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Affordable housing in Victoria


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#781 Mike K.

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Posted 22 September 2017 - 11:19 AM

No, I don't expect the government to help if I sell my condo at a loss, nor do I hope for my condo to appreciate in value beyond inflation and the actual costs of any repairs/renovations I make. Not sure why every conversation about policy alternatives turns into a cross-examination of my life.

 

Lots of folks say that's what they do, but when it comes time to sell they'll sell for as much as they are able to get. That's why in a heavily left-leaning, socially-conscious city we have the housing prices we have.


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#782 Mike K.

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Posted 28 September 2017 - 03:38 AM

We'll see how this all comes together, but it's a unique idea to partner with a government agency as a means of assisting buyers with entering the real-estate market.
 
BC Housing helps developer offer 8% below-market condos in downtown Victoria
http://victoria.citi...ntown-victoria/
 
Chard Development has unveiled plans to introduce below-market workforce housing to Victoria’s Harris Green district as part of its upcoming Vivid at the Yates condominium tower.
 
Through a first-of-its-kind financing arrangement with BC Housing, the 20-storey, 135 one and two-bedroom project along the 800-block of Johnson Street will be priced at 8% below market rates to remove barriers to home ownership for a demographic priced out of the housing market.
 
“Our goal with Vivid is to introduce attainable new-build housing to a greater number of the region’s workforce,” said Chard Development’s Chief Financial and Acquisitions Officer, Byron Chard. [Full article]


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#783 lanforod

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Posted 28 September 2017 - 07:35 AM

Is 8% significant? 2 year requirement to live in it. What if you bought it, left it empty, then sold at market? As real estate prices almost never dip here, it's almost a surefire win, so long as your income is below 150/125.



#784 Mike K.

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Posted 28 September 2017 - 07:40 AM

Yup, for sure. It’s a great investment opportunity if you’re willing to live in it for two years (or can buy a unit for cash and carry insurance/strata/taxes for two years). That’s about $6-$8k in carrying costs.

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#785 VicHockeyFan

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Posted 28 September 2017 - 07:43 AM

Great, now our tax dollars are helping a cash buyer of a $550,000 property.


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#786 Mike K.

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Posted 28 September 2017 - 07:45 AM

...but that might not actually be allowed, now that I think about it.
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#787 rjag

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Posted 28 September 2017 - 08:15 AM

It's still $500/ft what's the actual cost of construction for a project like this?

#788 Mike K.

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Posted 28 September 2017 - 08:24 AM

The pricing will range to just below $600 to about $550. I think the big savings here will be in the finishing, too.

Chard now has experience with a rental (Yello).

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#789 DavidL

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Posted 29 September 2017 - 06:18 AM

It's very much half a program.  Building and selling condos at below market because the developer can get significantly cheaper money from a government agency to finance the project is a great idea.  It puts government money to good use in creating housing, provides guarantees for the developers that wouldn't exist otherwise and provides and opportunity to get into the market place for those that can't afford market prices.  Designing this program to essentially expire after a two year initial residency, allowing the units to return to market values and be resold is a profoundly stupid idea.  It reduces the offering to that of a lottery, if you get to buy a unit then you get to experience the lift in price after two years, congratulations.  At that point the funds spent by BC housing are wasted as no further affordability exists, so all you've effectively done, with tax revenue, is buy down the entry point for one specific set of buyers only.  To make the program an actual long term winner why wouldn't you just covenant the property to remain at 8% below market value on resale in perpetuity?  



#790 Mike K.

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Posted 29 September 2017 - 08:33 AM

Good question. Perhaps the legal issues with requiring independent appraisers to agree on a price with every re-sale would be too burdensome to administer.

Two years after completion it’ll be interesting to watch whether folks who received an 8% price cut are willing to pay it forward. We’ve heard for time immemorial from a contingent of home owners who decry new development as too expensive, but who are also unwilling to sell their properties for below the market value. Well, here’s that chance, a social experiment, if you will.

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#791 DavidL

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Posted 29 September 2017 - 11:25 AM

In other markets where this non-market housing has been produced quite successfully price increases are simply tied to inflation by covenant so there is no need to get independent appraisals done each time.  Simple and straightforward, so obviously not viable here.



#792 Sparky

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Posted 29 September 2017 - 11:28 AM

^ Where has this been done before in "other markets"?

#793 Mike K.

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Posted 29 September 2017 - 11:30 AM

I "think" something like that was done at Dockside Green with select units. But man, what a lame setup. You still invest a load of money into the purchase and while everyone else sees their real-estate appreciate by 25-30% over a five year period, you're stuck with a unit that excludes a large portion of the market (can only be sold to people earning a specified amount), comes with stipulations and has only marginally appreciated.

 

Admittedly I'm not 100% sure of the setup there but I know it was ultimately a pretty lame duck of a deal for the purchasers.


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#794 LJ

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Posted 29 September 2017 - 07:36 PM

It's very much half a program.  Building and selling condos at below market because the developer can get significantly cheaper money from a government agency to finance the project is a great idea.  It puts government money to good use in creating housing, provides guarantees for the developers that wouldn't exist otherwise and provides and opportunity to get into the market place for those that can't afford market prices.  Designing this program to essentially expire after a two year initial residency, allowing the units to return to market values and be resold is a profoundly stupid idea.  It reduces the offering to that of a lottery, if you get to buy a unit then you get to experience the lift in price after two years, congratulations.  At that point the funds spent by BC housing are wasted as no further affordability exists, so all you've effectively done, with tax revenue, is buy down the entry point for one specific set of buyers only.  To make the program an actual long term winner why wouldn't you just covenant the property to remain at 8% below market value on resale in perpetuity?  

Or make 50% of the increase in value when sold go back to the government to fund more housing.


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#795 lanforod

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Posted 06 October 2017 - 11:20 AM

Robertson in Vancouver is moving to give locals first crack at pre-sales. Thoughts on that?

http://vancouversun....condo-pre-sales



#796 VicHockeyFan

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Posted 06 October 2017 - 11:40 AM

Robertson in Vancouver is moving to give locals first crack at pre-sales. Thoughts on that?

http://vancouversun....condo-pre-sales

 

I'm almost sure that will fail in a legal challenge.  And I hope the developers fund that challenge.

 

That is the government reaching waaaaaaay too far into private business.  If these were condos funded or supported by public money, some public guidelines would be fine.  

 

You know, they want to woo Amazon and 50,000 jobs, the majority will be people from elsewhere.  You can't do one and then work at the other.  Stupid.


Edited by VicHockeyFan, 06 October 2017 - 11:45 AM.

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<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#797 lanforod

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Posted 06 October 2017 - 01:27 PM

I think they need a provision for people who are moving to Vancouver, yeah. I understand the reasoning otherwise.



#798 LJ

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Posted 06 October 2017 - 07:45 PM

By-election in two weeks, Robertson pandering to his crowd.


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#799 rjag

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Posted 07 October 2017 - 06:35 AM

Robertson in Vancouver is moving to give locals first crack at pre-sales. Thoughts on that?

http://vancouversun....condo-pre-sales

 

"What is ominous is the ease with which some people go from saying that they don't like something to saying that the government should forbid it. When you go down that road, don't expect freedom to survive very long." - Thomas Sowell

 

Its an election year and as LJ noted above, he's playing to his audience.

 

Whats next? Rent controls?


Edited by rjag, 07 October 2017 - 06:35 AM.

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#800 sdwright.vic

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Posted 07 October 2017 - 07:53 AM

^so how would y'all feel if the provision stated first offer must go to Canadian citizens, Permanent Residents, and their (common-law) spouses in the immigration application process?

Edited by sdwright.vic, 07 October 2017 - 07:53 AM.

Predictive text and a tiny keyboard are not my friends!

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