Alan Leela

Co-founder & Partner at Vantage Developments.

[Alan Leela @Alan_LeelaTO]

Listening to Zuckerberg on Rogan podcast on my walk in to work this morning. They discussed the impacts to innovation, progress, and competition because of Apple's 30% tax to apps sold in the app store.

Imagine doing the same thing, but to housing...oh wait, we already do that

[Alan Leela @Alan_LeelaTO]

@JShamess Any insight into how that compares by division? Have seen relief in below grade works and forming, but not much else yet.

[Alan Leela @Alan_LeelaTO]

Positive takeaways from today's U.S. inflation print.

Headline shows 4% annual core inflation (below expectations; good). Digging deeper: core inflation for 5 months ending October of 2.8%.

We're not out of the woods, but there is light.

[Alan Leela @Alan_LeelaTO]

@Yyzcapital GTA suburb.

[Alan Leela @Alan_LeelaTO]

Price discovery in residential land is happening, but it is slow. Psychology often gets in the way.

Submitted a market offer on a development site late last week. Vendor quickly rejected the offer because 'it is less than what we paid for the site'.

[Alan Leela @Alan_LeelaTO]

While no one likes to lose money, good investors understand previous transaction prices are irrelevant to current values.

Said differently, would my offer be more attractive if the vendor had paid less when they bought the site? Practically speaking, it should not matter.

[Alan Leela @Alan_LeelaTO]

@JShamess Rare in this day and age, but very true!

[TUC Podcast Host 🐂✒️ / GTA New Housing Consultant @benmyers29]

Government fees on new housing have increased by almost 1,160% since 2001, while inflation has been 59%.

Growth should pay for growth, but why has the cost of growth grown so much?!

[Alan Leela @Alan_LeelaTO]

@jUTAH9 @JShamess Depends on trade. Short answer is 'yes', they have benefitted. Longer answer is some more than others.

[City of Toronto 🇨🇦 @cityoftoronto]

Steps away from Toronto's Historic Distillery District and the St. Lawrence neighbourhood, the #CityOfTO welcomes a new mixed-income rental community that includes 231 affordable rentals made possible by the #OpenDoor program.

[Alan Leela @Alan_LeelaTO]

@cityoftoronto @HousingNowTO Rents will be a function of AMR, with ranges from 40% - 100%. Putting real numbers behind it, a 2 Bedroom unit would rent for $720 - $1800, with a cap on the tenants eligible income. This is a great project. Kudos to the conservative provincial government for this initiative

[Alan Leela @Alan_LeelaTO]

@JShamess @donnelly_b High/low are relative terms. In 2018, I picked up a Yonge street site for $140/foot, fully zoned. In 2020/2021, land there was selling for $250/foot.

My point/perspective is the vendor I bought from is probably feeling better today than the group that bought at $250.

[Alan Leela @Alan_LeelaTO]

@JShamess Assuming no significant stepback requirements, could be plausible. People don't realize the cost implications of the mid rise terracing...+20% on construction costs...

[Alan Leela @Alan_LeelaTO]

@cafreeland This should help offset the 30% increase in mortgage payments! What a joke.

[Alan Leela @Alan_LeelaTO]

@jen_keesmaat I don't think 5% Land Transfer Tax helps the situation. That's the single reason my retired parents have been holding off on selling their 4 bedroom home.

[Alan Leela @Alan_LeelaTO]

@khzny I know this pro-forma math all too well. Dedicated 10 years of my life trying to make it work. Reality is without 1) extremely deep pockets 2) low cost of capital and 3) 20+ year time horizon, the math does not work

[Alan Leela @Alan_LeelaTO]

@re_tdot @ronmortgageguy Complex issue with the people who have the ability to improve the situation unwilling to make the appropriate investments to do so. Not to mention unrealistic land owners!

[Alan Leela @Alan_LeelaTO]

@fast_rates Globe and Mail.

[Alan Leela @Alan_LeelaTO]

Why doesn't the headline read 'Inflation cools to 2.5%?'. Mortgage costs are up nearly 30% because interest rates are up sharply. This is the largest contributor to inflation. Basically we are in a cycle of increase rates to tame inflation caused by higher rates.