Who makes more money on Real Estate than developers?
We have all heard how developers are greedy, but ever wonder who makes the most money on a real estate development? Local, provincial and federal governments, that’s who!
According to CMHC, fees and charges account for 20% of the price of a new condo apartment. Want proof? Check out CMHC confirms government costs raise new home prices – Western Investor
The report further states that a typical developer’s profit on a new condo project is estimated at between 10% and 15%.
It seems to me that if the various governments want to really improve affordability they could take a lower cut. The federal government could raise the GST thresholds, or eliminate them for first-time buyers. The provincial government could raise the threshold for first-time buyers to $750,000, matching the threshold for PTT exemption on new construction, and local governments could give property tax relief for first-time buyers.
Enjoy the rest of summer, thanks as always for the support.
Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages.
In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
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