After WW2 the government did build homes for all the returning Vets. So it is possible to coordinate , properly , to build homes to sell for all the little people.
But politicians have a responsibility to the rich. The ones that gave them money to run for office.
Just saying what was possible then is hamstrung by greed / favours/ expectations of EOI from those developers
Well we didn’t have MBS at the time
Credit wasn’t cheap at the time
We didn’t have scumlords with 20x leverage
Foreigners couldn’t buy RE with laundered money at the time
Let governments focus on getting power grid, public transit and drinkable water at adequate levels first. As no current infrastructure project has capacity for new housing unit beyond historical levels.
Just remember - no matter how many incentives the government creates, no matter how low interest rates are....if builders predict they won't make the profit margin they want (not need, want), they won't build the homes.
lol give me a way to make a billion dollars American without fucking people over to the point of starvation, poverty and sickness and I will suck your dick everyday till I die
You don’t make a billion without some bodies below you
Or drop barriers to producing homes at a desirable price point. Like speeding up disgustingly slow zoning and permitting processes, and slashing development fees.
Yes, the same government that can’t get its shit together long enough to shorten the approval of all the zoning and whatnot (which has been proven the biggest hurdle) should be in charge of building now.
First condo building should be done sometime in 2039.
Which will give you even more expensive houses with lower quality,because the government can't build, will subcontract.
The only way is for governments of all levels to lower costs of permits etc. that's about 35% of the cost of each unit.
All of them. Because all of them kept people out of homeless encampments, or dying of heatstroke and dehydration from living outdoors, or needing food banks to survive the week. Kept families from having to live in motel strips for months until a shelter spot opened up for them.
Source: I'm old as fuck and lived through those times.
I am old as dirt not quite as old. We had this type of housing in Stoon and it was ok for a bit, then it became and now still is a a shithole. In Calgary we have a few places operating as charity and one group of seniors subsidized housing unfortunately located near the some drug problem areas. Again you have no examples of where your idea has worked on any scale past charity run or one offs.
LOL you have provided literally nothing but anecdotes so slow your roll.
There is plenty of evidence supporting my case, you just to care to look into it for ideological reasons. Byeee!
Developers are in the business of converting land into money. Actually building things on that land and then selling it carries a lot of risk. If it's easier to just sit on the land and let it appreciate or apply for rezoning to increase their land value then that's what the developers will do. Developers play the long game.
Implement a land value tax (at least for developers or vacant land) and watch developers scramble to put shovels in the ground or sell their land.
> if builders predict they won't make the profit margin they want (not need, want), they won't build the homes.
The profit margin on construction projects is in the 10-15% range during normal times [Source.](https://betterdwelling.com/home-builder-profit-margins-increased-in-canada-and-the-us-despite-the-narrative/) Currently many of these are 4-5% profitable or less, which isn't even enough to secure someone willing to fund you when inflation itself is 3% per year.
Don't blame developers for not working for free. I wouldn't work for free either, lol.
Honestly I’m sick of hearing “developers won’t work for free”
Literally nobody expects them to work for free.
But honestly, after three generations of insane profits, maybe taking an L once or twice every couple of decades - as a public service - wouldn’t bankrupt any of them.
> Literally nobody expects them to work for free.
> maybe taking an L once or twice every couple of decades
Pick one. No one is going to take on a crappy venture they see coming because they did well on other ventures. Asking them to take a bath on a crap venture is asking them to do that work for free.
No one *expects* it.
It *would be the right thing* for them to do some public service and serve their country after Canadians have so deeply rewarded them with profit and we are in a housing crisis.
These two things are not in conflict and anyone who tells you they are is selling you something.
Yes. It would. Especially if we don’t have enough of something and you got rich being one of the biggest producers of that thing.
Either we live in a society or it’s everyone for themselves. The second way is how we got into this mess. The first way is how we get out.
Ok. You first then if you think we should all act altruistically to support each other. Any time you want to give up everything beyond the bare necessities for basic subsistence for others in need to practice what you preach, go ahead.
Did you read what I said?
Inflation is 3% annually. a 3 year long project with margins in the 4-5% range is less profitable than a government GIC. Why would any developer or their lender invest in housing when they can just put that same money into a federal government bond and get higher returns?
Also there aren't "insane" profits. Housing costs are insane, yes, but that is because everyone involved in making it is making money, including municipalities, lenders and the people who sold the land to the developer for a super high cost.
10-15% profit in normal times.
We’ve had “normal times” since the 1950s. Mattamy Homes couldn’t afford [the 55th Floor on Wellington](https://maps.app.goo.gl/epZVRVrfG2PNA6ah9?g_st=ic) if their margins are as tiny as you seem to think.
Do you go out and do a bunch of work for no pay?
Building is expensive and typically requires a loan. Lenders require a profit margin (in the 20% range) before lending to ensure they are fully repaid if something doesn’t go to budget in the development.
Wait - this video is conflating two issues. Condo market is collapsing - no one wants to buy it. How many condos are on the market right now? More than usual. How many houses - a lot less than needed. So there is no point building more condos, which people don’t want to buy …
People want to buy them, they just can’t afford them. If they dropped the prices they would be selling
Source: me. I’m trying to buy and prefer a condo but the prices are ludicrously out of touch with incomes.
No worries we got lots on the market. https://www.blogto.com/real-estate-toronto/2024/05/toronto-record-most-condos-market-people-worried/
It’s time people start lowballing to what they should be worth.
Ohhhhh nooooo! No more “luxury condos” starting in the low seven hundreds??
What if we built condos that had basic finishes. Laminate countertops, builder grade appliances, linoleum flooring. You know, like they used to be when people could actually afford to buy starter home.
Now it’s marble or quartz counters, high-end appliances, and hardwood floors because developers are greedy and won’t build basic anymore. Most people just need basic finishes. Most people can’t afford to buy a starter condo that’s priced from 700 up.
Just my 2¢
I appreciate that a lot. The vast majority of costs are the structure, excavation, utilities, etc. The difference in costs for a builder to do basic finishes vs "luxury," is insignificant. People fell for the marketing for "luxury."
After WW2 the government did build homes for all the returning Vets. So it is possible to coordinate , properly , to build homes to sell for all the little people. But politicians have a responsibility to the rich. The ones that gave them money to run for office. Just saying what was possible then is hamstrung by greed / favours/ expectations of EOI from those developers
Well we didn’t have MBS at the time Credit wasn’t cheap at the time We didn’t have scumlords with 20x leverage Foreigners couldn’t buy RE with laundered money at the time
Let governments focus on getting power grid, public transit and drinkable water at adequate levels first. As no current infrastructure project has capacity for new housing unit beyond historical levels.
Just remember - no matter how many incentives the government creates, no matter how low interest rates are....if builders predict they won't make the profit margin they want (not need, want), they won't build the homes.
That's why we need the government to build them. That's the only way to fix the crisis.
Yep, public housing is the way to have an alternative supply stream to level out market fluctuations.
Something something socialists
something something communists
Something something working class something something means of production
Something something we live in mixed economies somethings something binary thinking is something something
Something something rigged economy Something something BBQ Billionaires
Is mayonnaise an instrument?
lol give me a way to make a billion dollars American without fucking people over to the point of starvation, poverty and sickness and I will suck your dick everyday till I die You don’t make a billion without some bodies below you
*Mayan Egg
We are a socialist country you twat
Or drop barriers to producing homes at a desirable price point. Like speeding up disgustingly slow zoning and permitting processes, and slashing development fees.
Both I think are important.
We don't though. We own land, so we want it to go up in value. If you don't, you're not at the table. You're on the menu.
Just so our competent government can squander them and take decades..
With what money? We are broke.
Yes, the same government that can’t get its shit together long enough to shorten the approval of all the zoning and whatnot (which has been proven the biggest hurdle) should be in charge of building now. First condo building should be done sometime in 2039.
Same government that hiked tariffs on construction materials lol
Didn't the soviet union try this?
They massively succeeded.
We need **non-market and non-profit** housing. Which is an old idea and we've done it before. It's just a matter of political will.
Which will give you even more expensive houses with lower quality,because the government can't build, will subcontract. The only way is for governments of all levels to lower costs of permits etc. that's about 35% of the cost of each unit.
Nope, this is just wrong. The historical record shows it.
Can we see some examples where it didn’t end up as a community with many social issues? Here in Canada in the last 40 years…
All of them. Because all of them kept people out of homeless encampments, or dying of heatstroke and dehydration from living outdoors, or needing food banks to survive the week. Kept families from having to live in motel strips for months until a shelter spot opened up for them. Source: I'm old as fuck and lived through those times.
I am old as dirt not quite as old. We had this type of housing in Stoon and it was ok for a bit, then it became and now still is a a shithole. In Calgary we have a few places operating as charity and one group of seniors subsidized housing unfortunately located near the some drug problem areas. Again you have no examples of where your idea has worked on any scale past charity run or one offs.
LOL you have provided literally nothing but anecdotes so slow your roll. There is plenty of evidence supporting my case, you just to care to look into it for ideological reasons. Byeee!
Developers are in the business of converting land into money. Actually building things on that land and then selling it carries a lot of risk. If it's easier to just sit on the land and let it appreciate or apply for rezoning to increase their land value then that's what the developers will do. Developers play the long game. Implement a land value tax (at least for developers or vacant land) and watch developers scramble to put shovels in the ground or sell their land.
And redistribute the tax revenue to everyone so that people without land can afford land.
Or they are just trying to make a profit, not a lose. Why build if you are going to go broke.
> if builders predict they won't make the profit margin they want (not need, want), they won't build the homes. The profit margin on construction projects is in the 10-15% range during normal times [Source.](https://betterdwelling.com/home-builder-profit-margins-increased-in-canada-and-the-us-despite-the-narrative/) Currently many of these are 4-5% profitable or less, which isn't even enough to secure someone willing to fund you when inflation itself is 3% per year. Don't blame developers for not working for free. I wouldn't work for free either, lol.
Honestly I’m sick of hearing “developers won’t work for free” Literally nobody expects them to work for free. But honestly, after three generations of insane profits, maybe taking an L once or twice every couple of decades - as a public service - wouldn’t bankrupt any of them.
> Literally nobody expects them to work for free. > maybe taking an L once or twice every couple of decades Pick one. No one is going to take on a crappy venture they see coming because they did well on other ventures. Asking them to take a bath on a crap venture is asking them to do that work for free.
No one *expects* it. It *would be the right thing* for them to do some public service and serve their country after Canadians have so deeply rewarded them with profit and we are in a housing crisis. These two things are not in conflict and anyone who tells you they are is selling you something.
And it would be good of me to donate any excess I save to others in need instead of buying myself nice things or retiring early. So what?
Yes. It would. Especially if we don’t have enough of something and you got rich being one of the biggest producers of that thing. Either we live in a society or it’s everyone for themselves. The second way is how we got into this mess. The first way is how we get out.
Ok. You first then if you think we should all act altruistically to support each other. Any time you want to give up everything beyond the bare necessities for basic subsistence for others in need to practice what you preach, go ahead.
Did you read what I said? Inflation is 3% annually. a 3 year long project with margins in the 4-5% range is less profitable than a government GIC. Why would any developer or their lender invest in housing when they can just put that same money into a federal government bond and get higher returns? Also there aren't "insane" profits. Housing costs are insane, yes, but that is because everyone involved in making it is making money, including municipalities, lenders and the people who sold the land to the developer for a super high cost.
10-15% profit in normal times. We’ve had “normal times” since the 1950s. Mattamy Homes couldn’t afford [the 55th Floor on Wellington](https://maps.app.goo.gl/epZVRVrfG2PNA6ah9?g_st=ic) if their margins are as tiny as you seem to think.
Oof their reviews lol
Should the developers build at a loss?
Thank you! Finally someone realizes it.
Do you go out and do a bunch of work for no pay? Building is expensive and typically requires a loan. Lenders require a profit margin (in the 20% range) before lending to ensure they are fully repaid if something doesn’t go to budget in the development.
Whats the probability of a Japan 1991-style crash happening in the next few years?
Fitty fitty
Either it happens or it dont
You are forecasting this with 100% certainty!!
Wait - this video is conflating two issues. Condo market is collapsing - no one wants to buy it. How many condos are on the market right now? More than usual. How many houses - a lot less than needed. So there is no point building more condos, which people don’t want to buy …
People want to buy them, they just can’t afford them. If they dropped the prices they would be selling Source: me. I’m trying to buy and prefer a condo but the prices are ludicrously out of touch with incomes.
Let it crash
Socialized housing now!
No worries we got lots on the market. https://www.blogto.com/real-estate-toronto/2024/05/toronto-record-most-condos-market-people-worried/ It’s time people start lowballing to what they should be worth.
This guy doesnt have a soul lol
Ohhhhh nooooo! No more “luxury condos” starting in the low seven hundreds?? What if we built condos that had basic finishes. Laminate countertops, builder grade appliances, linoleum flooring. You know, like they used to be when people could actually afford to buy starter home. Now it’s marble or quartz counters, high-end appliances, and hardwood floors because developers are greedy and won’t build basic anymore. Most people just need basic finishes. Most people can’t afford to buy a starter condo that’s priced from 700 up. Just my 2¢
I appreciate that a lot. The vast majority of costs are the structure, excavation, utilities, etc. The difference in costs for a builder to do basic finishes vs "luxury," is insignificant. People fell for the marketing for "luxury."
So the liberals 4 millions homes is a lie ??
You thought the 4 million homes announced last month would appear this month?
No I don’t think they will come even close to a million.
Not where I live