[Saanich] Herons Landing & The Ardea rentals | 5 & 6 storeys | Built - completed in 2014
Posted 09 October 2012 - 03:58 AM
Timing right for rentals, firm says
EY Properties sticks to core business, despite hurdles
By Andrew A. Duffy, Times Colonist October 9, 2012 2:05 AM
Doug's sister Angela Oakley, EY's property manager, said renting the building out will not be a problem.
"There's plenty of demand right now for new stock, people want new more than old, the new generation wants everything to be modern," she said. "And this should come online at a very good time."
The more than $10-million project broke ground in September and is expected to be complete by the end of 2013.
Oakley said they anticipate being able to rent it completely within eight months of opening the doors. An improved economy and more jobs in the city, spurred on by the increase activity in the shipbuilding sector, will help.
The bachelor, one-, two-and three-bedroom units will range in size from 375 square feet to 975 square feet and will rent for between $775 and $1,700.
I don't think it will be as easy as they think, after all, they will be competing with lots of rental condos that have all the new amenities too. A big plus is their location. Lots of drive-by to see their signage and daily open house.
Posted 25 February 2013 - 11:16 AM
Posted 24 March 2013 - 10:40 PM
Posted 25 March 2013 - 11:08 AM
Posted 10 October 2013 - 10:33 PM
\No wonder *that part* of the building is completely obscured by trees in the rendering
Posted 13 December 2013 - 05:42 PM
Posted 13 December 2013 - 10:07 PM
That's fantastic RFS, thanks for sharing!
If you have additional photos I'm sure a lot of people would appreciate seeing them. You can also upload directly to your post by clicking on the "more reply options" below the editor and attaching photos with the attachment tool below the reply box.
Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.
Posted 16 December 2013 - 11:23 PM
I have a good friend on the 3rd floor in the Ardea and have visited a half dozen or so times so far. Aesthetically it's a Nice building, the interior looks and feels as good if not better than a lot of the recent condos in the same area or west to the Westshore. The walls are not super well insulated, but I am impressed as they are probably just as sound proof than the ones in Aquattro (if not more) and guaranteed that building cost magnitudes more. Finishes range from cheapish to medium+ cheap, but again, not much different than what you'd find in a condo. Still has granite counters and decent appliances. The big difference here is the cost - $1100 rent for a one bedroom vs. a comparable condo in Langford for let's say $275k... add in your strata and taxes and at 5% down you are into it $1300+$200+$100 or so. Invest that difference and in this example you are far better off renting in the Ardea than trying to build equity buying. Best part is, if you get tired of it, you can just move. I think the Lease they signed was 1 year, then month to month after that. Not much of a commitment.
Posted 17 December 2013 - 02:04 AM
Edited by jklymak, 17 December 2013 - 02:05 AM.
- Matt R. likes this
Posted 17 December 2013 - 09:52 PM
^ I guess the owners of the Ardrea can do a lot better than a 5.7% interest rate you quote. Of course you can too, interest rates are about half what you are quoting, and inflation adjusted interest rates are even lower.
You'd better go back and check your math. $275 k purchase minus 5% down, add in the CMHC fees and closing costs and @ 3.5% (avg best 5 year fixed rate over the last 6 months) you get a payment around $1330 a month on a 25 year am.
Edited by 14 West, 17 December 2013 - 09:54 PM.
Posted 17 December 2013 - 10:28 PM
I do the calculation differently: the cost to own is my real opportunity cost plus expenses. Or in your example about $1000 a month (assuming real interest rate of 3.5-1.5=2%). You don't think the owners of this building are renting at a loss, do you?
Posted 17 December 2013 - 11:03 PM
The owners of the building are in a very different situation then the owners of a similar single condo which is what I am talking about. The owners of the rental building just like the developers of a condo building obviously have built in margins that the retail customer has to cough up each month.
In terms of comparing renting at the Ardea compared to buying a similar unit I was going simply by cost vs. cost, since if you can only afford $1100 a month you simply can't afford to buy the same thing that costs you $1600 to own. But I can go into a deeper analysis since you asked ;-) It's $500 cheaper to rent a month cash up front which yes is roughly equal to the principal portion of each payment so technically they are almost on par assuming a unit you buy doesn't depreciate or appreciate. However, It is going to take you 3 years just to regain your initial equity position after CMHC fees up front and the expected RE commission you'll have to incur to get your money back out. I'd say that is a pretty bogus deal for a unit you are unlikely to live in for long (and can't rent out for enough to cover your costs), and you're better off to keep renting until either rents rise, prices drop, or you are buying something larger than a shoe box that you can live in for a decade+.
Use the page links at the lower-left to go to the next page to read additional posts.
0 user(s) are reading this topic
0 members, 0 guests, 0 anonymous users