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?
Looks like more problems over at the Olympic Village.
You’d think that all the hot air over this project would mean there’d be no lack of heat, but I guess you’d be wrong.
A problem with the much-lauded heating and cooling system in the buildings constructed for the 2010 Winter Games has left some residents without heat since the beginning of Vancouver’s cold snap, condo owner and resident Tomasz Rutkowski said Monday.
It’s nearly freezing at 6 C in Rutkowski’s two-bedroom apartment in the Kayak building at 77 Walter Hardwick Avenue, where his five-year-old son has been walking around and sleeping in a winter jacket.
Rutkowski reported the problem a few times to the property manager and strata council, but said he was told that the system is “just a weak system.”
“They just told us, buy portable heaters,” he said, adding that’s a poor solution for his condo with floor-to-ceiling windows. “This is supposed to be environmentally friendly, now they’re telling us to get those heaters.”
(The city and the mayor have applauded the heating system, a neighbourhood energy utility that recaptures heat from sewage and redistributes it throughout the community, as a green initiative.)
Read the full article here at Metro News.
The good news? The strata is responsible for the costs of maintaining the system, so this is one part of the Olympic Village that tax payers won’t have to cover.
The City of Vancouver still owes lots of money for the
Olympic Village condo development.
They aren’t saying how much but it looks like it’s currently at least a couple hundred million.
Is it time to cut our losses?
Developer Michael Geller thinks so. In this Province article he says it’s time to cut the prices and get out while we can.
As Vancouver’s real estate market cools, losses on the troubled Olympic Village development could soar above $225-million unless condo king Bob Rennie quickly drops prices on unsold units that have languished on the market for too long.
That’s the view of developer and architect Michael Geller, a former NPA council candidate, who suggests flawed pricing and weak marketing is turning the fiasco on False Creek from bad to worse.
Read the full article here.
What do you think? Does the city stand to lose more by holding out for ‘maximum price’ or by selling quickly at a discount?