The BC Real Estate Discussion Thread

[bishopshodan]

I already knew this. Article on the Vancouver Island market. 

Amidst Uncertainty, Vancouver Island’s Market Remains a Beacon of Stability

https://storeys.com/victoria-vancouver-island-real-estate-market-october-2022/

 

 

 

 

[taxi]

On 10/28/2022 at 4:19 PM, HI5 said:

Wen crash? I need to buy a home

The problem is a crash likely won't occur without interest rates going up even more. Unless you are planning on paying cash for your home, without borrowing a significant amount, things will likely get less affordable for you, not more. 

[Elias Pettersson]

12 hours ago, taxi said:

The problem is a crash likely won't occur without interest rates going up even more. Unless you are planning on paying cash for your home, without borrowing a significant amount, things will likely get less affordable for you, not more. 

My buddy told me that the market is in complete freefall right now.  Sales are down 45% this October from last October.  Properties are sitting on the market unsold, no offers, no showings.  The only stuff that is selling are the properties that are well priced and below market prices.  With one more rate increase in December it could get ugly in 2023.  Buyers now need to qualify for a mortgage at 7.5%.  That could go up to 8% in the new year.  Imagine trying to qualify for a $600-700k mortgage at 8%?  Cash is king but people with cash aren't going to buy in this market.  You are better off just saving the money in the bank for now and getting 5-6% interest until this market turns around...

[Bad_BOI_pete]

14 minutes ago, Elias Pettersson said:

My buddy told me that the market is in complete freefall right now.  Sales are down 45% this October from last October.  Properties are sitting on the market unsold, no offers, no showings.  The only stuff that is selling are the properties that are well priced and below market prices.  With one more rate increase in December it could get ugly in 2023.  Buyers now need to qualify for a mortgage at 7.5%.  That could go up to 8% in the new year.  Imagine trying to qualify for a $600-700k mortgage at 8%?  Cash is king but people with cash aren't going to buy in this market.  You are better off just saving the money in the bank for now and getting 5-6% interest until this market turns around...

People are probably scared the market will plunder even further with the non resident bill coming into effect soon. this is likely just the beginning.

[bishopshodan]

7 hours ago, Elias Pettersson said:

My buddy told me that the market is in complete freefall right now.  Sales are down 45% this October from last October.  Properties are sitting on the market unsold, no offers, no showings.  The only stuff that is selling are the properties that are well priced and below market prices.  With one more rate increase in December it could get ugly in 2023.  Buyers now need to qualify for a mortgage at 7.5%.  That could go up to 8% in the new year.  Imagine trying to qualify for a $600-700k mortgage at 8%?  Cash is king but people with cash aren't going to buy in this market.  You are better off just saving the money in the bank for now and getting 5-6% interest until this market turns around...

Do you know if the slow down effecting development?

If people arn't buying....is the motivation to build still there?

 

In my area, prices have not dropped very much at all but also not much is selling.

I know 3 people that had properties to list for sale and are now planning to hold to rent out.

One of sisters has actually bought two places this year. She is rich so she doesn't worry about the rates. She has bought to rent/air b&b due to the high demand and profit in that market.

 

Seems like a big catch 22 for those thinking of buying. Rents are getting more expensive and inventory is sparse. So they look to buy but prices aren't dropping very fast and even if/when they do...you pay more on what you borrow. It's crap.

 

Inventory, we need inventory. 

[Warhippy]

34 minutes ago, bishopshodan said:

Do you know if the slow down effecting development?

If people arn't buying....is the motivation to build still there?

 

In my area, prices have not dropped very much at all but also not much is selling.

I know 3 people that had properties to list for sale and are now planning to hold to rent out.

One of sisters has actually bought two places this year. She is rich so she doesn't worry about the rates. She has bought to rent/air b&b due to the high demand and profit in that market.

 

Seems like a big catch 22 for those thinking of buying. Rents are getting more expensive and inventory is sparse. So they look to buy but prices aren't dropping very fast and even if/when they do...you pay more on what you borrow. It's crap.

 

Inventory, we need inventory. 

Traditionally in markets with higher interest rates we see apartment style buildings built more frequently as rental income is better than no income.

 

When markets pick up apartment/condo units previously built for the sole purpose of rental income are then sold as condo units at market rates.

[bishopshodan]

6 minutes ago, Warhippy said:

Traditionally in markets with higher interest rates we see apartment style buildings built more frequently as rental income is better than no income.

 

When markets pick up apartment/condo units previously built for the sole purpose of rental income are then sold as condo units at market rates.

I hear ya, but with supply chain issues and construction costs on top of a slow market... is that happening, enough?

 

https://biv.com/article/2022/10/pressure-building-construction-industry-bottom-lines

The stark mismatch between housing supply and demand is top-of-mind in B.C., but the push to build more houses is complicated by the cost pressures faced by the construction industry.

The problems are compounding: The construction industry is being squeezed on the revenue side, with a soft market due to rising interest rates, and an increase in costs as a result of supply chain shortages and inflation. The result is the eroding of potential profitability which causes developers to see projects as less economically viable, said Brendon Ogmundson, chief economist for the British Columbia Real Estate Association.

[bishopshodan]

Guess what I am getting at is that affordablity is not improving.

Any price decline is being offset by the rising interest rates. 

Hopefull first home buyers now look at their money not going as far if they buy. So they stay renting and pay insanely high and increasing prices.

 

https://www.bnnbloomberg.ca/real-estate-cmhc-deputy-chief-economist-predicts-15-housing-price-drop-by-q2-2023-1.1832063

..."Those who are current renters that were planning to purchase a house, they won't be able to do it, so they'll stay in the rental market," Perrier said in an interview.

"And unfortunately, we might see others that are currently owners that, because of deterioration in their employment and income conditions, might have to sell and go on the rental market."

Thus, Perrier said less demand and pressure in the ownership market will transfer to more demand and pressure in the rental market.

To make the housing markets for affordable, he feels more supply is needed and it needs to come quicker to keep pace with demand and take pressure off pricing.

[Coconuts]

On 9/29/2022 at 8:42 AM, JM_ said:

I get the anger part for sure, I don't think its going help tho. 

 

I do think moving and looking for some higher earning or lower cost of ownership opportunities might be worth exploring. You never know what might happen. Even somewhere like Seattle e.g., might be a good option for a few years to continue to build up the nest egg. 

 

I have a daughter that's 23, so I still see all the problems you're facing staring her in the face too, so we're not free of it either since we do want to help her deal with this. Right now it will likely be us footing a big part of the bill once she's ready to own, but that's something we're able and willing to do without changing how we like to live too much, most of what we like to do is free or cheap outdoor stuff. 

 

On the what to do part - something I just don't understand is why this isn't a bigger voting issue. Why are we wasting time fighting over things like Site C or what Christy did, e.g., when housing is clearly the biggest issue facing people under 40? 

 

Millenials are now the biggest voting group, you guys can push the agenda if someone or some group can get this front and centre in each election moving forward. 

 

I do think its an issue we can solve through things like rent controls, more development of rental homes, co-op ides, etc. but none of this ever seems to get to the top of the agenda. Boomers aren't going to help, they'll nimby most ideas imo. 

 

I didn't get back this conversation earlier, I'm revisiting it now because of some news articles I came across.

 

There are places with lower qualities of living that I'd consider long before I ever considered the US. The US is a dumpster fire.

 

She's fortunate to have parents who can do that, it's only way a lot of folks in my age bracket ever get into the market. 

 

As for voting, don't know. Housing is a multigenerational issue and while I'm sure there are folks who are trying I question how much is actually being done about it. I read this earlier this morning, things are getting worse for a lot of people instead of better. 

 

https://www.cbc.ca/news/canada/food-bank-canada-usage-1.6631120?fbclid=IwAR2VXaSEhdZ_oDpFf87AYQlu1vG0ccunW94T8P4Z5y9BxWyWwp0YSIbhfI8

 

https://www.cbc.ca/news/canada/british-columbia/food-banks-demand-increase-1.6632002?fbclid=IwAR2TR1k5w1nskM7A50v7QzD_44R7Mnf1i986dXDzo6BL5WPdifoHRmNiB7E

 

https://www.cbc.ca/news/business/food-cost-survey-1.6478695?fbclid=IwAR2TR1k5w1nskM7A50v7QzD_44R7Mnf1i986dXDzo6BL5WPdifoHRmNiB7E

 

Maybe we are, and a lot of millennials are very active in politics, but I also question how many of us actually have faith in the political system. Or how many believe it has our interests at heart, older generations possess most of the wealth in Canada and corporate entities seemingly have their fingers in things more than ever.

 

https://www.advisor.ca/news/industry-news/boomers-ok-when-it-comes-to-wealth-statscan-says/

 

I don't know what the answer is in a capitalist society, but I the rise of things like airbnb and people hoarding housing as investments don't make the lives of the majority any easier. 

 

On 9/29/2022 at 9:12 AM, bishopshodan said:

Not at all saying it is cheap however there are many places within a 15min drive of Nanaimo that are around the 600k mark or lower.

Being an Island boy also, I would not want to live DT Nanaimo anyway. Live a little out and in the beautiful country side and commute. 

 

My friend is 53. At age 51 he became prison CO mostly for the pension and job security. He commutes to Vic from Nanoose ( waiting for the prison in Nanimo to be finished to transfer). Stays down there 4 days a week, away from his wife and 2 kids. He bought the worst Victoria bachelor apt 2 years ago instead of renting...found it for 140k!...it's now worth about 250K. He fixed it up by himself. He also does reno's on the side and works in a restaurant. He also works out 6 days a week.

3 jobs. 53 years old. However, owns a house in Nanoose, Thailand and the apt in Vic. He is determined to leave something for his kids.

I tell this story as he is a real inspiration to me. He knows the environment has gotten tougher as you mention, just not as tough as him. 

 

If I was younger. I would do what I did in the past. Buy anything I can afford, a small apt probably and move if I had to. Rent is so expensive now I would rather put it into any equity. 

 

I come from a poor family too. When we emigrated there was 7 of us living in a trailer and my allowance was 25cents a week. I never got a hand out for anything. My dad pushed me to get into real estate. He probably knew it was my only hope to gain any wealth as I was telling him I was going to be a rockstar when I graduated high school.

Very admirable, there are plenty of people who sacrifice and work hard. There are many stories of people who beat the odds and achieve success. Good for him for wanting to leave something to his kids. 

 

But no, stories like this don't inspire me or make me feel any better about any of it. 

 

I'm glad you managed to build your way up, and I believe you've got good intentions with your responses, but I question whether you can actually relate to younger folks trying to start out now. If you're Gen X or older I reckon you grew up in a different world than I did, one with a different economy and possibly different economic opportunities. Poor growing up or not, I question what you understand.  

 

There may very well be houses in brackets you consider reasonable and accessible, but accessibility varies and so does what's reasonable. And such housing existing doesn't change the fact that housing prices have exploded over the last few years, I pointed it out earlier in this thread. Some houses have doubled, if not tripled in value. Those working from the bottom have a harder starting point now than they did even just 3-5 years ago. This tiny little one bedroom shack of a house is selling at 400k for is the cheapest thing listed by Royal LePage I could find that wasn't on Protection Island for example https://caraklein.royallepage.ca/property/445-914460-4064-Corunna-Ave-Nanaimo-BC-V9T1Y9

 

Down payments are hard. Saving up 5% or 10% is so much harder, the costs of everything have gone up, people are struggling. Lot of couples can't afford to put a whole lot into their savings, lot of people don't have investments. Lot of people are living paycheck to paycheck. You said that if you were younger you'd do what you did and get into anything you can, I reckon that's harder to do now. Lot of folks are graduating with a significant amount of student dept, most people my age that I know who own homes were lucky enough to have family who could help them get into the market, lot of us won't get that kind of help. 

 

https://www.creditcanada.com/blog/dealing-with-the-millennial-wealth-gap

 

https://reviewlution.ca/resources/student-debt-in-canada-statistics/

 

Given the risings costs of well, everything, there's more pressure than ever to pursue education. To find a way to make respectable money in a country where the costs of living far outstrip the pace at which wages typically rise. It means there's more competition for jobs that actually pay well, because guess what, most of us are educated! This is my third time going to back to school, I might have to go a fourth time and pack on even more dept. Yay masters programs! There's a caveat to it though, with Canada being the most educated country in the world it also raises the bar for many jobs and careers, getting an education of some sorts seems almost essential for many. I mean, it's only been drilled into us since we were kids. That drilling, and economic necessity, are likely why we're the most educated generation ever. Going to school isn't the only way to make money, but for a lot of folks taking on dept to pursue education is what feels like their best option to get ahead.

 

 https://worldpopulationreview.com/country-rankings/most-educated-countries

 

It's hard, it sucks. It's discouraging, and things I don't know if things are actually getting any better. I'll probably be moving away from the island early next year, go up north to Dawson or something where it's cheaper. I'll probably try and come back but who knows. I hear and understand that you didn't have an easy time starting out too, and a lot of folks from varying generations can probably relate to that on some level, but things don't stay the same. They aren't the same. The costs, the opportunities, the economic bits, and on and on. It's all different because of course it is. Housing isn't just a millennial issue, but for many of us it's one of our biggest issues. It's so hard out there, rent prices are fucked, the costs of everything seemingly continue to rise. It's hard to save money, it's incredibly stressful to just get by. 

 

Anger doesn't help, sure, but a lot of us are very, very angry about the state of things. I'm doing the best I can in the changing world I grew up in, one built collectively by generations who came before. Hopefully things get better, particularly for the generations coming after me, but I'm skeptical. 

 

 

[Coconuts]

4 hours ago, bishopshodan said:

Do you know if the slow down effecting development?

If people arn't buying....is the motivation to build still there?

 

In my area, prices have not dropped very much at all but also not much is selling.

I know 3 people that had properties to list for sale and are now planning to hold to rent out.

One of sisters has actually bought two places this year. She is rich so she doesn't worry about the rates. She has bought to rent/air b&b due to the high demand and profit in that market.

 

Seems like a big catch 22 for those thinking of buying. Rents are getting more expensive and inventory is sparse. So they look to buy but prices aren't dropping very fast and even if/when they do...you pay more on what you borrow. It's crap.

 

Inventory, we need inventory. 

I question how much more inventory actually accomplishes if it's those who have more resources eating up and hoarding the inventory for profit. 

 

Air b&b is a huge issue. As is the rise of corporate buying in the US, not sure how big an issue that is here yet. 

 

I don't know if it's possible to build at a high enough rate to make a difference when it's seemingly more appealing than ever to buy up property as a business venture.

Edited November 2, 2022 by Coconuts

[24K PureCool]

If people actually want to fix this the easiest two thing to do is ban institutional home ownership outside of rental apartment complexes and limit residential real estate holdings to one per Canadian/permanent resident. 

 

To me, high housing cost ain't a bug of the system, it is the feature. No politician want to fix it cause making housing affordable will essentially hollow out the savings of gen x and boomers that have the overwhelming of their wealth tied up in real estate. 

[Elias Pettersson]

5 hours ago, bishopshodan said:

Do you know if the slow down effecting development?

If people arn't buying....is the motivation to build still there?

 

In my area, prices have not dropped very much at all but also not much is selling.

I know 3 people that had properties to list for sale and are now planning to hold to rent out.

One of sisters has actually bought two places this year. She is rich so she doesn't worry about the rates. She has bought to rent/air b&b due to the high demand and profit in that market.

 

Seems like a big catch 22 for those thinking of buying. Rents are getting more expensive and inventory is sparse. So they look to buy but prices aren't dropping very fast and even if/when they do...you pay more on what you borrow. It's crap.

 

Inventory, we need inventory. 

Presales are still happening but that market is slowing down as well. The thing with presales is that a buyer doesn’t have to close today and lock into these higher mortgage rates. They can buy now with their cash and just wait it out for 3-4 years until they have to close. By the time when they need to get a mortgage the rates will have come down again.  
 

The costs of building however have gone up substantially so the developers are building in those costs into the prices. So presales aren’t cheap. 

[JM_]

1 hour ago, Coconuts said:

I question how much more inventory actually accomplishes if it's those who have more resources eating up and hoarding the inventory for profit. 

 

Air b&b is a huge issue. As is the rise of corporate buying in the US, not sure how big an issue that is here yet. 

 

I don't know if it's possible to build at a high enough rate to make a difference when it's seemingly more appealing than ever to buy up property as a business venture.

this is why I've been a supporter of much more co-op and rent to own housing, it isn't part of this game. We hold billions in unused crown land, turn that into co-op homes. Its that or lose a generation or two to home ownership imo. 

[Coconuts]

46 minutes ago, 24K PureCool said:

If people actually want to fix this the easiest two thing to do is ban institutional home ownership outside of rental apartment complexes and limit residential real estate holdings to one per Canadian/permanent resident. 

 

To me, high housing cost ain't a bug of the system, it is the feature. No politician want to fix it cause making housing affordable will essentially hollow out the savings of gen x and boomers that have the overwhelming of their wealth tied up in real estate. 

I'd be interested in that avenue, even if the result were that a husband and wife could own a single property each as a couple. I think one per resident is reasonable, I think the right to housing and the need for accessible and available housing options should outweigh whatever rights people have treating housing markets as investment fodder and a means to generate passive income. 

 

I know there'd be pushback on it from both younger and older generations but I'm open to more radical ideas and approaches. Housing is a national issue, it affects individuals of all ages and individuals from all walks of life. 

 

Mind you I'm also curious about things like UBI, so I probably lean further towards this sort of thing to begin with. I view housing as a human right, efforts should be made to make access to housing more accessible. Making housing both more accessible and affordable may have negative impacts in some ways but I believe it'd have positive impacts too. For one, it might lead to improved birth rates, which have been falling out west for decades. Lot of folks would have kids having kids was more feasible, being a parent has never been cheap or easy but it's likely more expensive than ever. I probably won't have kids, it's too expensive. It's hard enough for a lot of folks to get by without kids, let alone with kids. 

 

https://www.macrotrends.net/countries/CAN/canada/birth-rate#:~:text=The current birth rate for,a 0.73% decline from 2019.

 

https://www.statcan.gc.ca/o1/en/plus/960-fewer-babies-born-canadas-fertility-rate-hits-record-low-2020

 

https://www.weforum.org/agenda/2022/06/global-decline-of-fertility-rates-visualised/#:~:text=For the last 70 years,increased cost of raising children.

 

18 minutes ago, JM_ said:

this is why I've been a supporter of much more co-op and rent to own housing, it isn't part of this game. We hold billions in unused crown land, turn that into co-op homes. Its that or lose a generation or two to home ownership imo. 

I'm definitely open to more creative solutions, because what's been in place clearly doesn't seem to be working as much as it used to. 

[bishopshodan]

3 hours ago, 24K PureCool said:

To me, high housing cost ain't a bug of the system, it is the feature. No politician want to fix it cause making housing affordable will essentially hollow out the savings of gen x and boomers that have the overwhelming of their wealth tied up in real estate. 

Bang on.

Every rich person I know has tons of equity in real estate. 

 

3 hours ago, Elias Pettersson said:

Presales are still happening but that market is slowing down as well. The thing with presales is that a buyer doesn’t have to close today and lock into these higher mortgage rates. They can buy now with their cash and just wait it out for 3-4 years until they have to close. By the time when they need to get a mortgage the rates will have come down again.  
 

The costs of building however have gone up substantially so the developers are building in those costs into the prices. So presales aren’t cheap. 

Thank you. So, sales slowing down and construction costs will stimy the already low inventory. Thats not good.

 

4 hours ago, Coconuts said:

I question how much more inventory actually accomplishes if it's those who have more resources eating up and hoarding the inventory for profit. 

 

Air b&b is a huge issue. As is the rise of corporate buying in the US, not sure how big an issue that is here yet. 

 

I don't know if it's possible to build at a high enough rate to make a difference when it's seemingly more appealing than ever to buy up property as a business venture.

I hate air B&B for this reason. They need to at least clamp down on all the people doing ishort term illegally.

 

We need more inventory. 

You're right about the high rates though. Doesn't impact the big rich powers much if they can buy outright.

 

[Coconuts]

16 minutes ago, bishopshodan said:

Bang on.

Every rich person I know has tons of equity in real estate. 

 

Thank you. So, sales slowing down and construction costs will stimy the already low inventory. Thats not good.

 

I hate air B&B for this reason. They need to at least clamp down on all the people doing ishort term illegally.

 

We need more inventory. 

You're right about the high rates though. Doesn't impact the big rich powers much if they can buy outright.

 

This would be a good start, but like I said, while it's well known that more inventory is needed I question how much of said inventory is hoarded up by those with excess wealth. 

 

There's a lot of money in BC, there's a lot of money on the island and in the lower mainland. BC stands for bring cash, but some folks can bring it and it's locals and those who either can't afford to get by or get into the market who get squeezed into what's now an absurd rental market. I know life isn't and won't ever be fair, but something's gotta give at some point. I don't know what'll be or how it'll look but this country has a housing crisis and we've gotta figure out some sort of solution at both federal and provincial levels that amount to more than just token gestures. 

 

Housing isn't accessible which leaves a lot of folks as a captive rental market who have no choice but to compete with all the other renters for housing or try and pack up their lives and see if things might be more doable somewhere else. Which isn't a guarantee. And problem is, the housing and rental bits aren't just a BC issue, they seem to be slightly better and worse all over the country. There's a lot of profit to be made in buying up and hoarding housing because of this, and while I understand there will always be opportunists I find it disgusting. 

 

I can't imagine being able to afford more than a single home, I've got very strong opinions about housing as a right. It's frustrating that so many people have to struggle just to keep a roof over their head, and that people can't get into the housing market. It shouldn't take two people with the kind of earning power that comes with a mix and match of bachelors and masters degrees to buy a home. 

 

I mentioned it back in September, this subject makes me very, very upset. 

[bishopshodan]

4 minutes ago, Coconuts said:

This would be a good start, but like I said, while it's well known that more inventory is needed I question how much of said inventory is hoarded up by those with excess wealth. 

 

There's a lot of money in BC, there's a lot of money on the island and in the lower mainland. BC stands for bring cash, but some folks can bring it and it's locals and those who either can't afford to get by or get into the market who get squeezed into what's now an absurd rental market. I know life isn't and won't ever be fair, but something's gotta give at some point. I don't know what'll be or how it'll look but this country has a housing crisis and we've gotta figure out some sort of solution at both federal and provincial levels that amount to more than just token gestures. 

 

Housing isn't accessible which leaves a lot of folks as a captive rental market who have no choice but to compete with all the other renters for housing or try and pack up their lives and see if things might be more doable somewhere else. Which isn't a guarantee. And problem is, the housing and rental bits aren't just a BC issue, they seem to be slightly better and worse all over the country. There's a lot of profit to be made in buying up and hoarding housing because of this, and while I understand there will always be opportunists I find it disgusting. 

 

I can't imagine being able to afford more than a single home, I've got very strong opinions about housing as a right. It's frustrating that so many people have to struggle just to keep a roof over their head, and that people can't get into the housing market. It shouldn't take two people with the kind of earning power that comes with a mix and match of bachelors and masters degrees to buy a home. 

 

I mentioned it back in September, this subject makes me very, very upset. 

It's not easy.

I have a small rental but I'm a good guy, as you know.

I rent out my 2 bedroom detached for $1100 and haven't raised the rent in years. Good young couple that just had a baby. 

 

My two sisters though....they are the ones that would for sure make your blood boil. They have all the degrees, 6 figure jobs and way too many properties.

 

[Coconuts]

6 minutes ago, bishopshodan said:

It's not easy.

I have a small rental but I'm a good guy, as you know.

I rent out my 2 bedroom detached for $1100 and haven't raised the rent in years. Good young couple that just had a baby. 

 

My two sisters though....they are the ones that would for sure make your blood boil. They have all the degrees, 6 figure jobs and way too many properties.

 

I don't think you're a baddy, don't gotta worry about that.

 

But yeah, folks who hoard housing specifically to extract huge chunks of rental cash, that really bothers me. 

[Elias Pettersson]

4 hours ago, 24K PureCool said:

If people actually want to fix this the easiest two thing to do is ban institutional home ownership outside of rental apartment complexes and limit residential real estate holdings to one per Canadian/permanent resident. 

 

To me, high housing cost ain't a bug of the system, it is the feature. No politician want to fix it cause making housing affordable will essentially hollow out the savings of gen x and boomers that have the overwhelming of their wealth tied up in real estate. 

In theory that is a concept that a lot of people could get behind. The problem with that however is you are decreasing the amount of rental inventory in the marketplace. If you ban the purchase of real estate for investors then that reduces the rental inventory out in the market which is already at an all time low with vacancy rates near zero percent. 
 

Also, how do you grandfather all of the rental properties currently owned by individuals?  Do you force them to sell?  
 

This idea in theory makes sense but in reality would create more problems than it would solve. 
 

We need the governments to cut the red tape and allow more inventory to come into the market. Immigration is at an all time high. More people are moving to Vancouver than ever before. Roughly 25% of a developers profit goes to the government in the form of density fees. The government actually makes more money on a new development than the actual developer. Government density fees account for an increase of around $180,000 to the cost of a typical condo in Vancouver.  That’s crazy. 

[24K PureCool]

48 minutes ago, Elias Pettersson said:

In theory that is a concept that a lot of people could get behind. The problem with that however is you are decreasing the amount of rental inventory in the marketplace. If you ban the purchase of real estate for investors then that reduces the rental inventory out in the market which is already at an all time low with vacancy rates near zero percent. 
 

Also, how do you grandfather all of the rental properties currently owned by individuals?  Do you force them to sell?  
 

This idea in theory makes sense but in reality would create more problems than it would solve. 
 

We need the governments to cut the red tape and allow more inventory to come into the market. Immigration is at an all time high. More people are moving to Vancouver than ever before. Roughly 25% of a developers profit goes to the government in the form of density fees. The government actually makes more money on a new development than the actual developer. Government density fees account for an increase of around $180,000 to the cost of a typical condo in Vancouver.  That’s crazy. 

Grandfathering is the easy part. Tax excess properties at like 50% of valuation unless it is on the market and no reasonable offers are refused. If some rich billionaire want to pay that then be my guest. 

 

The rental part is tricky but the idea here is to allow people to own homes more than they need to rent and those that are starting out in their career or in college can take on the apartment rentals which are usually all they need to start out. 

 

Anyways it is a pipe dream as the collapse in the housing market is gonna be a whole other can of worms with how the economy is currently setup. 

 

If this is going to be implemented it is gonna be decades long process so things don't just go kaboom. 

Edited November 3, 2022 by 24K PureCool