5833 replies to this topic

[Mike K.]

Relax, komrades. It’s a joke stemming from aastra’s “they all look alike” joke, like Commie blocks, which all look...

...ah, forget it.

[Citified.ca]

In the fall of 2015 there was a decent collection of starter houses priced from the low-to-mid $300,000s. Today there are a dozen listings with pricing between $400,000 and $500,000.

 

Not included are age-restricted listings (there are several in this price range), boat homes and teardown lots.

 

View the Capital Region's 12 cheapest houses for sale at under $500,000

https://victoria.cit...00-000-dollars/

[RFS]

Did citified get some updated aerial photos?

[Citified.ca]

The one in the article is from May of this year.

[Citified.ca]

Developer Byron Chard chats local housing in this month's Ten on the 10th.

 

 

Ten on the 10th: Real-estate development Q&A with Byron Chard of Chard Development

https://victoria.cit...rd-development/

[Citified.ca]

 

Get an expert's answers to questions like "where do see interest rates and the supply of capital to our industry heading in 2020," and "what challenges and opportunities do you see ahead for the real estate industry and market in Victoria and on Vancouver Island."

 

Ten on the 10th: Interest rate and commercial mortgage brokerage Q&A with Dave Ganong of Canada ICI Capital

https://victoria.cit...da-ici-capital/

[DavidL]

The provincial and federal governments convened an Expert Panel on the Future of Housing Supply and Affordability in September of last year.  They've opened a public feedback period from the 22nd of January to the 3rd of April.

 

https://engage.gov.b...rdable-housing/

[Citified.ca]

January's average real-estate prices in the Capital Region set a new monthly record as 2020 began on a high note. Victoria's West Shore, which includes Langford, Colwood and Sooke (pictured), is increasingly in vogue among buyers as high prices push deals out of the core and over to the western suburbs.

 

2020 ushers in record home prices as Victoria's real-estate market picks up steam

https://victoria.cit...picks-up-steam/

[VIResident]

CHEK News at 5 o'clock Feb. 10/20 headline

 

"Dire warnings tonight about a possible collapse in BC's condo market.

The reason, some buildings can no longer get insurance."

"Sales are falling through and condo owners could be footing the big bill if anything goes wrong"

".....Insurance crises means the multi billion dollar condo market future is up in the air"

"...for those that can get insurance costs are skyrocketing"

 

Is CHEK sensationalizing?  CHEK states the province will have to step in.  What on earth does that mean? Average Jane & Jo, the taxpayer, now going to guarantee insurance on these buildings? 

 

Think we didn't have affordable housing before, wait until this hits the condo's that are 'rented' to tenants. 

Edited by VIResident, 10 February 2020 - 06:24 PM.

[Mike K.]

There won’t be a “collapse.” Good riddance, CHEK.

[lanforod]

This is based on a CTV article from a few days ago, all based on one dude's opinion.

 

https://bc.ctvnews.c...warns-1.4800633

[VIResident]

One building vs. 'one dude'.

 

"As soon as they found out there was no insurance in place, they retracted the mortgage approval," explained Atilla.

CTV News reached out to the property manager, Crossroads Management Ltd. The company said it tried five different insurance brokers, all of which were unable to find an insurance company to insure the complex.  Crossroads said it's still looking."

"....strata president of one Burnaby condo told CTV News their annual insurance premium has quadrupled, from $200,000 a year to $810,000..."

"This is not a small number of buildings now. We're now looking at several hundred buildings throughout the Lower Mainland that are seeing such dramatic increases," said Gioventu.

Okay, so it seems there is a issue.  How many here on VV are condo owners?  What is your insurance doing?

and then there is this:

"Doug Whicker, a strata president of a New Westminster condo complex facing a 40 per cent insurance premium increase, has sent a letter to Premier John Horgan asking for intervention. He says it's reached a crisis and suggests that B.C. set up a non-profit strata insurance corporation similar to ICBC.

"Immediately. We can't wait," said Whicker."

There it is.  Jane and Jo, just for you. 

[Mike K.]

Why are these media reports not indicating the age of the buildings, or referencing any claim history they may have?

There’s a tremendous amount of information missing from these simple articles that say there is a colossal problem but bring no details to the table.

[VIResident]

Why are these media reports not indicating the age of the buildings, or referencing any claim history they may have?

There’s a tremendous amount of information missing from these simple articles that say there is a colossal problem but bring no details to the table.

Well, if I were in the market to purchase a condo I would be thinking long and hard right about now.  I suspect there are many condo owners thinking of selling or currently have listed, along with real estate agents who would rather this not be in the news at all.  Keep it on the down-low, maybe nobody will notice, its the BC way!

Edited by VIResident, 10 February 2020 - 08:59 PM.

[Kungsberg]

Two articles from Insurance Business Magazine from a month ago:

 

BC condo's insurance premiums shoot up over 780%

https://www.insuranc...780-195996.aspx

Jan. 8/2020 article

The Mahogany Tower (Abbottsford) referenced in the article is a new build...has been occupied for only one year. Photo below.

 

 

Experts react to sky-rocketing condo insurance rates https://www.insuranc...tes-208826.aspx

Jan. 15, 2020 article

 

 

News release (Feb. 7/2020) from the IBABC (Insurance Brokers’ Assoc. of BC)

https://www.ibabc.or...Release_V10.pdf

Attached Images

• 

[Victoria Watcher]

still no word about claim history.

one VV member here that owns a condo reports no significant change.

[Mike K.]

Well, if I were in the market to purchase a condo I would be thinking long and hard right about now. I suspect there are many condo owners thinking of selling or currently have listed, along with real estate agents who would rather this not be in the news at all. Keep it on the down-low, maybe nobody will notice, its the BC way!

Don’t get too worked up. The media loves a sensational topic they can help blow out of proportion.

Remember when smart meters were blowing hydro rates through the roof? When ICBC rate changes raised insurance for young people by many thousands a year? When the entire real-estate market would implode thanks to the spec tax? Etc?

We still have no information to go on but a mouthful of drama.

[VIResident]

1.  

 

When residents of Anchor Pointe in New Westminster gathered for the strata’s annual meeting in December, they were stunned to learn their building’s insurance premiums were expected to increase by 40 per cent for 2020.

“It was a total shock to everybody,” said strata president Bruce Campbell.

Unfortunately for the 30-year-old tower’s residents, things were about to get worse.

The strata had budgeted for the 110-unit building’s insurance premium to increase by about 40 per cent for 2020 — to $95,000 for the year, up from about $70,000  — but when January rolled round, the strata council learned it would not be close to sufficient. Instead, Campbell said, the premium would be $259,000 this year — more than 3.5 times the cost last year.

Campbell had expected strata fees for his two-bedroom unit would be around $480 a month, including building insurance with this year’s anticipated 40 per cent increase. But now, the monthly costs for his unit will need to rise by about $150, to $630.

2.

Last month, the Abbotsford News reported a new condo building there was facing a 780 per cent hike in its insurance premium, which would be covered with a one-time levy of $3,000 a unit, along with doubling the monthly strata free to $600.

3. 

Gioventu said that as the insurance for more buildings come up for renewals at different points through the year, the price picture should become clearer.

 

What do condo owners who are renting out their properties do to cover these type of increases in their direct costs ?  They can't simply increase the rent.  

 

As noted in the article seniors on fixed incomes will struggle and for some will put them at financial peril. 

Seems this is more than one dude, one building or one condo owner in this group.  

The one building in this article is 30 years old, the other is brand new and both are experiencing huge insurance increases. (New buildings generally don't have 'claims' history)

Due diligence is the name of the insurance game and when in doubt.... just don't.  If you can withstand a $200 or $300 monthly increase in your condo fee, combined with average municipal tax increases between 5 & 8% AND the municipal service 'fees' that are not rolled into your municipal tax bill, and accompanying provincial and federal tax increases then buying into a strata property is for you.  

 

Article link:

https://vancouversun...urance-premiums

 

Here is listing info in the first building mentioned in the article.  Interesting details "well maintained", "live in manager", the management company has an excellent reputation and has a large portfolio - ability to leverage best prices etc.  Next look, all the similar buildings in the area - similar size, similar age and look to be about same condition.  In that immediate area a few dozen buildings, hundreds of condos.  https://bccondos.net/1135-quayside-dr

Edited by VIResident, 11 February 2020 - 05:57 AM.

[Mike K.]

Ah, there we go. 30 years is a long time. That’s when a lot starts to go wrong. And the new build, who knows what the story is there. There could be a problem with the building not being discussed in the media.

Everything from soil conditions to adjacent buildings to a defect could be impacting these rates.

And no, the market won’t collapse.

[Victoria Watcher]

i just suspect if the new norm is a $143 higher strata fee then that's the new norm.  it's still a small part of the overall cost to buy/maintain a home.  the guy above should be checking to see where all his $480 goes every month.

Edited by Victoria Watcher, 11 February 2020 - 06:03 AM.