Kevin Lee, CEO of Canadian Home Builders' Association, talks with Financial Post's Larysa Harapyn about how homebuilder sentiment is still 'quite low'.
There is just no incentive to buy pre-construction right now when there are brand new condos that have just completed that are selling on assignment for below their original purchase price several years ago. These agreements also come with back end costs that are somewhat open ended and that makes the true final cost unknown. Government costs are nearly a quarter of the cost of new homes and increase every year. These costs are passed on to the buyer at the time of completion and not snapshotted at the time of purchase. Some builders will cap the development charge increases, so make sure you get your agreement reviewed by a lawyer. It's money well spent!
There is just no incentive to buy pre-construction right now when there are brand new condos that have just completed that are selling on assignment for below their original purchase price several years ago. These agreements also come with back end costs that are somewhat open ended and that makes the true final cost unknown.
Government costs are nearly a quarter of the cost of new homes and increase every year. These costs are passed on to the buyer at the time of completion and not snapshotted at the time of purchase. Some builders will cap the development charge increases, so make sure you get your agreement reviewed by a lawyer. It's money well spent!
Wait for 10% mortgage rates 2nd half 2025 that ALMOST nobody sees coming.
Not happening