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The quick rise and public fall of Vancouver’s Coromandel Properties



Coromandel Properties burst onto the Vancouver real estate scene about a decade ago with a splashy site purchase and land assemblies on the city’s west side. The company had a vision for getting these rezoned for mixed use and condo developments, while promoting itself as focused on long-term relationships built on trust.

Helmed by a sole director, Coromandel appeared eager to be known in the community. It built its brand by backing a popular festival and appeared alongside big corporate names and philanthropists as a top-tier sponsor of the Vancouver Art Gallery. In 2019, it brought on five-time Vancouver city councillor and former mayoral candidate Raymond Louie as its chief operating officer.

But now, Coromandel finds itself under scrutiny and the talk of the town. Its recent petition to B.C. Supreme Court seeking creditor protection reveals a pattern of high levels of leverage and repeated borrowing to hold onto properties while failing to develop them quickly enough.


The company has declared it is in financial trouble with $700 million in outstanding debts on 16 prime Vancouver properties, most of which are potential development sites. It is seeking relief under the Companies’ Creditors Arrangement Act, seeking time for the company to be restructured.

Coromandel’s creditor protection application was delayed in a B.C. Supreme Court hearing on Thursday, around the same time hundreds of real estate industry professionals were gathered three blocks away in a hotel ballroom to hear Vancouver Mayor Ken Sim speak at an event hosted by the Urban Development Institute (UDI).


It’s a fall from grace for a company that grew relatively quickly to amass a portfolio of 16 prime Vancouver properties. Coromandel’s petition pegs the combined appraised value of those sites, based on their existing use or Coromandel’s plans for them, at more than $1 billion.


Coromandel Properties’ Jerry Zhong sponsored Takashi Murakami’s retrospective exhibition, as well, was the successful bidder of a commissioned portrait by the contemporary artist. (Fred Lee photo)
Coromandel Properties’ Jerry Zhong sponsored Takashi Murakami’s retrospective exhibition, as well, was the successful bidder of a commissioned portrait by the contemporary artist. (Fred Lee photo) PNG

Coromandel Properties began as CM Bay Properties. In 2014, the company paid $15.8 million for a former gas station site near Oakridge Centre that was notable for a proposal to build a mixed-use condo and retail complex in what media reports at the time described as a record-setting per buildable-square-foot price.

The company spent another $15 million picking up single-family home lots east of that site, as well as marketing a condo development on West Broadway and another one in Fairview Slopes.


In 2015, it moved into offices on the 18th floor of a building on West Georgia Street in downtown Vancouver and announced it would be known as Coromandel Properties, putting forth Jerry Zhong, also known as Zhen Yu Zhong, as its principal.


The company now leases 12,000 square feet of space in the Georgia Street office tower for $19,892 a month, according to a list of assets and liabilities included in the court petition.


In the following years, Coromandel continued to add to its portfolio. The petition outlines the company’s vision for several of these sites, including tall towers combining hotels, offices, condos and apartments. But figures in the development industry say the company has, to date, completed a limited number of relatively modest projects.

Earlier this month, Coromandel’s website listed nine “future development” projects, four in various stages of development, and only two completed projects.


“I would call them a small developer with unusually large land holdings. They’re a small developer, both in terms of their past track record and overall amount of property under development,” said Jon Stovell, who has been in the Metro Vancouver real estate development industry for more than 25 years and is chair of the UDI and president of Reliance Properties.


Southview Gardens project is at the centre of a lawsuit between Peakhill Capital and Coromandel Properties.
Southview Gardens project is at the centre of a lawsuit between Peakhill Capital and Coromandel Properties. PHOTO BY JASON PAYNE /PNG

“It’s fair to say it’s a significant event. Everybody is keeping an eye on to see how it sorts itself out. It’s primarily a function of a very, very, very rapid increase in interest rates … and not surprising that some developer, maybe, is caught on the wrong side of that, just the way that their capital is structured,” said Stovell.

“It’s not that often that you see this kind of thing in Vancouver, it’s generally a very well capitalized industry. Of course, like any industry —  airlines or mining, it doesn’t matter what it is — there’s companies that are capitalized well, and other companies that run leaner and are managed with a higher degree of risk. There’s no industry where you don’t have a company here and there getting into difficulty,” said Stovell.


Ronn Rapp, CEO of the Homebuilders Association Vancouver, put it this way: “Everyone has to start somewhere, but the order of magnitude in this case is unusual.”

Typically, developers want to sequence their projects “to drive a more evenly balanced cash flow position,” Rapp said, with some projects in early stages while others are under construction and others are completed and driving revenue.

“When the vast majority are in approval process, the cash only flows out — fees, consultants, land acquisition, carrying costs, and overheads with little or no money coming in — it requires deep pockets and bandwidth to sustain delays and market/interest volatility,” Rapp wrote in an email. “The circumstances here are exaggerated by the number and scope of the properties involved.”


Coromandel Properties at 2751 Kingsway in Vancouver Feb. 13, 2023.
Coromandel Properties at 2751 Kingsway in Vancouver Feb. 13, 2023. PHOTO BY ARLEN REDEKOP /PNG

In July 2015, Zhong explained in a news release that his company’s new name, Coromandel,  was “derived from the valuable screens that were created in China and shipped all over the world via the Coromandel Coast of southern India. We chose (the name) to honour the heritage of our company’s principals who travelled from China to make Canada their home.”

By 2016, the trend of massive amounts of capital flowing from mainland China to real estate markets around the world was underway. Large developers, equity investors and insurance firms from mainland China were making big purchases in the U.S. and across Europe. In early 2016, Beijing-based Anbang Insurance paid $1 billion to buy a set of four office towers in downtown Vancouver.


But there were also much smaller companies, backed by a mix of money from B.C., other Canadian provinces and overseas that were jumping into the market to assemble residential land and buy commercial sites in various part of Metro Vancouver.


Coromandel was one of several of these. Some local developers were critical of the way these newer companies seemed to be buying prime lots at top dollar with no pressing plans to develop them. Academics and observers said it wasn’t the first time inflated real estate prices were being blamed on investors and immigrants from Asia, pointing back to the 1980s and 1990s-era exodus of people and money from Hong Kong to Vancouver.

While new development firms emerged in Vancouver’s hot real estate market over the past decade, some of their principals and executives spoke to media to introduce themselves, but Coromandel’s Zhong declined.

Instead, the company threw its support behind popular events like the Vancouver Cherry Blossom Festival and charitable causes such as the Vancouver Sun’s Adopt-A-School program. At the Vancouver Art Gallery, it joined some of the city’s high profile entrepreneurs, such as Artizia founder Brian Hill, as well as big corporate names, such as BMO and TD, in being a lead sponsor and backer of major exhibits, including Claude Monet’s Secret Garden and Takashi Murakami’s The Octopus Eats Its Own Leg.


In one of the few public photos of Zhong, he is pictured at the opening of the Murakami exhibit standing with a big cheerful smile next to the Japanese pop artist.

But last week, the cherry blossom festival’s executive director Michael Dove got a call from Coromandel saying it wouldn’t be able to continue with its sponsorship. Dove said it was a “pretty big shock because they’re really the cornerstone” of the festival’s sponsorship and budget, which puts the April 1-23 festival in jeopardy.


Southview Gardens project is at the centre of a lawsuit between Peakhill Capital and Coromandel Properties.
Southview Gardens project is at the centre of a lawsuit between Peakhill Capital and Coromandel Properties. PHOTO BY JASON PAYNE /PNG

Like many other more established developers, Coromandel and Zhong also threw money into political contributions. Elections B.C. records show that in 2017 alone, Coromandel donated $20,000 to the B.C. NDP and $35,000 to Vision Vancouver. Ahead of the 2018 election, Zhong also donated to Vision and independent candidate Kennedy Stewart.


Zhong attended events and parties, but kept a low-profile in the media.

By contrast, Louie was already a well-known public figure when Coromandel raised its profile by bringing him on as an executive in 2019.


Stovell said he does not personally know Zhong, but knows Louie from his time on city council, saying “he was a great councillor and did a lot for the city.”


Louie grew up in East Vancouver and his career took him from bundling Vancouver Sun and Province newspapers in the viewless basement of the old Pacific Press building, where he was a union rep, to a key player in Vancouver’s city council chamber, to Coromandel’s board rooms.


Louie was first elected to Vancouver council in 2002 representing COPE, as the left-leaning, union-backed party swept to power. He was part of the split from COPE which produced the more centrist Vision Vancouver, the party with which he was re-elected to council in 2005, 2008, 2011 and 2014.

During Vision’s 10-year majority on council, Louie served as Metro Vancouver’s vice-chair and Federation of Canadian Municipalities president. He announced in 2018 that he would not seek re-election, and began working for Coromandel the following year.


Coromandel didn’t make Louie and Zhong available for an interview, and declined to answer questions by email.


John Nicola, CEO of Nicola Wealth, said his company bought Coromandel out of a joint venture earlier this year to build two apartment towers on a site near Oakridge.


“They, at the time, needed a liquidity event,” Nicola said. “They had obviously, in hindsight, pressure from these other projects, and we were committed to going ahead, so therefore we said: ‘OK fine, we are going to continue on our own.’”

Nicola recalled that at that time, he and his colleagues thought: “‘Well, maybe they stretched themselves too thin’ … And that would certainly appear to be the case.”


— With research from Carolyn Soltau


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Real estate investor pleads guilty to fraud on $149M loan



Commercial real estate investor Raheel Bhai’s twisting legal saga finally came to an end in a federal courtroom in Texas recently when he pleaded guilty to one count of wire fraud for allegedly securing a $149 million loan from lender Benefit Street Partners by falsifying or forging dozens of documents, Bis Now reported.

At his hearing, Bhai admitted to inflating the length and amount of lease terms his company IBF had with 24 Walgreens across 10 states to secure the loan, which Bhai claimed was to be used to refinance the properties as well as create a new REIT.

As part of the loan agreement, Bhai created an account in which rent from all of the Walgreens leases would be deposited monthly.

Bhai prepaid $2.3 million, three months of rent, into the account, telling Benefit Street Partners that it was so he could iron out some difficulties he was having with Walgreens concerning rent payments, according to the outlet. But the prepayment was really to cover up how much actual rent Walgreens was paying, which was less than what he told the lender.


Instead of creating a REIT, Bhai funneled about $21 million to family members through a front company.

When Benefit Street Partners discovered the scheme, Bhai and several family members and business associates fled the country, Bis Now reported. It was later revealed that $5 million of the loan proceeds was allegedly converted to cryptocurrency to help Bhai flee, according to Bis Now, citing a lawsuit against Bhai’s alleged co-conspirator, Di Hao Zhang.

An IBF employee said she found at the office and at Bhai’s private residence bags of shredded documents related to the scheme.

Bhai ultimately returned to the U.S. to face criminal charges. He faces a prison sentence of up to 20 years and fine of up to $250,000, the outlet reported.

In addition to producing a couple of criminal indictments and multiple lawsuits, the case represents a cautionary tale for the commercial real estate industry, which had huge infusions of cash from lenders eager to dole out loans and possibly overlooking fraud in the process.

“The whole point of fraud is that there’s some sort of concealment,” attorney Bonnie Hochman Rothell, of Morris, Manning & Martin, told Bis Now. “With a clever fraudster, it might not be so obvious. Despite really diligent underwriting, a lot of lenders will miss something because they, too, have been defrauded.”

Benefit Street Partners, for its part, said it properly performed its underwriting, including its due diligence.

— Ted Glanzer


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In Europe, Home Sales to Americans Are on the Rise



Home sales to Americans have increased significantly, giving them a chance to enjoy a lifestyle they could not afford in major U.S. cities, but the influx risks upsetting local residents.

Ben Mitas sipped Vinho Verde from a stemmed wineglass while he watched his daughter play on a swing one afternoon in January. He had bought the wine from a quiosque, the ubiquitous park kiosks, a luxury of living in Lisbon.

Mr. Mitas and his wife, Megan, moved to Portugal from Florida in 2019, renting a four-bedroom apartment for 2,500 euros (or about $2,700) a month in Campo de Ourique, a quiet neighborhood with small shops and restaurants. Last year, they bought a 19th-century house in Lapa, a historic neighborhood perched high above the river, with embassies and 18th-century palaces and mansions with tiled facades, that they will renovate into their “forever home,” said Ms. Mitas, 31. Mr. Mitas, 40, a mortgage broker, travels back to Florida frequently for work, but their life is in Lisbon where their two small children are in pre-K and day care.

The family fits right in. Here in the Portuguese capital, English speakers are seemingly everywhere. On the day Mr. Mitas took his daughter to the park, two women sat on a nearby bench, strollers at their feet, as they chatted in English.

Ben and Megan Mitas with their children, Alexandria and Nicolai, at a park near their Lisbon apartment. They recently bought their “forever home” nearby.Kerry Murray for The New York Times

The previous afternoon, Rita Silva, a researcher at Habita!, a housing rights organization, leaned forward intently on a tattered red sofa, her elbows on her knees, surrounded by bookshelves and hand-painted banners inside the group’s storefront headquarters in the trendy Intendente neighborhood. She was preparing to meet with Lisbon residents facing eviction. Even Habita! is feeling the squeeze: The group’s landlord will not renew its lease, which expires next year. Lisbon “stopped being affordable for the people who live and work in this country,” Ms. Silva said.

Americans, unable to afford the kinds of homes they want in the kinds of domestic cities where they want to live, like San Francisco and New York, are moving to Southern Europe in significant numbers. Drawn to the region by its mild climate and low cost of living, made even more affordable by a strong dollar, many Americans gush about trading a car-dependent lifestyle for the chance to live in a vibrant, European city on the cheap.

What is cheap for these Americans is brutally expensive for southern Europeans, whose average wages are substantially lower than Americans’. Locals are competing for housing against wealthy foreigners in markets already distorted by Airbnbs and corporate real estate investment. The result is a generation failing to launch, with more than 90 percent of southern Europeans under 35 still living at home, rates that eclipse their American counterparts. Those who have apartments face evictions and unpredictable rent increases in cities with weak rental protections, like Lisbon, Barcelona and Athens.

“It’s soul-breaking,” said Alkis Kafetzis, 40, a project coordinator at Eteron Institute for Research and Social Change in Athens, which studies housing inequities.

Alkis Kafetzis, left, with Danai Maragoudaki, who work for Eteron Institute for Research and Social Change, say that young Greeks are facing intense housing stress.Maria Mavropoulou for The New York Times

The surge in foreign investment is no accident. Portugal, Spain and Greece have courted deep-pocketed foreigners and corporations, hoping to attract talent, bolster their economies and spur development. Portugal and Spain recently introduced digital nomad visas that allow remote workers to live in the country for an extended period of time, echoing a similar visa in Greece. In Spain, home sales to Americans jumped by 88 percent from the first half of 2019 to the first half of 2022. Americans were among those willing to spend the most per square meter, bested only by the Danes in how much they paid in the first half of 2022, according to Spanish government data.

By 2022, nearly 10,000 American citizens were living in Portugal, up a stunning 239 percent from 2017, according to data provided by the Portuguese government.

The Americans who are setting roots here are embracing a life where the weather is pleasant, the lunches are long and they can get by with translation apps and a handful of phrases. Americans say that even if they attempt to stumble through a conversation, locals quickly switch to English since the language is so prevalent in European cities. But their children arrive home from school bilingual, giving parents like Mr. and Ms. Mitas access to tiny translators to help them navigate the tricky moments when Google Translate isn’t sufficient.

“Their main concern is lifestyle migration. They really, truly want to live here and have a more cosmopolitan lifestyle,” said Luis Mendes, an urban geographer at the University of Lisbon.

The Mallios family, Demetrios, Evangelia, Christian and Melissa, with their dog, in the backyard of their condo in Kifissia, an Athens suburb. The family moved to Greece in 2020.Maria Mavropoulou for The New York Times

“The way you live is so much more free and enjoyable here,” said Christian, 17, as his 8-year-old sister, Evangelia, glided past him on roller skates on her way to take a spin around the dining room table. “Everyone’s calm, it’s not like, ‘do this, do this, do that.’”

The Mallios family is from Colts Neck, N.J., a rural community in central New Jersey with sprawling estates and horse farms, including one owned by Bruce Springsteen.

They arrived in Greece in July 2020, after Melissa and Demetrios Mallios bought a €350,000 house on Evia, an island near Athens. The purchase qualified for a golden visa, a residency program available in several European countries that gives home buyers years of residency in exchange for spending a significant sum in cash on real estate.

The family spent the 2021 school year renting a house in Athens while their children attended an international school there. By 2022, Mr. and Ms. Mallios put their New Jersey home on the market, and bought the €1.45 million condo in Kifissia, a northern Athens suburb with tree-lined streets and multimillion-euro villas hidden behind high stone walls. At almost €427 a square foot, high-end homes sell in Kifissia for about 44 percent more than comparable ones in the rest of Athens, according to RE/Max Europe.

On a Sunday evening, families were strolling around Kifissia’s downtown, which is full of upscale restaurants, cafes and boutiques — Bottega Veneta, Max Mara and Wolford, the Austrian lingerie brand.

The Mallios family condo has a spacious backyard, a feature that Melissa Mallios said was hard to find when she was house-hunting in Athens.Maria Mavropoulou for The New York Times

The Mallios children now attend a private virtual school, Pearson Online Academy, which allows them to shuttle between their homes in Athens and Evia, but hasn’t given Evangelia many opportunities to learn Greek and make local friends. “I miss New Jersey,” she said.

Her brother, however, has learned the language from his friends on the basketball team. “Throw in a couple ‘malakas’ in your sentence and you sound pretty fluent,” he said, referring to the common vulgarity. And her father, Mr. Mallios, 52, a venture capitalist of Greek descent, speaks the language.

In Athens, home prices were up 13 percent in the third quarter of 2022 compared to the same time a year earlier, according to the Bank of Greece. Americans are increasingly interested in Greece’s golden visa program, with applications up a stunning 740 percent from 2020 to 2021, according to Astons, an investment immigration firm.

Georg Petras, the chief executive of Engel & Völkers in Greece, said Americans flooded the Greek market in 2022, accounting for a quarter of his firm’s foreign transactions. If the trend continues, Americans will become the third largest group of foreign buyers that his company handles.

Home prices are rising in Athens, particularly in the city center, in neighborhoods close to the Parthenon. Maria Mavropoulou for The New York Times

Tension is painted on the streets of Athens, where graffiti scrawled on the sides of buildings proclaims, “Athens is Not for Sale” and “No Airbnb.”

Greeks earn an average salary well below €20,000 a year in 2021, according to Eurostat, and have been battered by economic turmoil, austerity and inflation. Almost half of Greek renters are struggling to pay the rent, according to a 2022 survey by the Eteron Institute. “Being able to get a breath, to feel a little bit secure about the future is the exception, not the rule,” Mr. Kafetzis of the Eteron Institute said. “This generation is always thinking about the next month.”

At 30, Spiros Stamou owns the taxi he drives, but still lives with his parents, as do his friends. Driving through central Athens, he lamented his lot. “Some people tried to get their own apartment, but ended up going back home,” he said, frustrated that it felt impossible for someone earning €600 a month to afford an apartment that costs €400 a month. “The cost of life, everything is getting higher,” he said.

But for Ms. Mallios, Greece has been transformational.

“When I was back in the States, I felt so out of place,” she said. When friends and family asked her why she chose to leave her home country, she replied: “I went for a beautiful life.”

Last summer, Ms. Mallios, 38, converted to Greek Orthodox at a ceremony at their island house. Wearing a white dress, her blond hair braided atop her head wrapped in a gold-leaf tiara, she was baptized in the Aegean Sea.

The old city of Tossa de Mar on the Costa Brava in Spain, one of the areas where foreigners are buying homes. Samuel Aranda for The New York Times

The sun was glistening on the Mediterranean Sea as Ryan Ward stood on a bedroom balcony of his house, nestled in the forest above the seaside village of Tossa de Mar, in Spain.

“Where I’m from in California, I could never afford a place like this,” said Mr. Ward, 37, who grew up in Orange County, Calif., where the average sales price is shy of $1 million.

Mr. Ward and his wife, Justyna Ward, bought the two-family home with a pool on the Costa Brava for €515,000 in February 2021. The couple lives with their infant and two-and-a-half-year-old sons in the three-bedroom apartment on the upper level of the duplex. They rent the two-bedroom apartment on Airbnb, and the entire house while they travel during the summer, earning enough rental income to pay the mortgage.

Ryan Ward, with his wife, Justyna, holding their son Luca, while their son Leo plays in the family’s backyard in Tossa de Mar, on the Costa Brava.Samuel Aranda for The New York Times

The Wards came to Spain in 2016 on a lark — Mr. Ward’s employer, a marketing firm, offered him a six-month stint in Barcelona that turned into a permanent one. Once they started a family, moving back to the United States didn’t make sense. California was too expensive and Chicago, where Ms. Ward, 36, grew up, was too cold. After living in Europe, they could no longer imagine relinquishing the Mediterranean lifestyle and cultural richness they’d come to cherish in Spain. “What’s the point of moving back?” Ms. Ward said as she sat on her sofa, nursing her newborn son, taking in the breathtaking view of the sea.

Foreigners are plucking up homes along the Spanish Coast, from Costa Brava in the north to Andalusia in the south. Spain’s new digital nomad visa allows remote workers and freelancers to live in the country year round, as long as they earn most of their income outside of Spain and meet other requirements. Pay €500,000 in cash for property, and a foreigner can qualify for a golden visa. From January 2022 to January 2023, the number of parents from the United States looking for schools on the International Schools Database, a website, doubled, with Spain topping the list of destinations.

“If you can make €100,000 a year, you will live very well here,” said Raf Jacobs, the founder of Inspire Property Experts, a real estate consultancy that helps foreigners settle in Spain.

The average Spanish salary was less than €30,000 a year in 2021. In Barcelona, rents have been rising for a decade, reaching an all-time high of €1,077 a month in the fourth quarter of 2022.

“Homeownership society is in crisis in Spain,” said Carme Arcarazo, advocacy coordinator for Sindicat de Llogaters, a Barcelona tenants union.

Globe-trotting newcomers are not to blame for the crisis, said Jaime Palomera, a housing researcher for the Barcelona Urban Research Institute. Investment firms like Goldman Sachs and Blackstone swooped in and bought thousands of distressed properties in the wake of the global financial crisis, turning homes into securitized assets, he said. “This is much bigger than any individual American buying a home here,” he said. “Regardless of your nationality, are you going to buy that home to live in it or you going to buy it as an asset in order to drive up the rent as much as possible?”

Central Lisbon has become a magnet for young digital nomads, with cafes often full of people speaking English, French and German.Kerry Murray for The New York Times
As rents spiral in Lisbon, housing advocacy groups are pushing back, organizing demonstrations to pressure the government to enact tenant protections.Kerry Murray for The New York Times

In Lisbon, the average rent for a two-bedroom apartment, at €1,700 a month in February, was up 39 percent from a year ago, and the average sales price for a two-bedroom was up 10 percent, to €457,730, according to Casafari, a real estate data company.

Between 2020 and 2021, the number of North Americans moving to Portugal doubled, at a time when migration from Europe and South America fell. Private schools have waiting lists and new ones are opening. In 2019, the number of Americans coming to the Carlucci American International School of Lisbon jumped by 60 percent, said Nate Chapman, the school’s director. Now, Americans account for a quarter of his student body, up from 16 percent a decade ago. “Right now is a bit of a gold rush,” he said.

For the Portuguese, with an average salary below €20,000 a year in 2021, the influx of Americans and subsequent rising prices are unsustainable.

Rita Silva, a researcher at Habita!, a housing rights organization, meets with tenants facing eviction to offer them guidance.Kerry Murray for The New York Times

Ms. Silva of Habita! said rent protections eliminated in the wake of the global financial crisis left tenants vulnerable to eviction and untenable rent increases. Inside her group’s headquarters, folding chairs were arranged in a circle beneath a yellow tapestry, emblazoned with the phrase, “Casas são para morar” or “houses are for living.” Outside, scaffolding and cranes are as common as the sound of the tourists’ suitcase wheels clattering along the calçada portuguesa, the city’s iconic squared cobblestones.

“We have an explosion of urban reinvestment. It’s all for tourism, it’s all for luxury,” Ms. Silva said.

In response to the mounting housing crisis, Portugal ended its golden visa program in February, part of a sweeping package of changes. Last year, Americans bought more Portuguese golden visas than any other nationality in the world, edging out the Chinese. It was a dramatic reversal for Americans who, just four years earlier, weren’t among the top five buyers of the visa.

Other visa programs for foreigners with means remain intact.

Amelia Guertin has been in the country on and off for the last year, living on a tourist visa while she applies for a long-term one. She arrived in Portugal after living in Hawaii, San Francisco and New York City, cities that felt “wildly unaffordable,” she said. Immediately, she knew she wanted to settle in a place that felt cosmopolitan, but also laid back.

Earlier this year, she hunched over a laptop with her architect, Hannah Reusser, at Rove, a Lisbon bar with plush velvet sofas, exposed ductwork and moody lighting. Ms. Guertin, 31, had already started demolition on a small house she bought last October for €320,000 in Aroeira, a seaside town south of Lisbon, where she can surf.

Ms. Reusser discussed making the three-bedroom, two-bath space more functional, suggesting she rearrange the kitchen and living room. Ms. Guertin, the chief operating officer for a British tech start-up, pushed Ms. Reusser on the deadline. Was June realistic? Ms. Reusser worried it was too ambitious, given pandemic delays and material shortages.

An hour later, Ms. Guertin rushed down cobblestone streets, heading to her Portuguese language lesson a few blocks away, worrying about the schedule. “In Portugal, you have to have a lot of patience,” said Ms. Guertin. “It feels disorganized, but I have confidence that it’s going to get done.”

At Da Noi, a tiny restaurant in central Lisbon, diners squeezed into tables and those who had come for drinks spilled out onto the street, talking in English, German and French. Mixing an Aperol spritz behind the bar was Simāo Martins, 22, an economics student at the University of Lisbon. He works full time, but lives at home with his mother, just like his friends.

“I don’t want to be under her roof forever,” he said. If he got his own apartment, he estimated half of his income would go to rent. So he is contemplating moving to Brazil or the Italian countryside, where the cost of living might be lower. Portugal “is cheap here for you, but not for us,” he told a reporter. “And that bothers me.”

Hugo Janes, who is Portuguese, says that tax protections for foreigners have been a “catastrophe” for his compatriots. Kerry Murray for The New York Times

The previous night, about a dozen foreigners and local Portuguese had gathered around a large wooden table at a restaurant for the OneThousandClub, an organization that encourages foreigners and Portuguese to mingle. But the room fell silent when one of the Portuguese guests, Hugo Janes, 44, asked how many would stay if the country were not a tax haven for foreigners.

The vibe turned defensive as the guests, a mix of French, Belgian and Americans, defended their tax status. In the debate, the Americans argued that they pay taxes to the United States.

These policies “are a catastrophe for the Portuguese,” Mr. Janes, a product manager for Vodafone, told a reporter, voicing a growing resentment among his compatriots. “Life isn’t fair, but there needs to be some fairness.”

Bisco Smith, an American graffiti artist, in his studio. He worries about being a gentrifier in his newfound country, but has also found Lisbon to be a warm, welcoming city.Kerry Murray for The New York Times

Bisco Smith, 42, an American graffiti artist who moved from New York to Lisbon with his wife, Jasmine, 39, and their young son, almost a year ago, has mixed feelings about his newfound city.

“There’s a countrywide gentrification happening here. And it doesn’t feel good,” he said, sitting in his 2,000-square-foot artist’s studio near the Beato Creative Hub, an innovation center. “I don’t want to be the American that’s here taking advantage of or displacing people.”

Yet, Lisbon has been a welcoming city after a difficult period in New York, when he and his wife survived two serious car accidents. Since arriving in Lisbon, he joined a father’s group called Expat Dudes and Dads, and his son is learning Portuguese in preschool. “Lisbon means safe harbor,” he said. “My family needed safe harbor and we found it here.”


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Toronto real estate market: 3 things to know this spring



There appears to be early signs of life in the GTA housing market, after both buyers and sellers spent a good chunk of the last year on the sidelines.

But with new listings at a 20-year low in February and higher borrow costs continuing to weigh on the market, it’s anyone’s guess what the typically busy spring season could bring.

Will it look like 2022 when the beginning of an aggressive interest rate hiking cycle by the Bank of Canada brought the pandemic buying frenzy to a virtual standstill?

Or will the market spring to life, after months of little to no activity?


Realtors and others who follow the industry closely aren’t sure what to expect.

They mostly agree that buyers and sellers will return to the market in greater numbers but whether that means the end of what RBC once called a historic housing correction isn’t as clear.

“I would say that we have some sense that we might actually get to see a little bit of a spring market. There’s been an uptick in our incoming transactions and we have seen an increase of 30 per cent in deposits into our trust account. So there is an increase in activity. But is it enough for me to say to you that we are going to have a booming spring market? No,” John Lusink, president of RealServus, which owns Right at Home Realty, Condos. ca and, told this week. “That is because of the listing inventory. We are currently at just over 2,000 listings for Right at Home and that hasn’t changed since last May. It is a 25 per cent increase over a year ago. But that doesn’t even come close to making it interesting for buyers.”

The average price of a Toronto home was $1,095,617 in February.

While that represented a nearly 18 per cent decline from one year ago, it was up approximately five per cent from the previous month.

Speaking with, Lusink said that prices have now largely returned to “quasi 2020” levels in the GTA and may even have found a bottom.

He said that lately he is hearing more about multiple offer situations on properties, although he concedes that few of those bidding wars are resulting in homes changing hand for hundreds of thousands of dollars over asking price as was commonplace during the early days of the pandemic.

In one case, he said that a creative buyer made two offers. One with no conditions whatsoever but below list price; another for more money but with conditions.

“There is I guess a floor, a pretty tough floor, under the current level of pricing because there just isn’t the competition,” he said. “Sellers are saying ‘why would I lower my price? I’m the only one on the street for sale.’ So until we see an increase in in product we aren’t going to see the effect on price. It is really about supply from my point of view.”

Real estate

Higher levels of activity expected in the second half of 2023

Data from the Toronto Regional Real Estate Board showed that new listings were down 41 per cent year-over-year in February, continuing a recent trend.

But TRREB is nonetheless expecting higher levels of activity this spring and into the second half of this year, according to its chief market analyst Jason Mercer.

In an interview with, Mercer said that he expects rent prices which have risen by more than 20 per cent in the GTA over the last year will be a “big factor” in convincing some individuals who deferred home buying plans to enter the market in the coming months.

Other would-be buyers who have held off amid the rapid increase in the cost of borrowing may also be more likely to re-enter the market now at a lower price point, he said.

“People that moved to the sidelines to come to terms with higher borrowing costs, more and more of them will have likely weighed their options and are now going to be thinking about maybe purchasing a different home type or buying in a different part of the GTA or what have you,” Mercer told “As we move into the second half of the year, that gap between 2022 and 2023 (in prices and listings) will start to narrow because we are anticipating, you know, an acceleration in activity.”


Bank of Canada policy will continue to impact market

Mercer said that TRREB had already been calling for an uptick in buying activity and prices in the second half of this year “notwithstanding” the Bank of Canada’s interest rate trajectory.

However, he said that U.S. banking instability which now has some traders betting on earlier than expected rate cuts from the Bank of Canada could be a “wild card” that provides a further spark for the market.

“If we were having this discussion a couple of weeks ago, you know, probably the best case scenario would have been that rates remain somewhat flat. At least from the Bank of Canada’s perspective. Now there’s a bit of a wild card with what we’ve seen in the banking industry over the last week or so,” Mercer said. “Will we see movement on the Bank of Canada to the downside? That would certainly kick start things a little bit more than expected as we move through the year.”


Prices have fallen but affordability has worsened

The Bank of Canada increased its overnight lending rate eight consecutive times between March, 2022 and January of this year, pushing borrowing costs to their highest level since 2007.

Victor Tran, who is a mortgage expert with RATESDOTCA, said that while the pace of increases certainly had an impact on demand there are some signs that is changing.

Notably, Royal LePage released a new report on Thursday which found that the majority of the people (62 per cent) who deferred a home purchase due to high interest rates in 2022 plan to return to the market this year.

“Entering 2023 pretty much everyone expected another slow year but surprisingly the first couple weeks of January things ramped up suddenly. I have had a huge uptick in pre-approval inquires and a lot of my clients asking for rate holds, so I still feel like the demand is there and buyers are just sitting on the sidelines waiting for an opportunity to come up,” Tran told “I think buyers are just tired of waiting, you know. Everyone has just been waiting around and now that that the rates seem to be stabilizing a bit, they are realizing that this (higher rates) is just the new norm.”

Tran, who also works part-time as a realtor in the GTA, said that he has made offers on two condos in the last few weeks that attracted more than 10 bids.

He said that he expected those bids to be “low-ball offers” but was told by the listing agent that all of them were “competitive” and “close to what the market was showing.”

It’s just a few listings, he admits. But he said that it lines up with what others in the industry are telling him.

In other words, the window for bargains may have already closed.

“Affordability now is probably worse than before,” Tran said. “In Durham Region there are some deals to be found. Their housing market took a bigger hit than Toronto, we saw 20 to 30 per cent declines in certain areas. So sure that probably balances out (with the higher cost of borrowing), But in Toronto affordability is worse than before.”


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