Quote:
Originally Posted by JDMDreams
yea another thing to drive up prices, since demand is gona go up even more. didn't someone do the math a few months back, basically its gona be big developers who can afford this. $2m to buy the land, then another $1.7 to build, no average family can afford to borrow $3.7m at 7.5% interest  |
It'll definitely be a case of rich getting richer but that's inescapable if we're going to build more housing - people who currently own land will get to cash out and those who can borrow the money will make even more money.
Assuming the province legislates a minimum 1.5FSR (compared to 1FSR for Vancouver's 4plex plan) you're probably looking at $2.5-3m to build about 6000sf of house on a standard lot with land costs being around $2m (if you don't have a lot that you already own). Adding in another $500k for financing costs (interest during construction) and this is definitely not something a regular homeowner can afford to do themselves - some builders will probably come up with a financing model to make this happen though.
OTOH, six 1000sf units (or some combination that adds up to 6000sf) in Vancouver are each worth $1.2-1.5m each ($7-9m total) so if you already own the land you're looking at some pretty solid upside for a couple years of inconvenience and you could still end up living on that lot by keeping a unit.