Leaky condo crisis rears its wet ugly head again

If you’ve been in Vancouver for a while you might remember the ‘leaky condo crisis’.

That crisis peaked about 15 years ago, and its still a common site to see condo buildings under tarps.

Unfortunately there are some reports we’re not out of the woods yet on building maintenance and construction quality.

This article in the Vancouver Sun talks goes over the crisis and how many moist condo units may still be out there.

In response to the last round of the crisis, the government introduced a new requirement for depreciation reports on strata property.

However, stratas have the option to exempt themselves from the requirement by agreement of three-quarters of their members.

Gioventu said that provision was put in to accommodate commercial-property stratas or strata-ownership arrangements on bare land where owners build their own homes and have no common services.

He said there there is no doubt some older residential strata corporations are exempting themselves because they know a depreciation report is “going to give them an ugly picture,” but the market is going to catch up with those situations when banks refusing financing on sales without the reports.

Gioventu said if there is a common theme, it is that “strata corporations have not been maintaining their buildings,” which is evident in problems that are cropping up with building decks and balconies, roofing systems and windows.

If you’re shopping for a condo how important is a depreciation report to you? Are you concerned about the history of leaky condos in Vancouver?

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Flip Flop2
Flip Flop2
6 years ago

Lol. “Risk pays”. What an asshat.

What’s the other side of the equation Jerk-off?

Where do we find these morons?

dan
dan
6 years ago

#51 blah-blah…

Talk is cheap mr blah….you selling? I did,twice,in the last 8 yrs.,
and happily renting!(very happy). Another owner spewing my house is
worth blah-blah-blah…no its not,unless you sell… and stay out of
this soon to be catastrophy!

cheers, dan

blah-blah-blah
blah-blah-blah
6 years ago

@50 Yes. US$1.67 or US$0.60, making extra money on the violent ride in equities, currencies, commodities, and rates going every which way as rats zig and zag from the sinking ship will take more skill than making one trade and hanging on for dear life.

Every renter on this blog is a master/trader investor EXCEPT for missing the once-in-a-generation home run that was staring them in the face when all they had to do was plunk down 5% on any old-timer in Vancouver over the last 2-3-5-10 years.

The best advice is to stop pretending and understand that risk pays.

Mark to cache
Mark to cache
6 years ago

@49, Those with debts of any kind are going to have a very hard life for the bargain when government loses control of rates. Those that keep their powder dry will still be better off than any starting with same money who were fooled by debt slave establishment politicians and their media shills.

Yes. US$1.67 or US$0.60, making extra money on the violent ride in equities, currencies, commodities, and rates going every which way as rats zig and zag from the sinking ship will take more skill than making one trade and hanging on for dear life.

Oracle
Oracle
6 years ago

Mark to cache:

With all due respect, you are missing one thing.

The people in charge of Canada are going to obliterate the Loonie.

60 cent dollar (USD).

The masses won’t know what’s going on. Like they don’t know now.

George
George
6 years ago
NIMBY KING
NIMBY KING
6 years ago

There are three houses racing to be completed on my block alone.
Two are going to be duplexes. Seems to be the new thing.

I remember last year the McMansions just sat forever, smart of them to split them up.
I would guess they would go for 780 each. The white people are going to eat them up.

Mark to cache
Mark to cache
6 years ago

@36. Exactly. https://businessincanada.com/2014/05/29/janet-yellen-controls-canadas-housing-market-federal-reserve-rate-hikes/ There is a vast majority of deluded fools in Canada who think Canadian institutions are in control – that their job and future mortgage payments funded by that payroll are insulated and certain. This vast majority has got to be the most naive group in the entire world. They’re like some sort of hapless imbecile walking along whistling a tune on a sidewalk with every manner of overhead precariously dangling contruction block, cartoon anvil, and suspended piano waiting to squash them. Look up “financially oblivious moron” in a dictionary and there should be a picture of a typical clueless, hockey obsessed, Tim Hortons coffee drinking idiot from Canada. The good news is this should soon be over with. Janet Yellen was chosen because she’s the dumbest janitor they could find to preside over a trapped Federal Reserve… Read more »

Best place on meth
Best place on meth
6 years ago

Bill C-24: The anti-Ham act is in the books. #30 I wonder how many of the Communist Chinese Mainland “Naked” Officials’ families live in the Lower Mainland? Now this is an interesting dilemma for the corrupt cadres living in our city. “The Guangdong Communist Party Organisation Department has ordered its branches across the province to investigate how many officials’ immediate families have emigrated. All “naked” officials – including department heads – should either ask their families to return to the country or be moved to less sensitive positions. Before transferring these officials to other posts, the organisation department tries to persuade them to have their wives or children return from overseas. However, some “naked” officials did not understand the thinking behind the campaign or their families did not agree to return, said Si Qi, vice director of Dongguan organisation department.… Read more »

Snake
Snake
6 years ago

For sale ‘Star Trek’ space mansion for $35 million

http://www.youtube.com/watch?v=x21j0Jr6PoA

Barb Rennie
Barb Rennie
6 years ago

T Says:
May 29th, 2014 at 5:17 pm

Bill C-24 just passed yesturday.

I read the article, but I am not familiar with the existing citizenship laws to know the significance of this.

T
T
6 years ago

Didn’t see this posted yet. But since we’ve been we’ve been the HAM topic to death a thousand times:

http://openparliament.ca/bills/41-2/C-24/

Bill C-24 just passed yesturday.

Joe Mainlander
Joe Mainlander
6 years ago

@ #40 Gordholio.

Actually, Cam Muir said that “the impact of offshore investment in Vancouver’s market is grossly exaggerated”. Which is pretty much what you said in your Cam Good rebuttal piece in the Sun back in 2011. Muir’s more on side with you than he is with the yellow peril realtors like Good.

The front-page agit-prop is good, as psycholgy is a factor. But, the fact is people buy houses because … they can. And that is why prices (and debt levels) are sky high.

gordholio
6 years ago

Surprisingly, I didn’t see this posted here already, so I might as well mention the front page of today’s Province asks the question “Vancouver Real Estate: Is the Bubble About to Burst?” It’s a seriously sensational/sensationalistic front page that’s bound to incur the undying wrath of the paper’s real estate industry overlords. Even the wording so much as admits there *is* a bubble, which, for media in this city, is stunning in itself. That their graphics department went to work to paint the sky above the giant house in the middle of the page as a Chinese flag only adds to the impact. The article on page A4 focuses on Ian Young, who, as usual, speaks common sense, and the “investor program.” I haven’t even read the entire yet because I don’t need to see the lies Cameron Muir et… Read more »

tedeastside
tedeastside
6 years ago

vancouver….the tiny backwater city that thinks it matters

mac
mac
6 years ago

http://www.theborneopost.com/2014/05/29/golden-era-for-chinas-property-market-over/

Whereto next for the hot money? That’s the 64,000,000,000,000,000,000 question.

mac
mac
6 years ago

Heard herd,

Do you make up everything you post?

Melba
Melba
6 years ago

….“Canadians are just buying too much house,…..”

I suspect Canadians are buying the same or less ‘house’ than they always did, they’re just paying a lot more now.

squeako
squeako
6 years ago

Original question: “If you’re shopping for a condo how important is a depreciation report to you? Are you concerned about the history of leaky condos in Vancouver?” How important? VERY important. Concerned with history of leaky condos? Yes. Absolutely. Need one to give a reason? Ok.. : 1) Health 2) Health of my finances. To add to this: Condos and other housing is over priced in Vancouver for me as I am a Canadian wage earner that pays every bit of tax owed and am not using the system unless absolutely necessary, which has not happened yet as I am a fiscally responsible person (learn to live within means: ie driving an old beater with outmost respect for its engineering, very mindful of what I eat, residing in a modest accommodation, let the fashion belong to those with no bigger… Read more »

LL
LL
6 years ago

That’s because they hide it all in Vancouver.

Loon
Loon
6 years ago

always fascinated by the number of millionaires per capita per city, hint it ain’t China that’s winning:

http://www.economist.com/blogs/graphicdetail/2013/05/daily-chart-7

M-
6 years ago

My first comment about the lady realtor whose condo went leaky, is that she’s owned the place for 19 years. 19 years!

Not only that, but 19 years of declining interest rates! Every time she’s renewed her mortgage, if she stuck to the original 25-year amortization schedule, her payments have fallen.

Unless she’s been using her condo as an ATM, her mortgage should be almost completely paid off, and with the declining interest rates, she should be into the few-hundred-dollars-a-month level of payments.

My assessment:
1) She’s been using her home as an ATM.
2) She’s not very successful as a realtor.

Bo Xilai
Bo Xilai
6 years ago

I wonder how many of the Communist Chinese Mainland “Naked” Officials’ families live in the Lower Mainland?

http://www.scmp.com/news/china/article/1521055/naked-party-officials-whose-families-live-abroad-demoted-under-anti-graft

mac
mac
6 years ago

Banks to 1st time buyers: We’ll hook you in with a low rate now, even lose a bit of money on it, but when rates go up we’ll really have you.

Newbie buyers to banks: OK.