Canada's 'housing bubble' deemed close to bursting

[misher]

Thats one way to bailout the hotel industry. At 18.5 mil for 65 rooms that puts a price at $285k a room for a 33 year old building. Avg hotel room size is 325sqft. Assessed at $14.175 mil in 2019. Sold for $18.5 mil.

A bit sketchy that the BC NDP is offering $4.2mil more than assessed when RE is supposed to be crashing, especially hotels. You'd expect hotels to be worth a lot less than last year.

I don't want to throw out the corruption allegation but the numbers are fishy.

BC government buys Comfort Inn Hotel in Victoria for $18.5 million

The province said the longterm use of the site will be determined through engagement with the community. In the short term, the building, located at 3020 Blanshard Street, will provide approximately 65 rooms of temporary accommodations with wraparound supports for people currently living in encampments on the Pandora Avenue corridor and Topaz Park.

https://dailyhive.com/vancouver/bc-government-comfort-inn-hotel-victoria-homeless

[Chadillaccc]

Originally Posted by milomilo

I've managed to get a reduction in rent before by asking, and I promise you I am no master negotiator. No harm in asking. But also keep a good eye out and see if there are places similar to yours for cheaper that you'd consider moving to (and show them these examples). If one of these places is good enough be serious about moving - the landlord would probably be willing to pay $50/month to not have the unit vacant.

Thanks man! I’m no master negotiator either. Lmao in fact I don’t think I’ve ever haggled I sent my leasing agent an email last night outlining that I have been looking at other places for comparable prices but that have way better amenities, along with the fact that I have put a bit of my own money into making this place nicer than it was. So I asked for a $50 reduction. That would help significantly over the next year.

Originally Posted by rbt

It rarely hurts to ask. If you're happy with the place and don't expect to move soon then you can also offer to sign a multi-year lease. Locking in a good profitable tenant for 2+ years is worth a bit of a discount, particularly now.

Alberta doesn't have a cap on the amount a landlord can increase rent; so they shouldn't be concerned that a short-term discount will limit revenue in future years.

I will likely be leaving Alberta after I graduate, just want to be closer to my family for the first time in my adult life. Though if I find a good job here after grad I will stay. Either way, I would never sign a multi-year lease on a studio this small, especially since I might be making some good money for the first time ever a year from now

Originally Posted by Truenorth00

Given how many AirBnB landlords are coming online I'd be weary. Many won't want a long lease. And you can't trust most of them to stick to the spirit of it. So watch out for those.

But there are opportunities and you should absolutely lowball them, below asking. Given how many places are coming online, many will be desperate. Take advantage of this.

I would only be looking for a one year lease. Hell, a 10 month lease would be literally perfect for me but I know I won’t find that. Either way, I am on the look out for sheisters. I probably wouldn’t be able to afford 98% of AirBnb rentals as an apartment at this point anyways. #studentlife



Thanks a lot for the tips guys!

[lio45]

I've helped friends and relatives negotiate rents (using all the right arguments from a landlord's view) and was successful every single time. I'd have chimed in to help as well were it not for the fact you're bragging that you're ignoring me.

[CityTech]

Originally Posted by kwoldtimer

What neighbourhood?

Blackburn Hamlet, walking distance to both the neighborhood retail hub and the Greenbelt trails.

[CityTech]

Originally Posted by milomilo

Over asking? I thought that craziness had gone. Congrats though!

I'm in the position of being ready to buy, but few houses are being listed in Calgary and I'm also a little nervous about the whole economy situation here. If I make it through with my job intact then I should be in a good place.

I really liked the place and was willing to throw $2000 over asking to increase my odds of beating out the other two offers. A far cry from the "normal" of the past few years where people have had to go up by five figure sums.

[Truenorth00]

Originally Posted by Chadillaccc

I would only be looking for a one year lease. Hell, a 10 month lease would be literally perfect for me but I know I won’t find that. Either way, I am on the look out for sheisters. I probably wouldn’t be able to afford 98% of AirBnb rentals as an apartment at this point anyways. #studentlife

If you aren't looking for a standard lease, go for the ex-airbnb. They'll be more than happy to give you a shorter lease. They want to get those units back on the short term rental market as soon as they can.

[whatnext]

Originally Posted by Truenorth00

If you aren't looking for a standard lease, go for the ex-airbnb. They'll be more than happy to give you a shorter lease. They want to get those units back on the short term rental market as soon as they can.

UM, yeah but I don't think he wants to find himself kicked out in 6 months if some greedy investor thinks he can go back to AirBnBing the unit.

[misher]

Originally Posted by whatnext

UM, yeah but I don't think he wants to find himself kicked out in 6 months if some greedy investor thinks he can go back to AirBnBing the unit.

Anyone that tries to make money is greedy. Even taking a wage is greedy, you should be paying your employer for the pleasure of employing you! We should eliminate greed. Everyone should take a loss!

Seriously what the hell is wrong with you people, if its legal and pays tax then we should encourage it. We're a capitalist nation and that makes us great unlike socialist/communist shitholes.

I don't know where this attitude of "making money off others is bad" came from but it needs to stop before we end up as a shithole. We all make money off each other get used to it. In this specific example if you sign a contract for 6 months and at the end they want to rent to someone that pays more thats not greed thats common sense.

Greed is when you do things that are illegal or possibly immoral.

If you want control of your place then buy it and then vote for a government that protects your private property rights. If not then yes your borrowing it from someone you don't own it.

[kwoldtimer]

Originally Posted by whatnext

UM, yeah but I don't think he wants to find himself kicked out in 6 months if some greedy investor thinks he can go back to AirBnBing the unit.

Several months notice required on a monthly tenancy, no? And the tenant can challenge it, iinm. Risk seems pretty low to me.

[WarrenC12]

Originally Posted by misher

Seriously what the hell is wrong with you people, if its legal and pays tax then we should encourage it. We're a capitalist nation and that makes us great unlike socialist/communist shitholes.

AirBNB often doesn't check those boxes.

[misher]

Funny I just posted about the province paying over assessed for the hotel and now there's an article about it.

B.C. pays $4.4M over hotel’s assessed value
The purchase price is about $4.4 million above the 2020 BC Assessed value for the 151-room hotel, which is located at 3020 Blanshard Street. The property was assessed at $14.17 million as of July of last year.

The high purchase price is considered an anomaly in the current market, which has seen about 60 per cent of hotels close down across the province during the pandemic.

“The traditional market [for hotel investments] has dried up,” said Carrie Russell, senior managing partner of hotel consultancy HVS International, of North Vancouver. “There are virtually no transactions in B.C.”

Weirdly the Urbanized article said 65 rooms while the Western investor article says 151 rooms are in the hotel but only 65 homeless will be staying there.

[Truenorth00]

Originally Posted by whatnext

UM, yeah but I don't think he wants to find himself kicked out in 6 months if some greedy investor thinks he can go back to AirBnBing the unit.

There's always an element of "caveat emptor" when dealing with a shady AirBnB slumlord. But, tourism ain't coming back. And most will be happy to get a tenant who tides them over till Summer 2021.

[Truenorth00]

Originally Posted by WarrenC12

AirBNB often doesn't check those boxes.

I often think the government should have baited them with a bailout and then prosecuted every single one who didn't report AirBnB income, for tax evasion.

But I guess that's too cruel, when many of them are about to lose their shirts anyway.

[misher]

Originally Posted by Truenorth00

I often think the government should have baited them with a bailout and then prosecuted every single one who didn't report AirBnB income, for tax evasion.

But I guess that's too cruel, when many of them are about to lose their shirts anyway.

I support this. Its not just AirBnB our rental industry is rife with tax evasion.

Most landlords balk at the idea of paying 30-40% of the rent they receive in tax. I don't blame them rents should definitely have a 50% exemption like capital gains but that's the law.

Also likely 10% or less of rental owners actually get a rental permit from the CoV. They don't bother to enforce them or even advertise they exist and are required.

[Truenorth00]

Originally Posted by misher

Most landlords balk at the idea of paying 30-40% of the rent they receive in tax. I don't blame them rents should definitely have a 50% exemption like capital gains but that's the law.

Why should income from rentals be any different than income from other investments?

As it stands, we have startups who leave this country because they can't raise capital, and you want to further discentivize investing in companies like that but giving preferential treatment to those partaking in an already inflated real estate bubble? Why?

[misher]

Originally Posted by Truenorth00

Why should income from rentals be any different than income from other investments?

As it stands, we have startups who leave this country because they can't raise capital, and you want to further discentivize investing in companies like that but giving preferential treatment to those partaking in an already inflated real estate bubble? Why?

Because we want people to live in a home, because they already pay taxes when they buy the home and property taxes, and because rental tax evasion is an epidemic. You need to balance taxes with crime as high taxes pushes people into evading them. Seriously how many rental owners in Vancouver bother to get a rental permit? I bet its around 10-20% but I don't have stats for it.

Lower taxes on rentals to 10% of rent. This will greatly incentive rental investment which leads to more supply which lowers rents. I much rather have people investing in our rental market than in overseas companies and evading all taxes. Plus income tax was meant to be off money you make working. Once your taxing all income from rental at 100% but capital gains off things like stocks at 50% your telling people to invest in stocks not rental.

Our supply in Vancouver is at 1% because rentals are a crappy investment currently. In America New York is at 2% and thats considered a crisis.

Costs are passed on to renters! By requiring a 30-52% tax on rentals it increases rents significantly.

This would greatly benefit renters and is common in many nations, is that a bad thing?

[lio45]

Originally Posted by misher

Anyone that tries to make money is greedy.

And anyone that observes that property prices in Vancouver are completely out of whack with local incomes is a racist —.

At least you're consistent...

[Truenorth00]

Originally Posted by misher

Because we want people to live in a home, because they already pay taxes when they buy the home and property taxes, and because rental tax evasion is an epidemic.

These don't impact renters in any way.

Originally Posted by misher

Lower taxes on rentals to 10% of rent. This will greatly incentive rental investment...

Given that most retail rental investors are cash flow negative, a rate of zero wouldn't even make that much of difference.

The ones who made money bought a while back or are doing AirBnB. And none of these would turn around and invest in more long term rentals if given a tax break. Indeed, we finally have the big REITs investing in rentals. And that has come as retail investors lost their business case. That shows us who is actually delivering more housing....

And again, I fail to see why any more real estate incentives are needed, at a cost of actively costing investment in every other sector of our economy.

[Truenorth00]

Originally Posted by misher

Our supply in Vancouver is at 1% because rentals are a crappy investment currently.

You do get that taxes are paid on profit and not the gross rent collected?

Originally Posted by misher

Costs are passed on to renters! By requiring a 30-52% tax on rentals it increases rents significantly.

What do you think gross profit is for the average unit? And why do you think tax savings would be passed on when rent is based on supply and demand? Are you actually suggesting that landlords who saw taxes lowered would pass it on to tenants? You can't be this naive.....

[misher]

Originally Posted by Truenorth00

You do get that taxes are paid on profit and not the gross rent collected?



What do you think gross profit is for the average unit? And why do you think tax savings would be passed on when rent is based on supply and demand? Are you actually suggesting that landlords who saw taxes lowered would pass it on to tenants? You can't be this naive.....

All economic theory is based on supply and demand. If you deny that people will invest more at higher profits increasing supply and decreasing prices you deny centuries of economic theory.

The short sighted belief that we should make things more expensive for landlords because it won’t hurt tenants got us into this mess. The only reason we have much of our rental supply is because it was all built back when we had tax incentives for landlords.