Comments on: Vancouver raises False Creek lease rates 700%

By: Anonymous

Anonymous — Sun, 03 Dec 2006 12:00:00 +0000

If you bought a condo for $100,000 and rented it for $1000 per month you would earn 12% (as long as there are no other expenses). As long as you get $1000/month you always get 12% return, regardless of the value of the property. This is the same as the city. They are still getting the same rate of return on this land based on the original price they paid for it. They not not improved it at all or had any expenses incurred with it, so why are they putting up the rent? Just to force people out?

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By: Chillout

Chillout — Mon, 23 Oct 2006 13:21:00 +0000

Here are a few facts most of your correpondents seem to be unaware of....1. These leases halfway through their 60 year period.2. The lease agreement provides for a renegotiation of the rent after the first 30 years. Note that it is a negotiation - the City does not have the power to unilaterally impose new fees.3. The lease agreement allows for arbitration if the City and the leaseholders cannot reach agreement on new fees.4. No-one has been ofically contacted by the City with respect to the proposed new fees yet. The numbers circulating are taken from City Hall Minutes published on the internet. This thing has some way to play out yet, but most of your correspondents have decided it's already a done deal! How many have actually read the lease agreement with the City?

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By: raconteur49

raconteur49 — Wed, 11 Oct 2006 21:21:00 +0000

Hang in there .. et bon courage

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By: Anonymous

Anonymous — Wed, 11 Oct 2006 16:32:00 +0000

The scary thing is that a real estate agent told us that the lease will not go up by much and then when we called City Hall, they say that they did not know anything and that it would be up to an independent evaluator to decide. I think it's a shame for any new folks who bought in from a previous owner who choose not to pre-pay the lease.In any case, I guess this means that all the property values in False Creek will go for a dive. No Lease or Lease, everyone looses. Now we know how the Olympics are being paid for!

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By: Anonymous

Anonymous — Mon, 09 Oct 2006 10:43:00 +0000

Let this be a lesson. Don't buy leasehold properties sitting on land owned by Salish, UBC, SFU, City or otherwise.

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By: Win Lose or Draw

Win Lose or Draw — Sat, 07 Oct 2006 18:26:00 +0000

I have little capacity for empathy for people who cannot heed loud, long warnings. Believing one has an entitlement to below-market cost is nothing more than freeloading.

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By: Lets Organize

Lets Organize — Sat, 07 Oct 2006 17:02:00 +0000

We paid ~$410,000 for our 2-bed condo, on leased land. The City claims the market value for the land our unit sits upon is $250,000. That means that (hypothetically) if we owned the land (held this condo as fee simple), we should be able to sell it for $660,000. Is anyone out there willing to pay $660,000 for a 2-bed, 1-bath, 1100 sq ft 30-year old condo in need of a new roof?That is ridiculous.

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By: Anonymous

Anonymous — Sat, 07 Oct 2006 11:25:00 +0000

My land rent in False Creek just increased by $10,332 a year. At a 30% tax bracket I now must earn about $15,000 more a year to keep my home in False Creek. At 58 years old I can't earn that much more money per year. My $861 per month increase would pay for a mortgage of about $133,000. My home is now effectively worth that much less!!

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By: Anonymous

Anonymous — Thu, 05 Oct 2006 17:25:00 +0000

These people have had a decade in which to deal with this upcoming issue. They can *not* expect the rates to remain flat forever.The city should offer to spread the increase over two years. This would give the owners a fair chance to pack their bags. There are wealthy buyers and the property is desirable; they'll happily pay the new rate.It'll be win-win: the owners get incentive to sell in a hot market; the buyers go into the deal with their eyes open; the city gets realistic lease rate payments.

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By: Anonymous

Anonymous — Thu, 05 Oct 2006 15:25:00 +0000

"If the city decides to sell the land in 2040 when the leases expire do they need to buy the buildings from their current owners, or can they just tear them down with no compensation since the lease for the land is up?".......................I'd like to know how it works here in Vancouver too.Public housing (known as HDB for short) in Singapore are on 99-year leasehold land. It's generally believed that extension will be given once the lease expires if the structure is still stable, or the building will be demolished, the land title to revert to the State and the condo-occupants to walk away with no compensation.However, these 99-year leasehold condos are priced at around C$120k (1 bedroom) to C$200 (3 bedrooms). Luxury condos built on private freehold land are around C$400 - x,xxx,xxx.00

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