49 replies to this topic

[ovovov]

informative post.

 

what is a good entry price point? $800/sqft?

[MarkoJ]

I've heard a rumor that the Row units won't be for sale? i.e. already sold to investment firm?

[shoeflack]

Mike had previously confirmed that The Row was going to be all-rental in that thread. Have things changed?

[Mike K.]

Yes, it appears that they have. The development team intends to sell them.

[ovovov]

chatted with developers, looks like the city wants rental suites to be embedded into new project starting next year and it really boiled down the developer(s) may ended up eating the cost/expenses.

 

In another word, pushing the average building cost higher. I wonder if any developer still wants to take the risks and starting building them at 900/sqft...

Investment firm/individuals may have a different take on perpetual income stream for those rentals.

[Mike K.]

The Row was approved with a 10-unit rental component, so there was always that guarantee.

 

Going back to your question about an entry price point, it depends on the unit type. You won't find much for $800 in smaller layouts but there's a higher likelihood that larger units will be at that price point, maybe even lower.

 

For a studio $875-$900 is your starting point. I wouldn't be surprised if we see $925 next spring, despite CMHC's warnings about a slowdown in 2020. Price responds to supply, and when there's no supply to buy that keeps costs elevated if not incentivizes an increase in cost. There's also the affordability factor that gives smaller, more affordable units an edge over larger units.

[ollivier1]

Anyone know how this might effect things?

https://bc.ctvnews.c...ok&_gsc=QEaWgha

 

[Mike K.]

This is what ollivier1 is referring to:

VANCOUVER -- There are dire warnings that the condo real estate market in B.C. could collapse unless the province steps in to stop it.

 

A representative of a condo owners' association says recent changes to insurance rates mean that not only are buildings having to pay more for coverage - some are being denied altogether.

 

"This is something no one had foreseen," said Tony Gioventu, executive director of the Condominium and Homeowners Association of B.C.

 

 

Sounds like this is referring to old buildings. As buildings age the risk of insurance claims rises.

[MarkoJ]

Anyone know how this might effect things?

https://bc.ctvnews.c...ok&_gsc=QEaWgha

 

A lot of media hype so far...haven't seen any issues in the buildings I own units in, so far.

[Victoria Watcher]

A serial property flipper in British Columbia has been convicted of tax evasion and fined more than $2 million for failing to report nearly $7.5 million in earnings.

 

The Canada Revenue Agency says in a statement that Balkar Bhullar of Richmond, B.C., was given a conditional sentence of two years less a day on Dec. 19 and fined about $2.15 million, matching the amount of unpaid federal income tax.

 

The agency says Bhullar pleaded guilty on Aug. 3 last year to one count of tax evasion, relating to undeclared income of about $7.49 million from transferring assignment fees on 14 properties from 2011 to 2014.

 

Assignment fees are paid for the right to purchase a property, in which a contract’s rights and obligations are transferred from one buyer to another.

 

 

https://cheknews.ca/...vasion-1230911/

 

 

 

 

This guy really made $7.5M profit on just 14 assignments?    That's $535,000 each.

Edited by Victoria Watcher, 28 December 2024 - 07:55 AM.