Archive for July, 2017

New high for Fraser Valley apartment sales

Monday, July 10th, 2017

Steve Randall
Canadian Real Estate Wealth

Overall home sales in the Fraser Valley area were down 10 per cent in June from a year earlier and 5 per cent from May with 2,571 sales.

Apartment sales though hit a new high, representing 27 per cent of all sales by the Fraser Valley Real Estate Board’s members, and up 13.1 per cent year-over-year and 12.2 per cent month-over-month.

“We knew that there was a growing appetite for our attached properties, but this month was exceptional,” said Gopal Sahota, Board President. “I think one reason demand has continued to be so strong for our region is that we have such diverse, robust inventory to help buyers find the right home even in a more complex market like this one.”

Apartment prices were up more than 40 per cent year-over-year to a benchmark $325,300. Single-family detached prices were up 2.1 per cent to $934,600 and townhomes were up 20.6 per cent to $467,000.

Copyright © 2017 Key Media Pty Ltd

Whistler community more than Whistler Village, skiing and mountain biking

Sunday, July 9th, 2017

Resort community offers so much more than carousing, skiing and mountain biking

Andrew McCredie
The Province

If your idea of culture in Whistler is hooking up with German tourists at last call at Garfinkel’s for some late-night poutine and falafals, you clearly haven’t been to the four-season resort lately.

True, the classic pub crawl still winds its way through the pedestrian pathways of the village, but if its more high-minded matters you seek, there’s a vibrant cultural crawl that will quench your thirst for local knowledge, history and tradition.

Surprisingly, as I discovered on a recent couple of culture-filled days up here in the mountains, little of that history has to do with skiing or single-track biking. And it dates back much longer than 1966, the year the first Garibaldi Lift Company chair started operation on the newly minted ‘Whistler Mountain.’

I learned this and much more about the town’s first century during a fascinating one-hour guided walking tour of the village by Whistler Museum program coordinator Jeanette Bruce. (I’ve been coming up here every year for almost three decades, and the fact that Whistler has a museum was another revelation!).

Whistler Museum Walking Tour

Granted, being led around by a guide holding up old black & white 8×10 glossies won’t exactly earn you big style points in the fashion-conscious Whistler Village, but how else are you going to learn about John Millar, a Texan on the run from the law who in 1910 was the first white settler in the area? Or about Myrtle and Alex Philip, a young Vancouver couple who in 1914 purchased 10 acres of land on Alta Lake to build a fishing lodge? Alex was a Gastown bartender and was enthralled by occasional patron Millar’s accounts of the untouched beauty of the area.

You’ll learn how Philip’s Rainbow Lodge set the blueprint for the ‘resort’ in Resort Municipality more than a century ago, and how for decades Vancouverites traveled on the Pacific Great Eastern Line to fish and get away from it all.

Then came a logging boom, with four mills located around Green Lake.

The walking tour meanders through the modern village, so it’s not until about the halfway point of the tour that you are standing in front of a historical touchstone. In this case, a garbage dump. Well, at least it was back in the early Seventies, and our guide Jeanette tells us it was one of the few sources of entertainment back in the day. ‘You’d come here in the evening to watch all the bears and eagles.’ Today, it’s the base of Blackcomb Mountain, teeming with mountain bikers and tourists.

The most enlightening aspect of the tour, for me at least, was surrounding Eldon Beck, the landscape architect responsible for Whistler’s pedestrian-oriented village. After having just been in Banff, I realized how different — and ordinary — Whistler could have ended up if it was designed on a traditional car-oriented, street grid pattern, as was the original town plan until Beck was brought in.

The tour ends at Olympic Plaza, and with Jeanette holding up one of her handy glossy photos — this one of original settler Millar — beside the Olympic rings, there’s a century of Whistler history in the making.

Of course, the history of the region did not begin with Millar or the Philips, as First Nations people occupied areas up and down the valley floor and into the mountains for centuries prior.

The next stop brought that history into focus.

Squamish Lil-Wat Cultural Centre

As remarkable as the art collection and the building that houses it are, this museum’s true accomplishment is the collaboration between two nations that have co-existed—mostly peacefully—in the Whistler area for millennia.

What you come to quickly understand as you make your way through the museum—on a tour or self-guided—is that despite that close proximity to one another, the Squamish and Lil’wat Nations were, and are, very culturally diverse from one another. They dress differently, have different customs and traditions, and have their own unique ancestor stories.

The presentation of the artifacts and artwork of the two nations is done in a manner that distinguishes each on their own accord, yet ties them together in a way that underscores how the two nations’ histories have been linked for centuries.

The centre opened in 2008 and is well worth a visit, and come hungry. The Thunderbird Café’s modern First Nations cuisine includes homemade venison chili, bannock tacos and bison pot pie.

Audain Art Museum

The newcomer to Whistler’s cultural scene is also the area’s unabashed heavyweight. Both in terms of the collection and the remarkable building it is housed in.

Opened in the winter of 2016, the 56,00 square-foot museum is a loving tribute to British Columbia built and donated by Michael Audain and his wife Yohiko Karasawa.

The only gallery in Canada devoted to the works of one province, the Audain’s collection is breathtaking. The First Nations mask collection is one of the world’s finest; there are 24 Emily Carr works on permanent display; and the list of contemporary B.C. artists whose creations are here include Jeff Wall, Robert Davidson and Xwalacktun Harry. Then there’s the E.J. Hughes Gallery, which celebrates contemporary life on the B.C. coast.

The collection is set up chronologically, beginning with a stunning room of carved masks punctuated by a Dance Screen by James Hart that fills one entire wall of the room. Fittingly, the collection concludes with contemporary First Nations artwork.

Spend an hour getting lost in this amazing collection, and you’ll all but forget that you are in Whistler, a place many equate to outdoor activity.

My how that has changed.

Pan Pacific package a one-stop cultural stop

The simplest way to book a Whistler cultural experience is with The Cultural Explorer Package.

Offered by Pan Pacific Whistler in honour of Canada’s 150th birthday, the three-night package includes admission to the Audain Art Museum (including a copy of the museum’s ‘Masterworks’ coffee table book) and the Squamish Lil-Wat Cultural Centre, a ride on the Peak2Peak Gondola, and a spot on the Whistler Museum Walking Tour.

The package starts at $747 (plus tax and based on double occupancy) and is available until Oct. 9 of this year. Visit panpacific.com for details.

If you’re more inclined to DIY exploring, the Cultural Connector is a Whistler Municipality initiative linking six points of interest together.

Pick up a brochure in your hotel lobby or at the museum, which features a map of the route along with information about the six venues, which in addition to the two listed above include the Maury Young Arts Centre, the Lost Lake PassivHaus, the Whistler Public Library and the Whistler Museum.

© 2017 Postmedia Network Inc.

 

Jasmine at The Gardens 10880 No.5 Road Richmond 23 townhomes by Townline Developments

Saturday, July 8th, 2017

Townline?s Jasmine completes The Gardens

Kathleen Freimond
The Vancouver Sun

Jasmine at The Gardens

Project address: 10880 No.5 Road

Project City: Richmond

Developer: Townline

Architect: ZGF Cotter Architects

Interior designer: i3 Design

Project size: 23 two- and three-bedroom townhomees

Unit size: 1,218 to 1,627 square feet

Price: High $800,000s 

Sales centre: 140 – 10880 No.5 Road, Richmond

Sales centre hours: noon — 5 p.m., Sat — Thurs

Phone: 604-271-3331

Website: gardens.townline.ca

Jasmine, a 23-unit townhome development, is the final bloom in the bouquet at The Gardens in Richmond.

The townhomes are the sixth project at the master-planned community, following the low-and mid-rise condo buildings Azalea, Magnolia, Camellia, Calla and Dahlia, all part of Townline’s urban village on the 10-acre site.

The Gardens borders a 12-acre park that was part of the original 22-acre site before it was gifted by Townline to the city of Richmond. Jasmine is the final release in the last phase of development, which included Dahlia and Calla, two eight-storey concrete condo buildings. When The Gardens is complete in 2019, the development will have added about 600 homes to the housing inventory in Richmond, says Chris Colbeck, Townline’s vice-president of sales and marketing.

Colbeck believes the location is one of development’s major advantages.

“There’s easy access to Highway 99 and being on the corner of Steveston Highway and No. 5 Road means you don’t go through Richmond,” he says.

It’s also conveniently situated close to the family-friendly activities at the Riverport sports and entertainment complex, and for cyclists looking to work up a sweat — or just take a leisurely ride — the West Dyke Recreational Trail from Terra Nova to the Steveston/South Dyke is easily accessible. The 26.5-kilometre trail offers glimpses of wildlife, passes through marshes and serves up spectacular views of the coastal mountains and the water.

While The Gardens includes 77, 000 square feet of retail space, with a Loblaws City Market as an anchor, it is also a short walk to additional stores, restaurants and coffee shops at Coppersmith Corner shopping centre and Ironwood Plaza.

Colbeck also notes that buyers of the townhomes have access to 6,000 square feet of shared amenities in The Gardens, including table tennis and badminton facilities, a state-of-the-art fitness centre with showers and changing rooms and shared green space.

Joseph Lau of ZGF Cotter Architects says it is often assumed that living on the southern side of Richmond means limited views.

“But that’s not the case because Richmond is flat and you have the open expanse of the park, the views of the [North Shore] mountains are great,” he says.

The townhomes are angled in relation to the existing buildings on the site, creating a slight “V” formation.

“This slight angle on the west side of the townhomes opens up the view,” says Lau, adding that the distinctive cement fibreboard white frames on the façade on west and north side focus the view of the North Shore mountains.

The townhomes comprise three clusters, each with its own outside space. The group of homes that faces north have a front garden and access to a rooftop deck, while those on the west have garden patios and those on the east have small gardens and access to an elevated outdoor space (above the bike storage facility).

Inside the air-conditioned townhomes, the design is fresh and clean, reminiscent of an elegant European hotel, says interior designer Lisa Perry of i3Design. She uses the analogy of the “little black dress” to describe the timeless design.

“The interior goes with everything and depending on what you add to it, you can change the style,” she says. The key elements, she adds, are beautiful in their own right, but neutral enough to enable residents to easily customize their space.

 “If someone moves in with Victorian antiques, their furniture would suit the space as much as someone with modern Italian furniture,” Perry says.

Buyers can choose from three colour palettes: light, dark and ivory. The light scheme is defined by light-grey laminate cabinetry and charcoal-grey quartz countertops. The backsplash features the same charcoal grey quartz, and runs to the ceiling around the Venmar stainless steel chimney-style hood fan.

The dark palette showcases smoky-grey laminate cabinetry with a white quartz countertop and backsplash, while the ivory design plan includes white cabinetry and contrasting dark floors. Countertops are a light-grey quartz and a marble-look quartz backsplash.

While the size of the islands varies from plan to plan (they are approximately three by six feet) they are large enough to tuck three stools under the quartz top overhang, Perry notes.

Major appliances include a Blomberg refrigerator and washer and dryer and a Bosch gas cooktop and wall oven.

The colour schemes continue in the bathrooms. In the ensuite bathrooms in the light and dark palettes, the floors are 12- by 24-inch porcelain tiles with a limestone look, while the ivory scheme specifies tiles with the characteristic grey-veined appearance of Carrera marble. The vanities have a raised kick or base that’s set back to give the impression of floating, says Perry and all ensuites have double sinks with custom medicine cabinets and mirrors above each sink.

Some special touches enhance the ensuites’ upscale ambience she adds, noting the large showers have seven-inch rain shower heads and niches for shampoo and other toiletries. In the second bathrooms, bathtubs have a tile front rather than the often-used acrylic.

The living areas are open plan with the engineered hardwood floors connecting the living, dining room, kitchen and powder rooms. Colbeck says the Jasmine townhomes are expected to attract “move-up” buyers, young families looking for extra space, while downsizers also enjoy the unit sizes and location.

© 2017 Postmedia Network Inc.

Development group warns Metro Vancouver fee increase will be passed on to home buyers

Saturday, July 8th, 2017

Developers will pass on big rate increase to homebuyers

Jennifer Saltman
The Vancouver Sun

A development association is warning that a planned significant increase to a Metro Vancouver development fee will end up being passed on to home buyers.

Metro Vancouver is reviewing its liquid waste development cost charge which is levied on new development in the region, with few exceptions. The fee funds 99 per cent of the cost of growth-related sewage projects in the region.

Metro decided in 2014 to review the rates charged, which have not changed in 20 years. Across the region, rates are expected to rise between 75 and 229 per cent.

Anne McMullin, CEO of the Urban Development Institute, said fee increases don’t just come out of a developer’s profit margin — home buyers will feel the pinch.

“There’s only one taxpayer and the money is going to get pushed somewhere,” she said. “It does get passed on into the new home market because money doesn’t just evaporate and get absorbed by the developer.”

McMullin explained that if there are too many costs associated with building a home, it makes it difficult for a developer to get financing and keeps small and medium-sized developers from entering the market. This reduces the number of developments and restricts supply, which keeps prices high, she said.

“It’s not that we’re opposed to (development cost charges) or the needs that we’re all facing as a region with much needed infrastructure improvements,” McMullin said. “We just need to work together to make sure that it doesn’t restrict the ability to create more homes so that things become more unaffordable, because that defeats the whole purpose.”

Metro Vancouver’s development charges are applied by sewer area — Vancouver, Lulu Island, North Shore and Fraser — and are charged per unit for residential and per square foot for non-residential.

It’s proposed that rates in Vancouver will increase between 82 and 109 per cent, rates on the North Shore will increase between 75 and 99 per cent, rates in the Lulu Island area will increase by between 103 and 109 per cent and the Fraser area will increase between 210 and 229 per cent. The Fraser region will take the biggest hit because it is large and growing quickly.

If the rates are not increased, taxpayers will pay for it on their sewer bills.

There are provisions for the fees to be waived for affordable housing projects.

On Friday, Metro’s performance and audit committee discussed the proposed changes.

City of North Vancouver Mayor Darrell Mussatto said he is glad the issue is being addressed.

“It would be easier to swallow if we’d done this five or 10 years ago,” he said. 

Terry O’Neill, a Coquitlam councillor, found it “shocking” that the rates had not been adjusted in 20 years. He worried about the effect of developers having to swallow the costs all at once and possibly passing on the cost to homebuyers.

White Rock Mayor Wayne Baldwin said the changes are a long time coming and the increase should be no surprise to the development community.

Baldwin said he couldn’t imagine developers supporting the increase because it will cut into their profits. He said developers have been getting “a free ride” for a long time.

The committee endorsed the changes, in principle, and next they will be brought to the finance and intergovernmental committee and the board of directors.

Consultations with the public, stakeholders and the province are expected to take place from late August to early November.

© 2017 Postmedia Network Inc.

Buying fake jobs to immigrate to Canada

Saturday, July 8th, 2017

Douglas Todd
The Vancouver Sun

Canadian employers are creating fake jobs so would-be immigrants can quickly get citizenship.

Immigration “consultants” often arrange the illicit deals, which frequently result in Canadian business owners being paid to fabricate non-existent jobs.

Other times, the migrants perform actual work, while themselves handing cash to the employer under the table to top up their own salary.

The employers, for their part, devise fraudulent pay stubs so the foreign nationals can “prove” to immigration officials they have needed skills to go to the front of the queue to become a permanent resident of Canada.

“It’s very widespread. I have met a lot of clients who tell me how this is being done underground,” says George Lee, a veteran Burnaby-based lawyer who specializes in immigration law.

Immigration department officials, lawyers, employers, prosecutors and migrants are increasingly providing accounts of how immigration consultants and companies fabricate bogus records so foreign nationals can obtain permanent resident status.

Migrants are handing company owners anywhere from $15,000 to more than $150,000 to create the counterfeit jobs, with immigration consultants pocketing large fees in the bargain.

One immigrant department report said fraud is “commonly associated” with such jobs, called “arranged employment offers.”

“There are lots of cases like this and they’ve been going on for a long time,” said Lee. “In most cases, jobs are needed to become a permanent resident, yet in many cases they are just jobs on paper.”

Both Lee and Vancouver immigration lawyer Richard Kurland have been informed by clients, who range from young international students to professionals with degrees, about different deals would-be immigrants strike with employers.

In one standard example, Lee said, a foreign student who received paycheques worth $30,000 a year for part-time work was paid $15,000 by the employer, but also secretly handed over another $15,000 in cash to his boss to prop up his declared salary.

It’s a violation of the law, say Lee and Kurland, to offer cash in exchange for a job.

CBC TV in Saskatchewan last month secretly recorded Bill Sui, of the Vancouver-based immigrant consulting company Vstar International, offering cash to a Prairie retail employer to create jobs for his clients from Mainland China.

Since the news story came out about how Vstar International promised the owner of a Fabricland outlet $15,000 to produce a false job, plus enough to pay the migrant’s salary, people in three other Saskatchewan communities have come forward with similar accounts.

Kurland provided documents in which people complain to the Immigration department about such practices.

In one redacted letter obtained under an access to information request, a Canadian provided details about how her colleague was “getting her cheques and returning cash money to her employer just to show fake employment.”

Kurland, who publishes the newsletter Lexbase, said: “My research uncovers allegations of fake jobs, examples of fake jobs, and complaints by visa officers about fake jobs. It shows that some people who can’t qualify under our rules will pay big money to get their visa illicitly.”

An Iranian-Canadian businessman in Metro Vancouver told Postmedia that each month offshore professionals offer to pay him large sums to cook up artificial jobs in Canada.

“I get this on a regular basis. I’m offered fees from $10,000 to $50,000, plus they will pay their own salaries. So I could bring employees here and have them work for free,” said the businessman, who asked to not be identified.

In a related case, he cited how three years ago an Iranian couple ago went public about paying a B.C. film company $15,000 to come to Canada for jobs that turned out to be non-existent.

The businessman, who said he does not engage in such practices, said any Canadian company with more than six employees can offer a job to a foreign national.

Many job descriptions, which are either bogus or exaggerated to make them seem more “skilled,” are facilitated through immigration consultants, some of whom are not registered, even though registration is supposed to be a requirement in Canada.

Richmond immigration consultant Xun (Sunny) Wang hauled in $10 million over eight years by producing phoney paycheques and other documents for up to 1,200 clients in arguably the largest immigration fraud case in Canadian history.

Wang’s employees counterfeited thousands of employment documents for clients, most of whom had no real jobs in Canada.

In 2015 Wang, who was not registered as a consultant, was sentenced to seven years in jail.

The website of the Immigration Consultants of Canada Regulatory Council says it has more than 3,500 members, more than six per cent of whom have been subject to complaints.

The federal government considers foreign nationals who have jobs in Canada, including international students, among the most eligible to become permanent residents under its skilled worker program.

However, Lee said the supposedly merit-based policy is open to abuse for many reasons, including that the federal government insists on listing an unusually large number of job categories it claims need to be filled under its “express entry” program.

The Canada National Occupation Classification List shows Ottawa is keen to offer a wide range of work permits to migrants, including health managers, photographers, computer technicians, journalists, comedians and fishermen/women.

Immigration officials have long been suspicious about the authenticity of many jobs that some Canadian employers appear to provide.

One immigration department report said Canadian visa officers had “expressed serious concerns over the level of fraud involved” in many alleged work positions, “and the due diligence required to assess the validity of job offers.”

The 2010 evaluation of Canada’s skilled worker program concluded: “Fraud is commonly associated with job offers from non-existent employers, fictitious positions incompatible with the type of business operations, offers of convenience from friends or family members, and genuine offers with inflated job descriptions.”

© 2017 Postmedia Network Inc.

Toronto real estate frenzy cools

Friday, July 7th, 2017

Sales dip 37% from a year earlier despite rise in new listings, real estate board says

Garry Marr
The Vancouver Sun

The average price of a home sold in the Greater Toronto Area was $793,915 in June, an eight-percent decline from a month earlier, according to data released Thursday by the Toronto Real Estate Board.

Year over year, June average prices were still up 6.3 per cent from a year ago.

“There’s no doubt the market has changed,” said Christopher Alexander, regional director at Re/Max Ontario-Atlantic Canada.

“We are in a period of flux that often follows major government policy announcements pointed at the housing market,” said Tim Syrianos, president of the board, in a statement, referencing the province’s 16-point housing plan to cool the market in the Greater Golden Horseshoe (GGH).

Among key measures were a 15-per-cent non-resident speculation tax for the GGH and rent controls for the entire province.

TREB said there were 7,974 sales through the Multiple Listing Service in June, down 37.3 per cent from a year ago. New listings rose to 19,614, up 15.9 per cent.

“Any time the government intervenes drastically, you see consumers just kind of wait it out and see how it’s going to take effect,” Alexander said.

“But the market fundamentals in Toronto are still really strong. Lot of demand, lot of immigration, low interest rates. It’s a great city to live in. All those things will start to take hold again, probably in midAugust,” he said.

“While this annual rate of growth was sizable, it represented a more moderate annual rate of growth compared to May 2017, when new listings were up by 48.9 per cent year-over-year,” TREB said it its release.

Syrianos said survey results commissioned by the board show many households are very interested in purchasing a home in the near future but some are sitting on the sidelines waiting to see the real impact of the Ontario Fair Housing Plan.

“We have existing homeowners who are listing their home because they feel price growth may have peaked. The end result has been a better supplied market and a moderating annual pace of price growth,” he said.

“While we are seeing a substantial dip in sales over the last couple of months, it doesn’t look as if foreign buying activity or a pullback in foreign buying activity was at the root of this,” said Jason Mercer, the director of market analysis for the board.

“I’d argue it’s more on the psychological side of things, whereby people see a new major policy pointed at the housing market and take a bit of a step back, temporarily reassess where they are in the marketplace before perhaps moving back into the market.”

“Recent Ipsos survey results suggest that home buying activity in the GTA will remain strong moving forward.

“The year-over-year dip in home sales we have experienced over the last two months seem to be the result of would-be buyers putting (off) their decision to purchase temporarily,” said Mercer.

“It certainly looks as though buyers will benefit from more choice in the second half of 2017 compared to the same period in 2016.”

The real estate board revised its outlook for the year downward to between 89,000 and 100,000 transactions and is expecting that the average selling price in 2017 will be up by 13 to 18 per cent.

© 2018 Postmedia Network Inc.

Average rent for GTA condos soars to over $2,000 a month as landlords increase ahead of controls

Friday, July 7th, 2017

Landlords are boosting rents to try and beat new rent control rules brought in across the province in April

Garry Marr
The Vancouver Sun

Rental rates in Ontario soared just before the province implemented its expanded rent control rules in April, according to a report.

Condominium research firm Urbanation Inc. said the 5.1-percent jump in rents from the first quarter to the second quarter was the largest quarterly increase on record and sent the average rent in the Greater Toronto Area condominium market to $2,073 per month — based on average rent of $2.89 per square foot and an average condo size of 717 square feet, which was down from 741 square feet a year ago.

“It’s reasonable to suggest that rents for units that came up for lease were pushed higher than otherwise would have occurred due to the new rent control rules, in an effort by landlords to offset lost future rent growth,” said Shaun Hildebrand, senior vice-president at Urbanation.

Ontario on April 20 expanded rent control across the province to include buildings constructed after 1991 so they are now subject to rent increases tied to inflation that are capped at 2.5 per cent. Landlords are allowed to reset rents to market rates once a tenant moves out.

Another consequence of the change in policy — predicted by many in the real estate community — could be less tenant turnover as renters take advantage of increases that can only be tied to inflation.

Urbanation calculated the average length of time between condo apartment lease transactions and found it climbed to 21.5 months in the second quarter from 20.9 months in the first quarter of 2017. It was 17.9 months a year ago.

The real estate company said transactions in the GTA reached record levels with the number of condo apartments leased through the Multiple Listing Service hitting 8,328 units in the second quarter, a 12-per-cent increase from a year earlier, which was also the previous high.

“As the ownership market softened in the weeks following the provincial government’s new housing measures in April, the rental market tightened substantially against a backdrop of already record levels of demand that intensified as some buyers moved to the sidelines,” Hildebrand said.

Some of the rental activity increase was driven by new supply as total listings rose eight per cent from a year earlier due to higher condo apartment completions. The leases-to-listings ratio in the second quarter was 87 per cent, which was an all-time high.

Actual listings at the end of the second quarter were off 13 per cent from a year ago to 1,125 units, which is the lowest second-quarter number since Urbanation started tracking such data in 2011. The 1,125 units were the equivalent to two weeks of supply.

In the purpose-built rental market, the vacancy rate dropped to 0.1 per cent in newer stock, down from 0.5 per cent a quarter earlier. Average rents for available units increased by 11 per cent annually to $2.67 per square foot.

“Despite the announcement of the extension of rent controls to new buildings, the number purpose-built rentals proposed for development continued to increase in the second quarter, although at a much slower rate than previous quarters,” Urbanation said.

There were nine projects and 1,719 units added to proposed inventory during the second quarter, which compares with 2,453 units a quarter earlier and 5,645 units a year ago.

© 2018 Postmedia Network Inc.

Vancouver to deploy 3 full-time staff to rein in short-term rental listings

Friday, July 7th, 2017

New full-time staff to monitor short-term rental data

Joanne Lee-Young
The Vancouver Sun

The City of Vancouver plans to dedicate three full-time staff positions, including an “enforcement co-ordinator,” to monitor data about short-term rentals that breach its new guidelines and, if necessary, pursue legal action against offenders.

It announced rules to curb short-term rentals and posted a staff report. The information will be presented to Vancouver council next week by Kaye Krishna, its general manager of development, buildings and licensing.

The city has offered a glimpse of how it intends to act on information about short-term rentals. Aside from the enforcement co-ordinator, there are budget lines for full-time salaries in 2018 for two other roles, an inspector and an administration/audit position.

Other cities grappling with the proliferation of short-term rental listings, especially through Airbnb, have also employed full-time staff to bolster efforts.

In Santa Monica, California, the city has two full-time enforcement officers and one analyst who collaborates. They sift through listings photos, compare details to determine addresses and then knock on doors to find potential rule-benders. In Paris, city staff have been described as carrying out raids in some of the more popular tourist areas to ferret out unregistered listings.

In Vancouver, the approach will be to receive a complaint about an unlicensed listing, with an address, and then to contact the operator, who will be asked to either halt renting or face legal action.

But the report said that one “enforcement co-ordinator would continuously monitor online … data, community complaints via 311 and data sets, including Home Owner Grant, Empty Homes Tax and compliance records.”

These would allow the co-ordinator to identify “suspected issues” and then “potentially complete an audit.”

He or she would work with the online rental platform, such as Airbnb, use screen-scraping technology to find names and addresses, and “work with property-use, building and/or fire inspections to inspect the unit in relation to the bylaws.”

There is an expectation that it might be challenging to find some non-complying operators just by using these tactics, “thereby requiring staff to collect evidence to determine the address and the operator’s identity.”

As in other cities faced with a shortage of units for long-term renters, along with skyrocketing homeownership costs, Vancouver is trying to strike a balance with its plan for dealing with short-term rental listings.

Homeowners and renters in principal residences will be allowed to rent out part or all of their homes to earn additional income. But there will be a ban on short-term (less than 30 days) rentals in secondary homes in an attempt to cut the number of so-called commercial hosts, some of which are companies with listings in the double-digits.

The city doesn’t permit short-term rentals of less than 30 days (except for licensed hotels and bed-and-breakfast operations), but the report estimates there are 5,927 short-term units posted on the likes of Airbnb and Vacation Rentals By Owner.

The city report said that between an initial look at short-term rental listings in June 2016 and a second one in April 2017, areas including Marpole, southeast Vancouver and the west side/Kerrisdale saw more than a 35 per cent growth in listings.

Downtown, which has seen a higher concentration of these listings, saw no material change during this period, and there was a decline of 23 per cent in the West End/Stanley Park area.

Public complaints about short-term rentals are increasing, but are still rare, according to the report. In 2015, there were 19 complaints. In 2016, the number rose to 144, and, at the end of June 2017, there were 150. Some calls were related to other issues such as noise and safety, but the bulk were related to “suspected” short-term rentals.

© 2017 Postmedia Network Inc

Possibilities for consumers in the event of a BoC rate hike

Friday, July 7th, 2017

Ephraim Vecina
Canadian Real Estate Wealth

The looming possibility of an interest rate hike by the Bank of Canada—an eventuality spurred by recent hints from the central bank—should give both consumers and industry players cause to be alert of the likely outcomes of such a hike, according to a markets observer.

Writing for RateHub.ca, finance analyst Jordan Lavin noted that while banks have traditionally moved their prime rates according to the BoC’s decisions to maintain or slash their rates (which is in turn motivated by the central bank’s mandate to keep a 2-per-cent inflation target), “[the] last two times the BoC rate has gone down, the banks haven’t passed on the full discount to customers. After each rate cut of 0.25 percentage points, the banks only lowered their prime rates by 0.15 percentage points.”

“It’s possible that when the BoC rate goes up, the banks will raise their prime rates by only 0.15 percentage points, but it’s much more likely that they’ll pass on the full 0.25 percent point increase to their customers.”

Home owners who are already working off their mortgages need to take into account the possible impact, especially when they have variable-rate mortgages (as fixed-rate products will be mostly unaffected).

“When the prime rate rises or falls, variable mortgage rates rise or fall with it. In fact, variable mortgage rates are usually expressed as prime plus or minus a certain percentage,” Lavin explained. “If the prime rate goes up, you’ll pay a greater amount of interest on the outstanding balance of your mortgage. In some cases, your monthly payment will increase to cover the additional amount.”

Lavin added that financially struggling consumers in this category can approach their brokers and suggest a switch to a fixed-rate mortgage, which will shield borrowers from further upward movements in the BoC rate.

Meanwhile, first-time home buyers can rest assured that the maximum amount they can borrow will not suffer from a rate hike.

A rundown of these scenarios can be viewed here.

Copyright © 2017 Key Media Pty Ltd

Airbnb, Expedia slapped with new restrictions as Vancouver houses nudge $1 million

Friday, July 7th, 2017

Ephraim Vecina
REP

Vancouver introduced new restrictions on Airbnb Inc., Expedia Inc. and other short-term rental operators as Canada’s priciest housing market seeks to ease its near-zero supply of homes.

“Housing is first and foremost for homes, not to be operated as a business,” Mayor Gregor Robertson told Bloomberg on Wednesday (July 5).

Under the new rules, residents will only be able to rent principal residences and will be required to obtain a business license and pay as much as a 3 per cent transaction fee on stays. Rentals of secondary suites, laneway homes and investment properties will be prohibited. City officials said they would be ready to pursue legal action against violators, as well as a $1,000 fine.

Robertson has pushed to regulate housing more tightly amid a public outcry over the lack of affordable homes for residents despite studies showing that as many as 66,000 dwellings in Vancouver are vacant or temporarily occupied. Home prices have more than doubled over the past decade in the city, which consistently tops the world’s most liveable rankings.

Public scrutiny has focused on landlords, particularly from abroad, who park their cash in investment properties where windows remain dark through the year. The city introduced a tax on empty homes in January following the province’s 15 per cent levy on foreign buyers last August, after discovering more than $1 billion of global cash had flowed into local properties over a five-week period.

The city estimates there are more than 5,000 active short-term listings in Vancouver even though zoning regulations prohibit renting a home for fewer than 30 days. Only licensed bed-and-breakfasts are allowed to do so. The vacancy rate for those seeking long-term rental housing is currently 0.8 per cent, Robertson said.

Robertson, who had hinted at the new rules in a May interview, had said then that Vancouver studied cities that had tried to cap the number of nights being rented out per year and found “enforcement is impossible.”

The Real Estate Board of Greater Vancouver said that benchmark home prices in the city rose to $998,700 in June, up 7.9 per cent from a year earlier. Residential sales dropped 11.5 per cent and new listings fell 2.6 per cent.

Copyright © 2017 Key Media Pty Ltd