Відео

Please ask Matt to share his pro-forma and see if he really stands for what he says that developers’ margins are low! He starts by saying he cares about building affordable housing and later all he talks about is personal gains! Aside from taxes, how about developers taking a pay cut??

Thanks for the update!

John is the months of inventory typical of the season? I heard that people sometimes take their homes off the market and re-list in the new year.

Leases for condos up due to lower prices putting some much needed churn in the market. Tenants are leaving their old expensive apartments for lower prices.

The government new laws, bank and low rates are going to affect the market in the coming months

How large is this uptick in sales. That is, when adjusted for the traditional/seasonal Fall increase im sales?

wasn't sure what to expect but good interview. Sustainable access to government-backed funds makes a lot of sense to keep building going throughout market cycles in return for transparency of their books makes sense. We should all know what a house costs to build and then set a cap on mark-up as a trade-off for secured financing for the industry. Builders win, buyers win, and government earns low interest (to keep up with inflation so it's a net neutral for them)

Simple math I think!! 300 homes/ 10,000 immigrants. Not hard to figure out….. Sorry but we need to close immigration for 5 years.

Now wait a minute. Govt is charging more for new buyers of new houses. If they didn't do this then your ontario property taxes would be updated from 2016 values and your property taxes, of all homeowners, would be 50% higher. Let those involved pay for what they want. Why should I subsidize them????

I wonder if the speakers will also talk about the falling in values of the Canadian dollar vs USD vs Gold vs Bitcoin, and how the weakening of the Canadian dollar may affect the prices of property prices in GTA or the rest of Canada. Thx!🙏🏻

Great discussion!

When it comes to population numbers, we have to consider the facts that Canadian citizens are having a mass exodus from the country. Many of my friends have left recently with more considering it now

Purpose-built rentals charge higher rents than condos because they’re a better product. The floorplans and finishes are usually better. Because the developer often holds the building. They care about how the materials hold up over time. And they know they’ll have to repeatedly attract tenants over 25+ years. Secondly, it’s just a better experience. Because you have a professional property manager with responsive, on-site maintenance people. Rather than a 1-off landlord who may be overseas and unreachable for weeks.

we managed to build the current surplus with the tax code we have. The buyers set the price in the end.

Exactly. Government doesn't innovate and any new money it takes in just gets taken for granted in the next years budget. Tax increases are a one way street and they're beginning to eat Canada alive. Almost one in 4 Canadians is now public sector. TIME FOR THE 🪓

Fees and taxes wouldnt jump if $3000 rental in Toronto wouldnt cost $1 million. Everyone needs to make money, even the cities. Live and let live. We need more housing permits, expansion of the cities. Its the habitants of the cities themselves who need to demand as well as allow expansion.

When you are dealing with new builds, all the costs will be passed onto the buyers as closing costs. The less the government charges in development fees and taxes, the more housing costs will rise. GST rebates. The buyer must assign the GST rebate to the builder. The builders are not going to give that up.

Guerra fiscal é um problema grande no Brasil

Houses could be built without charges or fees and prices would not go down. The only way to reduce costs is to make investment in the property market illegal and force hoarders to sell.

Prices won't be reduced. Buyers with money will buy no matter the price.

So if we cut development charges, where does the revenue come from, to run the city....?? Unless you are going to make the argument that development fees are not really needed and are just going to pile up in a City of Toronto bank account. Otherwise, any decrease in development charges will need to be offset with a corresponding increase in property taxes. A double digit increase, several years in a row. Pick your poison.

All govoernment subsidies will turn into profit for builders. If the condo market price is 800K, the seller will not sell for 700-750K becaue they got 50-100K break from the government. They will just pocket the 50-100K. You can't trust the builders. They will inflate all costs, salaries of their friends, family members working at the site.... They will pocket all money. We need the government to pass these saving to the buyers direct. How about providing tax break for first time buyerrs for next 5 years or 10 years? This way the first time buyers will buy condos at 800K, but get tax break for next 5-10 years. The issue here builders are rich people and they are all connected to politicians. That is the reality rich people are connected to many politicians.

Unsurprisingly, comments of a pure socialist 'developer bad' flavour. Here's a self-made individual from Scarborough who worked his ass off getting to a modicum of success, and actually trying to do the right thing sanitizing the whole issue in the daylight and trying to get all levels of bureaucracy to talk to each other. And the comments for resentful socialists is 'well he's rich', 'I won't trust him', 'developers are greedy and are the problem', etc. This is what's gross and frustrating. How about any of you also work hard, dedicate years of your life to whatever passion you have, but how dare you if you become successful at it while also bettering your surrounding community. Grow up, look up 'tall poppy syndrome' and self-reflect.

How much margin percentage builders makes, did not mention. Will you please

So the developers want the government to reduce their fees to reduce prices, which is fair. The truth is everybody in the building supply chain has gotten greedy and overcharging to make a higher profit than otherwise. How can other places happily build condos for 400k and make profit? It's greed across the board.

You think they are going to add the expenses onto a house price? Woo, who would have thought.

It’s good to shine the light on massive tax implications. What would happen to existing purchasers if Matt gets his way? If new tax free units come online at 30% discount, and that influences the next price, Wouldn’t that crush existing home values them even more?

I don’t trust politicians, even trust rich developers less. Cute to hear developers worried about housing affordability. We all know prices aren’t going to be revised down. This is more of a campaign to increase the margins for the developers in a less frothy market. If the developers get a 20% cut off fees, they’d only pass 5% to the end buyer. Therefore this whole campaign is a Trojan horse for helping developers make more money

The biggest factor in the housing market is unemployment. And this metric is going up and won't stop going up in the short to mid-term. It doesn't matter how much the BOC cuts rates or if we have 100 year CMHC mortgages. If people are unemployed, they won't be buying homes. What I can see though is the homeless crisis getting much worse.

Bravo... !!! Very sincere input explaining dynamics of the housing market....making future trends more clear... ❤❤🎉🎉🎉

I think a couple years of flat growth isnt nor gonna do much for affordability long term when were so far behind builds relative to population... I can see the immigration change affecting cities with a lot of temporary residents (like Brampton) more so because rental demand also hurts investors buying power. I dont think the general National Housing market is gonna severely pull back from this. More likely prices will stagnate or increase slowly for the next 1-2 years as rates stay higher than in pandemic but i dont see further drops given were still im a structural housing shortage

Great insights on how these big changes could affect the market!

Thank you for your videos, John. As a real estate investor, I just wanted to add some perspective to the idea that real estate may become a “boring” investment. Real estate remains a strong, long-term investment, especially with careful cash flow management. Canada-and particularly Toronto-is an incredibly desirable place to live. If you compare Toronto’s cost of living to other major global cities, it’s actually not as high, and the city consistently ranks among the top desirable places within one of the most attractive countries. While high interest rates are certainly a challenge, it’s part of a global economic cycle that isn’t unique to Toronto. Immigration adjustments will also have far-reaching impacts-not just on the job market and services but on housing supply as well. Canceled or delayed housing projects could create further shortages, which may, in turn, support demand for existing properties. Real estate continues to be a viable investment with the right approach to cash flow, even amidst these economic fluctuations.

If you are a working class and decided to put all your savings into first down payment, please consider if you got unemployment may be in a few years, how long can you sustain while repaying your mortgage? The current global economy is unstable, please leave aside some money instead of pouring all your reserves into the down payment.

Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires.

Take the interest rate into negative and market still not going anywhere!

The rate cut is just a reflection of how out of touch the Liberals really are, we’re in a financial free fall. The housing market is imploding, inflation is becoming hyper, this country is doomed.

Lol! 5YR Canada Bond Yield is already pricing in 50bps cut in December and then a gradual decrease in 2025. 5YR currently around 3% add another 1.2% to 1.5% to get 5YR fixed rate

Very good points and analysis. Going in favour of increasing prices are the lack of building new developments (future supply crunch) and lower interest rates (lower carrying costs fuelling demand).

No impact at all. The market will remain sluggish, slowly dying.....

This guy knows Nothing

Developers are holding onto condo units that buyers couldn't afford, hoping and waiting for them to sell at peak bubble prices.

John, when a single detached property list for 1,500 sqft does that area include the garage area

I love how Dr. P says “you don’t need a PhD to figure out what that does for housing” 😂 Is that something people with PhD’s say John? 😉

So how do you think the Bank of Canada's recent 50 basis point interest rate cut will impact the housing market, especially in cities like Toronto and Vancouver?

This is a great and balanced take.

Sounds like a MASSIVE flood of listings will be coming in spring 2025.

Well explained

Interest rates coming down, new home construction wayy down, and immigration even with cuts still fairly high. I think home prices and rental prices are more than likely going to go up substantially this upcoming spring and summer.

I have a question? According to stats we have 16+ million housing units in Canada. Average replacement age of unit is 45 year old ( I found it on internet). So, that means that we have to build 350 000 units per year just to maintain existing number of housing units .... am I missing something? Please explain if possible.