City looks at adding homes to single-family neighbourhoods

Dan Fumano
The Province

Vast areas of Vancouver dominated by single-family houses could soon be opened up for different kinds of housing, including more duplexes and laneway houses, the mayor’s office announced Thursday.

Next week, Vancouver’s chief planner Gil Kelley will present options to city council that could potentially bring thousands of new homes into low-density neighbourhoods such as Dunbar and Kerrisdale.

The proposed changes, following months of consultation, are meant to increase the number of housing options geared to renters earning $30,000 to $80,000 a year, and couples and families earning between roughly $80,000, and $150,000. 

“I am hearing loud and clear that affordability remains residents’ top concern,” Mayor Gregor Robertson said in a written statement. “These proposed changes from city staff respond to the desire for people to have more housing options in single-family neighbourhoods — neighbourhoods where they currently cannot afford to live.”

Anne McMullin, CEO of the Urban Development Institute, said even though the proposal won’t add a huge number of housing units, it represents a symbolically significant step.

“Single-family home neighbourhoods have been sort of sacred or untouchable, so we really need to have better use of our land,” McMullin said. “That’s where the difficulty has been, it’s not that we don’t have the land, it’s the zoning. So we’ve been building on 15 to 20 per cent of the land base. So symbolically, this is a very significant first step.”

But some observers were discouraged the proposals didn’t go further.

Adrian Crook, a co-founder of Abundant Housing, a non-profit group started last year by Vancouverites seeking to advocate for more housing, said he’d like to see those single-family neighbourhoods opened up for four- to six-storey apartment buildings, not just duplexes and laneway houses.

“The city seems to have chosen laneway housing, which is a very expensive housing form,” he said. “If you go on Craigslist right now, laneway houses rent for $3,000 and $4,000 and up … I know they’re sensitive to property value issues and the single-family homeowner voting base, but we need a bigger move.”

Reports will go to city council next week, and are expected to be referred to public hearing in the fall.

© 2017 Postmedia Network Inc.

Frank O’Brien
Vancouver Courier

Vancouver’s new housing sales have been on a blistering pace over the past two years and the inventory of new condos has fallen to historic lows, so it was a surprise to some when housing starts plunged through the first half of 2017.

Total housing starts in the city of Vancouver have dropped 80 per cent in the first six months compared with the same period in 2016, according to Canada Mortgage and Housing Corp. (CMHC), from 5,784 to 1,860 units.

Single-family detached starts in the city declined from 708 to 462 houses, while starts of condominium apartments fell from 3,290 in the first half of 2016 to just 880 this year, a 73 per cent decline.

“It is a surprise, considering the high demand,” said Vancouver real estate consultant and author Ozzie Jurock.

A report prepared for the Urban Development Institute, Pacific Region, found that, despite near-record construction levels, there were fewer than a dozen new and unsold condominium apartments in Vancouver in the first quarter — a record low.

Total housing starts across the Metro Vancouver region also fell, but by a smaller margin, to 12,200 units so far this year, compared with 14,840 in the same period a year earlier.

Increases were seen in the larger suburban communities of Burnaby, Surrey, Coquitlam and New Westminster.

Eric Bond, CMHC principal market analysis in Vancouver, noted that the number of homes under construction hit a record high of 39,141 units across all of Metro Vancouver in May and remained near that level in June. He suggested the downturn in Vancouver starts may relate to developer fatigue.

“The constraints on builders are very real in terms of the availability and costs of equipment and materials, which means further increasing the pace of construction is challenging,” Bond said.

Vancouver developer and architect Michael Geller said the lack of condo starts in Vancouver may be linked to a current backlog of applications. “[The developers] are probably waiting for permits,” he said.

© 2017 Vancouver Courier

Jessica Kerr
Vancouver Courier

Vancouver residents still have the chance to have their say on a proposed 57-storey skyscraper in the city’s West End.

The public hearing for the proposal, a partnership between Westbank Corp and First Baptist Church, and designed by late architect Bing Thom, continues at city hall this Tuesday. The hearing started on July 18 and had to be extended to July 25 due to the large number of speakers.

The redevelopment of the site next to First Baptist on Burrard and Nelson streets would also include seismic upgrades and restoration for the 107-year-old church. The proposal is for two towers — a smaller seven-storey residential building that would include 61 units of social housing and the 57-storey tower with 331 market strata units. City staff has recommended approval of the application with a number of conditions.

At 57 storeys, the proposed tower would be amongst the highest in the city. The Wall Centre across the street is currently Vancouver’s third highest building with 48 storeys.

As of July 18, the city had received 152 pieces of correspondence on the proposal — 74 in support, 77 opposed and one with questions.

Mike Jensen moved to a smaller building on Barclay two years ago. He said his main concern with the proposal is the position of the tower, which, he said, will be squarely in line with his building, blocking light and any views.

“We’re going to be completely entombed,” he said.

Jensen added that the development would not address the city’s lack of affordable housing — it’s all about extreme luxury, he said.

Those who wrote to the city in favour of the application cited benefits to the church as well as the city as a whole with the inclusion of below-market rental housing, new childcare spaces and the expansion of programs offered by the church. 

The public hearing starts at 6 p.m. in council chambers at city hall.

© 2017 Vancouver Courier

Squamish development?s refined style able to balance adult tastes with the ?kid in you?

Mary Frances Hill
The Vancouver Sun

Seven Peaks

What: 70 three-bedroom-and-flex and four-bedroom townhomes

Where: 39548 Loggers Lane, Squamish

Residence sizes and prices:  Homes ranging from 1,485 to 1,795 sq. ft.; from $699,900

Developer and builder: Polygon Seven Peaks Ltd.

Sales Centre address: 39548 Loggers Lane, Squamish

Centre hours: noon to 6 p.m., Sat — Thurs

The details make the difference at the show home at Seven Peaks, Polygon’s community of townhomes in Squamish.

Polygon senior interior designer Sofie Laforest and her design team use subtle fabric patterns, custom-designed millwork and bold sculptural beauty in functional pieces to leave visitors with the impression of the space as a home that embraces family warmth without sacrificing sophistication.

In the kitchen, fine touches make a big impact on texture and pattern, setting the room apart. Horizontal patterns on wall coverings, the intricately designed fabric of the kitchen island seating, moulding above kitchen cabinets and a warm, taupe-coloured nook that the Polygon team has crafted into a small lounge, all set the home apart.

 “Small details are always important. As a designer, you have to plan out the whole space, but it all comes together with the final little details. In essence, it’s the finishing touch,” says Celia Dawson, senior vice-president of design for Polygon, who leads the designers.
The crown detail was designed by Sofie Laforest herself as a sophisticated touch that unites the cabinets to the ceiling.
“Sofie designed a contemporary home with a West Coast simplicity. She wanted to finish the walls and ceilings with a sophisticated trim without the curves and details of a more traditional crown moulding detail,” Dawson notes.

Dynamic social and family living lies at the heart of the design of the Seven Peaks display. (Case in point: the designers’ joyful approach to decorating the children’s bedrooms). But Laforest and the Polygon designers also used this space to showcase the potential for grown-up taste.

Polygon can be relied on to include stunning sculptural artwork or functional pieces like lighting. The dining room chandelier steals the spotlight, with its spike-like fixtures; this abstract piece is bound to stimulate discussion during gatherings and sets a refined ambiance, Dawson says.

 “I find it creates a wonderful canopy over the dining table and creates a warm and inviting setting for dinner conversation.”
The opportunity to decorate children’s rooms gave Laforest and her colleagues free rein to play with colour and shape. The designers incorporated a suspended train track and a little loft house in the rooms. The classic pieces (refreshingly absent: branded cartoon characters) are sure to inspire nostalgia among adult home hunters.

“Kids’ rooms are always fun to decorate,” Dawson says. “Once you start having fun and letting the ‘kid in you’ come out, the challenge is only to stop the creativity flow, or tailor back.”

© 2017 Postmedia Network Inc.

GARRY MARR
The Vancouver Sun

They are a group of foreign buyers who took out record levels of currency from their country in the past year to buy residential property in the U.S., though only a minority plans to take up permanent residence. The buyers? Well, they might not be who you think.

Canadians bought a record US$19 billion worth of property in the United States last year, surpassed only by the Chinese who purchased US$31.7 billion, according to a report out Wednesday from the Washington, D.C.based National Association of Realtors.

But few south of the border seem to care about the influx of foreign buyers from the north.

“Well, perhaps they will start thinking about it in some hot markets,” joked Doug Porter, chief economist with the Bank of Montreal about some type of foreign tax on Canadians, mentioning an article he recently read about affordability issues in California.

Porter noted a number of U.S. states do have tax implications for Canadians, a common method being homestead taxes which provide lower property levies for state residents, and Canadians selling property also face a withholding tax.

But they are not are direct as the 15 per cent tax on foreign buyers imposed in Ontario and British Columbia to help control prices in and around their largest cities, a surcharge that hits U.S. buyers.

“I think foreign investment is still quite welcome; after all, it helped put a floor under the market during its worst days in 2008-12,” said the economist, referring to the U.S. housing market crash.

Canadians purchased 33,819 properties in the United States, the top five destination by state Florida, Arizona, California, Texas and Georgia. Those numbers pale in comparison to the 69,135 purchases in 2010 when the dollar was near par but Canadian activity has perked up over the past year thanks to rapidly rising domestic prices which appear to have helped finance stateside purchases.

“You’ve got equity in your houses that enables you to potentially move it to the United States and diversify your real estate portfolio,” said Danielle Hale, managing director of housing of research at the NAR.

The realtor group looked at sales over a 12-month period from April, 2016 to March, 2017 and saw an almost 26 per cent jump in purchases from a year earlier among Canadians.

© 2017 Postmedia Network Inc.

Justin da Rosa
Canadian Real Estate Wealth

Canada’s market may be in the midst of a soft landing, and the foreign buyer tax is having an impact, according to recently released stats.

“The Canadian housing market is now in its third month of what is expected to be a soft landing. The weakness was triggered by changes to provincial and federal housing policy, but it will ultimately be higher interest rates that help solidify it,” Diana Petramala, economist with TD Bank, said in her analysis of CREA’s release. “Mortgage rates have moved in tandem with the Bank of Canada rate hike last week and will likely to continue to edge higher with three additional rate increases expected by the end of next year.”

The Canadian Real Estate Association released its June housing statistics Monday, which indicated home sales fell to levels not seen since June 2010.

National home sales fell 6.7% in June.

A major reason for that decline, according to the association, was Ontario’s Fair Housing Plan.

“Changes to Ontario housing policy made in late April have clearly prompted many homebuyers in the Greater Golden Horseshoe region to take a step back and assess how the housing market absorbs the changes,” said Gregory Klump, CREA’s Chief Economist. “The recent increase in interest rates could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their pre-approved mortgage rate expires. In the meantime, some move-up buyers who previously purchased a home before first selling may become more motivated to reduce their asking price rather than carry two mortgages.”

Toronto home prices have dropped nearly 14% since Ontario enacted that plan, which included a foreign sales tax.

Prices dropped 6.2% one month after the announcement of Ontario’s housing plan and 13.8% a month later. However, prices were up 6.3% yer-over-year in June.

Home sales in Toronto fell 15.1% month-over-month in Toronto. They were down 37.7% year-over-year.

According to the Bank of Montreal, the foreign sales tax has impacted the market in more ways than just discouraging overseas buyers from parking their money in Ontario real estate.

“With all eyes on Toronto, it’s quite clear that policy changes, regardless of the number of non-resident investor transactions they’ve impacted, have worked to alter market psychology—and that is a positive outcome given the speculative dynamics in place a few months ago,” Doug Porter, BMO chief economist, said in his latest report.

Copyright © 2017 Key Media Pty Ltd

Andy Blatchford
Canadian Real Estate Wealth

The federal finance minister says steps taken to tame Canada’s hottest housing markets have already helped slow down a sector he believes was moving at an unsustainable clip.

Bill Morneau’s comments Tuesday follow this week’s release of data showing Canada’s home sales for June posted their biggest monthly plunge in seven years. The national figure was led by a drop in the Greater Toronto market.

The new data provided the latest evidence that steps taken at federal, provincial and municipal levels have begun to temper the country’s real estate sector, particularly in the Vancouver and Toronto regions.

“What we’ve put in place has had some impact _ and some impact in having a slight cooling in the market, which of course was our objective,” Morneau told The Canadian Press in an interview at his Ottawa office.

“We thought that the price increases in Vancouver and Toronto, specifically, were unsustainable.”

Earlier Tuesday, Morneau told a news conference that changes in the housing sector were playing out “largely the way we thought it might.” He also noted, however, that it was “too early” in the emerging situation to draw conclusions.

On a national basis, last month’s housing transactions were down 6.7 per cent compared with May, the Canadian Real Estate Association said Monday. It was the third-straight monthly decrease and the Greater Toronto Area registered a 15.1 per cent drop.

Compared to May, sales fell last month in 70 per cent of all local markets measured by the association, including the Lower Mainland in B.C., Montreal and Quebec City.

Earlier this year, the Ontario government put in place more than a dozen measures to curb the Toronto market, including a 15 per cent tax on foreign buyers. Since then, sales in Canada’s largest city have slowed.

A number of federal measures have also been introduced in recent years to address housing market concerns during the extended period of low interest rates. They’ve included higher minimum down payment requirements, reduced amortization periods and stress tests on insured mortgages.

Separately, mortgage interest rates have started to rise following last week’s hike in the Bank of Canada’s benchmark interest rate.

The federal banking regulator recently proposed to expand stress tests to include uninsured mortgages as part of the effort to tighten lending rules.

Asked about the recommendation by the Office of the Superintendent of Financial Institutions, Morneau said the measures under consideration are slightly different because they’re clearly aimed at the higher-end part of the market.

In the months ahead, Morneau said the federal government will remain vigilant.

“We’re going to be careful as we do this every step along the way,” he said.

“We need to continue to focus on this market. We’re not going to assume that the measures that we’ve put in place so far have necessarily given us comfort that the market’s exactly where we want it to be.”

Copyright © 2017 Key Media Pty Ltd

Steve Randall
Canadian Real Estate Wealth

The high levels of Canadian household debt should not be viewed in isolation a new report from the Fraser Institute says.

While household debt has risen to $2 trillion, far above the $357 billion of 1990; household net worth has increased to $10.3 trillion, up from $2.2 trillion in 1990.

“Despite alarmist headlines, concerns about Canadian household debt levels can be overblown. When looking at debt levels it’s important to consider the degree to which Canadians are also using it to increase their net worth,” said Livio Di Matteo, a senior fellow with the Fraser Institute, professor of economics at Lakehead University and author of Household Debt and Government Debt in Canada.

Di Matteo says that while governments highlight household debts, driven mostly by the 65.5% that is mortgage loans, the level of government debt is “arguably a more pressing concern.”

He said that since 2007, government debt has increased while net worth has decreased.

“It’s somewhat hypocritical for governments to warn Canadians about rising household debt levels given the state of their own finances,” Di Matteo said.

Copyright © 2017 Key Media Pty Ltd

John Turley
other

The first thing that comes to mind when the topic of offshore investing comes up is someone sneaking around a small Caribbean island wearing sunglasses, a Hawaiian shirt, and Bermuda shorts while holding a briefcase stuffed full of money. This beach attired person’s intention is, of course, to hide assets from the IRS.

Well, that’s not offshore investing, that’s criminal tax evasion. One reaps robust returns, and the other lands you in jail. The IRS today is making a concerted effort to uncover hidden overseas accounts held by Americans and they leave no rock unturned in their quest.

Offshore investing, however, is entirely different and legal.

Moving assets offshore is often a smart financial thing to do. In many instances, it’s also the right thing to do because it helps desperately poor people avoid the curse of poverty and deprivation.

In fact, offshore investing provides compelling financial benefits. The “Who’s Who” of American multi-national corporations – Apple, Microsoft, Nike, American Express, Oracle, to name just a few – invest funds offshore. And we are not talking chump-change either. Over $2.4 trillion (yes, that’s trillion!) is held offshore by American companies.

It’s all perfectly legal, and they do it – as you should too – for the financial benefits it provides.

Before we examine the benefits of offshore investing – and there are many – let’s get another thing straight. Offshore investing isn’t the modern equivalent to colonial exploitation of old, where nasty imperialist companies sucked the wealth out of poor countries, leaving native peoples in worse shape than they found them.

Thanks to foreign direct investment (a.k.a. offshore investing), Ireland, for example, went from one of Europe’s poorest countries to one of the richest. The same is true in Asia, where growth, often fueled by offshore funds, is helping to stamp out poverty at amazing rates. In fact, many Asian countries, China in particular, provide most of the developing countries of Africa with foreign funding that is taking people by the millions and moving them out of tin shacks and into the middle class.

Altruism aside, offshore investing is a great way of delivering enhanced returns and capital preservation over the long term. It also provides diversification to your portfolio. Investing assets offshore in alternative asset classes protects you from the volatility of Wall Street’s stock and bond markets. With the stock market’s recent run-up in prices – over 9% since the beginning of 2017 – offshore investing in land, buildings and other tangible assets is a much better bet right now.

Here are a few reasons my partners and investors choose to invest offshore:

Out of Reach: Investing offshore moves your wealth and assets out of the reach of many seeking deep pockets. Some trial lawyers only pursue cases where they can establish the defendant has a considerable insurance policy limits and/or significant assets. Anyone can buy an online asset search which will reveal your ownership in entities, real estate, personal property and even bank accounts. Even though their methods may be questionable, those searches are available. Ownership in offshore assets is not readily available like in the U.S. or Canada.

Citizenship: In some cases, owning assets in a foreign country will ease the path to citizenship and opening financial accounts. Should you ever choose to have citizenship in a foreign country, owning or investing in assets there can be beneficial.

Privacy and Tax Benefits: In the past I wrote to you about financial privacy. In these times, there is little to no privacy in the U.S. Owning or investing in assets offshore is one way to achieve financial privacy.

Most economists believe that growth in emerging markets will, over time, far out pace growth in developed economies of the U.S., Japan and Europe, where populations are getting older and growing slowly. Latin America, Asia and Africa all have young, fast growing populations who are under served, lacking the consumer goods we take for granted. That’s where the action will be in the coming years. Offshore investing in those areas promises to deliver higher growth while acting as a hedge against volatility elsewhere.

Developing countries, especially those adjacent to North America have seen a surge in foreign direct investment over the last decade. As returns become harder to achieve in the slower growing economies like the U.S., you should look for opportunities to invest offshore.
 
Find your paradise location and invest there!

We will be revealing some new opportunities in the coming months. Based on your requests and feedback from current investors, these investments were carefully chosen to fit your current investment objectives. More importantly, these investments will fill a void many have been seeking but are unable to find.

Don’t ask for early-access because we can’t share our new ventures just yet. We are finalizing the details in the coming weeks. In the meantime, you can get added to the Private Investor List here and you’ll be the first to know!

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