new supply of housing to protect and increase the price of their home. NIMBY restrictions make building everything except for high-end housing uneconomical. Basically, the cost to build to regulatory requirements pushes up the cost to build above what could be charged for the unit and it doesn't get built.
Markets are very good at allocating resources, but government and local control prevents meaningful change on this issue.
Housing markets are like musical chairs, except the chairs vary in quality and you have to pay up for better units. If you build more high-end units, people in the currently existing best units in the area typically move up into the newer best building. Over time, if 1000 new units get built at the top end, that means that 1,000 people who would otherwise be living in the old best tower (now the second best) move up, and this process continues across an entire metro region. "Just build more housing" ought to be the motto.
Man it's unlivable unless you live with 10 people in one place lol
Vancouver developer? I hope that's not Pinnacle.
It's not pinnacle
Westbank@@Precondo
the keyword is a shortage of "affordable" housing in Toronto. not many new immigrants to Toronto can afford a condo north of a 1M let alone 3 or 4 million dollars.
i know someone who bought 3 condos in this building; at one point the developers offered to purchase their 3 units back at a higher price, but they declined......i understand why the offer was made.....the project seems amateurish and plagued with GREED....
This was expected! I am not surprised!
I miss paying $7800 a month for a one bedroom 800 square-foot apartment in Toronto
They keep forgetting that in order to sell a product you need people to afford your product.
Is it possible the unbuilt units could become rentals as a way of getting long term cashflow to balance out the construction costs over a 25 year period?
Don't worry , as usual money laundering will save the day.
Yup. The majority of the construction workers are getting paid in cash. Where is all the cash coming from??
A 2 bedroom 1000 sq ft concrete box sets you back about $2000 in rent a month, no new condo comes even close to good old apartment rentals. In this down equity market you can cover $24k a year rent with just $200k dividend portfolio at 12%. Squeezes out $600k or 300% premium than a $800k condo with a roof top swimming pool that no body ever uses
This not accurate at all. My GF lives in 1 bedroom (600 sq. ft.) condo in Downtown Toronto and it costs her $2,500 per month. I myself, live on the Las Vegas strip in the penthouse of a top tier casino for $4,700 a month. Toronto is not worth it right now whether renting or buying. Many Canadians I know are buying homes in places like Florida instead.
@@70two41fiveyour place is overpriced big time! Her place is overpriced. Both idiots.
There should be a revolution against these prices!
Except the project isn't cancelled and the restructuring was to solve a disagreement between the developer and builder.+
Very Professional and articulte video. Keep it up Jordon.
4.7 million for 1,400sq/ft … in Toronto. LOL😂😂!
In 12-18 months time, we will be talking about the OVERSUPPLY of condos in TO.
Every time I hear luxury condo or executive property I want to puke. Like high end listings need such an over used catch phrase.
The Future of cities should not entertain the building of mega buildings, at all !! Cities of the future must take in account for costs and maintenence these monstrosities, people can't afford these (new) maintenance fees now let alone 30 years from now .. buyer be ware !!!!
Wouldn't surprise me if they chop up the top floors into more affordable units.
Lol the government charge is more than the profit margin and is second highest cost. There's your problem.
Rooting for housing prices to crash in 2024
It's not even a question of rooting for it or hoping it doesn't happen. It's going to happen. Market forces are the boss. Bottom line.
Yes we just need Soviet bare basics housing. Russia can build these in three weeks. It's not complicated.
Nuts in pricing real-estate, world recession / no jobs can sustain these prices in canada or usa. Will spiral 25% by next year as layoffs contribute to downfall and continue to drop to 40% as defaults and crazy high property taxes are unsustainable in following years. Thus liquidate and move to a low cost nation to dodge the turmoil, then come back in 4 years to pick up the affordable housing. Real Estate crisis every 10 years.
Incompetent Biden’s record inflation is destroying the world economy. Whether you like it or not Canadas economy is very tight with US economy. You better hope president Trump wins the next election to fix Biden’s economic disaster. 33 trillion in debt. Bank failures. Crypto meltdowns, US financial rating lowered, high interest rates, low bond rates, record trade imbalances.
They borrow from the bank under different project companies.. even they are bankrupted, the owner is fine... The bank hurts the most
Government stops printing money…this is what happens
money laundering and going bankrupt is the new business model
Pigs get fed, Hogs get slaughtered. Only shame is the folks who will suffer are the contractors who will be stiffed while these developers will just rename the LLC and move on to the next. We need to make these folks have accountability and have some sort of Bond system to protect the people who actually build the thing .