I’d like to take a moment to reflect on the human beings negatively affected by investing on pre-construction or speculation. There have been many and will be many more people losing their 15% deposits on pre-construction condos and houses and they’re on the hook for any costs and losses incurred by the builder when they resell the property.
In combination with a slowing economy and job losses it’s just awful out there.
In a country with massive affordability issues someone was going to get burnt and let’s not forget renters who are praying to stay in their rent controlled units as a move could be a disaster in having to pay today’s outrageous market rents.
A friend of mine told me he rented out his downtown Toronto condo, two bedroom, two bath for $3,500 plus utilities and it’s still negative cash flow. Rent went up $500 over a two year period.
If the federal Liberals wonder why their polling numbers look so bad… well they didn’t have the courage to force municipalities to revise their zoning to allow for higher density and they’ve simply allowed immigration to exceed the supply of health care, education and housing.
While the Canadian economy is shrinking in real GDP terms. The numbers are even worse when you remove the economic growth from immigration. Housing affordability hasn’t improved much either and it’s about to get worse.
Royal LePage is forecasting Toronto housing prices to increase by 6% by end of 2024. Between rate cuts and rising prices, this is why I’ve recommended my clients to wait for a rising market to sell to maximise their sale prices. We investors need all the help we can get with investment properties so out of favour in the current market.
The housing crisis still exists, there are deals out there for short term gains for those with deep pockets and strong stomachs. I still believe those who create housing, as they always have will continue to be a profitable investment business hence we have a serious expert today in Michael Collins-Williams who is the CEO of the West End Home Builders’ Association.
MCW as he’s known to his friends, has spent his entire working career in Planning and Building with a degree in such from Ryerson University, followed by 18 years at Ontario Home Builders’ Association before taking the big job as CEO almost 3 years ago at the West End Homes Builders’ Association.
I know several members of the West End Homes Builders’ Association. They are an close knit, active community of members with the major players including folks with hundreds of millions worth of real estate. Cool party is the crazy rich builders are approachable and humble in my experience.
With all the development craze I’m seeing on social media, if you’re one of them, I can’t recommend enough you check out your local, non-profit, Builders’ Association for low price, high value networking.
There’s a saying in Chinese, the best things are cheap and quality which is why I’m so frugal :).
You can connect with MCW on Twitter: https://twitter.com/mikejcw?lang=en, website is https://www.westendhba.ca/ and Mike is happy to speak to anyone interested in joining, just reach out! Just tell him you heard him on this show.
Please enjoy the show!
Erwin
