Vancouver's Real Estate Market

[supafamous]

The development charges are astronomical nowadays b/c cities are using it to avoid raising property taxes - they are punting a lot of infrastructure costs onto new housing rather than charging everyone an equal rate for infrastructure.

This is Burnaby's fees:



These fees don't include GVRD fees like water and transit. For more: https://www.burnaby.ca/services-and-...unding-program

On one hand, city council will brag about how they kept property tax increases low and then they will raise the development fees on new development to a level that makes it hard to build housing profitably. The vicious circle is if you don't build housing and increase your tax base you'll end up either having to raise property taxes a lot down the road or you ignore critical infrastructure improvements that cause breakdowns. We continue to rob Peter to pay Paul when it comes to property taxes and infrastructure.

Meanwhile anyone who owns land (or housing) reaps the benefits of inflated property values that are tax free.

[Hehe]

Originally Posted by Hondaracer

Well.. all those auxiliary costs are built into the final price. They are just passed on to the buyer its not like the builder just absorbs them

Any idea what "auxiliary cost" are we talking?

Because from the chart Supafamous posted, it doesn't seem to add up as 168.82/m2 is about 15/sqft.

And if AB is able to sell a SFH for 700k and still make a profit, something is seriously wrong here.

Basically, the cost of a SFH today in YVR, just the building cost alone is 1M for a simple house, and that's not accounting for the land cost. There's no way we could ever have affordable housing if the cost per sqft is 350+ just to build and maybe another 200/sqft for land acquisition.

[6793026]

Originally Posted by 68style

My buddy who flips condos for years is caught with his pants a bit down after all these years.. he has a 3 bedroom he had to complete on in New West and he can't even get offers at just under $1M despite the assessed being over $1.2... 3br condos are a tough sell it's townhouse money.

Tons of C - lais and 1st time buyers. C lais can't sell them fast enough cause they can't compete and can't get mortgage, 1st time buyers can't get mortgages and their parents can't help due to lack of income. Reality is hitting hard.

Originally Posted by JDMDreams

^^ I thought about picking up a penthouse unit too. And my realtor advised no. The numbers didn't make sense, it's the most expensive, hard to rent, sell, especially you can't air BNB anymore, fee's are the most expensive. It's easily $600+ a month just for strata.

600 per month is a steal, i'm seeing 1800 sq ft place with with 1800 / month on just strata - of course this is prime location w/ car parks that are elevators (eg// jameson house on georgia).

Originally Posted by Gerbs

My friends drafted his own team of EI builders, when we were golfing he said $300/sqft days are gone, closer to 350-400/sqft actual w/ 10-20% contingency for errors.

He makes < 5% on the flip but 10-20% profit on construction margin. One of the few guys I know that has saved > $1M before 30 without inheritance.

what people don't also consider is the 1 = 1.5M you're borrowing on to do reno; you can't just get a regular mortgage for construction; even if its only taking 12 mths for a build, you're paying 6% if you're lucky... that's another added cost.

[Hondaracer]

Originally Posted by Hehe

Any idea what "auxiliary cost" are we talking?

Because from the chart Supafamous posted, it doesn't seem to add up as 168.82/m2 is about 15/sqft.

And if AB is able to sell a SFH for 700k and still make a profit, something is seriously wrong here.

Basically, the cost of a SFH today in YVR, just the building cost alone is 1M for a simple house, and that's not accounting for the land cost. There's no way we could ever have affordable housing if the cost per sqft is 350+ just to build and maybe another 200/sqft for land acquisition.

All those costs I outlined on the last page, the development fee, hydro etc.

The problem with the hydro and Telus underground infrastructure is you really have no idea how much it will ultimately cost until it’s been designed for your project, you could be at framing stage before you know the final bill

[Harvey Specter]

RIP to anyone who bought a pre-sale looking to flip. Sqft pricess are plummeting, appraisals are coming in much lower, and it’s nearly impossible to find buyers for pre-sale units. Add in the lack of Airbnb demand and stabilising rents, and so called "investors" are left with a $1m shoebox that will continue to drop in value. And good luck to developers trying to sell units in the current market because they relied too heavily on Chinese buyers and mom and pop investors who were drunk on cheap money and maxing out their HELOCs to buy tiny, overpriced units.

And I love how JT decides to give Canadians a GST holiday and mess up the BoC's rate cut cycle. This guy can’t do anything right.