What roll for developers in affordability debate?

Often when it comes to real estate stories in the local media the people interviewed are developers, marketers or realtors. These are all professionals who deal with the market every day, so it makes sense for the media to seek their opinion on housing stories.

But should they be driving the ‘affordability’ debate?

Architect and professor Avi Friedman thinks not.

“Builders will not initiate innovative ideas because they are profit motivators, so the city needs to act as a catalyst,” he told CBC Radio One’s Rick Cluff on The Early Edition.

Friedman also criticized the idea offered by many in the real estate industry, like marketer Bob Rennie, that Vancouver isn’t going to be affordable for everyone and that young people should consider moving to the suburbs.

“People who grew up and live in a city should be able to buy a home in their city. The fear is that, some of these young people may leave Vancouver,” Friedman said.

“Once you see the departure of young people from the city, they take along their potential … to start new businesses, to create a vibrancy that young people bring to a place.”

Friedman says it is incumbent upon the city and its leadership to foster and implement new ideas that will allow young people to stay and thrive in Vancouver.

Read the full article over at the CBC.

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UBC in crisis mode
Guest
UBC in crisis mode

Right, let the tobaco company make “smoking laws”.

chilled
Member
chilled

It’s complete foolishness to think that “young people may leave the city” will have any negative impact. This is what the well crafted Canadian Immigration fiasco is all about. I help new Canadians and TFW’s in language training in a mutual arrangement to learn their languages. I work in a highly skilled ‘in demand’ occupation. I also know for every one “Canadian” who may leave, there are 100’s waiting at the gate to take over, most of them as highly skilled if not more so AND willing to work for less. My point? Please loose the “young people will move away” rhetoric, it’s tiring, it’s irrelevant and our masters are winning the class war. Pay fucking attention.

chilled
Member
chilled

It’s complete foolishness to think that “young people may leave the city” will have any negative impact. This is what the well crafted Canadian Immigration fiasco is all about. I help new Canadians and TFW’s in language training in a mutual arrangement to learn their languages. I work in a highly skilled ‘in demand’ occupation. I also know for every one “Canadian” who may leave, there are 100’s waiting at the gate to take over, most of them as highly skilled if not more so AND willing to work for less. My point? Please loose the “young people will move away” rhetoric, it’s tiring, it’s irrelevant and our masters are winning the class war. Pay attention.

vangrl
Member
vangrl
vangrl
Member
vangrl

Fookem

From your last post…

Great idea to tax Capital gains but to be able to write off mortgages. That would help those that actually live here and file taxes, while deterring investors.

Still think the gains tax for investors should be greater than locals though. We should be taxed as Capital gains, and they should just be taxed at our highest income tax rate… 47% ?

Egg Hunt
Guest
Egg Hunt

>Chilled

Hard working immigrants, I am one of them.
But I can see by my own eyes, Vancouver has become less and less attractive due to immigrants from third world countries.

Neighbourhood park empty in sunny days, on the other hand, shopping mall packed with full of immigrant families, food court serves crappy expensive food, people’s passtime is always shopping and dining out, shopping and dining out, and of course talk about real estate.
Family and kids, money, and shop and dine out, repeat.

Play House Theatre & QE Theatre = never been updated since ’70s,
just sitting next to a million dollar 1BR condos.
Ugly “Au” night club on Seymour street (Asians’ favourite), Robson street = vertical surburb, just ugly ugly and ugly everything get.

Oracle
Guest
Oracle

Patriots still reads this blog. He just feels superior to us at this moment by not posting.

Got to be careful of those with vested interests. Garth is outed now if you look at the negativity in the comments section.

patrios
Guest
patrios

At least at last Patrioz started crunching some numbers in today’s post. Something doesn’t make sense but still no courage to say who’s buying.

Average family ain’t buying, so who’s buying ?

“If the average 416 detached is $1.15 million, a new buyer not bringing big equity to the table would need 20% down and enough for closing costs (land transfer tax along is $38,500). That’s cash of $270,000. The mortgage would be $920,000, cost $5,100 a month (at just 2.8%) with property tax and require an income of at least $185,000.

So, the average family ain’t buying the average detached home. In fact, this is more than double the income of the typical GTA household, even ignoring the fact most people don’t have three hundred large saved up. “

fookem
Guest
fookem
Forgive me for the repost but this needs to be said Here is the problem. Our city like many others in the world has become the recipient of hot corrupt money from some of the biggest sharks in the world. In some countries like Singapore or Australia or the Uk, the central Government has taken control and tried with varying success to impose some control on this money which is destroying communities. In Canada the Government in Ottawa could not care less. So it is left to very mediocre politicians like Clark, Rich and Robertson who have never dealt in International business and really have no idea how to respond to this. They feel the frustration of locals but haven’t a clue what to do. The suggestion from Robertson on a speculative tax is just such evidence of this impitence.… Read more »
@9
Guest
@9
Great post. I would add that a lot of procedures in Canada are based on trust and self disclosure and are unprepared to handle the “creativity” of “investors” who know how to game the system. Loans from (Canadian !) banks to show funds to qualify. Entering through Quebec with no intention of residing there. Satellite families living in $2M+ houses applying for all benefits for poor families. Bypassing the Fintrac and chinese cash limits. Richmond malls that handle all in cash while keeping the registers open. Professional immigration agencies grooming the origin of the funds and documentation. and so on. We need a level play field, it has nothing to do with race but is all about fairness. As CRA says: The vast majority of Canadians pay their taxes. In fairness to all those law-abiding citizens, the CRA conducts compliance… Read more »
lomi
Guest
lomi

Looks like PeteMcMartin was also outed and did G. solution by deleting all comments yesterday.

lomi2
Guest
lomi2

American friends always tell me it pays to get a mortgage because it’s deductible. They’re really surprised when they find out that it’s not the case here. I would really support that proposal and would benefit everyone.

vangrl
Member
vangrl

#11

Are you talking about that Sun article?

I just noticed that all their Real Estate articles, or a few that I read in the last week, with lots of comments, are all missing the comments now.

weird

fanaticallybroke
Guest
fanaticallybroke

I would say that 80+% of homes over $2.5 M are now bought solely by HAM from one geographical source.

Shut It Down Already
Guest
Shut It Down Already

And why would you say that?

soloho
Guest
soloho
fanaticallybroke
Guest
fanaticallybroke

@16. These deniers will continue saying this , like Garth , until there is nothing left to sell. an then like rennie they will say…ah well, too bad. Now give up any hope of owning a home and move into a littlel box which i will sell you.

w
Guest
w

Gregor Bethune Robertson has no intention of doing anything. Rennie is just pulling his strings trying to get Bethune to pacify the rabble.

I wish UBC hadn’t rejected his application to medical school. Then we may have had a real mayor.

Egg Hunt
Guest
Egg Hunt

How about also making rental cost tax deductible?
Renters are often working citizens and this will reduce
rental income cheat dramatically in this city.

space889
Guest
space889
@vangrl – you are showing your short sightness and stupidity with every post like #5. Rental income are already taxes as regular income. If you tax investors even more, it would simply mean higher rents which I’m sure you would be happy to pay. Or smaller units by developers who cater to investors. Or even simpler tax avoidance method like using companies to buy RE like it is done for large RE transactions to avoid the property transfer tax. All you are doing is ending up reducing supply and/or increasing costs to renters. Investors who buy and rent out the units aren’t the problem here. It’s the speculators and hot money who buys with the intention to either move the market or leave them empty that are the issue. Frankly, I would encourage more RE building, more investors, and more… Read more »
space889
Guest
space889

@Shut It Down Already – I guess it is better than facing the fact that he’s a total failure???

It’s always easier to blame others when really you are the problem.

southseacompany
Member
southseacompany

“Could interest-rate hike cool B.C.’s real estate market?, Vancouver Sun

http://www.vancouversun.com/business/Barbara+Yaffe+Could+interest+rate+hike+cool+real+estate+market/11106135/story.html#ixzz3c4g5054Y

“If the Conference Board is correct in its latest prediction, things could become interesting in B.C. next spring. Not “good” interesting. “Scary” interesting.”

““We believe the Bank of Canada will begin raising (interest) rates in March 2016,”a new report from the Ottawa-based economic think-tank says, predicting slow and gradual rate increases thereafter.”

“The bank will be pressured to act in response to “inflation pressures (which) will begin to brew early next year.”

“Clearly such a scenario could hit hardest in B.C. where home buyers have taken on big mortgages to deal with stratospheric property prices and where a low interest rate environment has added kindling to a red-hot housing market”

“Mantin believes interest-rate hikes would trigger “a deflationary impact on house prices in the Lower Mainland.”

southseacompany
Member
southseacompany

” Interest rates: the musical – video”, The Guardian

http://www.theguardian.com/business/video/2015/jun/04/interest-rates-the-musical-video

“Ever wondered what monetary policy would sound like if it was a piece of music? No? Well, here it is anyway: 70 years of interest rates ups and downs, with one month represented by one beat, and quarter-point changes given by semitones. The sound reflects the sobriety of the postwar era and the volatility of boom-and-bust before resolving to a funeral dirge following the crash. It’ll grow on you”

patriotz
Member

Vancouver mayor pitches affordable housing idea

Vancouver Mayor Gregor Robertson is calling on the province to increase its property-transfer tax on the most expensive properties and invest the proceeds into affordable housing.

He makes the pitch in a newly disclosed letter to B.C. Premier Christy Clark, where he also asks the province to give municipalities more power to track property ownership and ensure the timely occupancy of vacant units.

The May 22 letter, released Wednesday by Mr. Robertson’s office, also proposes a speculation tax to discourage the quick resale of new housing. B.C. Finance Minister Mike de Jong publicly rejected that idea four days later.

Which confirms what has already been said here. If you want anything to happen on this front, the current provincial government has to go.

say whaaaa?
Guest
say whaaaa?

@24

a) We have regularly scheduled elections.
b) Who would do better in power?

Go away.

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