If not the investors, who will fund the construction of condominiums?
Many housing advocates mistakenly believe that investors are detrimental to housing in Canada, but this perspective is misguided. The evidence is clear: without investors, we would lose the capacity to build more housing, particularly condominiums, which serve as starter homes for many first-time renters and homebuyers.
In today's Financial Post column, we emphasize the crucial role investors play in driving housing construction. Investors are the ones shouldering the financial and construction risks—risks that ordinary households are typically neither prepared nor willing to take, especially given the 3 to 5 year timelines involved in building new developments.
Our column is available at:
CEO - TCS | Partner - Gladstone Media
5 个月Murtaza Haider It's good to see a thought-out piece describing how the system works rather than some of the doom and gloom material in the media. The lumping together of 'investors' into one big group is also markedly off-base in media articles.
Construction Consultant at RM Global Consultancy - Consultant to Buildings & Factories L&T - Regional Manager Mumbai L&T
5 个月Hi Prof. Murtaza, I had recently commented on the subject captioned by me as 'Storeys vs Councillor Gordon Perks' on their perspectives on the causes for the Housing crisis. I now see a post from Prof. Murtaza on the need for investor funding to promote constructions. The Councillor held the position that the housing crisis has been created by Investors crowding on to the real estate market for quick returns which has upset the balance in the sector to respond and adjust ?to the natural Demand and supply forces. An artificial demand created by this has jacked up the land prices abnormally and consequently the other cost components making housing unaffordable and leaving the developers with unsold inventories. So this has resulted in a depressing situation to all the stake holders. The councillor further observed that had these funds been invested in manufacturing or other areas, the productivities in those sectors would have grown creating national wealth and raising the wages and the family incomes and with that the affordability of the communities to invest in fixed assets. Being a subject of public interest, sending this as a post due to limit on the word count Ramesh
Mortgage Agent and Investor
5 个月Those who get it, get it. #stopdemonizinginvestors