加拿大房产投资 › Real Estate

Strata Property Depreciation Reports

 

Introducing Mandatory Strata Property Depreciation Reports

Building Confidence in Your Buyers It debuted some forty years ago as an affordable path to home ownership. It heralded the benefits of a carefree, low maintenance lifestyle by compartmentalizing vertical airspace. It brought together groups of strangers, buying separate units with individual title while sharing costs on common property for others to maintain. It banished countless lawnmowers into landfills everywhere. Still, we know there would be a dark side to strata property ownership. The infamous leaky condo crisis of the nineties would bring financial hardship to thousands of owners. It would take the Barrett Commission, chaired by former premier Dave Barrett, a new Strata Property Act with mandatory documentation for buyers considering a strata purchase and many years to rebuild confidence in the strata property market as we know it today. In August alone, over 70 percent of sales in Vancouver were in multifamily units, the balance in detached homes.

That’s a market dominance that makes it all the more important for you as REALTORS® to stay on top of the information curve for your clients. New regulations introduced last December by the provincial government are aimed at giving an added layer of confidence to buyers considering a purchase in the strata market. It is now mandatory for all strata properties in B.C. greater than 4 units to have a common property depreciation report completed by December 13, 2013. These depreciation reports are to be used to establish long term planning for common property and assets to determine the following aspects of a strata property:

■The assets owned by the strata corporation

■The condition of those assets ■When assets need replacing ■How much money the strata corporation currently has (the contingency reserve)

■What the replacement cost is likely to be

■The payment plan (three cash flow models projecting 30 year replacement periods) The regulations also set out the necessary qualifications of persons providing the reports, a schedule of updates, disclosure of reports and financial planning to accomplish the necessary results.

A Strata may defer a depreciation report by passing a ¾ majority vote to that effect every 18 months. There are changes in store as well to the Form B, Information Certificate for specific disclosure of parking stall and storage locker designation and allocation effective January 1, 2014. The Executive Director of the Condominium Home Owners Association of B.C., Tony Gioventu, says it’s a positive development for the strata community. “These reports will change how people buy and sell a strata lot, and how people qualify for a mortgage. Buyers will now be able to ask for copies of the depreciation report so they know up front what they are buying into. Mortgage brokers will also want to assess risk when determining eligibility for financing.” This is the kind of good news your prospective buyers are eager to learn from you as their professional REALTOR®. Watch for educational events being held around town by various Divisions of the Real Estate Board of Greater Vancouver. And check out the latest updates on the CHOA website at www.choa.bc.ca as well as the Status of Changes to the Strata Property Act and Regulations here.


B.C. Property Assessment 2013

 
 

The residence at 4707 Belmont Ave. in Vancouver is the  most-valuable residence in B.C., according to recent figures from the B.C.  Assessment Authority.

 

The identity of the owner of the most valuable home in British Columbia  remains shrouded in secrecy, hidden behind confidentiality agreements and an  offshore company.

But when you own one of the best view properties in the province and spend  millions of dollars and more than seven years to completely transform it,  privacy is important.

For the owner of the 25,000-square-foot mansion at 4707 Belmont Ave.  overlooking Spanish Banks in Vancouver, the cost of that privacy can now be  pegged at $39.2 million. That’s the value the B.C. Assessment Authority has  placed this year on the spectacular and luxurious new home that sits on nearly  two acres of gated land with sweeping views of Howe Sound, the city and the  North Shore mountains.

The home is located at the start of a relatively short, poorly maintained  road without sidewalks that is nonetheless so geographically valuable that no  less than nine of the top 25 highest-value homes in B.C. are situated on it.

Architect Russell Hollingsworth designed and built the mansion for the  reclusive owner, who reportedly is from Ontario. Hollingsworth said he’s under a  confidentiality agreement and can’t disclose anything about the owner, but he  said the project was one of the largest he’s undertaken.

Hollingsworth’s company, Rusco Enterprises, is so sought after by the city’s  wealthy that five of the 10 most-valuable homes in B.C. were designed and built  by him. One of those is Lululemon fashion owner Chip Wilson, whose home at 3085  Point Grey Rd. is the second-most-valuable home in B.C., at $35.2 million. Last  year, it was at the top of the assessment authority’s list.

The Belmont mansion includes a 13,534-square-foot lap-pool, a  4,705-square-foot squash court, and a 665-square-foot porch. Overall, the entire  project, which took six years to complete, covers nearly 45,000 square feet of  development.

Land title records show the property is owned by Pisonii (PTC) Ltd., a  company not registered in B.C. When the property was purchased in 2005, it was  bought by a related company, Pisonii Ltd., registered in the British Virgin  Islands where corporate identities are protected.

Hollingsworth said the family moved into the home last year after the work  was completed. He wouldn’t otherwise discuss the improvements to the site.

Peter Ferry, a lawyer with Gowlings in Vancouver, said he represents the  owners and they have declined to comment or identify themselves.

“It’s not the royal family, and you are not the paparazzi,” he said. “It is a  private residence. It is not something people with their homes want to  discuss.

“We’re aware this attracts attention. We’re not trying to be jerks, but ...  my instructions are that there is just no comment.”

Tony Rojac, whose company Architectural Stone Masonry of Sumas did much of  the stonework, said he also couldn’t disclose the identity of the owner. He said  he met the man once during the summer when a barbecue was held to thank everyone  who worked on the project.

The property was once owned by high-flying Vancouver businessman Nelson  Skalbania.

The other eight owners on Belmont Ave. who have cracked the B.C. Assessment  Authority’s top-25 list of most-valued properties include the Khosrowshahi  family, founders of FutureShop and Wesbild; investment banker David Sidoo and  his wife Manjy; philanthropists Joe and Rosalie Segal; Canaccord Financial  founder Peter Brown; Mohammad Mohseni; Lei Qi Zheng; Marcus and Hana Wosk; and  an offshore company, Rosy Palace Investments.

The newest buyers on Belmont were the Wosks, the son and daughter-in-law of  the late businessman and philanthropist Morris Wosk. Last June, they paid $20  million for a massive two-acre estate at 4851 Belmont Ave., on which sits a  76-year-old mansion.

The list of the top-200 most-valuable homes in B.C. can be found at bcassessment.ca.

 


Market update

 

 

VANCOUVER, BC - Home sales in March trended below the 10-year average in Greater Vancouver while home listing activity outpaced what’s typical for the month.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,874 on the Multiple Listing Service® (MLS®) in March 2012. This represents a 12.9 per cent increase compared to the 2,545 sales recorded in February 2012, a decline of 29.6 per cent compared to the 4,080 sales in March 2011 and an 8.4 per cent decline compared to the 3,137 home sales in March 2010.

March sales in Greater Vancouver were the second lowest total for the month in the region since 2002 and were 16.8 per cent below the 10-year sales average for the month.

“Home sellers have been more active than buyers the first few months of the year, but we continue to see a relative balance in the total supply of homes for sale and current demand in the marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,843 in March 2012. This represents a 5.2 per cent increase compared to February when 5,552 homes were listed and a 14 per cent decline compared to March 2011 when 6,797 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 4.5 per cent above the 10-year average for listings in Greater Vancouver for March.
At 15,236, the total number of residential property listings on the MLS® increased 8.4 per cent in March compared to last month and increased 16 per cent from this time last year.

“The total number of properties for sale in Greater Vancouver has increased each month since December, which means there’s more selection to choose from as we enter what’s traditionally the busiest season of the year in our market,” Klein said.

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $679,000, up 5.3 per cent compared to March 2011 and an increase of 1.1 per cent compared to February 2012. The benchmark price for all residential properties in the Lower Mainland is $607,700, an increase of 4.8 per cent compared to March 2011.

Sales of detached properties on the MLS® in March 2012 reached 1,183, a decline of 34.1 per cent from the 1,795 detached sales recorded in March 2011, and an 11.5 per cent decrease from the 1,336 units sold in March 2010. The benchmark price for detached properties increased 9.2 per cent from March 2011 to $1,056,400.

Sales of apartment properties reached 1,191 in March 2012, a decline of 26.6 per cent compared to the 1,622 sales in March 2011, and a decrease of 4.9 per cent compared to the 1,252 sales in March 2010.The benchmark price of an apartment property increased 2.2 per cent from March 2011 to $375,100.

Townhome property sales in March 2012 totalled 500, a decline of 24.6 per cent compared to the 663 sales in March 2011, and an 8.9 per cent decrease from the 549 townhome properties sold in March 2010. The benchmark price of a townhome unit increased 0.9 per cent between March 2011 and 2012 to $480,900.

The Real Estate Board of Greater Vancouver is an association representing more than 11,000 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.


Low-to middle-income housing still a challenge in Vancouver

Update from the team at Jia Hua Homes your Vancouver Real Estate Agent

 

The Mayor's Task Force on Housing Affordability in Vancouver has begun to  tackle the challenge of finding ways to provide more housing for low-to  middle-income households in the city.

 

Barely a month after being appointed, the 16-member task force this week  issued its first progress report containing a few key "quick start"  recommendations that are focused on spurring the approval of some new housing  supply.

 

The task force is focusing its efforts on low-to middle-income earners -  those with individual household incomes of $21,500 to those with combined  household incomes of up to $86,500 annually.

 

They believe this will capture a number of different market segments,  including lower-income singles and couples looking for rental accommodation they  can afford, modest income couples struggling to buy their first home, families  with children who want to live in the city rather than have to move to the  suburbs, and seniors wanting to downsize while remaining in their  neighbourhoods.

 

It is interesting to look at what a couple earning a combined $86,500 can  afford to buy with today's current interest rates. Assuming they would have  saved enough to be able to make a down payment of 10 per cent and that they  would qualify for a mort-gage where the mortgage payments and taxes would not  exceed one-third of their income, they would be able to afford a home priced  around $500,000.

 

The February Real Estate Board's benchmark selling price for all residential  properties in Greater Vancouver was $670,900. For detached housing, that price  was $1,042,900. Supplying homes for those households that earn up to $86,500 is  not an easy challenge.

 

The task force's first set of recommendations focus on expediting  applications for new market housing development targeted to low-to middle-income  earner.

 

The quick start recommendations also focus on bringing some more clarity to  policies in the Cambie Corridor Plan to ensure that they trans-late into actual  new development. The city's land-use plan for the stretch of Cambie from 16th  Avenue to Marine Drive has opened up new areas of the city for a fair amount of  transit-oriented development, including rental housing required as a part of the  new zonings. However, 10 months after the plan was adopted, not a single project  has been approved.

 

These recommendations came rather quickly, but they only brush the surface of  the issue in terms of increasing housing supply to a level where the  supply-demand curve will actually start to permanently warp in favour of buyers  looking for afford-able housing options in Vancouver. It was encouraging to see  task force co-chair Olga Ilich quoted as saying that the task force would be  talking a lot about "gently densifying neighbourhoods." This is where the work  of the task force can make a real difference.

 

Making housing affordable for modest income earners will require much more  housing supply and a diversity of housing types. Not everyone wants to live in a  highrise condominium apartment or in an apartment above retail on a busy main  street.

 

Gentle density needs to be introduced to Vancouver's single-family  neighbourhoods. Laneway housing was the beginning of a creative approach to  small density increases in residential neighbourhoods. Other even more creative  ideas are now being looked at, just in time to perhaps be considered during the  next stage of work by the Mayor's Task Force.

 

Smallworks' Jake Fry, who is the pioneer of laneway housing in Vancouver,  recently convened a group of architects, developers, builders and residents to  explore some ideas that might one day allow homeowners to redevelop their own  residential lots, introducing some additional housing units with a form and  character that could be compatible within the single-family neighbourhood  pattern.

 

With this kind of flexibility, homeowners become the developer; they use  their own equity in their home as financial leverage and they create some  additional "gentle" density that might be in the form of housing types that are  in short supply - housing types that would be in the reach of modest income  earners - and housing types that are what's called "ground-oriented", with their  own outdoor entrances like a house.

 

One idea that is being explored is either permitting the conversion of an  existing home on a standard 33-foot lot or building a new structure that would  accommodate two basement suites of 560 square feet each, two two-storey duplex  homes of 1,120 square feet each and a laneway building with a small  400-square-foot studio on the main floor and a townhouse in two storeys above  with 1,290 square feet. That means doubling the dwelling count to six homes from  three homes on a single-family lot, which is currently per-mitted with a primary  residence a secondary suite and a laneway house. This would bring affordable  housing and housing choice through land-use efficiency and creative design.

 

Another design idea that is being explored would see eight units on a  50-foot-wide single-family lot, all in a form not that much different than the  massing of the typical house plus a laneway house, with the addition of another  laneway house.

 

These ideas and others require creative design and some compromises, such as  reductions in front and rear yard setbacks, parking reductions and some modest  height reductions. They aren't ideas that will work in every block and every  neighbourhood. Adding density to corner lots is easier, for example, than adding  density to a mid-block single-family lot.

 

These are all ideas that need to be explored, refined and adopted for the  gentle transformation of our single-family neighbourhoods if we are going to  supply the housing that is needed to make Vancouver an affordable and livable  city.

Read more: http://www.vancouversun.com/business/real-estate/middle+income+housing+still+challenge+Vancouver/6329606/story.html#ixzz1qF3gaiW5