Privacy.

Thank you for visiting us online at https://vantagedevcorp.com/. We want you to feel comfortable while visiting our website, and therefore, we respect and are committed to protecting your privacy. It is our belief that you should understand the way we will use the information that you provide. This policy also explains how you can ask questions, review, and update your personal information. We invite you to take a few minutes to read our privacy policy:

Your Consent

By using this website, you consent to the terms of our Online Privacy Policy and to Vantage’s processing of Personal Information for the purposes given above, as well as those explained where Vantage collects Personal Information on the web. If you have objections to the Privacy Policy, you should not access or use this site.

Collection of Your Anonymous Information

In general, you can visit Vantage’s web pages without telling us who you are or revealing any Personal Information about yourself. For our internal purposes, we gather the date, time, browser type, the name of your Internet service provider, the site that referred you to us, any pages you requested, navigation history, and IP address of all visitors to our site. This information does not contain anything that can identify users personally. We use this information for our internal security audit log, trend analysis, and system administration, as well as to gather broad demographic information about our user base for aggregate use. We use this information to generate statistics and measure site activity to benefit www.vantagedevcorp.com users. This same information may be shared with third parties in order to provide these services or to analyze, store, or aggregate the information. It may also be shared with other third parties working with us to improve the services of Vantage or this website.

Collection of Your Personal Information

Vantage asks for your first and last name, address, email address, telephone numbers, and other personal information when you create an account online. Additionally, you will be asked for personal information when you make an online purchase or enter contests or promotions sponsored by our partners. This information is used to process your orders and to allow us to communicate with you. It also enables Vantage to customize products or services to better meet your preferences and to offer you products and services from Vantage and other sources that may be of interest to you.

Use of your Personal Information

We use your personal information to deliver services, such as fax bulletins and new product announcements, to alert you to special offers, and to allow you to access certain limited-entry areas of our site.

Sharing of Your Personal Information

Companies may be engaged by Vantage to perform a variety of functions, such as fulfilling orders, assisting with promotions, providing technical services for our websites, etc. These companies may have access to personal information if needed to perform such functions. However, they may only use such personal information for the purpose of performing that function and may not use it for any other purpose.

Vantage does not sell, transfer, or disclose personal information to third parties. However, with your permission, we will, on occasion, send marketing information on behalf of one of our business partners about products or services they provide that may be of interest to you. You may be asked if you wish to receive marketing materials from Vantage’s business partners. If you choose to receive such materials, Vantage will not share your personal information with these partners but will instead send a mailing or email on their behalf.

Compliance with Legal Process

We may disclose personal information if we are required to do so by law or if we, in good faith, believe that such action is necessary to: (1) comply with the law or legal process; (2) protect and defend our rights and property; (3) protect against misuse or unauthorized use of this website; or (4) protect the personal safety or property of our users or the public. Among other things, this means that if you provide false information or attempt to pose as someone else, information about you may be disclosed as part of any investigation into your actions.

Access to Your Personal Information

If at any time you would like to review, update, correct, delete, or request the cessation of further use of your personal information, please let us know by contacting us at the email or postal address listed below.

Security of Your Personal Information

We maintain physical, electronic, and procedural safeguards to protect your personal information from unauthorized access, use, or disclosure. We are committed to ensuring the security of your personal information.

Our Employees’ Responsibility

Our employees are responsible for maintaining the confidentiality of all personal information to which they have access. As a condition of employment, they are required to sign a confidentiality agreement binding them to this responsibility. Furthermore, we keep our employees informed about our policies for protecting personal information and reinforce the importance of compliance.

Use of Cookies

A cookie is a small piece of data sent to your internet browser from a web server and stored on your computer’s hard drive. Cookies can track how and when you use a site, as well as the site you visited immediately before. Importantly, a cookie does not damage your system and identifies your browser, not you. We use cookies to identify which areas of our network you have visited, so the next time you visit, those pages may be readily accessible. If you prefer not to receive a cookie, you can adjust the settings in your web browser. To do this, click on the help section of your browser to learn how to change your cookie preferences. While this provides you with anonymity, it also makes it very difficult for us to offer you customized services.

Your Own Role

You also have a role in protecting the security of your information; for example, you should guard your password and not permit unauthorized use of your account.

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Terms.

The following are the terms of use (the “Terms”) that govern the use of this website (the “Website”). By using the Website, you agree to be bound by the Terms as revised or updated from time to time, including without limitation, the Privacy Policy posted on the Website as revised or updated from time to time, and any other usage guidelines and rules that may be posted from time to time, all of which are incorporated herein by reference, as well as all applicable laws and regulations governing the Website. If you do not agree, please do not enter, or use the Website.

1. Intellectual Property and Permitted Use

Vantage is the owner or authorized user of all intellectual property rights on the Website and all content displayed on the Website. All information at the Website is protected under the copyright laws and other intellectual property laws of Canada and other countries. You may display on your computer, download, and print pages of the Website, provided: (i) the words “copyright Vantage” appears on all material that is so printed; (ii) the information will not be altered in any manner; and (iii) your use of such pages is only for personal and non-commercial use. Other than in accordance with the foregoing, no one has permission to copy, redistribute, reproduce, or republish in any form, any content displayed at the Website.

All trademarks, logos, and service marks (the “Trademarks”) displayed on the Website are registered and unregistered trademarks of Vantage and others and may not be used by you in any way without the express written permission of Vantage or the owner of such Trademark.

2. User Contributions to Website

You are prohibited from posting or transmitting to or from the Website any unlawful, threatening, libelous, defamatory, obscene, pornographic, hateful, malicious, or other material that would violate any applicable law, or otherwise be in violation of the intellectual property rights of others.

Vantage welcomes ideas and/or suggestions for improvements or additions to the Website, all of which will be subject to the Terms. Any and all ideas, suggestions and/or submissions forwarded or disclosed by you or on your behalf to Vantage are made with the specific understanding that: (a) same will not be subject to any obligation of confidentiality or expectation of compensation, (b) any and all rights that you may have in such ideas, suggestions and/or submissions are absolutely waived, (c) you represent and warrant to us that such ideas, suggestions and/or submissions are wholly original with you, that no one else has any rights in and to same, and (d) Vantage is free to implement the ideas, suggestions and/or submissions as it may from time to time desire, without obtaining permission or license from any third party.

3. E-mail Messages and Security

Regular, unencrypted e-mail messages over the Internet are not secure. Vantage shall not be responsible for any unauthorized access to personal or confidential information that is contained in any email or other transmission to us. This Website uses cookies and session variables to personalize content and enhance the user’s experience. This may result in unauthorized access to personal or confidential information. While every reasonable effort is made to ensure that all software provided at the Website is suitable for use on a wide variety of computer systems, you should take reasonable and appropriate precautions to scan for computer viruses and ensure compatibility of the software with your specific computer system. Vantage recommends that you utilize firewall hardware. Vantage cannot represent or warrant that the Website is a secure repository.

4. Availability of Service

The services provided under the Website may be limited or discontinued at any time by Vantage at its discretion and without notice.

5. External Links

The Website may provide links to third party websites, and some of the content appearing on the Website may be supplied by third parties by way of framing, meta tagging or otherwise linking to other websites. Vantage shall not be responsible for any such content or information, nor shall it be liable for any damages incurred from viewing such linked websites, including without limitation, damages caused by computer viruses, Trojan horses or other intrusive, destructive, or disruptive codes which may be downloaded from such linked websites. Vantage does not endorse any such linked website. If you have any concerns in visiting any website that is linked to the Website, please contact Vantage and Vantage will determine, in its discretion, if the link should be removed from the Website. You may not provide a link to the Website without the express written permission of Vantage.

6. Product Endorsement

Any references on the Website to products, services, or publications, other than those of Vantage, do not imply the endorsement or approval of such products, services, or publications by Vantage.

7. Accuracy of Information

Although reasonable care has been taken to ensure the accuracy of the information on the Website, all Website content is provided on an ‘as is’ basis, without any warranties of any kind, express or implied. Content on the Website is for informational purposes only, and is not intended to provide specific legal, financial, or other similar advice, and should accordingly not be relied upon in that regard.

8. Limitation of Liability

In no event will Vantage be liable for any damages whatsoever (including, without limitation, damages resulting from lost profits, loss of prospective economic advantage, lost data or business interruption) arising out of the use, inability to use, or the results of use of the Website, any websites linked to the Website, or the content contained on any or all such websites, whether based on warranty, contract, tort or any other legal theory and whether or not advised of the possibility of such damages, nor for any claim by another party/or parties.

9. Severability

If any provision of the Terms shall be unlawful, void, or unenforceable for any reason, then any such provision shall be deemed severable to the extent that it is unlawful, void, or unenforceable, but shall not affect the validity or enforceability of the remaining provisions.

10. Governing Law

The Terms are governed by the laws of the Province of Ontario and the laws of Canada applicable therein without reference to the principles of conflicts of laws thereof. Any dispute arising from these Terms shall be resolved exclusively in the Province of Ontario by the courts of the Province of Ontario.

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Red Light, Green Light

Across real estate, an increase to borrowing costs means a reduction in operating cash flow, reducing the inherent value of the real estate asset.

It is no surprise then that the demand for investment real estate, including pre-construction condominiums, would compress in a rising interest rate environment. In the case of Toronto’s pre-construction market, the adjustment to demand has been severe - sales were down 71% in Q1 2024 compared to the 10-year Q1 average.

Economics 101 tells us that to increase demand, simply reduce pricing. However, while we have seen a modest correction in pre-construction pricing generally speaking, developers are reticent to discount further. Apart from the obvious implication of a reduction in profits, the rationale is much more nuanced, with far reaching long-term implications for the broader housing market.

Given the surge in pre-construction demand from 2016 – 2021, developers snapped up land to secure a pipeline of future projects. As demand for pre-condominium units seemed endless, new, unexperienced participants entered the development industry, leading to fierce competition for land. Like every asset, as competition and liquidity increase, so too does pricing. Starting in 2018, values for development land exploded. While this was not an issue when condominium prices were increasing, the recalibration of intrinsic land values is now among the leading impediments to finding equilibrium in the pre-construction condominium market. We will explain.

Given the cost of a development project, developers rely on banks to finance construction. To qualify for a construction loan, a developer requires:
1) condominium pre-sales to cover the value of the construction loan and
2) adequate project profitability to provide a margin of safety to the lender.
There are five components that dictate a project’s profitability and its ability to be financed, four of which are completely out of a developer’s control:

  • Sales pricing – needs to adjust downwards to support an increase in demand
  • Construction costs – stabilizing following 5 years of double digit increases however, not coming down meaningfully
  • Taxes – meaningfully increasing at ~20% per annum
  • Financing costs – increasing because of higher interest rates
  • Land purchase – developer has discretion in terms of what they buy; that said, land sellers continue to benchmark values to top of market trades

Without relief in construction costs, taxes, or financing, developers are not able to reduce pre-sale pricing at risk of not securing construction financing. A sold-out building is no good to anyone if it cannot be built.

Going forward, developers are forced to recalibrate what they can pay for land. As can be seen in the chart below, at a high-level, the intrinsic value of development land has decreased by 50%+ in the last three years. Just like we are seeing in the pre-construction condominium market, land sellers are not facing market reality, leading to a drop off in land transaction activity. Transaction volume of high-density land is on track to be 71% lower than the levels seen in 2022.

Logic would tell us that this circumstance is not a welcome outcome for a city that is undergoing one of the most extreme housing crises globally. While we wish we had the power to affect a solution, absent significant government intervention, Vantage is positioning itself to succeed in the context of the current market environment.

Vantage believes that over the long-term, markets are efficient. Given the confluence of tailwinds supporting housing demand across Ontario, Vantage remains bullish on the case for development of new housing. What we don’t know is when the variables at play will re-align to permit sales and construction to resume. We would question anyone who claims they do have this answer.

To that end, Vantage is focused on controlling what we can control, emphasizing the importance of being prudent investors as we pursue new land opportunities. Vantage embodies the adage of “purchase price is permanent, financing is temporary” meaning we are focused on buying land at good prices and finance our investments with a capital structure that is suited to the prevailing market environment.

We are eager to build our pipeline of development projects but are doing so in a disciplined manner. This is a mindset that is core to Vantage’s values and a tenant of how we approach all aspects of our business.