Lack of investor demand impacting builders

Michael Waters, CEO of the Minto Group, joins BNN Bloomberg to talk about building more homes to boost affordability.

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[claramarie]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

[jamesduncan]

I wouldn’t open a lemonade stand in Canada.

[nicolasbenson]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[Michael-pgrv]

We need to slash these development taxes that make up 30%+ the cost of building a new home.

[Hightower]

The demand for houses is massive, just not at your 80% cova inflated prices.

[noorpagambari]

We have to understand an average Canadian pays 70% of take home salary in housing after back breaking taxes. Government keeps saying income tax is lower than the US but consider 30% of mortgage is actually payment and interest for all the charges and fee l00ters in city halls and leftists of Canada extort from an honest hardworking entrepreneurial middle class Canadian (or immigrant) add to that the SIN deduction, GST, EI, education cess, trillium, road taxes, housing taxes, carbon taxes, capital gains, distribution charges (crown corporations charge more for electricity distribution than what one pays for distribution of Canadian electricity in Virginia) and its clear we live in l00tist regime controlled by WEF agents which only rewards union leaders, city halls, bureaucrats, ttc drivers, teachers union & "well connected" running all those "Not for profit" that extort taxpayer funds.

And then add the risks associated with bad renters and protection granted to them socially & by leftist renter boards which results in hundreds of thousands in cost to owners. And if u claim u r making a loss in ur tax returns CRA bureaucrats give u sleepless nights with their harassment.

Its not a question of interest rates. Is this place worth living or investing in and the clear answer is NO

[bit_paul]

Good. Houses should be for living in, it should be illegal (or at least incur a massive penalty) to buy a house and not live in it.

[danioli]

Trudeau said home price shall not fall! Are they not letting builders build new homes!

[MikeyPaper]

Extreme hostility towards landlords and tenants who can't be evicted. Who would have thought that investors are no longer interested lol

[gregjeffries]

Real estate in Canada is so broken. Building 50+ story condo towers full of 500 sq foot units where there is no associated infrastructure (roads, schools, healthcare) is idiotic and it is all these developers and builders do in Canada. All it does is enable money laundering, for which Canada's real estate market is a leader. 70+% of pre-sales in some projects being sold to "investors", as stated by Michael Waters, is a major red flag.

[okala]

Minto group.. their business model is to take a little postage stamp site and building 30 storeys.. their whole model is to sell to investors not end users.. building in this bizarre way means it’s going to take 10 yrs for your approvals and construction due to tight sites etc. build 6 or 7 storeys very little zoning req there and off to building permit and build stuff for people not stuff for investors.

[kav]

The critical position of investors in a developer's path to financing yields products that are often misaligned with or even unfit for the housing needs of a city.

[loflog]

people will either pay more, or just not buy

[Plumber]

Will this cause a low supply in the future?

[notimportantwho]

You want to say not investors but foolish buyers.

[hchalz]

It's high time for the Canadian government to introduce home equity tax and leverage it to confiscate all properties. When housing is completely nationalized, and every Canadian is assigned to a bunk bed, we will never have housing issues anymore

[DavidWilliams-rknq]

I thought investors or speculators are the enemy and are not needed because they are evil. Let the government buy up all the condos and the pre sales and replace the investors, see how they fare!

[JayEl-cvhd]

What was the plan of the 'Condo Kings'? To keep building high-rise condos near the water ad infinitum and to teach investors how to leverage their purchases so they could become 'condo-princes'? New developers who can live with less, who can build 1950-60s size units, and who have at least an iota of community respect need to REPLACE them.

[butwhytharum]

These "investors" didnt even have any money to begin with...
Allll home prices should be 60% of their current evaluation...

[finleysterling]

I wonder what the best opportunities to invest now are, there are opinions but a little later I find out these opinions don't matter as a totally different turn of events play out with the stocks they discussed therein...