The Metro Vancouver Real Estate Thread

[dreambrother808]

There are homeowners and high-income earners still somewhat shielded from the pain of Vancouver's downfall. This is likely why the political response is somewhat lacking. I remember when lower-income friends were freaking out about the state of things years ago. I felt comfortable in a middle-class bubble. I naively downplayed their concerns, but now the heat has risen and I feel the fire. Where does all of this public rage end up, politically and socially?

[rofina]

Originally Posted by Pinion

Huh? I think Vancouver is fucked. When I say collapse I mean collapse of a healthy economy - something that is well underway already. Housing prices will go down, but only because people won't want to live in the jobless hellscape left by the bubble popping.

I'm cashing out of the country ASAP, at considerable personal expense. And I was one of the first people on this site ringing the alarm bells at a time when showing any concern led to accusations of racism and moderator warnings.

We are definitely trapped in a positive feedback loop.

Its even affecting the very industries benefiting from this - construction.

Trades are desperate for people, with boomers retiring in large numbers, and very few new entrants.

Couple that with the fact that $25/hr starting wage basically puts you in poverty in Van.

Its a crazy situation. The scary thing is that its not something that will be resolved by a policy tweak, or two.

This is a society altering issue, and its rather scary for the future of our region.

[rofina]

Originally Posted by dreambrother808

There are homeowners and high-income earners still somewhat shielded from the pain of Vancouver's downfall. This is likely why the political response is somewhat lacking. I remember when lower-income friends were freaking out about the state of things years ago. I felt comfortable in a middle-class bubble. I naively downplayed their concerns, but now the heat has risen and I feel the fire. Where does all of this public rage end up, politically and socially?

I think the Western society in general has been treading on thin ice for sometime.

We haven't been putting in the work to make the big changes that actually benefit the people.

Now that the basics of life are starting to be a stretch for even the "middle" class - this is where real issues begin.

How long have the Rennie's and Gregor's of the world been allowed to distract the conversation by insinuating that discussing capital flows from China is racist?

This is so patently absurd - to the point that they scolded Andy Yan couple years back about his studies treading really closely to racial biases.

Typical for two far left white guys to be lecturing everyone on racism.

[whatnext]

Originally Posted by dreambrother808

There are homeowners and high-income earners still somewhat shielded from the pain of Vancouver's downfall. This is likely why the political response is somewhat lacking. I remember when lower-income friends were freaking out about the state of things years ago. I felt comfortable in a middle-class bubble. I naively downplayed their concerns, but now the heat has risen and I feel the fire. Where does all of this public rage end up, politically and socially?

Certainly the political rage resulted in the NDP getting elected. Their recent actions on expanding the Foreign Buyers Tax and adding a Specualtors Tax is a reaction to voter anger.

However, it is a huge glaring omission that they did not expand the Foreign Buyers Tax to pre-sales! As per an article in The Province today:

...Ferreira says it’s still early days in terms of seeing how the more recently unveiled set of taxes (including a widened foreign-buyers tax and a surtax on higher value properties) will impact the condo market, but he says the speculation tax on empty or lightly-used properties will not address the speculation linked to prices gains in presale condos. “True speculation is when buyers assign a unit (to another buyer for a higher price) before it’s even completed and the deal isn’t closed.”...(bold mine)

http://theprovince.com/business/local-bu...wcm/8089afe1-841b-47a7-921a-484147d4f1cf

[Pinion]

.

[Migrant_Coconut]

"Far left?" I'm no fan of Robertson, but unless he starts picketing the Aquarium or pushing for free transit, he is in no way a radical.

[SpongeG]

Crestpoint buys False Creek Flats MEC building, other Metro Vancouver properties

By Emma Crawford Hampel | April 11, 2018

Crestpoint Real Estate Investments Ltd., an investment company based in Toronto, announced this week it has purchased a portfolio of 12 office and industrial buildings in Vancouver and Burnaby, including the head office of Mountain Equipment Co Op in the False Creek Flats neighbourhood.

“This portfolio allows Crestpoint to build on the strong performance of earlier acquisitions in Vancouver while enhancing its economies of scale in this tightly held market,” Crestpoint said in a press release. “Existing rents in this portfolio are well below market, providing upside potential to grow future income.

...

https://biv.com/article/2018/04/crestpoi...uilding-other-metro-vancouver-properties

[s211]

Originally Posted by SpongeG

Crestpoint buys False Creek Flats MEC building, other Metro Vancouver properties

By Emma Crawford Hampel | April 11, 2018

Crestpoint Real Estate Investments Ltd., an investment company based in Toronto, announced this week it has purchased a portfolio of 12 office and industrial buildings in Vancouver and Burnaby, including the head office of Mountain Equipment Co Op in the False Creek Flats neighbourhood.

“This portfolio allows Crestpoint to build on the strong performance of earlier acquisitions in Vancouver while enhancing its economies of scale in this tightly held market,” Crestpoint said in a press release. “Existing rents in this portfolio are well below market, providing upside potential to grow future income.

...

https://biv.com/article/2018/04/crestpoi...uilding-other-metro-vancouver-properties

Investors Group has been dumping properties across the country big time in just a short while, including most of its Vancouver properties (I hear). I wonder what's going on there.

[rofina]

Originally Posted by s211

Investors Group has been dumping properties across the country big time in just a short while, including most of its Vancouver properties (I hear). I wonder what's going on there.

Good old portfolio rotation to lock in ridiculous gains on commercial property in the Metro region over last 24 months?

Also - I was under the impression MEC was the owner of their building, but I guess not.

[s211]

Originally Posted by rofina

Good old portfolio rotation to lock in ridiculous gains on commercial property in the Metro region over last 24 months?

Also - I was under the impression MEC was the owner of their building, but I guess not.

IG is liquidating stuff all across the country, which is very unusual for a fund of their type unless something very unusual is going on behind the scenes. Investment returns on these sorts of funds can live and die by how much liquid assets (i.e. cash) are on the books earning almost zero %. You don't do this unless you have a huge redeployment program in the works, and/or you have to address fund withdrawals.

I'm just curious; not trying to insinuate anything untoward.

Edit: FYI, the MEC building was shopped around and sold even before it was built.

[whatnext]

Thanks to a recent court ruling, you'd have to be a fool to buy a pre-sale anywhere in BC:

...In this month’s B.C. Supreme Court judgment, which had been anxiously awaited by prospective Murrayville homebuyers, a judge ruled they couldn’t complete the purchases of their units at the prices agreed upon years ago in their sales contracts.

In the view of the private lenders who financed Murrayville and who fought to have the pre-sale contracts terminated and the units re-sold at current prices, the decision was the only appropriate one. It was also the outcome supported by the developer, Chandler, and his numbered company.

But B.C.’s real estate watchdog had warned the judge about the precedent it could set if the court cancelled the homebuyers’ contracts in favour of the lenders’ applications to re-sell the units at higher prices, calling it an “absurd result” that would reward the developer for “serious misconduct.”

“This result would set a precedent encouraging future developers to enter into contracts of purchase and sale with no intention or incentive in certain markets to complete those sales,” the watchdog said in court filings. “For example, in a rising market a vendor would simply allow the completion date to pass, and then re-market a unit for a higher price of its own benefit.” ...

http://vancouversun.com/news/local-news/...-investigation-condo-buyers-left-in-cold

[osirisboy]

Well I hope they appeal that ruling!

[whatnext]

Originally Posted by osirisboy

Well I hope they appeal that ruling!

I do too.

This makes a mockery of the pre-sale process. These lenders claim they need to have pre-sales to make a commitment to fund construction, and yet there is no commitment on their part to those who buy into a pre-sale.

Quite frankly, I say we go back to the days before pre-sales. Developers should have to fund their own construction, it would probably let a lot of the air out of the real estate bubble if they did.

[jlousa]

Bad ruling imo, development investors are expected to have a higher level of financial knowledge then the average purchaser and as such be more aware of the risk involved and the potential for loses. Sure it 🞵🞵🞵🞵🞵 for them but they would've known there was a risk involved due to the returns normally "promised". The presalers only normal risk is if prices drop they are expected to complete or lose their deposits. I' sure an appeal is forthcoming, especially with this government.

[NewfBC]

Originally Posted by whatnext

Thanks to a recent court ruling, you'd have to be a fool to buy a pre-sale anywhere in BC:

...In this month’s B.C. Supreme Court judgment, which had been anxiously awaited by prospective Murrayville homebuyers, a judge ruled they couldn’t complete the purchases of their units at the prices agreed upon years ago in their sales contracts.

In the view of the private lenders who financed Murrayville and who fought to have the pre-sale contracts terminated and the units re-sold at current prices, the decision was the only appropriate one. It was also the outcome supported by the developer, Chandler, and his numbered company.

But B.C.’s real estate watchdog had warned the judge about the precedent it could set if the court cancelled the homebuyers’ contracts in favour of the lenders’ applications to re-sell the units at higher prices, calling it an “absurd result” that would reward the developer for “serious misconduct.”

“This result would set a precedent encouraging future developers to enter into contracts of purchase and sale with no intention or incentive in certain markets to complete those sales,” the watchdog said in court filings. “For example, in a rising market a vendor would simply allow the completion date to pass, and then re-market a unit for a higher price of its own benefit.” ...

http://vancouversun.com/news/local-news/...-investigation-condo-buyers-left-in-cold

This is not surprising.. Chandler is a crook!

https://www.pressreader.com/canada/the-province/20071016/281930243616017

http://www.cbc.ca/news/canada/british-co...-condo-projects-in-receivership-1.758800


Ron.

[SpongeG]

GOVERNMENT TO BUILD 14,000 NEW RENTAL HOMES FOR FAMILIES AND SENIORS ACROSS B.C. OVER NEXT DECADE

By Chris Newton - April 18, 2018

VICTORIA, B.C. — Premier John Horgan announced today that the provincial government will be funding construction of 14,000 new rental homes across B.C. to help make housing more affordable for low- and middle-income seniors and families.

The government said it will invest close to $1.9 billion over the next 10 years into the new Building BC Community Housing Fund to build affordable rental housing. Each housing project built through the Fund will consist of rental units for a mix of incomes. Thirty percent of the units will be for households with moderate incomes, defined as household incomes up to $71,200 for homes with fewer than two bedrooms, or up to $104,000 for homes with two or more bedrooms.

...

https://www.energeticcity.ca/2018/04/gov...and-seniors-across-b-c-over-next-decade/

[rofina]

Originally Posted by SpongeG

GOVERNMENT TO BUILD 14,000 NEW RENTAL HOMES FOR FAMILIES AND SENIORS ACROSS B.C. OVER NEXT DECADE

By Chris Newton - April 18, 2018

VICTORIA, B.C. — Premier John Horgan announced today that the provincial government will be funding construction of 14,000 new rental homes across B.C. to help make housing more affordable for low- and middle-income seniors and families.

The government said it will invest close to $1.9 billion over the next 10 years into the new Building BC Community Housing Fund to build affordable rental housing. Each housing project built through the Fund will consist of rental units for a mix of incomes. Thirty percent of the units will be for households with moderate incomes, defined as household incomes up to $71,200 for homes with fewer than two bedrooms, or up to $104,000 for homes with two or more bedrooms.

...

https://www.energeticcity.ca/2018/04/gov...and-seniors-across-b-c-over-next-decade/

Very mixed feelings about this.

Something is better than nothing, 14,000 over 10 years is nearly nothing.

But I also dislike government involvement.

Oh what a mess we have created in this Province.

[giallo]

Agreed. 14,000 homes over ten years is basically nothing.

[whatnext]

Originally Posted by rofina

Very mixed feelings about this.

Something is better than nothing, 14,000 over 10 years is nearly nothing.

But I also dislike government involvement.

Oh what a mess we have created in this Province.

Yes it would be far better to get the Rental Only zoning in place and encourage municipalities to use it forcefully. The wants of developers need to take a backseat to the needs of the People! For example a condition of sale for the Oakridge Translink property should have been it had to be rental only in perpetuity.

[whatnext]

The City of Vancouver's Empty Homes Tax is expected to bring in $30 million this year. Makes you wonder why we didn't do it sooner!
http://www.news1130.com/2018/04/23/vanco...illion-in-empty-homes-tax-in-first-year/