Archive for the ‘supply’ Category

Is Vancouver lost without a Compass?

Thursday, October 30th, 2014

In Vancouver everything is about real estate.

Yes, EVERYTHING.

Even that bus you take to get to your weed dispensary before yoga class.

Thats why it’s so disappointing that our world class fare gates are still not working.  This is the system that was supposed to be ready in 2008 but has been delayed over and over again. It’s a $194 million dollar solution that isn’t quite a solution yet.

Once in place this system should put a stop to fare evasion which is currently estimated to be a loss of at least $10 million per year. Well, hopefully it’s at least $10 mil per year, since we’ll be paying $12 million per year for operating costs once the system is working.

Fortunately this is all happening in Vancouver which means whether the transit system is losing money in fare evasion or through operating costs it can always make that money back in real estate.

Historic accord splits control of properties

Thursday, October 2nd, 2014

They’re not making any more land, but we still seem to be finding some to build on.

The 21 hectare Jericho lands in Point Grey is part of an agreement to split control of three Vancouver properties between a crown corporation and three First Nations – the Musqueam, Squamish and Tsleil-Waututh Nation.

David Eby, MLA for Vancouver-Point Grey, said he was heartened to learn that a deal had been made regarding the Jericho Lands.

“There had been a lot of people in the community, myself included, that believed this land would be tied up in negotiations – potentially in court – for many years,” he said. “There’s a very clear and well-established traditional use of this land by First Nations. They were certainly entitled to it and it sounds like they received a fair share of their lands. It was certainly a surprise to hear that it has happened at all, let alone so quickly.”

Mr. Eby said the significance for the community he represents is that development will proceed faster than many anticipated.

“I would not be understating it to say that many members of the community that are neighbours to this property are incredibly concerned about the type of development that could potentially be located at this site,” he said.

“I can tell you everybody from affordable housing advocates to environmental groups … to the West Point Grey Homeowners’ Association has weighed in with different perspectives about what should happen here. That consultation will be challenging, but it’s critically important that it happen.”

Read the full article here.

 

Beautiful Empty Homes of Vancouver

Tuesday, September 23rd, 2014

A group of about 20 concerned west side residents have started posting a photo collection of vacant abandoned homes in Vancouver.

For some of these homes the term ‘beautiful’ is a bit of a stretch, but it’s interesting to see the growing resentment of abandoned and vacant properties in a town with high house prices.

There’s an article in the Province about that site as well:

The blog is “a documentation of what happens when Vancouver real estate enters the global real estate market,” but there may be factors other than absentee owners that contribute to the rubble-strewn yards and the decaying homes it showcases, Yan said.

As aging baby boomers begin downsizing to condos in other parts of the city “perhaps a good number” of their single-family homes are sitting empty between real estate deals, Yan said.

Still, this phenomenon could be the “edge of the new normal,” as Vancouver becomes a “resort city” where people from around the world invest their money in home ownership.

Regardless of why they are emptying, these neighbourhoods were centred around public schools and built for families, Yan said.

Read the full article here and visit the site here: Beautiful Empty Homes of Vancouver.

 

Rent to own?

Thursday, September 11th, 2014

At least one local developer has struck on an ‘innovative’ way to rent out their property: rent to own.

Just like TV and Furniture in the 80s, you can rent to own a condo.

Under the plan, 15 per cent of a tenant’s monthly rent goes into a credit account. That money can then be used in the future for a down payment on a new Bosa home purchase, to a maximum of three per cent of the home’s value.

This should appeal to someone who is having difficulty finding a unit for 15% less and putting the money away themselves.

Swimming with ideas

Wednesday, July 30th, 2014

Looks like there may be another chunk of land that will give developers that claim they love: the last waterfront development available in Vancouver.

The 40 year old aquatic centre is up for grabs, but the city does want a new one built – they’re looking for bids and ideas for a big chunk of land downtown:

News of the potential arrangement — still a long way from reality — caught many off guard Wednesday, even though it’s contained in a city information package that has been available to potential buyers since May 12.

The city has invited offers on 12 parcels of land contained within the Granville Bridge’s northeast off-ramp and loop, which will be decommissioned and removed.

The land has a total assessed value of $36.14 million and bids from potential buyers are being accepted until Aug. 15.

The city’s “invitation for innovative offers” on the site notes it wants a “renewed” Vancouver Aquatic Centre on the property, to be built by a developer and transferred back to the city for a nominal fee of $10.

Read the full article here.

Taxpayers funding condo flippers?

Monday, April 14th, 2014

By now everyone knows about the high cost of the Olympic Village project.

Current estimates are that it will cost taxpayers between $400 – $600 million to pay this off.

There are 68 units still left unsold over the last six years, but over at the ‘Canada House’ building it looks like a number of units have been bought and flipped, at least one for more than $400k profit in a month.

Hat tip to Mac who pointed out this article in the Province.

So whats going on here? Should these units have been priced higher or considering the tough sales across this project were they right to unload them quickly even if there were buyers willing to pay more?

Should you just move to an island?

Tuesday, March 25th, 2014

Skook has a post over at VancouverPeak.com about an island dream gone sour.

A BC couple purchased land on Mayne island and started building their dream home only to run into a confluence of cost overruns and real estate market downturn.

Today, their house is only a wood frame shell that looks out over one of B.C.’s most dramatic views, with the Lower Mainland in the distance, and regular sightings of ferries, whales and seals. The tiered wooded lot is only a five-minute drive to the ferry.
It is the idyllic best that B.C. has to offer, and yet the Klingsats won’t even break even on the near $1-million they spent on the property and construction. They have relisted it for $539,000, after previous listings at $649,000 and $699,000 didn’t get any offers. “Everybody loves the place, but the people don’t want a house that’s not finished,” says Mr. Klingsat, who gave up on the project six months ago. “And I can’t do it. I haven’t got any more money to put into it. “The whole economy everywhere is lousy – nothing is gangbusters. There are places for rent all over here on Vancouver island.”

The original article in over at the Globe and Mail. Skook adds some extra thoughts and information.

RFM has also added some information summarizing other properties in that particular island market.  There are 113 properties for sale on an island with a population of 900.

Where are the 3 bedroom condos?

Monday, March 24th, 2014

M- and MarKoz brought up this topic – Vancouver seems to be seriously lacking in affordable family housing.

There are lots of 1 and 2 bedroom apartments, but not much available for 3-4 bedrooms until you go to houses.  M- suggest the city requires more large units to be built to provide future homes for Vancouver families:

CoV could require condo developers to include a much larger percentage of 2-bed and 3-bed units in the towers that they’re approving, and require some of those units to have a more family-sized square footage. Maybe in exchange for higher density, to make it less controversial.

It won’t help much of anything today, but it will prevent today’s towers from becoming tomorrow’s ghettos.

My wife and I used to have an 800 sq.ft condo. It was too small for the two of us. Then we got a 1000 sq.ft apartment, and it was enough space for the two of us (we would have liked more, but it was good enough).

Then we had a kid.

The 1000 sq.ft unit slowly became too small for our family, so we’ve upgraded to a house (rental, of course).

We keep an eye on the condo/house markets, and there’s not much selection of 3-bed units out there, until you get into houses.

MarKoz adds:

When I went condo hunting I could find nothing similar. You would have marginal master bedrooms and second bedrooms the size of a closet. The master bathroom was usually huge at the cost of a smaller living room etc. All had fireplaces – a waste of precious wall space in a small unit. Stainless and granite with barely enough counter space to lay a pizza box. Closets were minimal as was out of suite storage.

I moved on to townhouses. 1200 square feet spread over 3 floors is worse than 800 square feet on one floor. So much space given over to stairs and landings.

Who wants these places? Apparently everyone but me. They sure are selling. In the US they have plenty of 3 bedroom units but I guess those don’t attract specuvestors like 565 sq ft one bedrooms.

 

Downtown jail to become affordable housing

Monday, February 17th, 2014

The vacant remand center in the downtown eastside is going to see new life as affordable and low income housing.

In a $13 million dollar project, the former jail cells are being converted into homes.

In addition to the residential units, the development will include the conversion of the existing jail gymnasium to a multi-purpose room, a community garden in the courtyard, a communal lounge and a bicycle storage facility.

“By combining affordable housing with support services and job training opportunities, we’re providing quality housing and strengthening the Downtown Eastside economy at the same time,” said Vancouver mayor Gregor Robertson.

The remand centre functioned as a jail for those not yet convicted of crimes, including the Air India bombing suspects, for 30 years before closing in 2002. The property has sat vacant ever since, prompting Vision Vancouver to recommend repurposing the space in 2006.

Read the full article over at Global News.

Excess of rental units in Toronto and Vancouver?

Thursday, February 13th, 2014

A new report from CIBC is warning of an excess of rental units in Toronto and Vancouver.

They are basing this outlook on the large number of condos being built in both cities and predict a less than half point rise in vacancy rates, so ‘warning’ sounds a bit strong.

The concern is that increased competition for good renters could drive owners to sell their condos, leading to a further downturn in the condo resales market.

Economists and policy makers have worried that an “increased supply of rental units will flood the market and will lead to a wave of sales by disappointed investors with no bargaining power,” Mr. Tal writes in the report. The Bank of Canada highlighted concerns about the condo market in December when it outlined the key risks to the economy.

“A sharp correction in the condominium market could spread to other segments of the housing market with stretched valuations, as buyers and sellers adjust their expectations of the future path of house prices,” the central bank warned. “Such a correction could also have significant repercussions on the real economy, since the construction sector is an important component of economic activity.”

Read the full article here.

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