The question is why are housing prices so high in Canada? It must be because there is not enough housing stock. Taxes are high as you’ve pointed out which acts to lower demand and therefore purchase price. Developers are not making enough profit? Nowadays they can’t sell enough precon with high interest rates killing demand and affordability. But low rate of construction seems to have been a problem for the last decade at least. Why is that?
@longdog33
11 ай бұрын
I think you misunderstand how taxes work. Developers do not make money off of taxes. They do not pay sales tax and land transfer tax. So if these gov taxes are made to disappear, it doesn’t change the cost to a developer of building a condo nor the profit margin. It doesn’t save the developer any money. There is no money to be “passed on” to the buyer by the developer. It does lower the cost to a buyer but it is not out of the kindness of the developer. It’s because of gov reducing tax which of course could incentivize a purchase.
@c00121314brave
Жыл бұрын
Hey Jordan, love your videos jam packed with unbias informative information. My wife and i bought a pre-construction condo in Valhalla town square in 2017, very happy living there now thinking of possibly buying another but all the uncertainty makes us wanna wait for now, but we both love your videos.. keep her lit!😊
@Precondo
Жыл бұрын
Love Valhalla! Great purchase & thanks for watching 🙏🏼
@Cameron_David_
Жыл бұрын
Further subsidies for speculators is not going to fly.
@russiskv
Жыл бұрын
Thanks Jordon for posting this video. I am expecting that BoC will keep the rate unchanged on September 7 meeting. If that happens, it will be a lot better than 0.25 hike!
@Precondo
Жыл бұрын
Thanks for watching 🙏🏼 same camp here
@alexsmith-ob3lu
11 ай бұрын
Great video, as always! Aside from the financing of new construction, I also believe that overtly strict zoning codes and a skilled labor shortage is also compounding the issue. “Not Just Bikes” channel has made wonderful videos describing how zoning codes also affect the cost of new home construction a lot. Also, the government is asking for more skilled tradesmen to be trained, but many companies simply do not want to train more tradesmen because there is no real incentive. Just seems like a downward spiral…
@Kaygee79
Жыл бұрын
With the level of immigration coming in, house prices will not crash, simple supply and demand issue. As crazy as all this information is it will actually make everything that is left more expensive.
@KManAbout
10 ай бұрын
Housing prices can crash if even with a crash they remain unaffordable to the new immigrants.
@rdefacendis
Жыл бұрын
Development fees are a way for cities to download the cost of running a city to new buyers rather than raising taxes on existing residents to pay for the services they expect. It is more politically expedient to have a few developers complain about development charges then explain a big property tax increase to the entire electorate. Want to bring development charges down in TO, time to raise property taxes to the level that existing residents are properly funding the city.... minimally, 10% increase each year for the next 3-4 years.
@thecanadianrealestateshow
Жыл бұрын
Yikes. Glad I just went firm on my deal
@Precondo
Жыл бұрын
Congrats man!
@robertw3299
11 ай бұрын
Great Video please keep them coming.
@g.r.2985
Жыл бұрын
Thanks Jordan, another great video! Putting your speculative hat (back?) on, and looking long-term (though it may not be that longterm), how do see things changing if/when the Conservatives win the next election?
@honestrealestatetalk
Жыл бұрын
7:25, I'm surprised you don't have a Hunger Games style thumbnail :)
@Precondo
Жыл бұрын
missed opportunity
@vikram.SumerSingh
Жыл бұрын
Immigration needs to be capped until Housing and Healthcare is capable of supporting the inflow. Also, surprised to know that Govt fees are unto 31% wow. This is a double whammy, you cannot blame the builders.
@gilboman
10 ай бұрын
without immigration, where's the healthcare workers and construction workers going to come from? and it's not gov't fees that's 31%, that's just the cost incurred to support new growth
@repCanada
Жыл бұрын
Amazing analysis and commentary. You should get into politics
@kevinn1158
Жыл бұрын
The city of Toronto has massively failed in controlling what's being built in Toronto. They have spent 23 yrs allowing developers to build tens of thousands of tiny boxes in the sky, which are used for rentals for singles. And there's been almost no family units being built in the core of the city. This is what needs to be produced now. There's very little diversity in the core of Toronto's real estate market. Wrt the Bank of Canada, they are pausing probably for 3 months to track the impact of the hikes but don't expect cuts. In fact, I won't be surprised if we eventually get another couple hikes going into Q1 2024. So good luck everybody thinking the market has hit a bottom. It's not even close. The US 2 year bond has been bumping up against 5% for months now and it could easily move to 5.5-6%.
@empireinvest2118
Жыл бұрын
Calgary market is exploding with no units for sale
@panijefer
Жыл бұрын
Consider financing for qualified buyers. Developers have to do self-financing for lower interest rates then banks, to sale inventory until it is marked recovered.
@randomstuffman01
Жыл бұрын
Interesting. Thanks. toronto
@CityEstates
Жыл бұрын
Creekside to the moon!
@Plxzguy
Жыл бұрын
Is there price list for Bellwoods House?
@Precondo
Жыл бұрын
no it hasn't launched yet, launching this fall
@robertw3299
11 ай бұрын
A Reduction in Government Fees is a major solution. This may happen after Canada dumps the current idiot and his clown car government out of office.
@rjkrjk8344
Жыл бұрын
They're going to raise the rates again because the people aren't defaulting fast enough. The Government is on a tight schedule 😮
@andrewmccoll1582
11 ай бұрын
Hey not everybody agrees immigration is a great thing - lol
@javiersantos4385
Жыл бұрын
I like your videos, but I watched you on the other channel with the other guy who curses like a drunker sailor and doesn't really add value #justsaying
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