Elias Pettersson Posted July 20, 2022 Share Posted July 20, 2022 1 hour ago, ronthecivil said: Why are prices up? Inflation! Why is there inflation? Big government deficits. Who wins from inflation? Owners of hard assets like land, and the means of production like stocks. Who looses from inflation? People living paycheck to paycheck. If you want to ban something, ban the conversion of rental accommodation into condos. Every welfare filled apartment building from my youth (cottonwood, west hill place as examples) are now condos I can't even afford now as an engineer! if you want non inflationary help that encourages organic growth in the economy, give tax breaks for creating rental housing, be it one floor, or the whole building. Encourage cities to lower the property tax on such places. Make the development of such places easier. Note that the very tenant favored rules in place right now, which are about to be tighter due to political concerns over "renoviction", act as a disincentive to creating rental housing. I for one would never be a landlord, I have heard way too many horror stories about bad tenants. As long as a corporation is playing by the rules and paying their taxes, they too should be incentivized to have rental housing. Buying a track of houses, then quadrupling the density, and then making half rental, would be a situation where the amount of rental housing would be doubled. This kind of thing should be incentivized. Policies should all be examined from a supply/demand perspective, and their effect on inflation, and their effect on organic economic growth, if you want to have good ones that last. Rental prices are up because of a lack of supply not because of inflation. Rental rates have been steadily climbing for over a decade now. The only reason they were pushed back was because the government enacted a rate freeze after COVID hit. That rate freeze was abolished in January of this year. The municipalities give lots of tax breaks and perks for developers to build rental accommodation along with strata buildings. The problem is the developer doesn't have the financial incentive to build these rental buildings for the City as the profit margins are much lower than simply building strata units and selling them. The government should really create more legislation to cut all the red tape and incentivize these developers to build more market rental housing as well as below market rental housing. Developers are for profit and are private companies, so they can pick and choose where and what to build. So the governments, whether local, provincial or federal, should come up with some new ideas on how to get these billionaire developers to build more rental units... 1 2 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted July 20, 2022 Share Posted July 20, 2022 8 minutes ago, bishopshodan said: My last condo in Van was 60% owner occupied, so rental restricted. It made it so the sale value was about 15% less than comparable buildings as new owners had to be on a long wait list if they wanted to rent. It was immaculate and had a huge contingency fund as having that many owners live there kept things in check. How old was your building? Link to comment Share on other sites More sharing options...
Elias Pettersson Posted July 20, 2022 Share Posted July 20, 2022 7 minutes ago, bishopshodan said: I would never do it as strata insurance is crazy since they changed things a few years ago. Due to the value of the buildings, those units would have huge strata costs. I think the idea is to get builders to buy up these lots and build strata units to increase density in selected areas of Vancouver. It's a great idea and should help with the supply issue. Although it won't help much right now, it's more of a long term thing... Link to comment Share on other sites More sharing options...
ronthecivil Posted July 20, 2022 Share Posted July 20, 2022 36 minutes ago, Elias Pettersson said: Any strata building built after 2010 allows full rentals, which is a majority of the buildings now. Alot of these older buildings are getting torn down to make way for new developments. The City bylaws supercede any strata bylaws, so it's up to each municipality if they want to actually make these types of changes. Alot of people don't like to live with tenants in their buildings, so that is why these bylaws exist. Same with 19+ and 55+ age restrictions. I think age restrictions are out right discriminatory and should not be allowed. I would for example say that it's a provincial thing that could be implemented that on all new builds banning rentals (long term) is against the rules. Perhaps the same deal with age restrictions. But for sure don't allow future bans on rentals. You can have some fun with existing strata corps to incentivize them to change the rules. 1 Link to comment Share on other sites More sharing options...
ronthecivil Posted July 20, 2022 Share Posted July 20, 2022 39 minutes ago, Elias Pettersson said: Rental prices are up because of a lack of supply not because of inflation. Rental rates have been steadily climbing for over a decade now. The only reason they were pushed back was because the government enacted a rate freeze after COVID hit. That rate freeze was abolished in January of this year. The municipalities give lots of tax breaks and perks for developers to build rental accommodation along with strata buildings. The problem is the developer doesn't have the financial incentive to build these rental buildings for the City as the profit margins are much lower than simply building strata units and selling them. The government should really create more legislation to cut all the red tape and incentivize these developers to build more market rental housing as well as below market rental housing. Developers are for profit and are private companies, so they can pick and choose where and what to build. So the governments, whether local, provincial or federal, should come up with some new ideas on how to get these billionaire developers to build more rental units... Ok not a terrible way of looking at it. Supply and the temporary freeze will definitely affect prices. A lack of supply and inflation are both bad let's agree on that. And we agree that increasing supply is a good thing. That general provincial guidelines that have incentives to increase rental supply and sticks to punish those that don't want to (good example, transit funding. Vancouver, if you want new skytrain lines, or bus lines, or anything, consider increasing density next to 30+ year old skytrain stations you can toss a rock from and hit a single family home!). 1 Link to comment Share on other sites More sharing options...
bishopshodan Posted July 21, 2022 Share Posted July 21, 2022 1 hour ago, Elias Pettersson said: How old was your building? Older. Great place DT. Used to be a bank, converted into condos in the 90's by Rennie. So, it is all cement, has four elevators for only 14 floors, and has big apt layouts. Our 1 bedroom was 710sqft. 58 minutes ago, Elias Pettersson said: I think the idea is to get builders to buy up these lots and build strata units to increase density in selected areas of Vancouver. It's a great idea and should help with the supply issue. Although it won't help much right now, it's more of a long term thing... Ahh. Ok. I am all for increasing inventory. Just heard that the strata insurance thing could be headaches for expensive places with not many units. 1 Link to comment Share on other sites More sharing options...
RU SERIOUS Posted July 21, 2022 Share Posted July 21, 2022 (edited) It's pretty obvious that the lack of controls by our provincial but mostly federal Government officials, has decimated the real estate hopes for most real Canadians. Aside from foreign real estate manipultor/investors and other criminals hiding their ill gained money, are the other issues impacting real estate such as being used as investments by individual Canadians and Corporate real estate portfolios, add to that Air B&B/rentals and the results are the mess we have on our hands today where most young Vancouverites will have to leave the city because they simply don't want to live in poverty forever, paying off the debt or ridiculous rent on a tiny cubicle. I can't blame them one bit because if I was twenty something, I sure as hell wouldn't be planning on making Vancouver my future home - that is a certainty! Anyone young person with any brains that wants to have some money in their pocket and enjoy life would acknowledge that! Edited July 21, 2022 by RU SERIOUS Link to comment Share on other sites More sharing options...
bishopshodan Posted July 21, 2022 Share Posted July 21, 2022 (edited) 4 hours ago, RU SERIOUS said: It's pretty obvious that the lack of controls by our provincial but mostly federal Government officials, has decimated the real estate hopes for most real Canadians. Aside from foreign real estate manipultor/investors and other criminals hiding their ill gained money, are the other issues impacting real estate such as being used as investments by individual Canadians and Corporate real estate portfolios, add to that Air B&B/rentals and the results are the mess we have on our hands today where most young Vancouverites will have to leave the city because they simply don't want to live in poverty forever, paying off the debt or ridiculous rent on a tiny cubicle. I can't blame them one bit because if I was twenty something, I sure as hell wouldn't be planning on making Vancouver my future home - that is a certainty! Anyone young person with any brains that wants to have some money in their pocket and enjoy life would acknowledge that! It's an inventory problem. That at the municipal level. We are a very desirable country. https://www.comparethemarket.com.au/home-loans/features/world-relocation-wants/ We need about 500k new immigrants a year to support our economy. Last year was an all time high at around 400k. Within Canada, 100k people moved to BC last year. The most in 60 years. If we as a country want to get our economy on track and to boom we need to grow. Faster than we can breed by a long shot. So, we need inventory. Municipalities set the developments. Anything the feds or province do, or have done, is minor. I mentioned yesterday that I hope the province one day takes development away from the cities because they are doing a terrible job. Also, I hope young people do move away from places like Vancouver, I would love them to enrich all the other wonderful places in BC or Canada. But I acknowledge that it is a shame if they feel they have to. Edited July 21, 2022 by bishopshodan 2 2 Link to comment Share on other sites More sharing options...
JM_ Posted July 21, 2022 Share Posted July 21, 2022 57 minutes ago, bishopshodan said: It's an inventory problem. That at the municipal level. we're really being failed at this level of gov't on this issue. City of Vancouver takes in millions in permit fees, and delays project by years with ridiculous backlogs. And then does next to nothing on affordability, because they want that fat easy fee money. https://vancouversun.com/news/local-news/vancouver-charges-some-of-the-highest-development-fees-among-major-cities-study 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted July 22, 2022 Share Posted July 22, 2022 BC government introduces “cooling off” period for home sales The provincial government introduced a home buyer protection period today, which is a new regulation that allows home buyers to back out of a residential purchase up to three days after signing a contract. The government will begin to enforce this regulation starting on January 1, 2023. The province claims that this three-day cooling off period will help ensure that all homebuyers have an opportunity to conduct due diligence, such as securing financing or arranging home inspections. Key facts: The new cooling off period will be effective January 1, 2023. Buyers will have three days to back out of a residential purchase after signing a contract. Buyers who back out of a contract within this three-day period will have to pay a rescission (cancellation) fee of 0.25%. For example, if the purchaser exercises the right of rescission on a $1-million home, they’d be required to pay the seller $2,500. https://news.gov.bc.ca/releases/2022FIN0026-001134?_cldee=dyXknrGKe0zHr9TGfWJD_83ZlkQUIQng8GSFyZbRzjaq_wwGjPh1bQquhSzCaReB&recipientid=contact-b17dc0bc0d77e811a95c000d3af49637-15ac711b58d0447fb82d64133b84ff20&utm_source=ClickDimensions&utm_medium=email&utm_campaign=Member Update&esid=52b878bf-7cc6-ec11-a7b5-000d3a09e631 A new homebuyer protection period will protect people in B.C. looking to buy a home from being pressured into high-risk sales. The period is the first of its kind in Canada and marks the first key action the Province is taking based on the B.C. Financial Services Authority’s (BCFSA) report on ways to offer homebuyers better consumer protection in the real estate market. The mandatory three-day period will give homebuyers an opportunity to take important steps, such as securing financing or arranging home inspections, as they prepare to make one of their biggest financial decisions. “Too many people have been faced with giving up an inspection in order to buy a home,” said Selina Robinson, Minister of Finance. “This is a major step toward providing homebuyers with the peace of mind they deserve while protecting the interests of people selling their homes – for today’s market and in the future.” The homebuyer protection period will come into effect on Jan. 1, 2023. It includes a recission (cancellation) fee of 0.25% of the purchase price, or $250 for every $100,000, for those who choose to back out of a deal. For example, if the purchaser exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller. Buyers still may make offers conditional on home inspections or financing at any time. The protection period will offer homebuyers the opportunity for due diligence at times when conditions are not in place. The homebuyer protection period is informed by the results of consultations that the BCFSA completed this year with a wide range of real estate industry stakeholders, including home inspectors, appraisers, realtors and academics, as well as representatives from the legal and financial services sectors. The Province will continue studying the BCFSA’s advice and its potential effects to further strengthen public confidence in the real estate market. 1 Link to comment Share on other sites More sharing options...
Gurn Posted July 23, 2022 Share Posted July 23, 2022 https://www.msn.com/en-ca/money/finance-real-estate/with-rents-soaring-across-canada-some-people-are-getting-priced-out/ar-AAZKLRf?ocid=msedgntp&cvid=d9dd55e927094b83b20958869fe9f2c4 For months, Nathan Armstrong has been scrolling through apartment listings from a tiny motel room in Woodstock, Ont. He and his wife have had to live there for more than a year as they desperately look for a place to rent. "There's not a lot out there, and they seem to be going up. Fifteen, seventeen, nineteen hundred dollars for a one bedroom apartment," he said. "Our price range is disappearing." Armstrong described the situation as frustrating and costly. The couple couldn't even prepare their own meals in the motel. "It is very, very difficult," he said. "Hard to cook as we're not allowed to have our own cooking material. No toaster oven, that's against the fire code." The couple says they faced denial after denial, losing out on dozens of apartments amid stiff competition during their 16-month search for stable housing. Rents are indeed rising quickly in the area, according to a recent report by Rentals.ca and Bullpen Research and Consulting. Average apartment rents for the nearest major city — London, Ont. — climbed to $1,933 in June, up 28.5 per cent from the same time last year. Some analysts predict that the rental market may get even hotter throughout Canada. Ben Myers, president of Bullpen Research & Consulting, a real estate advisory firm, says higher interest rates are pushing potential homebuyers to the sidelines, putting more strain on the rental market. "These two factors will keep renters in their properties, further reducing rental supply," Myers said. Rental supply has also been an ongoing issue in Halifax. There, the vacancy rate is less than one per cent, among the lowest in the country, according to the Canada Mortgage and Housing Corporation. "We have new construction and existing construction, but they cannot keep up with the pace of the number of people who are looking for rental units," said Lesley Dunn, program director for RentersEd, which educates Canadians on renting. She says households with lower incomes are rapidly being priced out as rents increase faster than people's paycheques rise. Dunn says the rental market is so hot it's putting unfair pressure on applicants. "Now you're asked to pay three months rent before you will be considered for an apartment. That's devastating," Dunn said. "For most newcomers, for most youth, for most people who are houseless, for most people who are on a fixed income, there is absolutely no way that they can afford that." The market is tight for renters in the biggest cities too, as they are the priciest. The highest average apartment rents in Canada are in Vancouver, at $2,936 a month, almost 25 per cent higher than a year ago, according to Rentals.ca. In Toronto, the average for apartments is $2,463 a month, up nearly 20 per cent year over year. Experts have pointed to a decades-long decline in building housing specifically meant for rental, known as purpose-built rentals, as another reason underlying supply issues. Average rent for condo and rental apartments for select areas, June 2022 Murtaza Haider, professor of management at Toronto Metropolitan University, says purpose-built rentals provide more rental stability than condominiums, in which landlords who are focused on investment are more likely to take their properties off the rental market to sell whenever they feel the time is right. "Purpose-built rentals provide the security of tenure because you know that this is a rental property and it will stay as a rental for them for the time being," he said. 'Government has a big role to play' Haider wants all levels of government need to work together to encourage more construction. "The government has a big role to play. They can incentivize builders into this market by changing the playing field … in favour of constructing more purpose-built rentals," he said. "The impetus is on us not to wait for another 50 years or even five years and start making those changes." After 16 long months, Armstrong says he and his wife finally found a place to call home. "It feels amazing. A kitchen to cook in to help save money on food costs, especially now with the price of everything rising," he said. He hopes the rental market improves for others just beginning their search. "It should have never taken over a year to finally get a permanent place to live," he said. Link to comment Share on other sites More sharing options...
JM_ Posted July 23, 2022 Share Posted July 23, 2022 2 minutes ago, gurn said: 'Government has a big role to play' Haider wants all levels of government need to work together to encourage more construction. "The government has a big role to play. They can incentivize builders into this market by changing the playing field … in favour of constructing more purpose-built rentals," he said. "The impetus is on us not to wait for another 50 years or even five years and start making those changes." I'll believe this ^ when I see it. If Eby can actually find a way to play nice with developers I'll be thrilled, but as of now I don't see the NDP moving off the developer-bad mind set. I hope to be proven wrong. 1 Link to comment Share on other sites More sharing options...
Down by the River Posted July 26, 2022 Share Posted July 26, 2022 With work-from-home being more accepted, we're likely going to move to Nanaimo and commute 1-2 per week to the Mainland either via ferry or Harbour Air. Only way for us to afford a detached home. Link to comment Share on other sites More sharing options...
bishopshodan Posted July 26, 2022 Share Posted July 26, 2022 25 minutes ago, Down by the River said: With work-from-home being more accepted, we're likely going to move to Nanaimo and commute 1-2 per week to the Mainland either via ferry or Harbour Air. Only way for us to afford a detached home. My bud is doing the exact same thing. Put an offer (bid) in just yesterday on a property. He plans to commute, wife will work from home. Nanaimo has been growing fast especially for young adults. https://vancouverisland.ctvnews.ca/young-people-become-fastest-growing-age-group-in-nanaimo-b-c-1.5849924 In the City of Nanaimo, there's a change in the air. Young, working adults are choosing to call the Mid-Island city home at a quickly rising rate. The city's latest economic snapshot shows that 25 to 44-year-olds will be the fastest growing age group in Nanaimo over the next decade. It's the first time this demographic has surged past the 65+ cohort in years. "Coming from North Van, that was the reason we moved in the first place, because we could actually buy something," said one young family 1 Link to comment Share on other sites More sharing options...
Down by the River Posted July 26, 2022 Share Posted July 26, 2022 1 minute ago, bishopshodan said: My bud is doing the exact same thing. Put an offer (bid) in just yesterday on a property. He plans to commute, wife will work from home. Nanaimo has been growing fast especially for young adults. https://vancouverisland.ctvnews.ca/young-people-become-fastest-growing-age-group-in-nanaimo-b-c-1.5849924 In the City of Nanaimo, there's a change in the air. Young, working adults are choosing to call the Mid-Island city home at a quickly rising rate. The city's latest economic snapshot shows that 25 to 44-year-olds will be the fastest growing age group in Nanaimo over the next decade. It's the first time this demographic has surged past the 65+ cohort in years. "Coming from North Van, that was the reason we moved in the first place, because we could actually buy something," said one young family I'm super excited; this isn't a move we're making begrudgingly. My wife and I are in our 30s and want to start a family. I don't feel good about raising a child in a condo. I was a hyperactive kid and my parents had to kick me out of the house at 5pm everyday to burn off energy in the yard. I want that for my kid. Houses in Nanaimo are selling under asking. We won't be able to make the move for 6-8 months... hoping the market stays the way it is a while longer. 1 Link to comment Share on other sites More sharing options...
bishopshodan Posted July 26, 2022 Share Posted July 26, 2022 2 minutes ago, Down by the River said: I'm super excited; this isn't a move we're making begrudgingly. My wife and I are in our 30s and want to start a family. I don't feel good about raising a child in a condo. I was a hyperactive kid and my parents had to kick me out of the house at 5pm everyday to burn off energy in the yard. I want that for my kid. Houses in Nanaimo are selling under asking. We won't be able to make the move for 6-8 months... hoping the market stays the way it is a while longer. Good luck my friend. The Island is beautiful. 1 Link to comment Share on other sites More sharing options...
bishopshodan Posted August 3, 2022 Share Posted August 3, 2022 'A new phenomenon': Big investors eye Canada's home market, ReMax president says https://www.cbc.ca/news/business/real-estate-investment-firms-financialization-housing-1.6538087 Investment firms have become the biggest new buyers of U.S. homes — a trend that could make home ownership more difficult for average families. The idea of big investors buying single-family homes to rent them out is "just in its infancy" in Canada, but is worth watching, according to the president of one of this country's largest real estate firms. Some advocacy groups fear families can't compete against money managers with billions in assets. Link to comment Share on other sites More sharing options...
ronthecivil Posted August 3, 2022 Share Posted August 3, 2022 2 hours ago, bishopshodan said: 'A new phenomenon': Big investors eye Canada's home market, ReMax president says https://www.cbc.ca/news/business/real-estate-investment-firms-financialization-housing-1.6538087 Investment firms have become the biggest new buyers of U.S. homes — a trend that could make home ownership more difficult for average families. The idea of big investors buying single-family homes to rent them out is "just in its infancy" in Canada, but is worth watching, according to the president of one of this country's largest real estate firms. Some advocacy groups fear families can't compete against money managers with billions in assets. Do the math on that though. The opportunity cost on say 2 million dollars (average house say in Vancouver) invested in something boring can get you 4% say which is 80k a year. That means you have to have to generate minimum 6.7k a month in rent. And that's bad math. It doesn't include taxes, tenant risk, ongoing maintenance, etc. Why invest in that when there's easier less risk stuff elsewhere? What needs to happen is large swaths of houses need to be bought with the plan to massively increase density in good locations. That might work, but your average land assembly you see might see houses replaced with townhouses, none of which will be rented, and are themselves barely more affordable. The only way to have affordable housing costs is to have bought your place 5+ years ago. Link to comment Share on other sites More sharing options...
bishopshodan Posted August 3, 2022 Share Posted August 3, 2022 3 minutes ago, ronthecivil said: Do the math on that though. The opportunity cost on say 2 million dollars (average house say in Vancouver) invested in something boring can get you 4% say which is 80k a year. That means you have to have to generate minimum 6.7k a month in rent. And that's bad math. It doesn't include taxes, tenant risk, ongoing maintenance, etc. Why invest in that when there's easier less risk stuff elsewhere? What needs to happen is large swaths of houses need to be bought with the plan to massively increase density in good locations. That might work, but your average land assembly you see might see houses replaced with townhouses, none of which will be rented, and are themselves barely more affordable. The only way to have affordable housing costs is to have bought your place 5+ years ago. I dunno. You make good points. My guesses are stable/promising equity holding... the idea that the market will keep going up over time due to inventory shortage along with increasing rental rates. Perfect time for these deep pockets to buy outright as prices are lower. What popped out to me is that 1 in 4 homes in the US are now corporate owned and that this trend is only in it's infancy in Canada. Link to comment Share on other sites More sharing options...
JM_ Posted August 3, 2022 Share Posted August 3, 2022 14 minutes ago, ronthecivil said: Do the math on that though. The opportunity cost on say 2 million dollars (average house say in Vancouver) invested in something boring can get you 4% say which is 80k a year. That means you have to have to generate minimum 6.7k a month in rent. And that's bad math. It doesn't include taxes, tenant risk, ongoing maintenance, etc. Why invest in that when there's easier less risk stuff elsewhere? What needs to happen is large swaths of houses need to be bought with the plan to massively increase density in good locations. That might work, but your average land assembly you see might see houses replaced with townhouses, none of which will be rented, and are themselves barely more affordable. The only way to have affordable housing costs is to have bought your place 5+ years ago. real estate isn't risky tho. Corporate buyers can keep their maintenance contracts low with volume contracts. 1 Link to comment Share on other sites More sharing options...
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