Paying off the Olympic Village debt

Frances Bula has a good summary of the current state of debt on the Olympic Village.

The City of Vancouver hasn’t made it terribly easy to find out where we are in terms of paying for that mess, but with a little sleuthing it would appear we’re actually making good progress to pay off the $750 million construction loan the city took out.

Just $300 million left to pay on that debt.

Both Mr. Meggs and city manager Penny Ballem say it’s impossible to predict whether the remaining 181 condos (as of Dec. 31, 2012) and transferred Millennium properties will do more than cover the last $300-million of the outstanding debt (that figure was $462-million at the end of 2011).

If so, the remaining $171-million the city expected to get from Millennium for the land will never materialize.

So the city may never see any money for the land the Olympic Village was constructed on but hey, look at that beaver!

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jesse
Member

The waters are muddied because of the units rented and leased out, and weren’t sold. Trying to get the bottom line on this sad tale is tricky, though I think if you dig through the comments on Bula’s blog from 2009 you’ll see how accurate VHB’s comments around that time have been.

Pdub
Guest
Pdub

One thing I have been wondering. Why do all of Rennie’s other projects sell out instantly while sales here lag?

chilled
Member
chilled

Typical Vancouver Beaver; In a world of its own, oblivious to those around it. It probably is also wearing LuLu Lemon and has herpes.

Joe Mainlander
Guest
Joe Mainlander

@ Pdub

Because Oly Village per square foot prices are higher. Higher than projects just across the street.

southseacompany
Member
southseacompany

I was on a tour of the OV back in early ’09 while it was under construction. It was hosted by Rennie’s son and a City official. The City official explained that they needed to get an average of $1000/sf. At that time they had stopped selling units and were waiting for the market to return. The City official seemed quite confident that they would eventually sell at those prices. Well, the market did pick up after that, but not to the $1000/sf level.

painted turtle
Guest
painted turtle

http://vancouver.en.craigslist.ca/van/apa/3703284954.html

Executive massive home, not even built, already renting the basement.
Proud to be next to … Tupper Secondary and NoFrills…
Something weird?

Many Franks
Guest
Many Franks

Household (non-mortgage) debt and available credit both rose in Q1 over last year by 3.9% and 4.4% respectively.

http://www.theglobeandmail.com/globe-investor/personal-finance/mixed-signals-as-consumer-debt-edges-higher-defaults-drop-equifax/article11517117/

Still above inflation, so still digging a deeper hole. And Mark Carney will continue his impotent haranguing until his departure.

bird-man
Guest
bird-man
Yellow Helicopter
Guest
Yellow Helicopter

For any Vancouver Island VCI-ers – or anyone else that is interested:

Complete list of central Vancouver Island foreclosures – everything outside of Victoria. Includes every foreclosure that is listed on the MLS.

Password is “foreclosure.” You don’t need to register to access the listings, and there are almost 30 pages of them. Hat tip to the realtor who produced this; John Cooper.

http://islandlifestyle.ca/resources/private-access-foreclosure-lists/?utm_source=John+Cooper+Clients+%26+Leads&utm_campaign=c186f7b287-John_Cooper_s_Island_Real_Estate_Update7_26_2010&utm_medium=email

bird-man
Guest
bird-man

WHO says new bird strain is “one of most lethal” flu viruses… transmits more easily to humans

http://news.yahoo.com/says-bird-strain-one-most-lethal-flu-viruses-072106064.html

jesse
Member
Look who’s talking: http://www.rebgv.org/news-statistics/real-estate-board%E2%80%99s-message-election-help-reduce-ptt The REBGV has launched a campaign to raise voter awareness of the need for the next government to reduce the PTT. “Our goal is to send a strong message to this year’s candidates that it’s long overdue for government to reduce the burden of the PTT on home buyers,” Sandra Wyant, REBGV president said. To support this campaign, people can “like” our Facebook page at facebook.com/helpreducetheptt. To learn more about the PTT and its implications on BC home buyers, visit helpreducetheptt.ca. The province introduced the PTT 26 years ago. It was structured to add 1 per cent on the first $200,000 of the purchase price, and 2 per cent on the balance. The government of the day touted the PTT as a wealth tax, as just 5 per cent of homes in Greater Vancouver sold for… Read more »
Mr Qwality
Guest
Mr Qwality

Hello, I’m running in the next election. I promise to Reduce the prices of all housing below 200,000 and the PPT issue magically goes away.

Ford Prefect
Guest
Ford Prefect

Yellow Helicopter: #9: Much appreciated! I am in Comox Valley, land of deaf and blind. Can’t believe anyone would downvote – realtors perhaps?

Thanks Foreclosure List
Guest
Thanks Foreclosure List

As a former Vancouverite who recently moved to Mill Bay, I am appreciative of that foreclosure list. I have been watching some of the properties here, just out of curiosity, and I am glad to see some of these places go under. I thought the Island was delusional, just less so than Vancouver. However, when looking at list prices and assessments, coupled with inventory, I would say sellers in Mill Bay are still delusional. There are several 900k homes, and some are listing 250k more than there assessment.

While admittedly a great community, its a bedroom community, and the prices are not justified.

Peterprinciple
Guest
Peterprinciple

My take on the Olympic Village is that a lot of material and labor costs were diverted to other “legacy” construction sites. Since the Olympic Village was to be sold, all losses would be written off. While Vancouver tax payers will most likely take a loss on the Village they make up for it in other public complexes that would never have been built otherwise. You don’t have cost runs of this magnitude without some “creative” financing.

Yellow Helicopter
Guest
Yellow Helicopter

Must admit, I’m curious as to all the downvotes on the foreclosure offering.
Is it because I mentioned that it was the work of a realtor? If someone produces something that obviously took a bit of effort, it deserves a small acknowledgement. Thought this crowd was better than that.

patriotz
Member

“Our goal is to send a strong message to this year’s candidates that it’s long overdue for government to reduce the burden of the PTT on home buyers,” Sandra Wyant, REBGV president said.

You mean enact policies that will lead to lower RE prices? Guess not.

And anyway, as Sandra well knows, PTT is borne by sellers (and by RE agents who are paid a commission by sellers). Not buyers.

Devore
Member
Devore

“While Vancouver tax payers will most likely take a loss on the Village they make up for it in other public complexes that would never have been built otherwise.”

Such as? And how much public money will they take to operate and maintain over the next 20 years?

Short'em High
Guest
Short'em High

@Yellow Helicopter#9.

Those PDF’s, once converted to a loadable format, could make a wonderful price model – one that is completely independent of the MLS HPI. Given those are all foreclosures, it also puts a total dollar value banks stand to lose when prices accelerate downward. To a hedge fund specializing in wrecking banks for fun and profit, the only thing missing from those data is the lender. Thanks for posting!

These questions are to those knowledgeable about MLS access software. (1) Is the PDF layout presented in those foreclosure catalogs standardized by the MLS access software? (2) Is there an option in the MLS access software to get the same fields as a plain text file which puts the various property description fields in a sensible order?

@Yellow Helicopter
Guest
@Yellow Helicopter

stop being a cry baby.

Anonymous
Guest
Anonymous

@patriotz

And anyway, as Sandra well knows, PTT is borne by sellers (and by RE agents who are paid a commission by sellers). Not buyers.

Are you sure about that? I thought it was the purchaser who paid it.

patriotz
Member

PTT reduces the nominal price of the property because the marginal buyer pays as much as they can qualify for and that amount includes PTT on top of the nominal price.

If PTT were eliminated prices would simply go up by the amount of the PTT. That’s what I mean by the saying the tax is borne by the seller not the buyer.

Yellow Helicopter
Guest
Yellow Helicopter

Sorry all, spoke a bit too soon on my second post. At the time of writing that, I had more downvotes on my first post than upvotes. There must be bulls consistently refreshing the VCI page, waiting to pounce!

I See Dead Sheeple
Guest
I See Dead Sheeple

Looks like the Canada-Hong Kong tax treaty is set to take effect this year. Hopefully this will be the death knell to the HAM jet set families who’s breadwinner will claim zero income to CRA. Meanwhile his wife, kids and sometimes parents can shamelessly sponge off the social safety net tenously held together by the Canadian tax payer.

Not to mention the owners of those empty condo littering much of Vancouver. Could their name on title of their box in the sky finally leave them vulnerable to the Canadian Tax Man?

http://www.cbc.ca/news/business/taxes/story/2013/02/19/f-tax-season-2013-foreign-income.html

patriotz
Member

“Looks like the Canada-Hong Kong tax treaty is set to take effect this year. Hopefully this will be the death knell to the HAM jet set families who’s breadwinner will claim zero income to CRA.”

That’s so 1980’s. Are there really a significant number of HK astronauts any more?

As for the PRC proper, note that we’ve had a tax treaty with them since 1986. That’s done a lot of good hasn’t it?

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