Quote:
Originally Posted by Daveography
I'm thinking about it in terms of parents thinking about how it will affect their children when they're gone, not about children greedily waiting for their parents to die so they can sell the property.
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Is that really much of a problem, though ? A single family property with a covenant on it is still going to appeal to a broad demographic of buyers, especially if it is in a desirable or historic neighborhood. I'd never put a covenant on my property for exactly the reason you suggest.. when it's time to leave Edmonton and we sell off our properties I want to realize maximum value, as the equity frrm them will fund our property in BC. But for many, especially in a character neighborhood, I don't know how much value you'd really loose.
In my dad's case the adjacent property is now essentially useless, unless it sells with the house. But I guarantee you that many people who want to live in the East Hill in Vernon will jump at a chance to have a historic-modern house with a side yard that no one can build on. So in all likelihood that property will just sell with the house when my folks decide to downsize.
I'm really curious to see what's going to happen in our area... my bet is not much, since, even as it is a very nice, well located and desirable neighborhood, it's not that nice that a developer is going to pay $500k for a good house just to knock it down and build two houses, the economics don't make sense. Where it has hit big time is in places like Mill Creek, Ritchie, and the north central neighborhoods and such, and it's knock downs that are being re-developed. It's too bad though, because (contrary to what some unscrupulous developers will tell you) they're actually driving out the affordable options in favor of a great many of the duplexes like the ones above, and some really ugly modernist examples, with a handful of decent ones scattered between.