Building the affordable home
 

http://www.househunting.ca/buying-ho...5-384bd3fa0173

I read another article interviewing one of the bigger condo developers that said essentially the same thing. Cut back the luxuries and make an affordable unit.

Thanks for the post.

The irony is that professional chefs and pro cooks never use granite counter tops for a number of reasons. The only advantage is aesthetics.

It is easy to be drawn into the flash of a newer building but while we have become partial to the superficial build quality, there is no reason to consider price increases because of it.

Why?

It is because there has been an exchange. The build quality of newer buildings are horrible and cheap so the money saved there offsets the pathetic stainless appliances and minor use of granite. There is no $$$$$, just stupidity to pay more for something superficial.

Don't believe me? Buy an older condo and reno it yourself and you will see that it is not expensive for the 'new look'. As a previous condo owner (I've owned 4 different places in Vancouver over the years), I speak from experience when I say this.

Of course, all of this is nothing compared to the overpriced factor. I have no idea why people keep arguing that prices can only go up. These are the same people that started buying mutual funds and ETF's around the time I started shorting everything.

It's not just first time home buyers that are roped into the hype (Bob Rennie is a marketer for self interest) but the general public.

We had a few good buildings, such as the Mondrian (600 sq/ft luxury for about $210,000) and Grace (1100 sq/ft for about $525,000), that had great construction with great prices. The Kingswood, which my dad owns a unit in, also sold for a fair price.

We are over priced period. I don't mean to act too cocky or start an argument with those who disagree. Consider I am trying to help you and others from making a grave mistake. If it were up to me, I'd want everyone to buy and over-leverage themselves. It means more money for me later.

You're welcome, and thanks for the followup!

The current condo I'm renting is a great example of this. Granite counters, tile 1/2 up the walls in the baths, yet the cheapest ugliest baseboards/closets/doors/... and terrible build quality. The developers only put money into the things people immediately notice: counters, tiles and appliances.

Plus new units are smaller and smaller. I'd rather have a 20yo condo that's 2-300 sqft larger.
I bought a new townhome in Ottawa 5 years ago (my first home). I didn't get any of the upgrades except hardwood. I was able to buy all new fixtures (lights/water), tile baths/kitchen, and central AC for < 1/2 what the developer would have charged. Used the savings to build a deck and landscape the front yard.

Plus it wasn't added onto my mortgage, I actually had to learn to save to afford these upgrades... oh how the current (my) generation loves to live off credit instead.

You and me both. Read my mortgage rates thread for a chuckle.

I agree.

I have my money sitting on the sidelines waiting to buy, until then I can rent for far less than owning. I'm expecting more price drops, especially with the number of people taking 35yr amortizations at low rates just to barely afford a place.

Canada resale home prices fall in April: survey
REUTERS
June 24, 2009
TORONTO (Reuters) - Repeat sale prices for Canadian homes fell for a fifth straight month in April, dropping 6.7 percent from the same month a year earlier, a report on Wednesday showed.
The Teranet-National Bank National Composite House Price Index, which measures the rate of change of prices for single-family homes in six metropolitan areas, also showed prices were down 8.9 percent nationally from the peak hit in August last year.
April prices were off 0.4 percent from the month before.
The Teranet-National index tracks home prices over time for repeat sales, meaning properties with at least two sales are required in the calculations for this index.
"On the whole, the report offers a sobering assessment on the state of the Canadian housing market as it suggests that the correction in home prices has continued unabated, and is in fact accelerating," said Millan Mulraine, economics strategist at TD Securities, in a note.
Mulraine pointed out, however, that the Teranet-National data is at odds with some other statistics such as the Canadian Real Estate Association's latest figures.
The latest CREA figures showed resale home prices rose 0.4 percent to their highest average on record in May, and that sales activity climbed for a fourth straight month.
According to the Teranet-National index, the trend of falling Western Canadian home prices extended into April. Prices in Vancouver, British Columbia, led the fall with a 10.9 percent slide in April from a year earlier, while Calgary, Alberta, had a 9.4 percent fall.
Vancouver prices have been on the decline for 10 straight months, while Calgary has shown monthly declines in 17 of 20 months since August 2007.
Toronto saw a 7.6 percent drop in prices in April, down for an eighth straight month, Teranet-National said.
But Halifax, Nova Scotia, made its first 12-month advance since January, edging up 0.2 percent.
Montreal and Ottawa also advanced, rising 2.4 percent and 0.6 percent, respectively.
The Teranet-National survey did not provide actual prices.
(Reporting by Ka Yan Ng; editing by Peter Galloway)

I think I am gonna wait for my condo just a little bit longer :D

This is the best example of stupid luxury:

http://www.realtor.ca/propertyDetail...ertyId=7569057

This building is 1 block from my house and I've been watching it for about 1.5 years. Here's some details:

- on corner of busy intersection Arbutus/12th
- original lowest price for 2 bd/2bath: $795K
- one just sold for $545K, the last 2 bigger ones are still at $595K after sitting > 6 months unsold since the building completed.

Who needs these features?
- vaulted ceilings range from 11 to 13 feet in height
- Over-height passage doors
- State of the art kitchens with top tier premium appliances, Caesarstone Quartz slab counter tops and custom cabinetry
- Wall-hung Italian cabinets, rich marble counters, a separated tiled shower and deep soaker tub

Plus the exterior of the building is UGLY!
- modernist European exterior design that is sure to impress

The only thing that is for sure is that it'll be out of style within 5 years when that orange looks like faded puke.

So as a buyer, what methods would you use to distinguish between good and bad build quality?

The amount of concrete finishing of the exterior, as well as the amount of concrete between floors. Most new buildings features suites with 9+ foot ceilings, but the concrete between the floors is strikingly thin.

When viewing the suite, look at the painting, the edging, the caulking, etc. You can easily tell the difference between something that's been hastily put together and another unit that was given the proper attention.

Higher ceilings make a room look larger at the expense of real usable space. As an owner of a suite with a 9 foot ceiling, I'll admit that I like the look. I'm also in a corner unit with windows all around so that helps in making my 870 square feet look larger than it really is. Older units are often 1000+ square feet, but that space is wasted with hallways. I like the way that newer units are laid out, but I wish I had the quality of an older unit. You'll have to weigh these things when choosing a place.

Buyers these days are willing to pay top dollar for convenience and visual appeal, and sacrifice space and quality and surely developers have no problem charging top dollar for mediocrity. A homeowner can easily obtain better quality materials and fixtures if they're willing to put up with contractors or do the work themselves, and for less money, but fact is many aren't willing to deal with the inconvenience.

I've never found the appeal of buying a sub 700sq.ft. 2bdrm cubicle where the master bedroom is 10'x10', use the cheapest locks and particle board shelves in the closets but that's what your typical new construction suite looks like.

Nice read. Shows how many buyers these days demand everything right away for nothing.

if it was build 15+ years ago i's probly ok. if it's build in the past 15, it's probbaly crap ... as latly all the work is done by 16 year old kids with the cheapest junk they can buy.

Well I bought an apt in Sept 07....in hindsight i should have done more research..
It has the new look...stainless appliances...granite...but the developers definitely cheaped out...

At that time I was also looking at a 10 year old apt...same price...100 sq ft bigger...

I chose the new location because of the 10/10/5 warranty...and I liked the feeling of being in a new home....not one that someone else has lived in for 10 yrs....

http://www.househunting.ca/buying-ho...8-1178841c6f26

Love the last line: