Quote:
Originally Posted by TheHonestMaple
Given that we never saw any presales for this building and there is a lack of renderings, it's likely rental apartments. Probably high end ones, similar to Colbalt.
I've wondered why Hamilton sees so many new builds end up being rental apartments instead of condos. I guess it just isn't a mature enough or desired enough market quite yet to attract buyers to justify condo builds. Hoping we see a shift in the coming years.
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I can think of two major reasons why Liuna is building rentals over market units.
1) The complete removal of rent controls (which I agree with in theory, but there need to be other changes to rental laws to make this an okay system)
2) Liuna is able to hold onto multi-million dollar assets that not only will bring in rents over decades, giving the union regular revenue, but the union can sell off properties as it requires for various reasons, whether it be pension payouts, or economic downturns and recovery. Borrowing is also very cheap right now, so mortgaging out the cost of these buildings is the cheapest they'll ever be.