Love the fire from this guest. He is completely right. If the market can’t function at an interest of 4-5% (historically not high) then something else is broken. It is dead obvious. Too much tax and too much Bureaucracy.
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.
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
I totally agree most of the ppl are mouth piece for developers. I would be okay if they give HST back to the home owners after living or owning unit for min of six years. HST refund should be applied towards their mortgage
@@bomatai-osagbemi9645 ppl don’t realize the govt makes 1-2 % in terms of property taxes at higher prices every year . That is prob 30 percent value of the home until your mortgage
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)
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!🙏🏻
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 🪓
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.
De-Regulate Housing Development by dissolving HCRA. Remove City Halls from Building Processes and Permits. Amalgamate Cities/ Townships in Ontario 444 to 99.
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.
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????
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?
Exactly! It's much better to sell a condo unit if you own a newer one right now. I don't think the new condo sales will pick up next year, unless something dramatic happens.
@@kylere6288 I really think that the new and preconstruction condos should be cheaper than the existing ones for all the uncertainty involved in buying them, and then living through the mess for almost the whole first year, and the shock of fees increase due to the reserve fund and the updated pricing compared to the preconstruction condo budget.
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??
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.
Singapore has been taking 18 percent tax from the people and tax the rich around 15 percent that gets taken into a building fund...1 million housing units built.in.recent.time. Singapore also pays political figures 3 times.mire than US ones to limit corruption.
@davidsmind Investment by the builders, pension funds, or the common mom and pop landlords? It's the mom and pop landlords who rent at a rate lower than the big companies because they can't take one month of vacancy loss. You can see it right now in Toronto and other places. The purpose-built rents are higher than the individual condo owners' rents. The condo owners are subsidizing the rents by an amount that the government can't. A lot of them are paying 800 to 2000 per mo th out of their own pocket on top of the rent, and they also have over 100K stuck in the condo as down payment, making negative return. Say thanks to mom and pop investors for their pain and tenants' gain.
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.
'Greed'. No. How about its due to taxes, fees, inflation, cost of materials, cost of labour? Tough to turn a profit when a box of nails all of a sudden is 3x the cost.
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
@@TookAHikeNowWhat Of course it is the productive with their higher salaries and knowledge. Why would young people want to stay around and pay 53 percent income tax on their earnings if they become successful and make a lot of money. The USA only charges 37 % and you can still afford to buy a detached house in many markets.
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.
The argument is that sharing a tax increase with 2 million people would make it smaller than trying to impose it on the 25k new home buyers. In effect development charges are a hidden tax while property taxes are highly visible and politicians are always looking at the next election. Chow did raise taxes 9.5 percent to her credit and the feedback was not too bad. I am not sure how often she could get away with it especially in an election year.
Love the fire from this guest. He is completely right. If the market can’t function at an interest of 4-5% (historically not high) then something else is broken. It is dead obvious. Too much tax and too much Bureaucracy.
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.
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
I totally agree most of the ppl are mouth piece for developers. I would be okay if they give HST back to the home owners after living or owning unit for min of six years. HST refund should be applied towards their mortgage
What's your solution - have government control even more? Good lord.
threatening higher prices to reduce taxation is such a joke, "the developers have nothing to do with this" REALLY?
I guess you did not listen to the second half on the process of reducing the cost dollar for the dollar on the existing price list.
@@bomatai-osagbemi9645 ppl don’t realize the govt makes 1-2 % in terms of property taxes at higher prices every year . That is prob 30 percent value of the home until your mortgage
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)
Great discussion!
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!🙏🏻
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 🪓
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.
De-Regulate Housing Development by dissolving HCRA. Remove City Halls from Building Processes and Permits. Amalgamate Cities/ Townships in Ontario 444 to 99.
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.
How much margin percentage builders makes, did not mention. Will you please
@@rameezsiddiqi1348 500 percent on the lot and 30 pct on the building
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????
Prices won't be reduced. Buyers with money will buy no matter the price.
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?
Exactly! It's much better to sell a condo unit if you own a newer one right now. I don't think the new condo sales will pick up next year, unless something dramatic happens.
Yes, that would crush existing condo values, but that's part of the point.
@@kylere6288 I really think that the new and preconstruction condos should be cheaper than the existing ones for all the uncertainty involved in buying them, and then living through the mess for almost the whole first year, and the shock of fees increase due to the reserve fund and the updated pricing compared to the preconstruction condo budget.
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??
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.
The long and short of this interview is "give our industry money and cut taxes on our industry"
Cut their costs and they will take the money and.make.some BS excuse to keep housing prices high.
Singapore has been taking 18 percent tax from the people and tax the rich around 15 percent that gets taken into a building fund...1 million housing units built.in.recent.time.
Singapore also pays political figures 3 times.mire than US ones to limit corruption.
@davidsmind Investment by the builders, pension funds, or the common mom and pop landlords? It's the mom and pop landlords who rent at a rate lower than the big companies because they can't take one month of vacancy loss. You can see it right now in Toronto and other places. The purpose-built rents are higher than the individual condo owners' rents. The condo owners are subsidizing the rents by an amount that the government can't. A lot of them are paying 800 to 2000 per mo th out of their own pocket on top of the rent, and they also have over 100K stuck in the condo as down payment, making negative return. Say thanks to mom and pop investors for their pain and tenants' gain.
You think they are going to add the expenses onto a house price? Woo, who would have thought.
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.
'Greed'. No. How about its due to taxes, fees, inflation, cost of materials, cost of labour? Tough to turn a profit when a box of nails all of a sudden is 3x the cost.
Did he just say that city of Toronto increased the development charges by 42% in the last few months?
Guerra fiscal é um problema grande no Brasil
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
Not enough of the “right” people are leaving. I’ll leave the “right” people up to you & others to define. And let’s not get funny about this.
Productive ppl leave
@@mrbbqlvr4274
We're having a brain drain which is unfortunate
@@TookAHikeNowWhat Of course it is the productive with their higher salaries and knowledge. Why would young people want to stay around and pay 53 percent income tax on their earnings if they become successful and make a lot of money. The USA only charges 37 % and you can still afford to buy a detached house in many markets.
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.
The argument is that sharing a tax increase with 2 million people would make it smaller than trying to impose it on the 25k new home buyers. In effect development charges are a hidden tax while property taxes are highly visible and politicians are always looking at the next election. Chow did raise taxes 9.5 percent to her credit and the feedback was not too bad. I am not sure how often she could get away with it especially in an election year.