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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[@claramarie8541]

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.

[@Taylor_m16]

The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite a while now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@ThompsonWhite-h6]

In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@campelm]

My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

[@ThompsonWhite-h6]

“Jessica Lee Horst” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@robertfurguson2678]

She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.

[@nicolasbenson009]

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?

[@BridgetMiller-]

"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task

[@tatianastarcic]

Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.

[@Michaelparker12]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@tatianastarcic]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@berniceburgos-]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@jamesduncan915]

I wouldn’t open a lemonade stand in Canada.

[@donm2067]

Trudeau would want 60¢ of every dollar

[@CorporateShill66]

@@donm2067 Trudeau would raid the stand

[@Ynalaw]

Great comment! Whether its municipal, provincial or Federal, Canada crushes small business. Only slothful established families that sit across multiple boards of directors are allowed to own mid to large size corporate business.

[@CorporateShill66]

@@Ynalaw Canada is almost communist now. Opening any business is impossible

[@dirtlump]

Every time you hear the word 'investor'.... think Debt based 'speculator' who is now upside down. This is not going to end well.

[@JusteMoi-l2m]

Housing always will go up is a popular belief almost a cult. Wonder what lobbists will cook up to keep it going

[@GreenBeanGreenBean]

95% of all Canadian housing was built using private investor money....... you have no idea what you are talking about. No new supply for the next 10 years and you think prices are going down?!? 😆

[@steveshideler1333]

Very time you hear the word investor think person who provides builders with initially need cash in order to get a new building project going. No “investors” no financing to build the rest of it and guess what happens when we build even less houses in a shortage? Talk about cutting off your own nose …

[@dirtlump]

@@steveshideler1333 There is no shortage in Housing.... add up the units Narionally divided by the population growth and it's quite easy to see there is still PLENTY of Housing.... and which after the absolutely massive numbers of Condo insolvencies curently underway will be Gov't funded low-income crime ridden sh*tholes in the GTA sky as anybody who can will migrates out of Ontario.

[@steveshideler1333]

@@dirtlump if you say so.

[@Michael-pg7rv]

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

[@Huldru]

We need to slash development taxes on homes of a reasonable size. We’re wasting too many resources on tiny condos and massive houses.

[@rh3108]

Why? So the developers will pocket the difference and still charge exorbitant prices?

[@Wildbore48]

@@rh3108 home builders can’t sell anything now, much less build. What makes you think they wouldn’t pass on the development tax savings so they can build and sell homes.

[@noorpagambari116]

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

[@butwhytharum]

So theres no risk if interest rates go up? Who picks up that cost? Your tenant? They didnt borrow your money for you...

[@noorpagambari116]

@@butwhytharum the question you asked is exactly the question I answered. Socially and administratively leftist l00ter of canada is incapable of understanding what motivates hardworking, entrepreneurial, honest sacrificing people (Canadians or immigrants) to live, save and invest. L00tism is the fundamental philosophy of all socialist societies and Canada being run by union bosses, teachers unions, bureaucrats, refugees and indoctrinated wokeys is just not a place people should live or invest in irrespective of interest rates. Canada is a society best suited for either public sector or union bosses or refugees who only take from society. Its not a place for people who save, sacrifice, build and generate wealth. Thank you for proving my point.

[@noorpagambari116]

The question you asked is exactly the one I answered. The leftist l00ter of Canada is incapable of understanding what motivates people to sacrifice, save, live and invest. And your answer just demonstrated that. Nobody invests so that the unions, teachers, refugees and bureaucrats can l00t them even more. Canada is a good place only for those who l00t be it the unions, bureaucrats, ttc, universities, city halls, "Not for profit" or refugees. For those who (Canadian or immigrant) sacrifice, save, live, invest and generate wealth ITS A PLACE TO RUN AWAY FROM

[@MikeyPaper]

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

[@Hightower613]

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

[@8bit_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.

[@kav725]

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.

[@ktefccre]

I like cats 😸

[@MustyBastard]

🦶🐈‍⬛

[@butwhytharum]

Dogs are better

[@gregjeffries361]

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.

[@shauncameron8390]

Thanks to bureaucracy that made every other kind of housing too cost-prohibitive and all but completely illegal to build.

[@danioli48]

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

[@o2kala649]

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.

[@noorpagambari116]

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

[@JayEl-cv8hd]

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.

[@loflog]

people will either pay more, or just not buy

[@bc5810]

When the government is so hostile to home ownership, why would anyone want to own a property in Canada.

[@kristinashepherd3003]

@@TookAHikeNowWhatactually Justin Trudeau sat down with Gen Squeeze Founder Paul Kershaw for a live show with our supporters and allies in Vancouver. They want to basically take over homeownership and distribute to everyone. 😂😂😂 sounds like communism to me. We live in a capitalist society and I can’t imagine how anyone that doesn’t work for it should have any part of my home. I worked my ass off.

[@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

[@robmillar1800]

Absolutely. Communism has never failed in the past, and it won't fail now.

[@Plumber60423]

Will this cause a low supply in the future?

[@justauser]

YES. There has been literally far from enough done, especially at the municipal level

[@Plumber60423]

@@justauser Haha sorry that was a rhetorical question. It was meant for the market crashers. We were building 230,000 units on the best years before the immigrants were coming in troves. Now there is going to be a further severe shortage

[@sfbruner]

I think you have a horse before the cart issue. Supply issues due to lack of affordability (that is the real demand) not pie in the sky "wants" or "population growth". If the builders don't build then the builders are out of work and so is everyone else they employ. Where do you think that goes? But you focus on only one aspect.....

[@Plumber60423]

@@sfbruner Not every job is tied to the housing sector. There are people in other industries that use/invest in real estate

[@DavidWilliams-rk1nq]

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!

[@stompieandsuzie]

Investors also support rental market. Without the investors who would be the landlords, there would be no condos to rent. Hostility to landlords (high mortgage rates, high costs, taxes, and rules in favour of (bad) tenants - higher risk) has cratered the demand

[@notimportantwho]

You want to say not investors but foolish buyers.

[@VancouverVince]

What a scam, only "condos" can provide housing in Canada.😂 How about building detached houses in Saskatchewan?

[@shauncameron8390]

Thanks to bureaucracy, every other kind of housing are not worth investing in due to being either too costly or all but completely illegal to build.

[@bernl178]

Toronto waterfront condos are not the solution to the housing problem. They’re just great for speculators. They get in early and wash up later. And right now the speculators are skittish and I can understand why because that’s not a product that needed. I need to go back to meet potato houses for meat and potato families. Simplistic, no frills. Just a good roof solid bones. Frankly, they need to fall flat on their face and rethink. And governments at all level have to wake up to.

[@EdgarBossen]

*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*

[@GerbertTurco]

Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?

[@MalcolmCampbel]

I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields

[@EdgarBossen]

Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

[@MordecaiNorman]

Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.

[@MordecaiNorman]

He is really a good investment advisor. Was privileged to attend some of his seminars.that's how I started my own crypto investment

[@finleysterling562]

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...

[@leedavis3639]

If you’re new to investing or have a more complex financial situation, It can be helpful to work with a financial advisor who can provide personalized guidance and help you make informed investment decisions.

[@MooreScott-hd5fz]

Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.

[@darrenphilip247]

That's correct. At first, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of 550k, which is about 10 times more than I average on.

[@finleysterling562]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.

[@darrenphilip247]

Ethan Grayson is one of the finest portfolio managers in the field. He's widely recognized; you should look him up.

[@butwhytharum]

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

[@hentaicrypto]

You'd think that because you never had any capital to invest before.

[@ashwinjoseph6039]

Truth is you broke the end user. Now it's all a circle jerk between investors, banks and developers. The cycle is frozen and these three groups are screwed.

[@Observer168]

We need more rate cuts or there will be massive construction job losses coming soon. I have been in the construction industry for 20 years and it’s the slowest I have ever seen. Developers and builders are cancelling projects because presales are not selling. The only jobs going are condo projects that were presold 3-4 years ago. There are government subsidized rental towers up for tender but it’s extremely competitive because those are very low profit. The next few years will be tough for construction workers. I already know many companies that have laid off workers in construction and suppliers of materials. We were turning away jobs just a few years ago but now you’re lucky to get 1/5 jobs that you bid on. People were happy to see real estate agents making ridiculous commissions out of work but now it’s going to hit blue collar workers that make money from blood and sweat. Hundreds of thousands of carpenters, painters, plumbers, electricians etc… will be out of work soon.

[@donm2067]

Monopoly man!

[@osaa9670]

Don’t need rate cuts… people need price cuts

[@Observer168]

@@osaa9670people need jobs

[@Observer168]

@@osaa9670people need jobs

[@Observer168]

@@osaa9670jobs come first

[@grabbingbythe12345]

You should care about public demand rather than investor demand. Homes are for living; not for making money out of. Curb you greed for once, for God's sake!

[@RichAngus100]

Donald Trump once said “Never buy something that doesn’t exist.” Reminds me of the big condo in Calgary that went broke after they damaged the foundation of a neighbouring building.