09-18-2022, 04:17 PM
(09-18-2022, 03:56 PM)Bytor Wrote:(09-17-2022, 05:18 PM)Zoo Wrote: It is that the numbers don't work. They will not make any money. What we need to start thinking is that developers need to be making a great profit or these projects won't get built or we end up with situations like Adi in burlington where these people who shouldn't be building cancel deals.
Profit isn't a bad thing. Developer profits are small or at least way smaller than they should be based on the risk.
Is it really "They will not make any money"?
Or is it "they won't have a high a net profit as they wish"?
Because, as I said, the sale price jumps of anywhere form 10% to 40% year over year for the past several years in a row have far outstripped what even 8% inflation in the past year has done to their costs.
From what I can find out is that over the past decade, average developer profits have risen from 8% to 15%.
Is it then reasonable to say that a lot of boom-ing developers are working with quite expensive credit and loans, since it was previously a guaranteed profit until recently?
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