Why are real estate developers only building luxury condos

>>130393706
We in the future now

>>130393706
Chinese and arab millionaires do.

It is the same here. The biggest market for new homes and apartments are for the 15% than can afford it. And from that 15%, the 1% buy lots as investment.

It does not solve a problem about housing in the most part. It is about generating money.

I have wondered that my self I take my area the only homes being built are 250000+. If you can't do that your forced to buy a trailer home that is if you have the land to put it on. The upper prenatal will not in vest in adorable housing.

GAS THE RICH
CLASS WAR NOW

Speculation market

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>>130393706
They don't want natives to buy them silly.

Why don't you rent for a bit longer? Think of all that money would save today

>>130393706
because of government interference

if it wasn't so incredibly difficult to build something in the first place with very restrictive renting laws there would be much more cheap housing

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>>130393706
It's a cash grab taking advantage of Chinese investors. In Toronto, these condos all get sold, except no one actually lives in them. They're seen as investments only, and it's fucking up our housing market.

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>>130393706
to make money.

In Manhattan in particular, 70% of the midtown condos are empty year round. Nobody lives in these things. High-end condos in major cities like Vancouver, NYC, Miami etc. are nothing but investments for rich foreigners.

>>130393706

So they're forced to import more Muslims and Asians...

>>130393706
to make sure that it takes the average wage earner 400 years to buy a house, they've succeeded here

>>130393706
If there is one thing that angers me as much as immigration, it's planning policy only benefitting foreign billionaire. Tell these sand nigger Russian Chinks to fuck off!

Our leaders hate us. They only care about getting richer and more powerful at the benefit of the native population.

>>130393706
I am Chinese man and very happy. We taking all your money U.S.A. Ha Ha Ha. Soon you will all work for Chinese man. Ha Ha Ha. We make everything, you make nothing. Ha Ha Ha. Soon you are third world country like Mexico. Ha Ha Ha. We are buying your country cheap. Ha Ha Ha. We make friends with Muslims and will get more of the oil so you have little. Ha Ha Ha. You have stupid president. Ha Ha Ha. Soon you will all be very poor. Ha Ha Ha. Soon you all be dead.

>>130393706
Because it reflects the demand. Rich people today often have condoes in every bigger city. Since rich idiots can control their income they also control the major share of possible demand. Also people that inherited their wealth for generations often have no fucking clue or vision what to do with it.... That's why demand for condoes looks like it is controlled by a bunsh of metrosexual idiots. Hedgefond managers that control the capital have to cater to the taste of morons that often can't even imagine people could live on 70m2.

Because they are more profitable you moron

>>130397310
China is the biggest lender of the us...

>>130393706
Because enough people who can afford them buy them.

>luxury
these are the ghettos of the future

>>130397504
buying property is the most sensible thing for a wealthy person who doesnt want to risk to do
you just sit on the capital gains slowly over time.

the chinky doos are making their move on the western economy and we are all too afraid of being called racists to stop the fucking chinks.

>>130396338
>if they were allowed to build rickety deathtraps they wouldn't need to charge out the ass

Maybe they should fucking set up or go out of business then instead of getting government tax breaks and hand outs.

>>130393706
They're not that luxurious and lots of people can afford them. Aquire a relevant skill. Apply it diligently for 8 or 10 years and you will be able to buy one and a sweet little pony car to park downstairs.

>>130398186
It's weird in Singapore, our land is valuable as we are pretty much land-locked and small. Purchasing property is a very Singaporean thing to do. Not so sure whether does it apply to other countries so much when they have much more disposable land.

>>130393706
34.5M penthouse at 56 Leonard, NY

>>130398495
there is only ever so much land, it doesnt matter where it is. land WILL appreciate over time

>>130398593
Even though they are subjected to natural disasters?

>>130398441
you have no clue what you are talking about sweetie

>>130398647
such as?? global warming?

>>130393706
they can spend $400/sq.m and charge $1400/sq.m or spend $1400/sq.m and charge $3000/sq.m
what would you do? they borrow money from the banks and rich foreigners pay in cash. real estate is pure $$$. they aren't in it for charity, and nor should they be.

at best they will build shittier apartments on the lower floors for locals with mortgages

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>>130398495
I'd guess that in Singapore, people actually live in their properties. In the US and Canada, these condo towers sit empty. Luxury condos are the new Swiss bank account for Chinese and South American millionaires. It's perceived to be a safe way to get their money out of their home countries and into US dollar assets, plus it's a crash pad in case they ever need to flee their homeland. In Miami, it's Brazilians, Colombians and Venezuelans. NYC is mostly Chinese and European investors. In DC, almost exclusively Chinese. I work with multiple people who do this shit. It's a huge business.

This bullshit is even starting to trickle down to middle market cities in the US. Retardedly priced condo towers are being built in Dallas, Nashville, Denver, Houston, etc. - basically anywhere with a growing economy has overpriced condos being constructed and sold as investments. If the US goes into another recession or economic pullback, expect the prices on all this bullshit to plummet.

>>130395274
>250000

That's fucking nothing senpai. Put some money aside for a down payment. Here it's 300K for a shitshack, complete insanity.

>>130393706

To sell to foreign investors, mostly Chinese and Arab.

>>130399193

>I'd guess that in Singapore, people actually live in their properties. In the US and Canada, these condo towers sit empty.

which is fine from a market perspectiove. people have money, so they can do with it what they want. they can buy 100 cars and never drive them, fine by me.

what is not ok is that there is only very limited amount of space in cities, especially the popular ones. foreigners buying real estate in these cities and not living in them reduces the supply and increases the cost for everyone else.

governments should allow foreigners to buy real estate, but they should start taxing any property that is not the main residence very hard, and direct this particular tax money to increase the supply if the tax doesnt decrease demand enough.

Speculation.
When people buy property for the sake of selling property, the more expensive the better.

Why does it matter? If the rich move there other housing is being freed up. And if they don't manage to sell the apartments they go out of business.

>>130393706
due to the cost of materials, labor, and land luxury buildings are the only deals that pencil out. expensive construction loan needs to be taken out by an expensive commercial mortgage, which a robust NOI needs to service

>>130400812
They don't sell them to people who would live in the apartments, they sell them to people who think the apartments will be worth more in the future.

>>130398186
Buying empty condos or building them without looking at supply and demand is receipe for disaster.... just look at all those failed developments in Spain.

>>130399750
90% of the time it's done via offshore shell companies. There's no individual owner, per se - it's a company in the Cayman Islands. Your taxation idea is impossible because most of the time nobody even knows who owns this crap.

On the "cost for everyone else" argument, if you live in a place like NYC or DC, you are basically going to be broke and in debt no matter what unless you are earning $500k+ per year. It's just the cost of admission to living in a major metropolis like that. These places are 2-3x more expensive than your typical American city.

>>130400812
You are missing a key point; the foreign investors rarely move there. They deliberately buy the property, build, then sit on it with the understanding that the property value will appreciate, and EVENTUALLY they may start to rent or sell. It gets their money out of their banks.

By deliberately renting only to richer upper-middle class it also gentrifies the hell out of the local economy and minimizes the risk of property damage; simply put richer people are less likely to vandalize things and are more forward about paying repair costs.

>>130393706
Because the real estate market is for investors, not consumers.

Seriously rich people all know the banking system is gonna blow sooner rather than later.

Luxury real estate is being used in portfolios as land bullion to mitigate the risks of a currency reset or hyperinflation.

>>130395274

250k is cheap here. The average price in this city is 800k

>>130401139
> There's no individual owner, per se - it's a company in the Cayman Islands.

thats fine. then the company gets taxed on the properties for which they cannot prove they are rented out.

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>>130395274
Youre a baby

>>130399193
there are quite a few vacant properties around that arent used
the landlords just sit on the properties without caring about renting them below a certain price

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>>130396444
>Vancouver
>Major city.

Pick one Chang, it's a dumping ground for poos in the loo and Dog eaters like yourself.

>>130402182
don't forget all the "muh weed" faggots and homeless heroin addicts.

I'm no zipperhead, I'm a 12th generation american.

>>130399750
What people should be advocating for is the decentralization that could potentially make some abandoned areas attractive for investment again.

The problem is that you buy a place in the middle of nowhere and you will have to pay the same taxes as if you were living in the capital city, and that's fucking retarded.

>>130393706
There's no point in living in a luxury condo if it's in the center of some ghetto shithole of a city that overlooks trash from some other condo. Just give me a comfy cabin in Alaska with my mountain view and lake access and we'll call it a day.