Park Hyatt (1128 W Georgia) | 197m | 62 fl | Completed

[Klazu]

Originally Posted by whatnext

It does seem odd someone could afford to just sit on the unit for 10 years and then all of a sudden freak-out that they'll have to pay the empty homes tax, so they rent it [...] The owner really should have unloaded it in 2017 and put the money into weed stocks.

Yep, cases we have seen are so incredible and I always try to share them here. Over 90% of the units we see are not someone's old home, but part of owner's (often large) investment portfolio. Renting them out is only an after-thought, should the unit not sell, as often the unit is at the same time both on rental and real estate market.

There are countless multi-million dollar units that nobody maintains or seems to care for. Only thing that matters is how much these units are in value on someone's balance sheet. In the past people have said that Vancouver is becoming a resort town, but for that to be true, these owners should visit their units even once! There are several cases where I have gotten the feeling that the owner has never visited their unit and has perhaps only seen it on a marketing slide.

Owner of this particular unit is indeed strange. Within 10 years they would not only had paid back their investment through rent, but also gained the 3x increase in value. I just have no idea what their (or many other owners') end game is being.

I am so happy that the new Vancouver mayor is planning on tripling the Empty Homes Tax to 3%.

[VancouverOfTheFuture]

Originally Posted by Klazu

I just have no idea what their (or many other owners') end game is being.

a get out of town quick card for when their government falls. they at least have a place to go to.

[misher]

Originally Posted by Klazu

Yep, cases we have seen are so incredible and I always try to share them here. Over 90% of the units we see are not someone's old home, but part of owner's (often large) investment portfolio. Renting them out is only an after-thought, should the unit not sell, as often the unit is at the same time both on rental and real estate market.

There are countless multi-million dollar units that nobody maintains or seems to care for. Only thing that matters is how much these units are in value on someone's balance sheet. In the past people have said that Vancouver is becoming a resort town, but for that to be true, these owners should visit their units even once! There are several cases where I have gotten the feeling that the owner has never visited their unit and has perhaps only seen it on a marketing slide.

Owner of this particular unit is indeed strange. Within 10 years they would not only had paid back their investment through rent, but also gained the 3x increase in value. I just have no idea what their (or many other owners') end game is being.

I am so happy that the new Vancouver mayor is planning on tripling the Empty Homes Tax to 3%.

Current numbers say the tax costs 10 mil to administer and brings in 30m in revenue. A 33% loss is an example of government effiency.

[WarrenC12]

Originally Posted by misher

Current numbers say the tax costs 10 mil to administer and brings in 30m in revenue. A 33% loss is an example of government effiency.

Got a source for that info?

[Changing City]

Originally Posted by WarrenC12

Got a source for that info?

Frances Bula's article from April (so not up to date) said the expected first year income would be around $30m, with administration costs of $2.5m. There was also a one-off startup cost of $7.5m. The $30m was based on the 1,200 vacant homes where the tax had to be paid. There were another 1,100 homes that were disputing their vacant status. Some of those will no doubt have to pay, so the $30m isn't necessarily the total that will be raised. No doubt the new council will get an update - particularly if the new Mayor follows through on increasing the rate to 3%. Obviously examples like this Shangri La apartment will see the amount raised fall, assuming they find a tenant. That's the whole point of the programme - reducing the number of vacant units and increasing rental stock, so a drop in income over time shouldn't be seen as a failure, but rather a success story.

[WarrenC12]

Originally Posted by Changing City

Frances Bula's article from April (so not up to date) said the expected first year income would be around $30m, with administration costs of $2.5m. There was also a one-off startup cost of $7.5m. The $30m was based on the 1,200 vacant homes where the tax had to be paid. There were another 1,100 homes that were disputing their vacant status. Some of those will no doubt have to pay, so the $30m isn't necessarily the total that will be raised. No doubt the new council will get an update - particularly if the new Mayor follows through on increasing the rate to 3%. Obviously examples like this Shangri La apartment will see the amount raised fall, assuming they find a tenant. That's the whole point of the programme - reducing the number of vacant units and increasing rental stock, so a drop in income over time shouldn't be seen as a failure, but rather a success story.

Thanks for the detail, those numbers make much more sense. And yes I agree that the whole point should be to make more rentals available on the market. And particularly with these high-end units and a limited number of people in the rental pool for them, prices should go lower and hopefully trickle down through the market.

[whatnext]

Originally Posted by misher

Current numbers say the tax costs 10 mil to administer and brings in 30m in revenue. A 33% loss is an example of government effiency.

Then that's $20 million they didn't have to go towards affordable housing before. And as others have pointed out the point of the tax is exactly what Klazu's Shangri-la experience was: unlock empty units and put them back in the housing pool.

As bb1510 illustrated here, a lot of units in high-end buildings are being sold offshore, better to have them rented than sit empty if the owner doesn't intend to use them.

[bb1510]

but then again, there will still be a lot of empty homes and units as many of these uber 1% people prefer to have convenience and don't mind paying that amount

[Klazu]

Originally Posted by bb1510

but then again, there will still be a lot of empty homes and units as many of these uber 1% people prefer to have convenience and don't mind paying that amount

And that is fine, but then you shall pay the 3% (hopefully more) tax for that convenience. To be honest, a 3% extra tax is pennies / a rounding error for most of these people...

[Klazu]

[bb1510]

This unit is Rize Alliance's owner's old unit; I believe it was sold earlier this year for 6.1m. They moved here to downsize for the time being when their smaller home was under construction

Completely reno'd and different from any other unit in the building; I believe they spent over 1.2m on the renovation

[officedweller]

Thanks.
The animal lamps are bit creepy.

[officedweller]

Reminder of the approved renos to the level 1, 3 and 6 restaurant / conference areas.
Why do I suspect the enclosure of the walkway means bigger future plans for the podium that now houses The Keg?


https://rezoning.vancouver.ca/applications/1128wgeorgia/index.htm

Enclosing the restaurant terrace and walkway
(you can also see the 3 squares with Xs in them, which are the expansion of the lobby tea room:

https://rezoning.vancouver.ca/applications/1128wgeorgia/index.htm

Enclosing the 6th floor Thurlow side roof deck

https://rezoning.vancouver.ca/applications/1128wgeorgia/index.htm

[jollyburger]

Originally Posted by officedweller

Thanks.
The animal lamps are bit creepy.

The horse lamp costs $11K

[whatnext]

Originally Posted by jollyburger

The horse lamp costs $11K

As the old saying goes, money can't buy taste.

[Vin]

Originally Posted by whatnext

As the old saying goes, money can't buy taste.

I suppose Joey restaurant on Burrard (by Robson) and The Standard Rental apartment building are both "tasteless" as well, since both businesses also decorate their premises with the horse lamp.

[Zepfancouver]

A time-lapse of the BMU (Building Maintenance Unit) being utilizes by window cleaners. https://youtu.be/ZraaBrIBc20

[officedweller]

Thanks.
That crane may be ugly, but it's highly functional.

[Zepfancouver]

Crane is the right word for this unit. I would not have any concerns on operational weight limits from this thing.
Looked for a post of it being installed, the first i see of it is on page 76 post #1506 Jun 9, 2008 by skymaster

[officedweller]

Back then there was a big furor about whether it would be hidden.
It was touted as "retractable" which people thought meant "hidden", but it only meant that the arm extended and retracted.