Quote:
Originally Posted by whatnext
Professional rental companies will always keep renting if there is demand. It's the amatuer property barons renting out one or two crappy condos that are the problem. As this study showed, many are too dumb to realize they're losing money and would have been better off investing it. They think they'll recoup their losses when they sell 'cuz property always goes up (until it doesn't).
PS the UDI is nothing but a shill for the developers and the real estate industry. Their credibility is zilch. |
You are right that professional rental companies will keep renting. But this is separate from rental developers/owners may decide to stop building towers or invest less in the industry if its unstable or the pendulum swings too far and Owners lose all power. Our rental vacancy rate is close to 0 so cheaper rent isn't the problem right now, its supply. The government isn't going to pay for these rental towers so we need developers to be incentivised to build them.
As for the UDI, I would say they are a very important part of the process as they provide an entity that the city can consult in its development. Who better to consult with in development plans than developers and the real estate industry. If developers say you can't do this because no one will develop with those restrictions, its an important consideration.
An example is they wrote a nice letter to the Province regarding property transfer taxes here.
http://udi.bc.ca/wp-content/uploads/2018/02/UDI-Ltr-Jan-29-2018-Minister-James-PTT-Bare-Trusts.pdf in it they pointed out that certain day-to-day business transactions would be harmed if the transfer tax applied to all transactions. One good point they made is how developers usually hold property with a company but transfer it to another company when developing which shouldn't require a transfer tax as its a normal industry process.
Who do you consult regarding real estate, business, development, etc? The UDI appears to offer a great perspective. You need to work with people when doing these things not see them as evil entities. Of course everyone is out to make a profit, but there's no reason you can't work together to reach a settlement. The more profit that can be made, the more housing we will have built. And we badly need more housing.
Also the less the government consults with industries before applying policies to those industries, the more chance there will be mistakes/backlash. Also the uncertainty/unreliability of the government will scare people away from doing business here.