RE:March madness.wynner wrote: MD&A Dec.
Development Properties
Trails 1B, consisting of 48 units, is now under construction with completion expected by March 2024, of which the Company owns a 42.86 Trails 1B, consisting of 48 units, is under construction with completion expected by March 2024; the Company owns a 42.86 % interest. The project is proceeding without pre-sales and we will market the units once complete.
The Company continues to make progress with the approval process for various proposed development projects:
Could go up a bit here. lol. Being an acute shortage of housing in Vancouver and all.
Bring it on.
That's all well and good.
People not qualifying for those XXL $1mm mortgages these days.
Crack downs on S-T rental fluff, foreign buyers tax, empty house tax, sticky inflation - especially with energy prices now showing some strength.
Just my opinion, but you've got a standoff between the bid and the ask parties.
The sellers are overvaluing their assets - mental anchored to Pandemic Pricing 2022.
The buyers are looking for deep discounts, bank won't back their overbidding.
Anyone overexposed to RE now has got the winds and sand stinging their eyes.
This all goes back to what I said about $3 dividend. That was a dumb move by BOD.
Paying out $97mm right before cost of debt tripled.
Good value here at $20, sure, probably worth $30+ but I just don't see anyone getting excited until recession is over, wages up, new Fed Govt, less political risk, back to basics. Canada in the dumpster post-pandemic with Liberal puppets running the show.
Housing shortage the top story but these dopes in Govt have spent $60mm on an app that could have been completed for less than $1mm.
Warning Flag!
This ain't the time to be going big in Van and TO RE.
Maybe prices move -15% to -25%, then it might be time to dip the toes in.
Maybe.
It's crazy how many people forgot that RE is very interest rate sensitive. They are too busy staring at 40yr charts of falling mortgage costs with corresponding RE price increases. That game is over, ended in 2022.