Why aren't we building homes....WELL let me tell you folks and this comes from 25 years of building. 1 million dollar finished products retail includes on the low end 15% builders fees ( more like 15-20%), 5% GST ( living on BC), 2% drawings ( more like 2-4%), 2% for building permits and anywhere from 20-30% sub trade profits. So do the math and a 1 million dollar home actually has labour and material of $ 620000. The remaining 400k is soft costs and profit. The above does not include any land, landscaping, driveway or the builders escape clause called cost over runs. Once your finished the home, you'll find that you are way over the FMV. That's why we are not building......the government made this mess and the end results will be rental units, and Muti-semi attached homes going forward. Singles are gone, or the ones that do get built will be very cheap quality and most likely to melt during a fire instead of burning. The supply shortage narrative is BS, plenty of homes to sell not enough affordable homes to sell and certainly not feasible to build anymore.
@john_doe_not_found
5 ай бұрын
Government at all 3 levels enacted legislation that basically killed the ability for single family homes to be profitable. If something isn't profitable, nobody is going to do it.
@Canadian_Eh_I
5 ай бұрын
exactly...the word the government never wants to say is INFLATION. Houses havent gone up in price, our MONEY is now becoming worthless
@daloriscutone6380
5 ай бұрын
As a beginner which ETFs should I consider, and what portion of my funds should I allocate to them? thank you.
@amgengroup5352
5 ай бұрын
I divide SCHD with DGRO and just make that one ETF of the portfolio. So instead of 33% VOO, 33% QQQM, 17 % SCHD, 17% DGRO. The SCHD/DGRO acts as one ETF of the pie to round out the 34 %, Personally I put down 2.5m$ on few ETFs, still diversifying. it was this time last year I made my first million with a liquid 200k. handed it to a trader here in CA, I get weekly pay out which I put back on long term ETF's. Tesla will be a huge buy for me when the market bottoms.
@daloriscutone6380
5 ай бұрын
A lot of people are doing this to hedge their risk of schd by adding a dividend growth etf like dgro with the technology trend in the market. Good move, Please share this Expert with me.
@amgengroup5352
5 ай бұрын
That is on point! She is Katherine Elizabeth Humphreys look her up
@jasminemccumber4694
5 ай бұрын
Kath! Good to see her recommended here, Kath's mind is made for stock analysis, she is someone every starter should look up to, this is my 3rd year letting her grow my funds and at the same time guiding me to the right efts to diversify to, I added VGT. So, VOO 25%, QQQM 25%, VGT 25%, SCHD 13%, DGRO 12%. This is my long term portfolio in M1 Finance that I’ll invest $10K a month into for the next 30 years in a compound interest calculator through investing 10k per month for 30 years, this projects to be $35.6 million.
@harlibassham8187
5 ай бұрын
Since the beginning of Kath's career, I knew she would change the game. One of the best aspects is that she enjoys passing on her skills through teaching, which greatly benefits her investors.
@antonburdin9756
5 ай бұрын
Either home owners are losing some equity, or we are all dealing with inflation (wage-price spiral), or some combination of both (stagflation), there are no other ways around to fix affordability. Permits are not homes. No private company will ever increase supply in the anticipation of price decrease. Developers are already scaling down their projects and firing workers because there is not enough demand at the current price level. So only government could increase supply in this situation. Arbitrary immigration targets are simultaneously increasing demand and suppressing wage growth.
@Rightchoice101
5 ай бұрын
When the interest rates are so high, and nobody can qualify for a mortgage, how can anyone buy, hence no builder will build in such scenario
@john_doe_not_found
5 ай бұрын
America did a study that found 1 in 4 homes were bought by investors last year. They are looking at legislation to prevent any person or company from owning more than 50 properties (which i think is already too high a number). In Canada about 1 in 5 homes are owned by investors. Investors often have enough money that they are not taking out mortgages and so do not care about interest rates. And investors can absolutely demolish any bids a first time home buyer is likely to put forth. Canada needs to set limits on what corporations and investors can own. A home should be a home, not an investment. Imagine if people started investing in medical supplies and medicine, and bidding up the prices to nose bleed levels while many Canadians simply died, unable to access the medications that had been bid up to ludicrous levels. And all those medicines sat unused in bank vaults being traded and speculated on. We'd riot, or I hope we would.. Well, that is what is happening with housing. Food and shelter, these are necessities. Speculating on them, hoarding them, it doesn't help the average person.
@sharinglungs3226
5 ай бұрын
So much of this can be stopped at the bank levels. Investors generally just leverage the banks money. We have a very large percentage of investors who cannot pay for these homes on their own which would be the case if their tenant stopped paying rent or short term rentals were banned. If the banks changed their lending practices to stress test the borrowers to be able to pay for the properties in full a vast majority would fail. Leave the investors to the private market where it becomes too expensive and too risky.
@oshkoshbegone
5 ай бұрын
The cost to build is insane. Only large Developers can afford to build SF spec homes. Labor, materials, carrying costs, soft costs are just killing anyone that wants to build
@ethanbarc
5 ай бұрын
Good job on building homes 🏠 in Canada 🇨🇦 and in the USA 🇺🇸
@vikaskhatter5629
5 ай бұрын
Approach is wrong...Give People the land and pre approved plan...let people build in timeframe ...incentivise those who build in time as per plans. ...Cut all red tape cost for people.
@nicholasbaker8158
5 ай бұрын
Include more cities e.g. Halifax, Calgary, etc.
@michael2275
5 ай бұрын
TO and Van people think the rest of the country doesn't exist.
@dirtlump
5 ай бұрын
We're not building homes because of inconducive profit conditions relative to median incomes unable to execute financing supportive of current valuations. Debt Instrument servicing "GDI" or Gross Domestic Income Canadians can draw from within our barely ~$2 Trillion GDP.... is now insufficient to maintain the Payments on the already accrued now ~$3 Trillion Mortgage/Consumer DEBT.... under any 'normalized' Monetary Policy rate maintained against further DEBT instrument expansion based cpi inflation. Simply put.... if "DEBT" is indeed no more than borrowing from future economic capacity.... Canadians have run out of 'future' capacity to borrow against under our stagnant ~$2 trillion gdp..... intending further DEBT instrument expansion(already ~$3 trillion) merely pulls from future 'currency' valuations(debasement) manifesting as cpi inflation now in the immediate.
Interest rates , and cost of labour is too high , nobody building shit
@DJRS2178
5 ай бұрын
There is no housing supply shortage. Look at all the cranes in the sky. Supply will be skyrocketing as homes cutrently under construction get finished. Plus all the investors/specualtors that bought over the past 5 years will be selling. The bust comes next.
@michael2275
5 ай бұрын
We need to get rid of the 2M-3M low quality foreigners known as 'students' that are here. Problem solved.
@geraldbrowne
5 ай бұрын
Actually the housing situation is going to be a mess. No trades people available to come close to projection
@DJRS2178
5 ай бұрын
There is no shortage of trades workers now, thr boom is over. Plenty of labour looking for work
@geraldbrowne
5 ай бұрын
@@DJRS2178 Perhaps you are right. But watching a program in USA stated their trades are diminished by retirements of boomers. Quote " for every 5 retired, only 2 are replacing them". Maybe Canada has the same ratio.
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