The City wants to drive down the price of your condo

Got an investment condo or two? It might be a good time to sell because the City of Vancouver has just unveiled it’s plan to drive down property prices and rents.

In a plan that goes before council today, the city proposes to provide $42 million in land and capital grants over 10 years to create 38,000 new affordable homes, including 7,900 supportive and social-housing units, 11,000 market rental units and 20,000 new condo and “ownership” units by 2021.

Coun. Raymond Louie said in an interview that strategies may include:

• A “rent bank” where tenants facing eviction for not paying their rent can apply for either a loan or a grant, which is then paid directly to the landlord.

• Long-term leases, where the city maintains ownership of the land, which is leased at preferred rates for a defined term but is always owned by the city.

• Units that have fixed limits on the profits that homeowners can make when selling, which would end property speculation; any rise in property value beyond the set limit could be directed to the city for other social-housing projects.

• Limits to the profits that developers can make on the land speculation in projects; special consideration for a project’s approval may be based on the developer making a lower profit.

• Increasing co-op ownership and rentals, where a financial institution or the government makes the initial outlay of cash and is repaid over a long period of time.

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Josh771
Josh771
9 years ago

@Devore: This is actually terrific for landlords. They'll get paid! But it pretty much sucks for everyone else though… The tenant will face huge interest fees, and chances are they won't be able to pay and have to default on their loan (COV takes the hit?). The rent bank has to be a quick process too, if one is facing eviction in BC (don't know about ON), it's a matter of weeks until you get booted for non-payment. By the way, there is no rental assistance, it's actually called social assistance or welfare — which is another fantastic tool in BC landlords' toolbox. For years now the BC govt has setup direct deposits into landlords' bank accounts as rent payment on behalf of their clients (the welfarites). It's pretty amazing, the deposits go out a week or two before the… Read more »

keeperofthederp
9 years ago

@fixie guy:

fixie i completely agree with you – that is the plan

Li Kai Shing
Li Kai Shing
9 years ago

This blog taken over by Basement Suite Commmies

I tell my countrymen….they will all sell RE holdings at 50% haircut…even do shorthairs….then go back to great Bethune/Mao capitalist paradise in Mainland China !

ReadyToPop
ReadyToPop
9 years ago

Housing Market Insights – A Rentership Society

Interesting report by Morgan Stanley

Li Kai Shing
Li Kai Shing
9 years ago

I evict West Van.

Enough is enough.

Plicks

BTW Mayor Gregor is relative of Dr Bethune…is he not? …..who helped Chairman Mao turn China into the great capitalist state for the last 60+ years ….and thus avoid communism….right ?

Thus, Vancouver, coincidentally overtaken by same Mainland hordes , will be a mirror of the great Mao story…..so WT4Q is your problem?

Rise up as you bend over.

paulb.
paulb.
9 years ago

Final numbers for the day:

New Listings 255

Price Changes 105

Sold Listings 139

Wtfruk
Wtfruk
9 years ago

Larry is really Romeo Jordan you catsuckers

Best place on meth
Best place on meth
9 years ago

@Girlbear:

If Larry no longer has time to post stats then I no longer have time to visit his site.

BDK TROLL
BDK TROLL
9 years ago

What about eliminating property tax? This CITY is a money making shop to rip off home owners,condo owners,and car owners by thrownig flood of tickets by unnecessary work force and bankrupt look a like Strata corporations.Mayor Robertson is from the east that's why he had a plan to kill the west.Why cursing third world and china for corruption when corruption here is legal?.Vancouver is Business prone area surrounded by Banks,Mall,City,Developers,and Lawyer and Stock advisers like PATRIOTZ .All of us are being rip by at least one of them,for everything else,there is master card and visa card.people are being executed by debt eliminators.

Runawayscreaming
Runawayscreaming
9 years ago

Re Vancouver Sun: "The reports of my bubble are greatly exaggerated"

http://www.vancouversun.com/business/Housing+bubb

Robin Weed is a good example of why it's a bad idea to take LSD and Screech 'n Pepsi and then type articles for the Vancouver Sun.

Interestingly the photo in the article is the the former home of my boat at the Granville Island Marina, which unlike the Civic Marina on the left, is controlled by non other than the Canada Mortgage and Housing Corporation. I got into a huge fight with CMHC when they decided to favor the sleazebags at one of the power yacht dealers by encroaching on the water rights of the non-polluting, non-douchebag boats paying for moorage at Granville Island.

When CMHC isn't screwing ya on land they're screwing ya on the ocean. Bend over Vancouver.

Manna from heaven
Manna from heaven
9 years ago

Sorry, that Sun article was from me.

Girlbear
Girlbear
9 years ago

Read the comments section…LOL !!

http://www.yattermatters.com/2011/07/vancouvers-p

patriotz
9 years ago

@Anonymous:

God what claptrap. No mention whatsoever of value, i.e. rental yield, price/rent, or ownership costs versus rents.

Just bumpf about the burbs being "more favourable to buyers", as if buyers didn't always determine market prices everywhere.

Anonymous
Anonymous
9 years ago

Did you see this in today's Sun.

"Housing bubble fears over-inflated

Savvy shoppers can still do relatively well in Vancouver by searching for the right unit in the right location"

http://www.vancouversun.com/business/Housing+bubb

So as long as I don't want to buy a single family home in the city of Vancouver then Vancouver isn't too expensive. Got it.

Robin Wiebe used to be a mouthpiece for the CMHC.

Wtfruk
Wtfruk
9 years ago

Wtf u nailed it this MIT is fucked

Paulb thx

patriotz
9 years ago

@Patiently Waiting:

Well for starters the most recent residence of many homeless wasn't in the City or even the metro in the first place.

Also many homeless previously resided in some kind of institution or were not formally the tenant at their most recent residence.

I simply don't think intervening in evictions for non-payment of rent is going to make much of a difference.

Patiently Waiting
Patiently Waiting
9 years ago

@patriotz: Some how did they become homeless?

I've volunteered with the homeless and they usually had a place to live that they had to leave for some reason. Maybe landlord eviction, co-tenant eviction, fleeing a bad relationship or bedbugs (yes bedbugs is becoming an increasing cause). A few come here homeless, but most had a place to live here at one time.

I strongly believe this is an attempt to prevent homelessness. If the city believed that evicted people always find another place to live, why intervene?

paulb.
paulb.
9 years ago

New Listings 167

Price Changes 73

Sold Listings 84

TI: 16331

http://www.laurenandpaul.ca

patriotz
9 years ago

@Patiently Waiting:

Now the burden will born by landlords.

As I've said, the City has no power to prevent landlords from evicting people who are behind on their rent. The only thing it could do is simply to pay the rent for them, which I seriously doubt the City would end up implementing.

Also I have a feeling that only a small fraction of the homeless are people who got evicted from rentals in the City (or even the whole metro) anyway.

WFT?
WFT?
9 years ago

The market is at a top.

The speculators will go plop

In their pants as they they panic.

The carnage will be no picnic

The local economy will in the dump

There will be no assets left to pump.

fixie guy
fixie guy
9 years ago

@19 Troll: I've been ranting about it for years, the feds used low interest rates and the CMHC to create a phony economy based on housing. It, along with the help of a truly spectacular self-immolation by the left, finally got them their majority. Prediction: rolling back the stimulus and rolling in the fiscal pain will give them leverage to take on the social safety net, European free trade, and a pile of other business friendly, people unfriendly core beliefs with, they hope, time to spare before the next election. Kiss the Canada you knew goodbye.

curious lurker
curious lurker
9 years ago

@Girlbear:

Seems like Larry has stopped posting daily numbers??

Perhaps when the lipstick loses its effectiveness, one must hide the pig.

Girlbear
Girlbear
9 years ago

Seems like Larry has stopped posting daily numbers??

Patiently Waiting
Patiently Waiting
9 years ago

@Patiently Waiting: I meant "will be borne" 😛

Girlbear
Girlbear
9 years ago

Got an advert in the mail today for latest phase of Ravenswood development in North Van. Condos are to be completed by summer 2012 and start at $299k. So I checked MLS. Currently there are 37 condos listed for sale in Ravenswood! (earlier phases) – asking prices starting at $269k. Why would I pay > 10% more to wait until summer 2012? (If they are lucky and on time).