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Vancouver Off-Topic / Current EventsThe off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.
I’m sure it was even more than 30-40% in the end because the developer was basically going to give them whatever they wanted as they were the last 1-2 homes of 30 or so which sold and they still held out
I guess hindsight is 20/20 for them now. Probably a huge regret for them
Homeowners that do that deserve to have the high rise built around them, leaving them with an unsellable property.
I think Vancouver has updated their OCP, which requires the Developer to demonstrate the proposed development will not lead to any orphaned lots should they wish to consolidate the properties around it.
Holy WTF... getting surrounded by the mall's parking lot like that is borderline criminal...
Then again, if it was the home owners' own insistence to not sell despite knowing those development plans, then it is difficult to feel sorry for them.
Quote:
Originally Posted by Great68
Sunshine terrace in Langford over here on the island is a great example of this. About a dozen houses completely encircled by a strip mall. Their street actually connects into the strip mall parking lot:
maybe they are betting on the long-term prospect for the mall to be redeveloped into a mixed-use development (similar to Richmond Centre and Oakdridge)?
My wife’s dumb aunt held out in North van because this dumpy old 70’s house was “their dream home”
They then built silos which completely blocked out their water view, and then they built low rise condos all around them. They could have taken 30-40% over assessed and walked but they were stubborn now they are fucked. I don’t feel sorry for them
I know the neighbourhood you're talking about. There are still 5 holdout homes you can see here, however one of the 5 just sold in the last month, so now only 4 left.
I know it some cases, the homeowners were upset because even though they were being offered buyouts, they wouldn't be able to afford an equivalent lot size on the North Shore, and so would either be relegated to downsizing or would be forced out to the suburbs. I kind of get where they are coming from, but I don't know the whole story of course.
Sunshine terrace in Langford over here on the island is a great example of this. About a dozen houses completely encircled by a strip mall. Their street actually connects into the strip mall parking lot:
I know the neighbourhood you're talking about. There are still 5 holdout homes you can see here, however one of the 5 just sold in the last month, so now only 2 left.
I know it some cases, the homeowners were upset because even though they were being offered buyouts, they wouldn't be able to afford an equivalent lot size on the North Shore, and so would either be relegated to downsizing or would be forced out to the suburbs. I kind of get where they are coming from, but I don't know the whole story of course.
Lol yes. That’s their house beside the squiggly spirit trail. Have fun with that
Honestly there was plenty they could buy around even if they had gotten value and their view was completely destroyed long before the development.
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Holy WTF... getting surrounded by the mall's parking lot like that is borderline criminal...
Then again, if it was the home owners' own insistence to not sell despite knowing those development plans, then it is difficult to feel sorry for them.
It was supposed to be a land assembly and from what I understand it was only one of the homeowners that held out which fucked over the rest. Those are the ones I feel sorry for, not the hold out.
I also understand that the area around was never initially zoned for a strip mall either, it was just supposed to be more dense residential and it got changed later.
article copy pasted for those who r stuck behind the paywall
Spoiler!
Quote:
Condo developer plans to buy $1-billion worth of single-family houses in Canada for rentals
RACHELLE YOUNGLAI
INCLUDES CLARIFICATION
PUBLISHED JUNE 13, 2021
UPDATED 23 HOURS AGO
A Toronto condo developer is buying hundreds of detached houses in Ontario, with the plan of renting them and profiting on the housing crisis ripping across the country.
Core Development Group Ltd. is building a large-scale single-family home rental operation, an unproven business model in Canada, where the market is fragmented and individual investors lease a small number of their own properties for income.
Institutional house rentals have become highly lucrative in the United States, with private-equity firms, pension funds and big companies throwing billions of dollars into the asset class. In Canada, deep-pocketed investors, as well as real estate investment trusts, have already acquired hundreds of apartment buildings to tap into the strong rental demand but have not moved into rental houses.
Core founder Corey Hawtin and executive vice-president Faran Latafat questioned why there wasn’t a similar business in Canada, which has had a rental vacancy rate below 3 per cent since the turn of the century.
“We were trying to answer the question: Why is nobody doing this in Canada? We could not come up with an objective answer to that. In Canada, it works as well or better than the U.S.,” said Ms. Latafat, Core’s president of single-family development.
Core’s main business is condo development, and it has 14 projects in the Toronto region. Last fall, Mr. Hawtin raised $250-million from investors to buy approximately 400 properties, add basement apartments and turn the houses into two rental units.
Core is targeting eight midsized cities in Ontario, and this year started buying properties in Kingston, St. Catharines, London, Barrie, Hamilton, Peterborough and Cambridge. It will soon start buying in Guelph. Its medium-term goal is to have a $1-billion portfolio of 4,000 rental units in Ontario, Quebec, B.C. and Atlantic Canada by 2026.
Mr. Hawtin said Core’s rental units will provide affordable housing for families and residents who do not want to live in small apartments. If Core succeeds, it could spur major investors to follow suit.
Ms. Latafat and Mr. Hawtin believe a major house rental business will flourish in Canada because of decades of low rental vacancy rates, desire for more space and high immigration. They also point out most of the country’s population is concentrated around a few job centres.
As well, the pandemic’s real estate boom has priced even more residents out of the housing market with rentals as the only option. National home prices are 20 per cent above prepandemic levels, with values 30 to 50 per cent higher in parts of Ontario, B.C., Quebec and the Maritimes. The typical price of a detached house in Guelph and nearby Kitchener-Waterloo is now more than $800,000, according to the Canadian Real Estate Association. That is about $200,000 more than a year ago.
Economist David Rosenberg said an affordable rental house could become more attractive to a potential home buyer because house prices are so high.
“The ratio of home prices to rental rates is so extreme that new entrants to residential real estate will gravitate to the rental market,” said Mr. Rosenberg, who leads Rosenberg Research & Associates, adding that if more potential buyers are forced to rent, that could eventually reduce competition in the residential real estate market and slow home price increases.
Ms. Latafat said Core chose the eight Ontario cities because they all have strong local economies, are close to larger job centres, have growing populations and low housing vacancy rates.
In Barrie and Guelph, the rental vacancy rate is closer to 2 per cent, according to Canada Mortgage and Housing Corp. data. Meanwhile, in the first year of the pandemic, rental rates have increased in the high single digits in Barrie, Guelph, London and St. Catharines, according to CMHC.
“They have tight vacancies, like zero vacancies,” said Mr. Hawtin. “Immigration is growing, population is growing and buying a house or a condo has become less and less attainable. That is really compounding the rental demand in all of our marketplaces,” he said.
So far this year, Core has spent $50-million on 75 properties, the executives said. Their two-bedroom basement apartments go for about $1,600 a month and a three-bedroom above-ground unit at about $2,100 a month. Those prices are higher than the average rental rate of $1,407 for a two-bedroom apartment in Ontario, according to CMHC data. Though Core’s rentals are newly renovated units in houses with gardens.
Institutionalized family home rentals got their start south of the border, after the U.S. housing bubble burst in 2007 and companies bought thousands of houses at fire-sale prices. Companies and their investors now own swaths of U.S. neighbourhoods and make money on the rent, similar to apartment building owners.
Toronto-based Tricon Residential, one of the largest operators of single family home rentals in the U.S., said Core’s decision to split the properties into two rental units makes sense given the price of houses in Canada.
“The problem in Canada is that homes are so expensive,” said Tricon chief executive officer Gary Berman, whose company has wanted to bring single family home rentals to Canada for years but has concluded that it is unworkable owing to the high real estate prices.
Tricon owns about 24,000 detached houses in 18 major U.S. cities. Most are in warmer climates such as Orlando and Phoenix. Mr. Berman said that makes the houses easier to maintain compared to Canadian properties, which have to withstand long, harsh winters.
Tricon keeps its purchase prices below US$350,000 a house and rents the entire property for about US$1,500 a month. Mr. Berman said the key to the business is scale, saying Tricon aims to have at least 500 rental houses in each city.
Core is also trying to build scale and is buying houses within 15 minutes of each other to form a cluster of about 50 properties or 100 rental units in each city. Ms. Latafat said it has taken Core about one month to rent their new units and their vacancy rate is below 2 per cent. She declined to comment on when the rental business would be profitable except to say that the rental units were “cash flow positive,” about five months after they were purchased.
Mr. Hawtin said he expects to start fundraising for the next stage of the rental business as soon as next year and may consider going public at some point.
article copy pasted for those who r stuck behind the paywall
Spoiler!
I don’t get how they can be “cash flow positive” after 5 months. The rent to debt ratio hasn’t added up in years. Even a place like Hamilton, a SFH is still a million dollars from I’ve been seeing.
I kinda laugh at the “historically low rent” comment. Man. This world is going to suck. Rental rates to increase with home prices? No ones going to have money except the home owners… well except they have debt. Lol
And people complain about the landlords with 1-2 rentals. Super Mega Globo Corps running everything is gonna be fucking terrible for the rental market.
__________________ 1991 Toyota Celica GTFour RC // 2007 Toyota Rav4 V6 // 2000 Jeep Grand Cherokee
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Quote:
Originally Posted by maksimizer
half those dudes are hotter than ,my GF.
Quote:
Originally Posted by RevYouUp
reading this thread is like waiting for goku to charge up a spirit bomb in dragon ball z
Quote:
Originally Posted by Good_KarMa
OH thank god. I thought u had sex with my wife. :cry:
Don't we have these already, it's nothing new, ppl own those old multiple unit apartments or those new apartments being built that's rental only. It should offer more supply to rental units.
Last 3 posts are totally correct (edit: outside of JDM's).
I often wonder why the local media doesn't discuss this topic more in terms of the real estate crisis in Canada.
Numbered LLCs, firms, funds -- all that are purchasing large swaths of land, condos, and properties for speculation purposes. This problem has now entrenched itself into our economy over the last while here, and will pose a serious problem going forward.
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Quote:
Originally Posted by hud 91gt
I don’t get how they can be “cash flow positive” after 5 months. The rent to debt ratio hasn’t added up in years. Even a place like Hamilton, a SFH is still a million dollars from I’ve been seeing.
I kinda laugh at the “historically low rent” comment. Man. This world is going to suck. Rental rates to increase with home prices? No ones going to have money except the home owners… well except they have debt. Lol
Probably shitty accounting
They should stick a helium crypto miner into each unit then they'll really be cf+ hehe
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