Real Estate Slowdown could hurt Coquitlam rental construction - Canadanewsmedia
Connect with us

Real Estate

Real Estate Slowdown could hurt Coquitlam rental construction

Published

on

A softening real estate market could lead to a slowdown in the construction of rental units in Coquitlam, a city staff report warns.

During a committee meeting Monday, council heard there are currently 3,600 purpose-built and 550 non-market rental units in the approval process or under construction. But the majority of those units are attached to larger housing developments and could be delayed if real estate sales continue to slide, the report said.

“Nearly all new market rental units are proposed by applicants building large-scale highrise condo projects,” according to the document. “If the market for condominiums softens and developments are delayed, this will lead to a slowdown in the construction of rental units as the projects are typically constructed together.”

Two projects in the Burquitlam area have already been delayed.

In June, The Vancouver Sun reported that Ledingham McAllister would be postponing the launch of pre-sales for three highrise projects, including one in Coquitlam, which included 105 purpose-built and 15 below-market rental units. The report came a week after Townline confirmed it would also be temporarily holding off on launching pre-sales for its 38-storey Meridian project, which featured 54 purpose-built and nine below-market rentals.

“Given the recent evidence of a slowing housing market, staff is continuing to monitor the uptake of rental incentives,” the report said.

The document presented to council Monday, titled “Housing Affordability Strategy 2019 Initiatives and Emerging Issues,” also identified the difficulty in attracting developers of rentals to medium-density areas.

Jacint Simon, Coquitlam’s housing planner, told council that since the inception of Coquitlam’s Housing Affordability Strategy, almost all rental units have been included on properties designated for high density.

“Our rental incentives for medium-density residential lands proved insufficient for the development industry,” he said Monday.

Only one standalone, purpose-built, medium-density rental building has been constructed since the launch of the Housing Affordability Strategy, a figure staff said the city would like to see increase.

But new incentives may be necessary, said Andrew Merrill, Coquitlam’s manager of community planning. He noted that it is easier for developers of large, high-density projects to take advantage of the city’s rental incentives because they have the ability to build higher. But medium-density wood-frame construction is limited to six storeys under current B.C. Building Codes, a standard that could be changed to as high as 12 storeys in the coming years.

Location is also important, Merrill said.

The city’s lone standalone rental building was constructed on Charland Avenue in the Austin Heights neighbourhood, a significant distance from rapid transit, where land values are considerably higher, he said.

“We recognize that land costs in a number of our core areas near SkyTrain can be prohibitive for both rental or wood frame projects,” Merrill said. “There is greater opportunity along the edge of the shoulders or along our major corridors.”

Let’s block ads! (Why?)

Continue Reading

Real Estate

Peer-to-peer online real estate platform launched

Published

on

By

A Calgary entrepreneur has launched an innovative real estate company offering made-in-Alberta technology for homebuyers and sellers in Calgary and Edmonton.

Bōde is an online peer-to-peer platform directly connecting buyers and sellers so they can work out a deal on their own time and on their own terms, without a real estate agent, thus saving consumers money.

“There is a lot of supply in the Alberta market right now and people are motivated to keep as much of their home value as possible,“ said Robert Price, CEO of Bōde. “So, the timing is ideal because the cost savings are dramatic, and the result is that homes sell faster, buyers pay less and sellers make more.

“It’s creating a direct relationship in a similar way that Autotrader or Airbnb or Amazon or eBay or a number of other very successful software services have to establish a more efficient and more customer-centric experience and eliminate the need for agents to middleman the process.”

Price said the  listing service is aimed at a large and growing market of digital consumers who are already comfortable making large purchases online.

Robert Price
CEO of Bōde

“The buyer can save money on an offer. The seller can price more competitively and still make the same amount or more. And the home sells faster. So we really see it as a competitive advantage versus the vast majority of the market that’s still doing it with the traditional four per cent commission structure. We’re at one per cent so 75 per cent cheaper,” he said.

“We’ve built what we’re calling the Bōdiverse, which is a marketplace of experts who are offering services that you need to be successful in the process. Lawyers, inspectors, appraisers, stagers, all those competencies that you need. You’re able to transact with them knowing their pricing.”

The real estate platform charges a flat one per cent fee once a property sells.

The process begins by a seller listing a property on the website, which takes about 15 minutes. Once it’s listed, the company will directly market that listing through other channels, including Realtor.ca, Zillow and 30 other websites, including Facebook Marketplace and Kijiji.

The system includes ways to make offers on properties and sign contracts, with a checklist to close with lawyers and transfer of fees.

Price said a model has been created that doesn’t require any human intervention from the start to the finish, just people’s interaction with the platform.

“We believe that homeowners are the true experts on their homes. Once people are armed with robust information and the tools to simplify the process, they are fully willing and capable to take the reins on real estate transactions,” said Price.

“We love Alberta and our family has been proud to be leaders in the pursuit of a diversified economy that does not simply rely on energy tax revenue. We have the experience that tells us when you create the right customer-centric answer, it becomes exportable. We want to prove that it works here and take it across Canada and beyond.”

Price said the company is planning to expand across the province in the coming weeks and upon that success, expand across Canada and internationally.

Let’s block ads! (Why?)

Source link

Continue Reading

Real Estate

Blackstone raises $20.5 billion for largest ever real estate fund

Published

on

By

U.S. private equity firm Blackstone Group Inc said on Wednesday it has raised the largest ever real estate fund, amassing $20.5 billion to be invested in property assets around the world.

Large buyout firms such as Blackstone have been attracting a lot of capital from investors seeking higher returns not available in public markets.

The capital ready to be deployed has swollen to over $2 trillion, according to data provider Prequin, driving up asset prices and deal making activity.

Blackstone said in a statement the fund, named Blackstone Real Estate Partners IX (BREP IX), has already made its first investment: the purchase of U.S. industrial warehouse properties from Singapore-based logistics provider GLP for $18.7 billion.

The deal, in which BREP IX co-invested with other Blackstone funds, was announced in June and is expected to close in coming weeks, the company said.

Blackstone is the world’s largest alternative asset manager and one of the biggest property investors, with $154 billion in real estate assets under management. (Reporting by Chibuike Oguh; Editing by Sandra Maler)

Let’s block ads! (Why?)

Continue Reading

Real Estate

Real estate lessons to live by Pattie Lovett-Reid

Published

on

By

Real estate lessons

Disclaimer: I’m not a real estate expert but I am a real estate junkie.

I’ve often thought about the many ways there are to make money – and there are many. Throughout the years, we have created side hustles, worked hard at our jobs, built an investment portfolio and we have bought and sold a lot of real estate.

We love real estate, and over the past 25 years, we have bought and sold six principle residents and six recreational properties. The majority of our housing transactions made money, and we broke even on a couple. There have also been lessons learned along the way.

Here are a few.

1. Listen to the experts. They are qualified in their field so believe them when they say location sells. Try not to be the most expensive house on the street and don’t let your emotions drive your buying or selling decisions.

2. Don’t fall in love with your assets, or in this case, your home. Sometimes you need to make tough decisions financially and that may mean selling the family home. Your assets will never love you back but your family will.

3. When selling, don’t be greedy. If your home isn’t selling, it is priced too high. Listen to what prospective buyers are silently telling you as they move on and check out the next listing.

4. Get your home ready to sell as soon as you move in. Life has a funny way of throwing you a curve ball when you least expect it. Curb appeal matters but the inside likely matters more. This is where you live. Keep it neutral and up to date. Look at your home as a prospective buyer would.  Small changes can yield big financial results.

5. Avoid concentration risk. Don’t put all your money in the real estate basket.

6. Take the time to save up the down payment. Consider all-in and all-out costs such as insurance, appraisals, real estate, moving, land transfer costs and the dreaded unknown repairs. There will always be something that requires your financial attention.

7. Don’t buy beyond your means. I’ve been there and it isn’t fun. No one wants to be 100 per cent house poor. You aren’t expected to be flush with cash when you are new homeowner but you also don’t want to live life worrying about the next mortgage payment each month.

8. Buy low and sell high. Even if you love real estate you are always scouting out new opportunities, this investment mantra still must hold true.

9. Focus on your stage of life. Do you really want to be building your dream home for your family as your children head off to university or are beginning to build their own lives under their own roof? Just because you want your family there doesn’t mean they will be. Buy for reality not dreams.

10. Put in offers earlier in the week. You are more likely to have less competition and more likely to get a deal if you do. Everyone is out   looking on the weekends. Don’t follow the herd mentality.

11. Take advantage of the capital gains exemption on your principle residence. This is one of the best tax-savings opportunities to create wealth I know.

Let’s block ads! (Why?)

Source link

Continue Reading

Trending