5833 replies to this topic

[rjag]

"action will be taken"

What action can the bank take? I am not an expert here.

Basically as renewal approaches. They have a choice to either offer the borrower a renewal or not offer a renewal? And they can also decide how crappy they want to make the terms of a renewal offer?

If denied renewal from current lender the homeowner gets to look around for other financing, and if that fails then the bank can start foreclosure?

Usually a lump sum payment or conversion to cmhc but it’s up to the banker not the homeowner that determines what if any action they may take to protect their investment in your home. Obviously they aren’t going to foreclose as that’s extreme but they always have control

[nerka]

Usually a lump sum payment or conversion to cmhc but it’s up to the banker not the homeowner that determines what if any action they may take to protect their investment in your home. Obviously they aren’t going to foreclose as that’s extreme but they always have control

If it's "obvious" that the bank doesn't want to foreclose that would suggest that the borrower does have some negotiating power too?

[LJ]

I literally said within my response that the money to subsidize labour and materials would be the taxes collected from the sale of investment properties. I personally don't mind paying taxes so that everyone I share the planet with can have a better life.

And approximately how much tax have you paid from selling your investment properties?

[tjv]

What I want is:

 

• Prohibitive taxes on the sale of investment properties (properties that are not the owner's primary residence and properties sold within the first few years of purchase) - 
• Incentives for property developers to build homes that are actually affordable and suitable for families
• Housing prices for new developments based on the actual costs of materials and labour (including a salary for the developers), not based on what people have been willing to pay for condos lately

I don't think any of these would cause current homeowners much grief. Even if you are unlucky enough to need to move within the first few years of occupancy, you're not going to lose money. You just make slightly less profit.

first bullet:  that already exists, its called capital gains

 

second bullet:  talk to your MLA, MP, etc.  But if you get an incentive, I want a retroactive incentive on my house too, just like everyone else who owns a house I am sure.

 

third point:  there is a lot more than materials, labour and developers salary to build a condo.  Most developers make reasonable profits on each unit, they make money when there is 100 units in the building.  What do you think it costs to buy land, finance charges, design, get approvals, build, market and sell?  It all adds up quickly

[Mike K.]

And we saw how quickly a major project can be mismanaged (the bridge) by highly paid but woefully inexperienced municipal workers.

[dasmo]

I’m am for sustainable capitalism but there is no need for sympathy towards developers right now! They were making money at $500/sqf a few short years ago. They are making a killing right now at $1000. There is a reason it’s going flat out right now....

[MarkoJ]

I’m am for sustainable capitalism but there is no need for sympathy towards developers right now! They were making money at $500/sqf a few short years ago. They are making a killing right now at $1000. There is a reason it’s going flat out right now....

 

and land costs and constructions costs have stayed flat?

[dasmo]

Not now no.... it’s the ripple effect because they are charging $1000/sqft not the other way around.

[rjag]

Not now no.... it’s the ripple effect because they are charging $1000/sqft not the other way around.

 

So what do you think the profit margin is per ft now compared to say 5 & 10 years ago?

[dasmo]

It’s like you paying $26k to drywall a 5000 sqft house a couple years ago. Now I get quotes for $36k for 2500 sqft. The drywall is up but that only adds a couple thousand to the bill. They aren’t paying their labour any more than two years prior. They are charging that because they can.... it’s the beginning of an inflationary cycle that will eventually make its way to wages.

[dasmo]

Another example is my concrete floor finishing quotes. One is half the price of another....

[VicHockeyFan]

Another example is my concrete floor finishing quotes. One is half the price of another....

 

Well, you likely know, as I do, and have done as a salesman, sometimes you just jack your bid price up on a job you are not particularly thrilled about on taking on.

[Mike K.]

The cost of land has increased.

The cost of materials has increased.

The expectation of finishings have increased.

The cost of labour has increased.

The cost of permitting has increased.

The cost of amenities has increased.

The cost of insurance has increased.

Everything has increased. Meanwhile when we look at the monies spent on simple social housing projects we can start to see that the difference between costs and profits for market housing is razor thin, considering the risks and capital investments involved.

Now small tradesmen are also working flat out and quoting high prices on jobs that they can afford to pass up, unless the customer wishes to pay a premium. That’s been very common as of late.

[jonny]

The only incentive developers would need is to blanket zone significant swaths of Greater Victoria to 4-6 storey multi-family (i.e. Quadra, McKenzie, Cook, Shelbourne, Johnson and Pandora corridors).

I wager this is the easiest play munis have to address "affordability". Government housing schemes and funding are a disaster.

Developers can charge what they do now because:

Buyers are willing to pay for new builds.

And there are not enough new builds going up. How long does it take to get a modest 4 floor 40 unit building approved? Way, way too long. Time is money. Buyers are paying for that delay. Developers don't stop paying their staff while they wait for approvals and permits.

Edited by jonny, 04 November 2017 - 01:58 PM.

[RFS]

The only incentive developers would need is to blanket zone significant swaths of Greater Victoria to 4-6 storey multi-family (i.e. Quadra, McKenzie, Cook, Shelbourne, Johnson and Pandora corridors).

I wager this is the easiest play munis have to address "affordability". Government housing schemes and funding are a disaster.

Developers can charge what they do now because:

Buyers are willing to pay for new builds.

And there are not enough new builds going up. How long does it take to get a modest 4 floor 40 unit building approved? Way, way too long. Time is money. Buyers are paying for that delay. Developers don't stop paying their staff while they wait for approvals and permits.

Better yet they could zone swaths of land in saanich, central saanich, west shore, etc to allow development of SFD homes for younger families to get into the market. Some rapid urban sprawl would cool prices. Just look at Calgary prices

[Nparker]

...How long does it take to get a modest 4 floor 40 unit building approved?...

This took over 2 years to get approved and it's almost indistinguishable from many of the nearby developments.

[jonny]

In those two years they likely paid hundreds of thousands in carrying coats. They paid full time staff. They paid interest to the bank. They paid contractors and lawyers to help them navigate the burdensome approvals process. ALL of those costs were paid by the end buyer.

The burdensome approval process reduces supply and increases prices. Econ 100 stuff, folks.

[dasmo]

None of those costs have doubled in the last two years. Developers like Le Fevre bought the railyards land in 2002. It’s not even a cost anymore. Sleggs only recently bumped up drywall prices by 40% on top of the bump from the new tariff. That I’m sure is because they want their cut. So yes all this costs are going up because they developers are charging $1000/sqft not the other way around. Those prices are not cost driven, they are market driven. I’m happy for Chris though he deserves all the extra profits....

Edited by dasmo, 04 November 2017 - 03:02 PM.

[rjag]

None of those costs have doubled in the last two years. Developers like Le Fevre bought the railyards land in 2002. It’s not even a cost anymore. Sleggs only recently bumped up drywall prices by 40% on top of the bump from the new tariff. That I’m sure is because they want their cut. So yes all this costs are going up because they developers are charging $1000/sqft not the other way around. Those prices are not cost driven, they are market driven. I’m happy for Chris though he deserves all the extra profits....

 

 

If you can prove that someone is excessively profiteering off the backs of the housing industry I would ask then how can you buy this https://www.realtor....Columbia-V2E0C2 3 bed, 3 bth 2 car garage brand new for $380k in Kamloops. 1300Ft thats $292 per ft

 

Same labour, same materials, same architects and engineers....whats different? Land and permit costs.

 

like this

 

https://www.realtor....Columbia-V8P3Y4

as opposed to this

https://www.realtor....ritish-Columbia

 

on a 2500ft house this just added $180/ft to the final build price

[dasmo]

The cheaper lot is half the size.... The 12000 sqft lot will have three house on it so the land cost will actually be cheaper. But good question. Why are houses more than twice the money here? Obviously it’s not cost driven.

Edited by dasmo, 04 November 2017 - 04:18 PM.