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Victoria's residential rental market


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#501 Mike K.

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Posted 25 October 2018 - 09:00 AM

Yes, for the most part. The rental rate increase cap will accelerate that process.

 

Moving forward inventory will be partnered in some way with social and affordable housing providers that tap into government monies. 1400 Quadra is likely to be one of the last purpose-built rental tower to rise that is free of government subsidy. There's also the Johnson Street phase of 1075 Pandora but it'll be comprised of around 40-units.


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#502 N E Body

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Posted 25 October 2018 - 09:18 AM

 

I'm waiting for more landlords to use this loophole. This is what happens when government interferes too much in the rental market. Having a rent cap is one thing, revising that rent cap downward is another.
Having said that, I will also say that, in the situation we are in across most of Canada, low vacancy rates, rent caps are good imo... but, I do believe they have to be lifted when vacancy rates rise above 3%.



#503 Kapten Kapsell

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Posted 25 October 2018 - 10:47 AM

Yes, for the most part. The rental rate increase cap will accelerate that process.

Moving forward inventory will be partnered in some way with social and affordable housing providers that tap into government monies. 1400 Quadra is likely to be one of the last purpose-built rental tower to rise that is free of government subsidy. There's also the Johnson Street phase of 1075 Pandora but it'll be comprised of around 40-units.


We might see some market rental projects built for large institutional investors like pension funds. There has been increasing interest in this segment of the market as it provides steady returns and diversification, especially considering the instability in commercial retail (think of all of the shopping centers owned/managed by Ivanhoe Cambridge and Cadillac Fairview, for example, both of which are owned by large institutional investors). These investors also have the liquidity and ability to lend to apartment builders at below-market interest rates...

#504 Mike K.

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Posted 25 October 2018 - 10:58 AM

We might see some market rental projects built for large institutional investors like pension funds. There has been increasing interest in this segment of the market as it provides steady returns and diversification, especially considering the instability in commercial retail (think of all of the shopping centers owned/managed by Ivanhoe Cambridge and Cadillac Fairview, for example, both of which are owned by large institutional investors). These investors also have the liquidity and ability to lend to apartment builders at below-market interest rates...

 

Yes, and we've seen a massive run-up in purchasing over the last several years by those institutions. They seem to prefer buying existing stock or newly finished, fully-rented concrete buildings.


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#505 tjv

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Posted 25 October 2018 - 12:29 PM

Moving forward inventory will be partnered in some way with social and affordable housing providers that tap into government monies. 1400 Quadra is likely to be one of the last purpose-built rental tower to rise that is free of government subsidy. There's also the Johnson Street phase of 1075 Pandora but it'll be comprised of around 40-units.

Yes I agree.  I was wondering if 1400 Quadra would actually proceed as rental.  If my memory is correct I this would be Alpha's first rental building

 

How serious is Steve/Dan Cox about proceeding with Johnson/Cook, I haven't spoken to them in a long time.  Is 1075 Pandora even fully leased yet?  It seems there isn't a huge market for higher priced apartments



#506 Mike K.

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Posted 25 October 2018 - 12:46 PM

1075 is virtually leased up save for some of the highest-priced inventory on the top floors. Those are very expensive units and they'll move slowly, but they will like others have.

 

I'll see what I can find out about 1400 Quadra. I understand there's no real rush to build phase two of 1075 Pandora along Johnson.


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#507 Mike K.

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Posted 25 October 2018 - 12:48 PM

I'm waiting for more landlords to use this loophole. This is what happens when government interferes too much in the rental market. Having a rent cap is one thing, revising that rent cap downward is another.
Having said that, I will also say that, in the situation we are in across most of Canada, low vacancy rates, rent caps are good imo... but, I do believe they have to be lifted when vacancy rates rise above 3%.


Just so everyone's on the same page, the loophole being talked about is an increase in the cost of parking and storage lockers to make up for the inability to raise rents above inflation.

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#508 Victoria Watcher

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Posted 25 October 2018 - 12:52 PM

Just so everyone's on the same page, the loophole being talked about is an increase in the cost of parking and storage lockers to make up for the inability to raise rents above inflation.

 

that does not "make up for" anything.  they are optional fees and you can park both your belongings and your vehicle elsewhere if you so choose to skip those fees.


Edited by Victoria Watcher, 25 October 2018 - 12:52 PM.


#509 Mike K.

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Posted 25 October 2018 - 12:56 PM

So why raise them?


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#510 sdwright.vic

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Posted 25 October 2018 - 01:22 PM

If you think I am going to start jocking for street parking... storage of it get too expensive I will just rent from a storage facility though.
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#511 LJ

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Posted 25 October 2018 - 07:42 PM

that does not "make up for" anything.  they are optional fees and you can park both your belongings and your vehicle elsewhere if you so choose to skip those fees.

I guess the landlord would be able to rent them out to the general public then if tenants are not going to use them.


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#512 tjv

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Posted 25 October 2018 - 08:20 PM

^ditto for parking:  the public or residents first come first served

 

Also other possibilities:  charging for water consumption (happened to someone I know), no more free heat or hot water, increase laundry fees etc



#513 Mike K.

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Posted 26 October 2018 - 05:37 AM

Move-in fees, move-out fees, fees to lock an elevator, etc, are going to start appearing or will be raised, too, and we’re going to start seeing more scrupulous move out inspections where the manager won’t let little things slide.

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#514 Victoria Watcher

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Posted 26 October 2018 - 05:48 AM

So why raise them?

 

well because they are currently priced lower than the price you can get for them.  that's what most businesses would do.



#515 Victoria Watcher

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Posted 26 October 2018 - 05:49 AM

Move-in fees, move-out fees, fees to lock an elevator, etc, 

 

a move-out or elevator fee is not permitted in rentals.   a move-in fee can be charged if there is one in strata bylaws only.


Edited by Victoria Watcher, 26 October 2018 - 05:52 AM.


#516 spanky123

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Posted 26 October 2018 - 07:01 AM

Now that money is flooding out of the region what we’re seeing coming down the pipes is what we’re likely to see for a very long time (save for taxpayer funded projects where money is a less significant concern).

 

Ben Isitt has said that he would like Victoria to set up a development corp and get into the property ownership and management business itself. What better way to do that then making approvals and rules so onerous for developers that they have to sell out at a discount.



#517 tjv

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Posted 26 October 2018 - 07:02 AM

^that is true, but the point is anything where the landlord can raise rates they will



#518 spanky123

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Posted 26 October 2018 - 07:16 AM

^that is true, but the point is anything where the landlord can raise rates they will

 

Granted. Only so many triggers that can be pulled and for only so long. Once parking hits $300 a month then expect the City or the Province to step in and try to regulate that as well.



#519 Jason-L

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Posted 26 October 2018 - 07:21 AM

^that is true, but the point is anything where the landlord can raise rates they will

Of course, this is true in any case (no reason needed) and is one of the reasons we have rent increase caps in the first place.


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#520 tjv

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Posted 26 October 2018 - 08:44 AM

^which is just the reason we have a ridiculously low vacancy rate because of over regulation that prevented apartments from being built for 30 years.  Government is solely to blame for the lack of rentals and they don't get it.  Too much regulation and the private sector invests their money elsewhere



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