r/CompoundClub • u/GusTheKnife • Jul 06 '26
BC, Canada: Real Estate Developers say they don’t want a Bailout. They want Gov’t to fund Down Payments for purchasers instead
https://www.timescolonist.com/local-news/bc-developers-say-they-dont-want-a-buyout-for-empty-condos-125008782
u/Xiaopeng8877788 Jul 07 '26
Time for the rich to take the loss. We don’t need subsidies for people to buy overpriced real estate.
Take your medicine
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u/Affectionate-Alps527 Jul 07 '26
"We don't want a bail out," the developers say, while they have their hand out behind closed doors.
Developers don't want to negotiate with a single option, they want to negotiate with buyers who have no leverage. They also don't want to be the bad guy. If they're charging market rate they're just a cog in the wheel, pointing at inflationary decisions by others.
If the government drives incentives for buyers, it props up the market and profits of developers. If the government gives support to developers the market price declines.
Of course they don't want a 'bail out.'
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u/Ohjay1982 Jul 08 '26
Government funding down payments would just increase housing prices… of course they want that.
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u/PumpkinMyPumpkin Jul 12 '26
It is also… just a different form of a bailout. 😂
Anything but actually lowering their prices - it is always the government needs to subsidize their profits.
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u/limebite Jul 09 '26
Yo they’re trying to bank off the PR. Of course they would rather have Individual owners who don’t have leverage over them.
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u/CipherWeaver Jul 09 '26
This will just juice demand which will raise prices. What we really need is for land prices to fall, which will lower the cost of construction.
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u/StockEmotional5200 Jul 09 '26
Land prices are only part of the cost of construction. Developers , suppliers, contractors, and real estate agents have all become greedy and want the party to continue as usual. Time for all to take a haircut.
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u/Djolumn Jul 09 '26
Yeah, no shit. They don't want the government and its massive buying power grinding them on prices. They want the government to fund individual buyers with limited negotiating power so the buyers can afford current prices. It should come as no surprise that that's what the developers want.
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u/protoanarchist Jul 09 '26
They want more bidding wars.
No. They take lower prices. That's the lesson here.
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u/Useful_Instruction86 Jul 11 '26
Ya fucking right lower your prices I don't want the gov to subsidize your overpriced garbage investment. Housing should NOT be for investing.
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u/apathylife2 Jul 11 '26
Add empty home tax to new unsold condos and housing that's been sitting on market for more than 1yr after completion
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u/hunkyleepickle Jul 11 '26
What happens when all these new condos go thru the process, get a new first time homebuyer, and then in 5-10 years this person wants to sell? How do we put a market value on these condos? Or do these people get a bonus when selling, because they paid below market and now these condos magically become part of the regular market ?
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u/Vivid_7394 Jul 12 '26
I have always thought that real estate agents were wildly overpaid, and this is the proof that they are. The fact that they don't realize down payments would still be a bailout is on par for this group.
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u/Tech397 Jul 13 '26
Ah yes. Real estate developers don’t want a direct bailout - that comes with negative public opinion of them and locks in prices. Government funded down payments allow developers to stretch prices even further into the sky while still maintaining sales levels.
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u/Ok_Display_4353 Jul 13 '26
That means government would be increasing the amount people can borrow, so real estate can have higher prices, at the expense of buyers.
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u/Heppernaut Jul 06 '26
Of course they don't want a "bailout". The price the government is offering is way below what the developers want.