1835 replies to this topic

[skeptic]

Victoria house prices up 123 per cent in a decade (TC, 7-Nov)

There's a lot to be said for looking at long term statistics, rather than focusing on month-to-month fluctuations. By comparison, the Phoenix market (which according to the housing doom crowd is a harbinger of things to come for Victoria) rose 123% in the first HALF of the decade before crashing. That's a big difference in velocity.

[Barrett r Blackwood]

I have worked in the property managment end of things in Vic. for over thirty years and as a result have met and worked with many in realestate.
As a person who is directly involved with the care and managment of the block containing 760 Queens, 723 Field , 715 Field and being next door to the city owned building 710 Queens, I would be interested in hearing your opinions on a Comprehensive Development Stratagy for this block that includes some rental housing.

[RobinKimpton]

Robin Kimpton
on
the City's purchase of 710 Queens and Gorge Road
or,
What was Council Smoking?

What was Council smoking when it purchase these two Travellers' properties?


The Capital Expenditures


The City purchased 710 Queens Avenue (a 35 unit motel property) and the Gorge Road Travellers in 2010.


It paid approximately $6 million dollars (from our Emergency funds) for both properties. So far it has managed to house some 35 adults on social assistance at 710 Queens. Using this number as the numerator that is $171,428.00 per unit. All the while the private sector was purchasing these properties for approximately $50,000 per unit.


But wait, hold on, there is still a large capital budget for renovation of both properties yet to come!


Operating Economics


On the cost side, the opportunity cost of money (this is high risk money) would be in the order of 8% on a property like this. 8% money would result in mortgage payments or the opportunity cost of money to you the tax payer of approximately $480,000 per year or $40,000 per month. The City by its own publication lists an operating budget of $500,000 per annum or another $41,666 per month. In addition, of course, the City would not pay taxes to itself. The taxes on a property like that would be about $60,000 per year, lost to you. The total annual operating budget comes in then at $87,666 per month.


How does that measure up then against the revenue side?


As stated above, there are 35 units or 35 guests / tenants at 710 Queens Avenue. All are probably on social assistance paying approximately their $600 per month social assistance allowance. Lets see now, 35 times $600 equals $21,000.


$87,666 is greater than $21,000 by $66,666 per MONTH!!! or $799,999 per YEAR.


Thats our money folks and we are losing it fast.


Dean argues that portions of these capital expenditures were received from senior levels of government but it is still our money.


Operating Realities


We are currently in a precarious world wide financial crisis. Economies all over are holding there breath. Electorate, we are meeting throughout the City express major concern about their personal finances. But no the City Council charges ahead undeterred.


The City's economy is now for the most part based on government and tourism. B. C. Ferries has announced the lowest ridership in 20 years this past summer. We suggest there is plenty of capacity in the private sector to accommodate this housing without the City wading in. We took over Blanshard Manor (760 Queens) on December 24, 2010. At the time it had some 20 guests. We advertised throughout the winter including several discussions with VIHA, Pacifica Housing etc. We peaked at approximately 45 guests. We have 85 units. We could have absorbed 710's entire occupancy and still had units to spare. We suggest there are many Travellers with capacity.


Had it not been for this Council, we would still have our $6,000,000.


What were they smoking at Council?


The only thing I can see they were smoking was our money.

[Arnold]

If you need a real estate adviser  http://www.reafe.com/advisor-contact/

[Rob Randall]

^I guess if you need a home you should ask a homeless person.

[Mixed365]

Does anyone know if the Chapman Motors site in Rock Bay ever sold?
(The one across from Value Village) 

[concorde]

^no, I don't believe it did

[Sparky]

If you need a real estate adviser  http://www.reafe.com/advisor-contact/

 

YIKES!

 

Here is the front page of that web site. Does the first story sound familiar?

http://www.reafe.com/case-studies/

[lanforod]

YIKES!

Here is the front page of that web site. Does the first story sound familiar?
http://www.reafe.com/case-studies/

It does, but The League situation isn't finished yet is it? That website sounds like it is.

[Sparky]

I think it is toast, save for mopping up the mess.

[Bingo]

 Stephen Poloz says debt and overvalued house prices remain biggest risk to economy

Consumer debt loads and inflated house prices are two big risks to the economy, the Bank of Canada warned in its semi-annual Financial System Review on Wednesday.

The bank says it's about 95 per cent sure that house prices have been overvalued by an average of about 10 per cent since 2007.

That's based on a new forecasting model the bank says it created, which incorporates existing data from private banks and other government institutions.

But it's still worried about two big issues: household debt, and what it calls "imbalances in the housing market

"Among the current generation of young households, those who own homes carry more mortgage debt relative to income than previous generations did at the same age," the review said.

http://www.cbc.ca/ne...2867184?cmp=rss

 

 

 

[Szeven]

I like how they think oil is a net positive for growth. Should be interesting to see how that plays out. Otherwise, like the last paragraph says... 'same old'. We are forever without a catalyst.

[VicHockeyFan]

3/4 percent. Bank of Canada, in shock move, cuts key interest rate; loonie hit hard

The looming economic threat of sliding oil prices is forcing the Bank of Canada to unexpectedly cut its trend-setting rate to three-quarters of a percentage point.

http://www.thestar.c...erest-rate.html

[lanforod]

Awesome. Loving my variable mortgage now!

[aastra]

Did we see this comment under the TC article?

 

 

We're thrown up thousands of multistorey tickytacks over the past decade, with a pile more to come. Parts of downtown are starting to resemble a Chinese factory district. What does it take to make people stop griping about "affordability?"

[aastra]

Or this one?

 

 

If you build more homes/condos people will move here.

[jonny]

"We're thrown up thousands of multistorey tickytacks over the past decade, with a pile more to come. Parts of downtown are starting to resemble a Chinese factory district. What does it take to make people stop griping about "affordability?""

 

What does that even mean?

 

Which parts of downtown look like this?

 

Edited by jonny, 22 January 2015 - 11:26 AM.

[Mike K.]

I guess if we build more homes and schools people will move here.

 

Nevermind jobs and stuff like that, it's the gazillion new homes that resemble Chinese factories that are driving population growth.

[Baro]

Reactionary NIMBY's mad at anything and everything happening around them, film at 11.

[aastra]

 

Yes - Much "urban planning" propaganda in favour of "densification" is a scam to serve developers and local government and will turn parts of Victoria seedy in years to come.

 

South downtown comes to mind. The Falls, the Marriott, Aria, Astoria and Belvedere, Parkside... it's getting so damn seedy down there what with all that densification.