649 replies to this topic

[Mike K.]

It sure does make life easier if you have a mom and dad who can cut you a cheque to help you buy a home. A friend recently received $700,000 from his parents to buy a home. Wowzas...

 

But that's the price you pay if you want your 38 year-old to move out.

[grantpalin]

This development is one of the possibilities that, if I had the means, I would be looking hard at to buy into. I'd kind of like to live right downtown where all the amenities are. Don't have a car and don't really need one. Alas, I'll be a renter for years yet.

[tiger11]

I assumed prices will stay the same as they said "Prices for Vivid’s 135 units will run between $275,000 and $550,000" which is based on a third party appraisal (There remains the possibility I interpreted it wrong). 

 

I know parents that have gotten excited for their kids in their early stages of post secondary education. I had a few friends parents get excited about it; however, they all have decided against it cause most their kids are too far along for it to make sense.   I think the challenge for students buying in this building (asides from price) lies in the fact that many students are unsure of which post secondary education institution they will attend and they will not want to commit to a building in Vic previous to choosing but obviously the Vivid only needs to connect with the few that are sure.

 

I am a young individual (24) and unfortunately I will severely benefit from help from the rents to buy anything decent. Wages and good opportunities are hard for ppl my age to come by in Vic (despite the 3.9%is vacancy rate here). My original question was more relating to if there might be some negative perceptions from the structure of financing? I feel its unlikely but like to cover all the basis. 

[spanky123]

Anyone know what the real deal is? How much is BC housing actually subsidizing the units or is it just that Chard is giving a price that they say is below market value?

 

If the intent is for BC housing to be assisting in the creation of affordable living spaces then having rich parents buying units for their kids to flip in two years doesn't seem to be accomplishing that.

Edited by spanky123, 13 February 2018 - 03:32 PM.

[tiger11]

Anyone know what the real deal is? How much is BC housing actually subsidizing the units or is it just that Chard is giving a price that they say is below market value?

 

If the intent is for BC housing to be assisting in the creation of affordable living spaces then having rich parents buying units for their kids to flip in two years doesn't seem to be accomplishing that.

The project is financed through B.C. Housing so the costs of the project lies in there depending on how you want to value that, possibly at a near rick free rate.

As per the times colonist article "the overall reward of the development may be lower, so too is our risk as 100 per cent of our costs are covered through the loan with B.C. Housing at a preferred rate,”  

[spanky123]

 

The project is financed through B.C. Housing so the costs of the project lies in there depending on how you want to value that, possibly at a near rick free rate.

As per the times colonist article "the overall reward of the development may be lower, so too is our risk as 100 per cent of our costs are covered through the loan with B.C. Housing at a preferred rate,”  

 

 

Ok so BC Housing is giving Chard a discounted development loan? Can't see that translating to huge discounts on condos if that is the case.

[tiger11]

Ok so BC Housing is giving Chard a discounted development loan? Can't see that translating to huge discounts on condos if that is the case.

 

I wouldn't really consider 8% huge but at least its something....

[spanky123]

I wouldn't really consider 8% huge but at least its something....

 

But 8% off of what - the price they were going to charge? Sounds more like a marketing pitch then it does anything to help first time home buyers.

[VicHockeyFan]

There is an independent appraisal. They must sell for 8% under that.

But I’m scratching my head as to why my 21 year old friend, single and with no kids needs taxpayer assistance to buy a $585,000 1 bedroom new condo. Why can’t he buy a used $280,000 one on his own?

Edited by VicHockeyFan, 13 February 2018 - 06:45 PM.

[magmazing]

The prices are set in stone and are based on the original third party appraisal. Even if they do another appraisal and it shows the values have changed significantly, they can't change the prices.

 

I committed to a unit at Vivid. Submitted the 2nd deposit cheque today (5% when the contract is signed, 5% a couple months laters). Apparently the building is just over half sold now.  On the floor I bought into, only a 2-bedroom unit is still available. 

 

I don't get a parking spot, but am hoping some 2-bedroom buyers decline spots (parking is $35,000 extra) and becomes available to me, but it'll probably take a miracle for that to happen.

 

Only the person(s) on title are allowed to live in the units for the first two years. Anyone on title must have a combined income of less than $150,000. So if you're getting a co-signed mortgage with your parent(s) your combined income has to be below that limit. If you're single and end up with a girlfriend/boyfriend or get married before 2023, technically your significant other is not allowed to live with you if they're paying you rent or are contributing to paying down the mortgage because they are not on title. 

 

 

 

 

But I’m scratching my head as to why my 21 year old friend, single and with no kids needs taxpayer assistance to buy a $585,000 1 bedroom new condo. Why can’t he buy a used $280,000 one on his own?

The top price for a 1-bedroom is around $380,000-ish Non 585...

[spanky123]

The prices are set in stone and are based on the original third party appraisal. Even if they do another appraisal and it shows the values have changed significantly, they can't change the prices.

 

I committed to a unit at Vivid. Submitted the 2nd deposit cheque today (5% when the contract is signed, 5% a couple months laters). Apparently the building is just over half sold now.  On the floor I bought into, only a 2-bedroom unit is still available. 

 

I don't get a parking spot, but am hoping some 2-bedroom buyers decline spots (parking is $35,000 extra) and becomes available to me, but it'll probably take a miracle for that to happen.

 

Only the person(s) on title are allowed to live in the units for the first two years. Anyone on title must have a combined income of less than $150,000. So if you're getting a co-signed mortgage with your parent(s) your combined income has to be below that limit. If you're single and end up with a girlfriend/boyfriend or get married before 2023, technically your significant other is not allowed to live with you if they're paying you rent or are contributing to paying down the mortgage because they are not on title. 

 

 

 

 

The top price for a 1-bedroom is around $380,000-ish Non 585...

 

Thanks for the clarification. So what is to stop someone from buying a unit in their kids name, put them on title, let the unit sit empty for 2 years and then flip it? 8% off might be enough to make it worthwhile.

Edited by spanky123, 13 February 2018 - 07:59 PM.

[VicHockeyFan]

My bad, I misread Tigers post earlier with the price ranges.

 

My buddy has a top-floor unit.

[magmazing]

Thanks for the clarification. So what is to stop someone from buying a unit in their kids name, put them on title, let the unit sit empty for 2 years and then flip it? 8% off might be enough to make it worthwhile.

There's a bunch of hoops you have to go through before you even hand in a deposit cheque. Show proof of income (T4s, tax assessments), provide proof of financing, get a lawyer or notary to sign a statutory declaration regarding an Affordable Home Ownership Covenant and meet with a third party administrator representing BC Housing who goes over the rules of the program and explains what you're signing up for. 

So there's a whole process to go through.

[Mike K.]

So the developer will never raise the asking prices, mag?

[magmazing]

So the developer will never raise the asking prices, mag?

It's my understanding that the prices are locked in for as long as units are still available due to the partnership with BC Housing. 

 

Also, the developer doesn't get the financing from BC Housing until the building is 100% sold. So raising prices along the way probably would hinder the timeline of constructing the building. 

[VicHockeyFan]

This seems tricky. How does he build two buildings at once if he has to wait in one. Or are they being build separately?

[Mike K.]

They’re being built together but there are economies of scale when you share a common foundation, crews can tackle issues for both buildings at the same time, etc.

[spanky123]

There's a bunch of hoops you have to go through before you even hand in a deposit cheque. Show proof of income (T4s, tax assessments), provide proof of financing, get a lawyer or notary to sign a statutory declaration regarding an Affordable Home Ownership Covenant and meet with a third party administrator representing BC Housing who goes over the rules of the program and explains what you're signing up for. 

So there's a whole process to go through.

 

Thanks for the explanation. Seems strange to me then that the developer is marketing these units to parents to buy on behalf of their kids.

[Mike K.]

They’re not marketing to parents, but it’s the parents who are catching wind of the opportunity and encouraging their kids to take a serious look at the project.

The parents can’t be listed a co-purchasers if their income together with their child’s is above $150k.

[VicHockeyFan]

Thanks for the explanation. Seems strange to me then that the developer is marketing these units to parents to buy on behalf of their kids.

 

I think he is just showing in can be done that way.  In fairness, it's still the kids home, on paper and in practice, regardless of how it was financed.