VICKY SY KWAN

Density Bonus Zoning

What is density bonus zoning? To simplify this as much as possible, density bonus zoning can be thought of as a tool that allows developers to add more floor space than allowed. In exchange for this, affordable housing and amenities will be “traded” for this additional space.

Some Density Bonus Areas: Mount Pleasant Joyce Collingwood Station Marpole

Photo Credits: (http://westbankcorp.com/footprint/building) *Affordable housing project, produced 96 affordable homes

Sources: (http://vancouver.ca)

Alberni by Kengo Kuma

Buying in Vancouver Being a millennial myself living in Vancouver, I understand the worries of not being able to afford to buy a home in the future. So how can millennials afford to live in this city in the future? When is the right time to buy? The right time to buy is when you can afford it.  I know what you’re thinking, you’re thinking about waiting for a market correction. In my opinion, and I’m no expert, whether or not a market correction is going to happen does not matter if you’re in it for the long run. If you’re looking to become a house flipper, that’s a different story.

Here’s the hard truth, and also just my opinion- I’m no expert, the real estate market in Vancouver in the long run is not going to go down. For one, there’s limited land. Unlike other cities, Vancouver is bounded by water, international borders and mountains. Because of this, we are not physically able to build more housing, as a result, we can only further densify by building up and building closer. Still not convinced? Let’s talk about the demand. Vancouver is one of the most diverse places to live, as a result, foreign buyers are naturally attracted. It doesn’t matter if Vancouver is expensive, because chances are, if they can afford Vancouver, they’re probably wealthy in their own countries. Do you think the additional 15% foreign tax will prevent all these wealthy people from purchasing their possible dream home? Now you’re thinking that foreigners would not want to buy when a market correction is expected. Do you think that people who just paid millions for a condo would really be held back at the thought of a possible 10 to 20% correction?

So work hard, work very very hard, save up, make some significant sacrifices in your lifestyle and buy when you can afford it.  

Wanting to become a landlord? Consider this first.

Before you get caught up on the hype of being a landlord and the idea of positive cash flow every month, consider some of the negatives and issues that you might need to face.  

Tenants:

-          Be prepared for the worse and keep in mind that a lot of damage can happen even in a short amount of time. Collecting a security deposit equal to 1 month’s rent is a good idea to protect yourself from property damage. Having everything on paper including the terms of the rent, inventory count and inventory condition (if the property comes fully furnished) and having your tenants’ initial on them are other ways in which you can shift more responsibility onto your tenants.

Stick to the Terms:

-          Your tenant is late on the rent. What do you do? Are you going to let it go? Are you going to say that it’s okay and that they can pay it when they can? I mean, they are only a couple days late and you aren’t in any rush for the money. NO. Stick to the terms. As you become more and more nonchalant with the terms of the rent, don’t expect your tenants to take anything else seriously. You will find yourself stressing over this sooner or later and that enforcing anything else with your tenants to be that much more difficult. Set the rules and stick with them.

Property Taxes:

-          Depending on where you live, the property tax on your current home that you live in may be exempt or offered a discount on its property taxes. Keep in mind, this ISN’T the case for investment properties. So be prepared for that big bill when it comes and make sure this amount is accounted for when deciding on the rent amount to charge your tenants.

Location of your Property:

-          When looking for the right property for your investment, keep in mind that you will need to check up on that property. If the wrong tenant is selected, you may need to check up on the property more than you like. If you decide on a property that is further away, you may want to consider a property rental manager to help you address any issues that may come up. However, also keep in mind this will come at a cost and a cut of your rental income.  

Picking the right property can result in positive cash flows every month. Having your tenants pay off your properties with their money and not yours also sounds like a dream come true. Just make sure you are willing and ready to take on the headaches and risks. Being a landlord won’t be a painless experience.

Streets, Roads, Boulevards, Drives, Avenues Working as the development coordinator, I always found myself looking back at our development site plan to remind myself of the street names. Was that Sparrowhawk Avenue or Street? Was that Caspian Drive or Avenue?

Have you ever wondered what the difference between a Street, Road, Boulevard, Drive and Avenue was? To answer that question, the definitions that were originally meant for these terms are not always followed.

A Road is simply something that allows vehicles to travel on that link between 2 points (like 2 cities). A Street is used for urban roadways. An Avenue is a roadway that are lined with trees or greenery along the sides. Boulevards are wide multi-lane streets with a median or landscaping in between the incoming and oncoming traffic. Lastly, a Drive is usually a roadway that follows either the contours of hills or waters.   Photo Credits: (https://www.pexels.com)

Modern or Historic?

Modern architecture features clean, pure curvilinear or straight lines. Flat roof lines are also commonly seen. So why is it that people are calling this modern single family home a “WWII Bunker”? Despite its challenging exterior appearance, the interior features a glass elevator, a glassed-in kitchen and living space, a 4 car garage, as well as views of both the ocean and mountains.

The previous 1935 home (photo on the left side) that was in its place was bought in 2014 for 3.5 million, this newly renovated home will be released for sale 2017 November (offered for $10,000,000).

Photo Credits: (http://news.nationalpost.com)

Sources: (http://www.cbc.ca) (https://pricetags.wordpress.com)

The Development: (http://www.3691westpointgreyroad.com)

GableCraft Homes

Since March of 2016, I was part of the GableCraft Homes’ team at their head office in Vancouver. Working directly under the developer as the project coordinator, I was able to help directly with their Royal Bay project on Vancouver Island. Working with the trades, architecture, design and marketing teams have truly opened my eyes on how complex, detailed oriented, and fast paced real estate development really is.  

Royal Bay is a master planned waterfront development comprised of both townhouses and single family dwellings. The project is estimated to deliver around 80 to 100 homes per year. I am truly grateful for the opportunity to coordinate the development of not 1 but 86 single family homes to date.

Photo Credits: (http://victoria.citified.ca)  (http://gablecrafthomes.ca/royalbay)

GableCraft Homes: (http://gablecrafthomes.ca)

Foreign Buyers Tax

With the new foreign buyers tax in place, it leaves many to wonder whether or not it has helped cool the BC market. Here is what the presenters at the Commercial Real Estate Lenders Association breakfast had to say:

Brian Yu, a senior economist at Credit Union Central, saw a cooling in the single family market. However, the foreign tax has yet to impact new multi-family developments and a strong market for that still exists.

Michael Ferriera of Urban Analytics also agreed with Brian that the tax had only impacted single family and multi-million dollar condo sales. To support, new developments that had launched in 2016 fall had all sold out.

Photo Credits: (http://www.narcity.com)

Credit Union Central: (https://www.central1.com) 

 Urban Analytics: (http://www.urbananalytics.ca)

Promenade for Sale

Since attending the ICSC (International Council of Shopping Centers) Conference in Whistler this year and hearing Darryl Schmidt (VP of National Leasing- Cadillac Fairview) speak among the other panelists, I started to pay attention to the retail aspects of the industry. Keeping close tabs on today’s retail industry leaders, I came across the news that Cadillac Fairview was putting the Promenade for sale.

Promenade is a 879,000 square foot shopping centre with Sears, T&T Supermarket, Old Navy and Rainbow Cinemas as their main anchoring tenants. Recently renovated in 2009 (upgrades of $25 million), the property is up for sale with no list price.  

According to Don Gregor from Aurora Real Estate, possible ideas for buyers is to redevelop the area. Demolishing the current building and densifying it with residential condos would be a good idea. The Thornhill area is in high demand for condos and apartment buildings, either a pure condo development or a mixed use development would help meet demands for housing in the area.

Photo Credits: (http://whatevermagazine.ca)

Cadillac Fairview Company Limited: (https://www.cadillacfairview.com)

ICSC Conference: (https://www.icsc.org)

Sources: (http://news.buzzbuzzhome.com) (http://www.thestar.com) (http://renx.ca)

New Landmark: Tallest Soon To Be Tower

Currently in construction, Brookfield Place will be Calgary’s Tallest Tower. It is 2.4 million square feet, 56 storeys and 247 meters tall. This northeast corner skyscraper is situated in the last remaining undeveloped prime sites- between 1st & 2nd street and 6th & 7th Avenue.

Census Energy Inc. will be the building’s largest tenant, but we can expect to see many smaller cafes, restaurants and retail shops as well.

This soon to be landmark will be built to achieve the recognized LEED Gold standard for Core and Shell development.

Photo Credits: Dialog Design (http://www.dialogdesign.ca/projects/brookfield-place/)

For leasing inquiries: (http://brookfieldofficeproperties.com)

Upcoming Development: BOLD on Fraser Living in the area for many years myself, it is noticeable that new developments and local business are migrating its way onto Fraser Street. Being in close proximity to the well known hip and edgy Main Street, it certainly isn’t a surprise that businesses have expanded into the area. Landa Global definitely could not have timed themselves better by developing BOLD in this prime area of Fraser.

The Neighbourhood: As mentioned above, Fraser Street has been busy reinventing itself as Vancouver’s new “it” neighbourhood. Attracting many independent local restaurants, cafes and boutiques. Prado Cafe and Matchstix are relatively new additions to Fraser which are highly welcomed by the locals in the area.

Building: Paying close attention to small details, BOLD on Fraser is designed to provide more livable and usable square footage in its 30 units in 4 stories. Featuring a contemporary design, units consist of floor to ceiling windows, wood flooring and open concept kitchens with high end Whirlpool appliances.

When you’re on vacation, it’s not always ideal to spend the night working away on a laptop, but hey, I’m not complaining! Stress is a privilege!