3507 replies to this topic

[LJ]

The G&M article found that developers offered pre-sales to preferred realtors and investors. I don't see how that is unscrupulous. Makes perfect sense that if you are trying to fund a new development and someone with money is willing to take the risk alongside of you and purchase a number of units then you would give them a discount. 

Did you read the whole article?

[LJ]

This is nothing new. Many projects record presales from wealthy investors. That’s how it’s done.

Not when they limit it to a few. If anyone could buy in at that price from the start there would be nothing wrong with it. That was the whole point - you can't buy in early but I can.

[VicHockeyFan]

Not when they limit it to a few. If anyone could buy in at that price from the start there would be nothing wrong with it. That was the whole point - you can't buy in early but I can.

 

I don't quite understand.   These are private sales arranged before any public offering, what's not fair about that?

[LJ]

I don't quite understand.   These are private sales arranged before any public offering, what's not fair about that?

You can't access them, I can.

[VicHockeyFan]

I can befriend the developer as easily as the next guy.

Call up Chard’s people and tell him you have $2M to spend with him. He’ll take your call.

Edited by VicHockeyFan, 06 May 2018 - 08:08 PM.

[lanforod]

I think the only people who think this is unfair are also the people who want granite counter-tops and hardwood floors offered to them for 'affordable' rates.

 

Affordable being whatever they decide is fair...

[rjag]

Not when they limit it to a few. If anyone could buy in at that price from the start there would be nothing wrong with it. That was the whole point - you can't buy in early but I can.

This is the impasse, the fact that a private business can offer preferred pricing and purchase opportunities to a client base before taking the product to market doesn’t sit well with some folks.

Yet we see it all the time, I get offered pre-ipo access to buying shares., I get invited to my car dealer for a private event and unveiling with preferred pricing, I get an invite to a new restaurant that has some private events prior to opening to the public. Etc etc

No different here, you have an exclusive client base that pays for access to pre sales and backstops the financing. Standard relationship management, you go to the well to draw your water before investing time digging a new well

No different than offering frequent fliers upgrades

[G-Man]

Yeah I don't get it either. Someone wants to build a 20 storey building and give the units away free to their friends and they have paid their fees to the city, where is the harm?

[rjag]

Yeah I don't get it either. Someone wants to build a 20 storey building and give the units away free too their friends and they have paid their fees to the city, where is the harm?

Sarcasm aside! My family has been involved in the development business since the 70’s here and the UK.... this was always a requirement for financing from the banks that you had to reach certain pre-sales percentages in stages for financing to be released.

First thing any developer did was go to their reliable sources and offer units to quickly reach stage 1 financing to get shovels in the ground and start the marketing process.

Nobody is getting anything for free, they are supporting the foundation for risk in exchange for a small discount to market value, the discount is like the interest charge in financing.

Those units are still put in the same pool for sale with some units held back. The profit is diluted on those units but it’s what the banks require in their risk evaluation

[VicHockeyFan]

 

Here is my latest project.

 

Dead-end Pembroke in 2 places as shown.  Build on the parking lot, a 4-floor, 30-unit building. Now parking for the existing building is accessed off Princess.

 

On the street and onto the park build a slim 4-floor all-studio 96-unit building. 

 

No land cost for the Pembroke building, the developer with the best bid gets to build, own and run it.

 

The existing land-owner of the apartment building, we'll work that out with a great plan for him.

Edited by VicHockeyFan, 07 May 2018 - 09:04 AM.

[spanky123]

You can't access them, I can.

 

It is a private deal, the parties can conduct business any way they want. If I ran an Apple store and gave my top customers and friends first crack at new models should that be banned as well?

[spanky123]

I think the only people who think this is unfair are also the people who want granite counter-tops and hardwood floors offered to them for 'affordable' rates.

 

Affordable being whatever they decide is fair...

 

I think that you hit the nail on the head. A lot of people want prices to fall so that they can buy in and then sell at a big profit when prices recover!

[Mike K.]

We see first priority going to existing tenants of social housing providers who wish to move to that provider’s newest building.

[Mike K.]

The 48-unit The Row condo, now under construction along the 1000-block of Johnson Street, is sold-out but it was never publicly offered for sale.

[Nparker]

The 48-unit The Row condo, now under construction along the 1000-block of Johnson Street, is sold-out but it was never publicly offered for sale.

So investors bought all the units to rent them out?

[VicHockeyFan]

Uncertainty about whether $90M is enough to build 2,010 rental units

Will a $90-million affordable housing initiative by federal, provincial and regional governments actually create 2,010 rental units in Greater Victoria over the next four years?

More:

http://www.timescolo...nits-1.23300387

[VicHockeyFan]

That’s only $44,000/unit. So I think Helps idea of “buying up entire floors of buildings already being built” is not gonna work easily.

[tjv]

older apartment buildings are in the low 200k's per suite so that isn't going to work.

 

Besides who want's transient poor people living around them?  If it happened near me I would be installing security cameras, buy a big dog and officially join a gun range so I can be armed.  If you thinking I'm joking just try it

[PraiseKek]

Everyone wants to solve the homeless problem but no one wants them living near them. The perfect place for shelter housing is the Uplands in my opinion.

[tjv]

I don't want to solve the homeless problem, it hasn't been an issue for centuries and now people want to spend hundreds of millions if not billions to fix it

 

My solution is you want a nice place to sleep and live, then GET A $%^&*&^% JOB LIKE THE REST OF US!