Strata corporations’s bylaws will be changed as of November 30

Canadian Real Estate Wealth

Homeowners groups in British Columbia will soon be able to fine owners or residents up to $1,000 a day for defying the corporation’s bylaws on short-term rentals.

The B.C. government says the regulations for the so-called strata corporations will be changed as of Nov. 30 to help the associations address short-term rentals, such as those arranged through Airbnb and other vacation websites.

Housing Minister Selina Robinson says in a news release that it’s common to hear stories of long-term renters losing their homes when units are pulled out of the market to be used as short-term rentals.

Robinson says her government is supporting strata corporations to deal with the noise and security issues that can sometimes come with short-term rentals, and also preserve rentals for the long term.

Strata corporations can pass bylaws that restrict or ban short-term rentals and fine owners or residents who aren’t complying, but the maximum fine is currently $200 a week.

Nearly 1.5 million people in B.C. live in strata housing, where the governing corporation is made up of the owners in the housing complex.

“Short-term rentals are a huge concern to strata corporations,” says Sandy Wagner, president of the board of directors of the Vancouver Island Strata Owners Association, in the release.

“The wear and tear on the common property, as well as the security concerns caused by a steady stream of unknown occupants are just a few of the reasons why (the association), on behalf of our members, is pleased to support the proposed amendments… which will permit strata corporations to assess fines at a real deterrent level.”

Airbnb spokeswoman Lindsey Scully says in a statement that when hosts sign up on the website, they must certify that they will comply with local rules before they list their space. The site also has a hosting responsibilities page that reminds people to check their local laws and regulations and includes additional information and resources, she says.

“The overwhelming majority of Airbnb hosts and guests are good neighbours and respectful travellers,” she says. “We want to do everything we can to help our community members be good neighbours in places they call home.” 

The Canadian Press

Copyright © 2018 Key Media Pty Ltd

Located in the mecca of outdoor adventures, the new project from Wave Developments is just steps from the downtown core

ROBIN BRUNET
The Vancouver Sun

Of all the natural wonders B.C. is famous for, the greatest concentration of world-class vistas is located in Squamish – as people who have taken the Sea to Sky Highway to that town of 20,000 will attest.

In fact, Squamish, located at the northern tip of a glacially etched fjord and surrounded by a spectacular mountain backdrop, has become synonymous with rugged beauty – and is a mecca for those craving the outdoor lifestyle. But despite its desirability as a weekend retreat, many people don’t realize how accessible Squamish is as a permanent residence, in terms of affordability as well as proximity to Vancouver.

Jumar from Wave Developments is changing all that. The two-building complex, whose shape is inspired by the iconic Squamish Chief mountain, has a total of 101 one-, two-, and three-bedroom units, with sizes ranging from 672 to 1,622 square feet – and a starting price of just $444,900.

Jumar is situated steps away from Squamish’s downtown core, meaning residents have instant access to markets and shops, the library, cafés, award-winning restaurants, and breweries, as well as plenty of open spaces. One can just as easily take a sunset stroll down to the beach as attend an outdoor concert at O’Siyam Pavilion – or enjoy quiet time at an espresso bar.

Jumar residents with young families are also just a quick walk away from a 6,000-square-foot onsite daycare, elementary and high schools; and for those pondering education opportunities when their children get older, Quest University Canada is nearby, as is Capilano University’s Squamish Campus.

All of this would be next to impossible to obtain elsewhere in Metro Vancouver at the prices Jumar homes are selling for, but when the splendour of the region is also taken into account, Jumar becomes the elusive lifestyle residence that so many home buyers seek in B.C. but rarely get.

Squamish is recognized internationally for its recreational activities thanks to world-class bike trails (over 200 kilometres of them), rock climbing parks, and the wilderness that attracts everyone from backpackers to bird watchers. Its myriad lakes, along with Howe Sound, are a lure for swimmers, kayakers, and wind surfers. And for skiers, the four-season mountain resort of Whistler is only a 35-minute drive north.

Unsurprisingly, Squamish’s natural beauty doesn’t only attract the athletically minded. The town is also home to a great many photographers, artists, musicians and filmmakers, resulting in a community that is culturally rich (helped along by numerous yearround events and festivals).

Completing Squamish’s desirability is that downtown Vancouver is only 45 minutes away. “It’s ironic that people who work in Vancouver think nothing of commuting an hour or more to their homes in Surrey or Langley, yet for some reason Squamish has traditionally been viewed as too remote a place to live in and commute to and from,” says Carla Bury, director of marketing for MLA Canada.

Bury adds, “Fortunately, more and more professionals and young families are finding the exact opposite to be true, and Jumar has been developed with them in mind.” In turn, these people are making Squamish one of the most exciting communities anywhere, with its historic downtown bursting at the seams with new businesses and boutiques.

Geared towards this demographic, Jumar’s two beautifully designed buildings sit on a massive podium consisting of ground level retail and three levels of parking. Because the homes begin on the fourth level, all residents are assured of great views. “Plus, each home looks onto a central courtyard, which promotes a sense of community and security,” says Bury.

Given the huge demand for housing in Squamish, Jumar is also a great investment opportunity. “You’re paying far less for a home with the quality of that found in Vancouver, but you can earn the same rental income,” says Bury. Indeed, Wave Developments has earned a reputation for delivering design-forward spaces in architecturally pleasing buildings that strengthen cityscapes.

Pre-sales of Jumar are underway, and Bury says the interest in the development is intense. She says, “People are making a lifestyle choice in Jumar, and it’s one that cannot be matched anywhere else.”

© 2018 Postmedia Network Inc.

Luxia at Yorkson a fit for its Langley neighbourhood

Kathleen Freimond
The Vancouver Sun

Luxia at Yorkson

Project address: 7947 209th Street

Project city: Langley

Developer: Isle of Mann and Pollyco Group

Architect: Barnett Dembek

Interior designer: Portico Design Group

Project size: 138 three-bedroom townhouses

Unit size: 1,443 to 1,897 square feet

Price: from $639,900

Construction: Construction is underway, with the first homes are estimated to be completed this fall

Sales centre: 180 — 20780 Willoughby Town Centre Drive, Langley

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

Phone: 604-318-0328

Website: luxialiving.ca

As Langley’s Willoughby Town Centre continues to grow, Luxia at Yorkson, a new townhouse development in the area, will relate to those surroundings and contribute to the identity of the emerging neighborhood, says project architect Maciej Dembek of Barnett Dembek Architects.

“The townhouse units along the perimeter [of the site] are designed to create a pedestrian streetscape and relate to their surroundings. We want to be part of the new town centre and help create the identity of the area,” Dembek.

The 138 three-bedroom townhouse development will be built on a 5.44-acre site at 7947 – 209 Street. Situated at the top of a gradual crest, Luxia at Yorkson will allow residents to enjoy views of the North Shore mountains, Dembek adds.

The architectural style of the development is modern with West Coast-inspired building materials including wood features and soffits, plus red, blue and sage-green cementitious panels.

“The panels give a colour punch against the more neutral walls,” he adds.

Inside, Natalia Kwasnicki, interior designer at Portico Design Group, has created a warm, sophisticated look.

 “The design is contemporary with smooth finishes and bold woods, but also maintains [some] traditional influences like the tiling in the kitchen and main bathroom, keeping in tune with the location. It’s welcoming and inviting, but also very polished and clean,” she says.

Homebuyers can choose from two colour palettes, Elm and Urban. At the sales centre at 180 — 20780 Willoughby Town Centre Drive, the lighter finishes of the Urban scheme can be seen in the two spaces – a kitchen and ensuite bathroom – built to showcase the interiors.

On the back wall of the kitchen, the stainless-steel slide-in 30-inch five-burner convection gas range and the refrigerator with french doors are by KitchenAid. The two-tone kitchen cabinetry has flat-panel wood-laminate lower cabinets and white matte uppers, while the elongated hexagon-shaped ceramic tile backsplash and the white quartz countertops enhance the roomy ambience of the space.

The backsplash is Kwasnicki’s favourite design element in the interiors.

 “The tile work is a lovely contemporary twist on a traditional style of backsplash, different [to] what you typically see, both in shape and orientation, which makes it feel modern and fresh,” she says.

At the sales centre, the kitchen island’s 36-inch wide quartz countertop includes an 11-inch overhang, providing plenty of space to comfortably accommodate four kitchen stools. The island also hosts an undermount stainless steel double sink with a pull-down Grohe faucet and the dishwasher and microwave in addition to storage space. The size of the islands in the development will vary according to floor plans, but most are between six and seven feet long.

Laminate floors (Nordic Oak Forged Iron or Nordic Oak Solitaire) throughout the kitchen, dining and living areas visually connect the spaces that will also benefit from great natural light through windows and sliding glass doors to the outside patio.

Neutral-coloured carpeting is soft underfoot on the upper floor and in the bedrooms.

In the ensuite bathroom at the presentation centre, a floating vanity with double sinks in a white quartz countertop and the frameless shower enclosure gives the space an airy quality. The chrome Grohe faucets and shower fixtures add a little sparkle while two full-height nine-inch-wide vertical strips of penny tile in the corner of the shower adds a custom touch.

At Luxia at Yorkson, all floor plans include a powder room on the ground floor. While the powder rooms feature quartz countertops and Grohe faucets, the floor tiles are laid in a herringbone pattern, another custom detail designed to enhance the overall interior design of the homes that range in size from 1,443 to 1,897 square feet.

Each townhouse has a patio off the main floor and master bedroom and a front yard. Most homes also have a backyard. The homes that don’t include a second ground-level outdoor space have another sought-after feature instead: a large rooftop patio.

Dembek acknowledges these rooftop spaces are among his favourite features in the development.

“The rooftop gardens will be delightful. They have open and covered areas and have two-by-two [foot] pavers,” he says, adding that homeowners can add planters, outdoor furniture and other accessories to suit their lifestyle.

The development has a central pedestrian spine with children’s play area and outdoor seating, plus the two-storey amenities building that comprises a fitness centre and billiards and games room.

“The [design of] the amenity building developed out of the linear pattern of the pedestrian space. The landscape architect laid out parallel lines of planting, and pavement and pavement patterns, and we wrapped the building with that linear pattern and incorporated the entire colour scheme – the wood, and the blue, red and green – and made the amenity building,” says Dembek.

Location is always important and Luxia at Yorkson is conveniently situated close to Willoughby Town Centre with its array of shops and services. It is also close to schools, restaurants, banks, the Colossus Cineplex and sports facilities like Redwoods Golf Course and Belmont Golf Course. The Walnut Grove Community Centre and the Langley Events Centre are also nearby.

All the townhouses have a ground-level double garage and a storage area.

© 2018 Postmedia Network Inc.

Metro Vancouver homebuyers feeling effects of stress testing

Joanne Lee-Young
The Vancouver Sun

In Metro Vancouver, where the gap between incomes and home values makes the region an unaffordable outlier in North America, buyers are especially prone to get hit with unintended consequences of so-called mortgage stress testing.

The test was introduced earlier this year by Canada’s banking regulator to keep homebuyers from taking on risky levels of debt. But the result is reduced buying power that changes what first-time homebuyers can purchase. 

It is also affecting people hoping to use an existing mortgage when moving from one property to another.

“If you are selling a place for $750,000 and you have a mortgage of $500,000 and want to buy another place for $1.1 million, you can’t just (necessarily) ‘port’ that mortgage. It doesn’t automatically move,” says Gary Serra, a real estate agent who specializes in downtown and east Vancouver.

If “you have to re-qualify based on the stress test, you may not qualify to borrow (to that level now).”

Maybe, that person’s borrowing limit is $400,000 now. Even carrying over gains in equity, it may not be enough to get a mortgage on the higher-priced property, he says.

On the ground, there are anecdotes about deals not being completed as buyers are caught off-guard when last-minute number-crunching reveals what the new rules mean for them.

Serra says he knows of one recent deal that didn’t complete. “I didn’t represent the buyer, but the buyer was approved and backed out at the last minute because of the stress test.”

He understands there was a firm sale that was subject-free, that is, it would have to go ahead even if financing from a bank fell through. In the end, the bank didn’t approve the buyer’s loan at the amount needed. The buyer “now stands to lose the $36,000 deposit” and it could go to court.

There is about a 20 per cent drop in the amount of money buyers are qualifying to borrow with the stress test, says Justin da Rosa, managing editor at Ratehub.ca, which allows users to compare mortgages and credit cards.

To get a sense of what the change means for buyers in Metro Vancouver, da Rosa punched these numbers into Ratehub’s mortgage affordability calculator: Household income of $110,000 (based on average individual income of $55,000), a 20 per cent down payment, an amortization period of 30 years, the best available mortgage rate of 3.04 per cent, and the stress test qualifying rate of 5.34 per cent (“the greater of the Bank of Canada’s five-year benchmark rate or the contract mortgage rate plus two percentage points.”)

Before Jan. 1, when the stress test came into effect, a borrower with this profile was deemed able to afford a home worth  $964,704. After the stress test, ordered by the federal Office of the Superintendent of Financial Institutions, the same borrower could afford a home worth a $735,857.

“It’s not completely dire,” says da Rosa, who spoke to Postmedia from Toronto. “If you go to Zoocasa.com, and you look at the listings in Vancouver, there are 459 listings available (at that $735,000 level) of different home types.”

He adds, however, if you look at the $964,000 range, “there are 815. … There is nearly double the amount of listings at the pre-stress test level.”

“There are ways to work around this,” says Da Rosa. Buyers can defer or buy when they have saved up more money or they can consider a smaller home. Some will rely on gifts from parents and much has been said about the passing of generational wealth from longtime homeowners to would-be ones.

The intention of the stress test was to ensure homebuyers could withstand an increase in interest rates without becoming overextended. Indeed, since it was implemented, there’s been a “triple whammy,” says da Rosa, in that interest rates have increased, but also the Bank of Canada’s five-year benchmark rate on which the stress test is based.

Agents say buyers can “get creative” with options such as combining mortgages and turning to other lenders.

But the Office of the Superintendent of Financial Institutions says in its fine print that the major banks cannot be involved in combining mortgage and other lending products with the intention of getting around set loan-to-value limits, even though brokers are allowed to put together packages of mortgages so long as borrowers qualify for them individually.

There are also other lenders who are partly regulated, but fall outside of OSFI’s reach with the new rules. These include credit unions, but also a descending chain of “A-lenders (major banks) to B-lenders (such as Equitable Bank and Home Capital) to private lending,” says Serra, adding that “B-lending is booming.”

© 2018 Postmedia Network Inc.

Canadian real estate sales are slowing in the country?s biggest markets

Daniel Wong
other

Canadian real estate sales are slowing in the country’s biggest markets. Canadian Real Estate Association (CREA) numbers show June 2018 saw large declines compared to last year. Most of Canada’s major markets faced declines, but British Columbia bared the brunt of them.

Canadian Real Estate Sales Drop Over 11%

Canadian real estate sales are still down bigly from last year. CREA reported 47,413 sales in June, down 6.37% from the month before. This represents an 11.12% decline compared to the same month last year. The monthly drop is fairly normal, but the decline from last year isn’t. Over the past five years, the annual numbers have only dropped twice – this year, and last year.

Canadian Real Estate Sales

Quebec and Toronto Real Estate Lead With Minor Gains

The markets making the biggest gains were in Quebec and Ontario. Quebec City came in at 546 sales in June, up 3.61% from last year. Toronto reported 8,082 sales in June, up 1.35% compared to last year (which is half what TREB reported themselves). Montreal reported 4,081 sales, up just a teensy 0.64%. Yup, those are the country’s leaders rights now.

Canadian Real Estate Sales By Market

British Columbia’s Real Estate Markets Lead For Sales Declines

British Columbia is home to the biggest declines in sales across Canada. Fraser Valley reported 1,380 sales in June, a 44.11% decline from last year. Vancouver came in at 2,467 sales, a 37.59% decline from last year. Victoria reported 678 sales, a 29.52% decline from last year. The industry is blaming a policy measure that cracks down on second homes, but seriously? We thought the industry was saying there’s no empty homes in BC? Strange that it would be so impactful.

Canadian Real Estate Sales By Market – June 2018

Canadian real estate sales are showing minor improvements on a national level. The declines are getting smaller, but they’re still declines. Rising interest rates, policy measures, and availability of credit aren’t short-term issues. They’ll likely persist until a change in the macro environment – good or bad.

Lenders get more guidance and flexibility for the self-employed

Canadian Real Estate Wealth

Canada Mortgage and Housing Corp. is making changes intended to make it easier for the self-employed to qualify for a mortgage.

The national housing agency says it’s giving lenders more guidance and flexibility to help self-employed borrowers.

Self-employed Canadians may have a harder time qualifying for a mortgage as their incomes may vary or be less predictable.

CMHC is providing examples of factors that can be used to support the lender’s decision to lend to borrowers who have been operating their business for less than 24 months, or in the same line of work for less than 24 months.

It is also providing a broader range of documentation options to increase flexibility for satisfying income and employment requirements.

The changes, which apply to both transactional and portfolio insurance, will take effect Oct. 1.

CMHC chief commercial officer Romy Bowers said self-employed Canadians represent a significant part of the workforce.

“These policy changes respond to that reality by making it easier for self-employed borrowers to obtain CMHC mortgage loan insurance and benefit from competitive interest rates,” Bowers said in as statement. 

The Canadian Press

Copyright © 2018 Key Media Pty Ltd

Stratas can restrict or ban short-term rentals

Steve Randall
Canadian Real Estate Wealth

British Columbia is taking action to curb the reduction of available rental homes caused by owners opting for the surging short-term rental market.

The popularity of services including Airbnb has been blamed for tightening availability of rental homes and the government has now announced a change to its Strata Property Regulation.

It will mean that strata corporations will be supported in enforcing short-term rental bylaws.

Currently strata corporations can restrict or ban short-term rentals and impose fines of a maximum $200 a week. With the high returns available from these rentals, that is not a strong deterrent.

But the new rules will hike fines to a hefty $1000 per day – 35 times the current limit!

“We’ve all heard the stories of renters losing their homes when units are pulled out of the rental market to be used as short-term rentals. With this change, we can ensure there is long-term rental stock for people and families who need them,” said Selina Robinson, Minister of Municipal Affairs and Housing. “As part of our 30-point plan to improve housing affordability in B.C., we are supporting strata corporations to both deal with the noise and security issues that can sometimes come with short-term rentals, and also preserve rentals for the long term.”

The change will take effect on Nov. 30, 2018, in order to allow short-term rental hosts time to adjust bookings and comply with a strata’s short-term rental bylaws.

“The new regulations will help define short-term commercial use as a different function than rentals, and provides some very real consequences for the violators,” said Tony Gioventu, executive director, Condominium Home Owners Association of B.C. “For those strata corporations who prohibit short-term use, this is a valuable amendment. It will require strata corporations to amend their bylaws at a general meeting to permit the higher penalties, which in turn will provide the strata with a great opportunity to make sure the strata’s bylaw complies with provincial legislation.”

Copyright © 2018 Key Media Pty Ltd

Strata bylaws can restrict short-term rentals

REP

Homeowners groups in British Columbia will soon be able to fine owners or residents up to $1,000 a day for defying the corporation’s bylaws on short-term rentals.

The B.C. government says the regulations for the so-called strata corporations will be changed as of Nov. 30 to help the associations address short-term rentals, such as those arranged through Airbnb and other vacation websites.

Housing Minister Selina Robinson says in a news release that it’s common to hear stories of long-term renters losing their homes when units are pulled out of the market to be used as short-term rentals.

Robinson says her government is supporting strata corporations to deal with the noise and security issues that can sometimes come with short-term rentals, and also preserve rentals for the long term.

Strata corporations can pass bylaws that restrict or ban short-term rentals and fine owners or residents who aren’t complying, but the maximum fine is currently $200 a week.

Nearly 1.5 million people in B.C. live in strata housing, where the governing corporation is made up of the owners in the housing complex.

“Short-term rentals are a huge concern to strata corporations,” says Sandy Wagner, president of the board of directors of the Vancouver Island Strata Owners Association, in the release.

“The wear and tear on the common property, as well as the security concerns caused by a steady stream of unknown occupants are just a few of the reasons why (the association), on behalf of our members, is pleased to support the proposed amendments … which will permit strata corporations to assess fines at a real deterrent level.”

Airbnb spokeswoman Lindsey Scully says in a statement that when hosts sign up on the website, they must certify that they will comply with local rules before they list their space. The site also have a hosting responsibilities page that reminds people to check their local laws and regulations and includes additional information and resources, she says.

“The overwhelming majority of Airbnb hosts and guests are good neighbours and respectful travellers,” she says. “We want to do everything we can to help our community members be good neighbours in places they call home.” 

The Canadian Press

Copyright © 2018 Key Media Pty Ltd