Real eState

'Epic' real estate collapse a window into Saskatoon's changing affordable housing market – Saskatoon Star-Phoenix

Published

3 years ago

April 7, 2022

“This is one window into a much larger phenomenon, which is the financialization of housing that’s happening across the country …”

Alisa Thompson was one of the founders of Epic Alliance, a real estate investment firm. Photo by Matt Smith /Saskatoon StarPhoenix

A court-ordered investigation wrapping up this month is the coda to the multimillion-dollar collapse of a formerly burgeoning Saskatoon real estate company.

Ernst and Young investigators have been delving into Epic Alliance Inc.’s business practices after a dramatic video call in January when the company’s founders told worried investors “there is nothing left” of the operation.

The investigation’s results are expected to be revealed at the end of the month.

The collapse of Epic raises questions not only about the results of the investigation, but also the local real estate market underlying the company’s meteoric rise and fall.

University of Saskatchewan law professor Sarah Buhler, who studies renter evictions, said Epic’s situation illustrates the growing trend of treating housing like an investment opportunity rather than a place where people live.

“This is one window into a much larger phenomenon, which is the financialization of housing that’s happening across the country, in our city and our province,” she said.

Founded in 2013 by Rochelle Laflamme and Alisa Thompson, Epic controlled roughly $126 million worth of real property holdings representing about 500 properties, according to a fiat written by Queen’s Bench Justice Allisen Rothery.

Laflamme and Thompson could not be reached for comment.

In this screenshot, Epic Alliance Inc. founders Rochelle Laflamme and Alisa Thompson appear in a January video call to explain the company had collapsed. jpg

Saskatoon lawyer Mike Russell represents about 120 clients, most of whom live in Ontario or British Columbia, who’ve invested between $10 million and $20 million in Epic.

Epic offered investment products with high rates of return, typically between 15 and 20 per cent, Russell said.

The Financial and Consumer Affairs Authority of Saskatchewan issued a cease trade order against the company last October. It lifted the order the following month, but the investigation is ongoing.

It appears new investor money was used to pay out previous investors, Russell said.

“Investors got concerned (by the order), so the repeat customers and investors dried up to a large extent. They weren’t able to obtain the funds necessary to keep this going.”

In January, Laflamme and Thompson appeared in an expletive-laden video conference call, blaming the securities regulator for the company’s collapse.

Epic also had two programs relating to real property. One was a “fund a flip” program in which Epic bought or flipped properties with loans from security holders. The second was a “hassle-free landlord” program where investors would buy flipped houses; it promised them a passive income while Epic was to handle landlord duties, Russell said.

Saskatchewan Realtors Association CEO Chris Guérette said there hasn’t been a massive influx of the company’s former units onto the market, despite the company’s situation. The SRA’s March report showed fewer new listings than last year and the 10-year average.

However, in some cases the former properties have been sold or are being sold, Guérette said.

“Some are selling. Some have decided to keep their properties and (will) see how it works out and (others), after a couple months, decided to sell,” she said. “Some are probably holding onto it until the lawsuit can be figured out.”

Brenna Sych, a spokeswoman for the Saskatoon Housing Initiatives Partnership, said the reduced unit availability will make it harder for vulnerable people to find suitable housing.

“When things like this happen, it just shows more and more where the gaps are and what we as a community have to do in order to support (those seeking affordable housing),” she said.

Ward 2 Coun. Hilary Gough said the city has an interest in well-managed and maintained properties, which has been an issue with Epic properties and units where ownership has been in flux.

It’s frustrating for people in her ward, where many of Epic’s properties were located, to see several units sitting empty, she said.

Easy answers are hard to find, especially when some of the owners are spread out across the country.

“There’s a whole spectrum of housing that is needed and there are pinch points and challenges,” she said. “The availability of rental houses is one part of that, but there’s also the fact that there are currently over 300 vacant publicly-owned housing units in our city.”

Rentalsman has seen more than 100 Epic-related eviction cases since 2019, Buhler said.

That doesn’t account for all evictions — only the ones that make it to a hearing — but it’s a noticeable number nonetheless, she said, noting the rent on the properties often approached market rates that many tenants could not afford.

Pandemic-related pressures like lost jobs and reduced hours have been common concerns, Buhler said.

A fuller picture of Epic’s business practices won’t come into focus immediately, but Buhler wants to know how renters have been affected.

“What has happened to the tenants that rented some of those properties? These houses became people’s homes.”

The news seems to be flying at us faster all the time. From COVID-19 updates to politics and crime and everything in between, it can be hard to keep up. With that in mind, the Saskatoon StarPhoenix has created an Afternoon Headlines newsletter that can be delivered daily to your inbox to help make sure you are up to date with the most vital news of the day. Click here to subscribe.

Adblock test (Why?)

Source link

Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

7 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

Source link

Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

3 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

4 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

Source link