So in this video, we talk about a builder that has gone bankrupt owing over $50 million dollars. Inflation and rising costs coupled with a slowing and crashing housing market are threatening to take out developers and builders.
The real estate crash is taking its toll on developers and home builders. As they struggle to shift enough units and battle with rising costs and have to take out construction loans and new builder loans in order to get projects moving it creates a disaster in the making.
This story is specific to London Ontario but they will be one of many that buckles under the rising inflation.
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0:00 – It’s just the start
1:58 – London builder in recievership
4:05 – Big plans not happening
4:58 – London boom town in 2021
5:45 – Empty commercial real estate
7:00 – Who is paying for this?
8:10 – Not booming now
9:40 – Small businesses get hurt
10:30 – $36,000 a day in interest
11:40 – Salesmen
13:00 – Pandemic delays and inflation
14:00 – Bank reports
14:30 – Builders being hit hard
16:00 – Inflation
18:00 – Developers need to adjust to the new normal
18:50 – Financial crisis in the making
19:45 – Property tax question
20:30 – Condo disaster
20:50 – Alberta’s highest property taxes
21:43 – Mexico party
22:30 – Property taxes in big cities are lower. Why?
24:00 – Ontario government involved with subprime
25:00 – Where does the money go?
26:00 – Thank you!
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Make sure to check out tomorrows video at 3PM MDT
The Real Estate market stinks like a rotten tomato 🍅
It's not sad to me. The contractors charge way to much. These tradesman are fleecing people right now. Every guy thinks his individual pay should be $500-$1000 per day.
Residential market in Edmonton fell 23.8% from June in Edmonton. Condo sales dropped 22.3% and duplex units 21.3% . They stated more Covid cases were the reason people shred away from the market, hmmm I heard from many interest rates were the main reason. They said there was a high demand for industrial condos but only $4.3M in retail condo sales by the end of June which was down $22M from mid 2021
The market is just experiencing initial fatigue, headache, and irritability.
Chills, Shivering, Shakiness, Sleeping difficulties, Sweating, Tremors, Vomiting are on the way. Oh yeah.
Wow Luke you study psychology….choppers fly everyday, the peons feel the watchers. At the same time they feel protected and yet at risk for crime (crime must be high why else the chopper, right?) They are thus more controllable and also more willing to pay for protection….around and around
I'm based in Calgary and currently looking for a house. I'm a numbers guy myself so I wanted to drop a note here to say thank you for presenting the relevant data for where things are going. While the parasitic "agents" are still putting out misleading information aimed at the gullible you actually back up your claims with actual numbers in your previous videos. Keep up the good work.
You might want to check out the ground water situation in Mexico. Not sure where you are heading, but if it is anything like the losses Cali has seen, you might want to know about it, before you settle there. There is an enlightening DW documentary on water table decreases around the world. Mexico was not mentioned but Cali sure was, and it is going to increasingly become a massive problem. Just thought I'd add that for some extra cheer lol!
Boom times are over…
Imagine how the actual house build quality suffers for a developer going down. Developers continuing to build at a loss, workers knowing each nail hammered in gets them closer to unemployment…oh ya, they are doing their best work! There will be stories of houses with staircases to nowhere lol!
Interesting to hear that BC has the lowest property tax rate. But do take into account to property price in there is also higher so it cancels out
Party in Mexico sounds amazing. After party at my abode in North Bali? Luke will charter the jet with his new found Patreon windfall . Lol. Love the currency arbitrage play and the adventurous nature of those willing to live abroad.
U should look in to Prop Taxes in Winnipeg – Bridgwater and Amber Trails….
$6-$7k/Year…
For NOTHING!
Homes assessed at $1M are listed for 30-40% over, $1.4M etc.
Vancouver area istings may get 20-30 views a day.
Calgary, anything at $1M+ gets 1-3 views a day. Not in person visits, just web views.
Yet no price drops.
Widespread construction company collapses in AUstralia and New Zealand now.
"Real Estate agent says now is a great time to buy a house"
Simplw Simon met a pieman on the way to the fair.
Said Simple Simon to the pieman :should I buy pies?"
Said the pieman to Simon, "buy pies, c**t!"
Real estate agent says buy property.
Simple Simon met a pieman on the way to the fair.
Said Simple Simon to the pieman, "Should I buy pies?'
Said the pieman to Simon "buy pies, c**t."
If you want some talking points on condos and condo fees, let me know. I was a condo board member for years and it's insane how unit owners are being ripped off. There's no oversight. Whether it's behind the scenes kickbacks, inexperienced managers, or the inability of both the managers and board members to see the condo corporation as a business, maintenance fees are out of control. I could tell you some horror stories!