Winona Cambie Street development from Raichu group offers spacious living spaces near park land

Michael Bernard
The Province

Winona on Cambie

What: 38 studio, one-, two- and three-bedroom homes in a six-storey concrete building

Where: 7638 Cambie St., Vancouver

Residence size and prices: 418 to 2,109 square feet; from the mid $900,000s

Developer: Raichu Development Group

Sales centre: 5710 Cambie St.

Hours: noon — 5 p.m., Sat — Wed

Sales Phone: 604-364-2688

Email: [email protected]

Architects can sometimes run a gauntlet when they are designing residential buildings, trying to create an interesting looking structure from the outside without running afoul of design guidelines or compromising the interior space.

That is the challenge that Andrew Emmerson and GBL Architects faced when they were asked to design Winona on Cambie, a new 38-unit building along the Cambie Corridor.

“We wanted to create some energy and movement and cadence to the exterior expression of the building,” Emmerson said. ”So we worked with the idea of a flux expression along the façade,” which reflects the flow of traffic on a busy Cambie Street.

The result is a kind of interweaving of balconies and floor orientation vertically and horizontally with the building, which will rise over the next two years at West 61^st Avenue and Cambie, adjacent to Winona Park.

Emmerson said the client also wanted to have a mix of homeowners who reflected the area, whether they are first-time buyers or people moving out of larger single-family homes in the area. As a result, the building’s suites range from relatively modest studios at 418 square feet to three-bedroom penthouses of 2,109 square feet and large private rooftop patios.

Mukhan Rai, president of Raichu Development Group, said he is pleased with the final result.

“We worked closely with GBL to create Winona’s striking exterior façade, and I am excited that this building will be unlike anything on the Cambie Corridor,” he said. “The stunning geometric architecture of the building is engineered with a unique angled façade that maximizes opportunities for view exposure, privacy and natural light.”

Rai noted all homes include a Sub-Zero and Wolf appliance package in the kitchens, polished Cambria quartz countertops with a waterfall edge and a unique built-in wood-frame detailing over the bathroom vanity.

“Our one- and two-bedroom homes are very spacious as well. From 754 to 874 square feet, these homes are designed for those seeking a lifestyle balance with their home being nearby to urban conveniences such as transit and shops, as well as recreation and parks.

Each home offers outdoor living space on a private balcony that includes electricity, gas and water connections. Portico Design Group chose wide-plank engineered hardwood floors through all the living spaces and bedrooms. Windows come with roller shades and four-inch recessed lighting in nine-foot ceilings. All homes have a Blomberg front-load washer and dryer.

In the bathrooms, 24-by-24-inch tile extends from the floor to walls, and a tiled shower with glass enclosure has a niche and linear shower drain. In main bathrooms, the bathtub has a tile front face that matches the floor.

© 2018 Postmedia Network Inc.

BC government speculation tax hurting investments

Neil Sharma
Canadian Real Estate Wealth

The British Columbia government introduced a speculation and vacancy tax this week, sparking fears that it will stymie investment in the province.

The would impose a tax of either 0.5%, 1% or 2%, depending on the assessed value of a vacant property in the 2019 taxation year and onwards. For the 2018 tax year, the all properties subject to the tax will be 0.5%.

“In a nutshell, it’s not going to achieve what the government is trying to achieve,” said David Peerless, David Peerless, president of Dexter Associates Realty. “I think if you’re a property owner in British Columbia or Canada, it has quite a few flaws that target people who work hard for the right to buy a bit of property, but secondly, it seems to target people outside of the province in a more punitive fashion for investing in British Columbia. That’s a real problem for people who own and invest in British Columbia because it puts a damper on anybody wanting to invest in a second property in B.C.”

The tax doesn’t apply to the entire province, either. Only select areas, namely Vancouver, will be subject to the tax, which confounds Michael La Prairie, president of Century 21 In Town Realty.

“People have the right to invest their money, but why is the government dictating what you can and can’t do with your properties?” said the Vancouver-based La Prarie. “Why is Whistler exempt? The politics just suck in this province now. They’re taxing everybody on everything and they’re making people not want to invest in this province.”

The inconsistency in the way in which the tax is applied throughout B.C. will dissuade investors from spending money in the province, fears Peerless.

“The problem with that kind of inconsistency of taxation is it will also send a message to anybody wanting to buy real estate in the province that there’s not a consistently applied tax province-wide and that will damper the interest that other Canadians and other investors have in buying B.C. real estate.”

The tax has also resulted in confusion over and Peerless has noticed people offloading properties before taxes are due.

“We’re seeing some people choosing to sell before the tax is defined,” he continued. “They may not have to sell, but uncertainty causes a great deal of stress and we’re looking at people who are going to sell at a loss because of that uncertainty.”

Copyright © 2018 Key Media Pty Ltd

50,000 listings on Zillow’s mobile app

Ephraim Vecina
REP

U.S.-based online real estate marketplace Zillow announced earlier this week that it has finally made available thousands of Canadian for-sale listings on its mobile app and website.

This followed the recent formation of data-sharing deals with multiple Canadian partner firms operating in the real estate industry. Together, the agreements represent more than 50,000 listings, and these will be rolled out on a continuous basis.

Users will be able to use Zillow to search for Canadian properties by postal code, city, or province. Every for-sale home’s list price, description, photos, and other relevant facts would be readily accessible, as well.

Moreover, “any agent whose brokerage or franchise partners with Zillow can put a home on Zillow for free and benefit from the visibility their listing will receive on the largest real estate site on the web,” the announcement stated.

 “It’s an exciting time at Zillow and we’re thrilled to start expanding our listings coverage outside the U.S. and provide the millions of home shoppers who use Zillow every day an easy way to see Canadian homes for sale,” Zillow chief industry development officer Errol Samuelson said.

“Zillow provides unprecedented global exposure for Canadian listings on a reliable and trusted platform home shoppers love. We’re excited about the momentum we’re making in Canada, and with every new Canadian partnership we build, the home shopping experience on Zillow will only get better,” Samuelson added.

Copyright © 2018 Key Media Pty Ltd

The speculation and vacancy tax will have an initial rate of 0.5%

Steve Randall
Canadian Real Estate Wealth

Property speculators and empty homes are the target of new legislation in British Columbia.

The speculation and vacancy tax proposed earlier in the year, will have an initial rate of 0.5% which the government says 99% of BC residents won’t have to pay.

It said Tuesday that the first-in-Canada measures would mean that BC will have the strongest protections in the country against people seeking to use the housing market as a “resting place” for foreign capital and other investments.

“We believe the people who live and work in B.C. should be able to afford a place to call home. Right now, British Columbians are faced with some of the highest housing prices in the world and there is widespread support for government’s plan to moderate the housing market,” Carole James, Minister of Finance, said. “We’re tackling this housing crisis head-on and the speculation and vacancy tax is an essential piece in our plan.”

The BCREA has welcomed exemptions in Bill 45 which mean the tax won’t be payable by those going through traumatic life events such as illness and divorces or separations; or by owners of properties that are being developed or undergoing renovations.   

Principal residences are exempted and the legislation also has exemptions in place to broadly protect the development of land to support the province’s growing housing supply.

The government says that, since the new tax was proposed, it has had a cooling effect on the province’s housing market.

Revenue raised will be used to boost affordable housing supply in the province.

Copyright © 2018 Key Media Pty Ltd

flippers accounted for only a minor fraction of residential sales

Ephraim Vecina
REP

Government measures aimed at curbing housing speculation will fail to improve affordability in Vancouver and Toronto, according to a new Bloomberg analysis that culled data from Teranet Inc.’s land and housing registry.

This is because flippers accounted for only a minor fraction of residential sales in Canada’s hottest residential markets, per the Teranet data.

In Vancouver, only 3.4% of condo sales between April and June this year were flipped units, compared to the 5% proportion back in March 2016. This was prior to the B.C. government implementing a 15% tax on foreign home buyers.

A significantly slower market between then and now has discouraged condo flippers, according to realtor Steve Saretsky.

“As soon as [prices] stop rising you get into a number of issues,” Saretsky told Bloomberg. “Are you really going to try to flip it in a down market? There’s no profit to be made.”

Meanwhile, in Toronto, a mere 1.8% of total condo sales in June 2018 were those of units that have been previously sold over the past year. This was considerably lower than the 4% rate a mere two years ago in April 2016.

Flipping “has always been a very rare occurrence” in Toronto, according to RE/MAX Integra regional director (Ontario) Christopher Alexander.

“Most people buy real estate to hang onto it for at least five to seven years,” Alexander said, adding that many short-term sales are due to life-altering factors such as sudden job changes.

Copyright © 2018 Key Media Pty Ltd

Vancouver sales experienced a 1.5% drop along with a 1.2% decrease in prices.

Ephraim Vecina
Mortgage Broker News

For the first time in nearly half a year, home sales activity across Canada declined, in large part due to the weaker performances of the Toronto and Vancouver markets.

In its latest data release, the Canadian Real Estate Association reported a 0.4% month-over-month sales shrinkage in September, the first such decline since April this year.

This echoed the larger annual trend. Compared to September 2017, last month’s sales decreased by 8.9%.

Toronto’s sales numbers went down by 0.5% month-over-month with a 0.1% increase in the benchmark price, while Vancouver experienced a more pronounced 1.5% drop along with a 1.2% decrease in prices.

Nationwide, the average sale price of a home as of September stood at a little under $487,000, up 0.2% year-over-year.

These numbers all point to the Canadian housing market’s more “moderate pace” in the near future, TD Economics stated.

“[The CREA report] is consistent with our forecast calling for resale activity to rise at a more moderate pace in coming quarters, as increasing borrowing costs and stretched affordability conditions in key markets keep a lid on demand,” bank economist Rishi Sondhi wrote in a note, as quoted by The Canadian Press.

Many Canadian markets are expected to “become even more restrictive” in the next few months as interest rate hikes and tighter mortgage regulations will continue to exert significant pressure nationwide, according to CREA president Barb Sukkau.

“In markets with an abundant supply of homes and slower sales activity, buyers have the upper hand when it comes to negotiations over price,” CREA chief economist Gregory Klump added.

“However, in places where buyers are keen to make a purchase but there’s a shortage of homes for sale, sellers are in the driver’s seat when it comes to price. It will be interesting to see how supply and demand respond to rising interest rates amid this year’s new mortgage stress-test.”

Copyright © 2018 Key Media

The newly titled “speculation and vacancy tax” will apply to owners of second homes in applicable areas of B.C., as of December 31

Joannah Connolly
Western Investor

The newly named “speculation and vacancy tax” will apply to those who own second and vacant homes in applicable areas of B.C. as of December 31, the provincial government announced October 16.

 

Anyone who owns a home that is not their primary residence, and that is not rented out at least six months of the year, on December 31 of each taxation year, is liable for the tax for that year. The tax only applies in certain areas, which are the Capital Regional District, Metro Vancouver (except Bowen Island and Lions Bay), Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.

 

For owners of such properties, as of December 31, 2018, the tax will be levied at 0.5 per cent of the property’s assessed value for all owners, no matter where their own residence is.

 

In 2019 and beyond, the tax rates will be:

• 2 per cent for foreign nationals and satellite families who do not pay income tax in Canada;
• 1 per cent for Canadian citizens and permanent residents who are not resident in B.C. for income tax purposes (and not members of a satellite family); and
• 0.5 per cent for British Columbia residents who are Canadian citizens or permanent residents (and not members of a satellite family). B.C. residents are also eligible for up to a $2,000 tax credit against this tax, effectively exempting the first $400K in value of the property from the tax.

All homeowners within the affected areas will be sent declaration forms by mid-February. Owners must declare whether the home is their primary residence or a second home/investment property, and whether that property is rented out and, if so, for how many months. For property owners in the City of Vancouver, this declaration form will be in addition to their municipal Empty Homes Tax declaration form.

Carole James, Minister of Finance, said, “We believe the people who live and work in B.C. should be able to afford a place to call home. Right now, British Columbians are faced with some of the highest housing prices in the world and there is widespread support for government’s plan to moderate the housing market. We’re tackling this housing crisis head-on and the speculation and vacancy tax is an essential piece in our plan.”

The speculation tax originally proposed in February’s B.C. Budget came under fire from various angles, not least because of its name. Many argued that the majority of those who will be liable to pay are not real estate speculators, but owners of second homes that are left vacant much of the year. The tax has newly been named the “speculation and vacancy tax” to address those concerns.

Other concerns raised by property owners, municipalities and the development industry have not yet been addressed by the finance ministry. These include fears that the tax will put some regions at a competitive disadvantage over other areas, that the tax could damage tourism and the local economy, and that owners of vacation homes will be unable to continue to enjoy their properties.

However, the ministry said that it would have exemptions in place for developers and builders who own land on which they are applying for financing, applying for a permit, undergoing community consultations, clearing land, undergoing renovations and entering into design, engineering or building contracts.

In a statement, Urban Development Institute president and CEO Anne McMullin said, “In the midst of a housing crisis, we applaud the government’s recognition that taxes on development lands will increase costs on the delivery of all types of new housing. We encourage government to also act in Budget 2019 to apply similar exemptions for the new school tax and other new property taxes that are passed on to eventual home buyers and renters.”

McMullin added, “We remain concerned about the application of the [speculation and vacancy] tax to British Columbians and out-of-province Canadian taxpayers. We had also hoped the government would consider respecting the opt-out request of many municipalities outside of Metro Vancouver.”

Polls suggest that most B.C. residents do not share the industry’s concerns. A survey by Insights West following February’s B.C. Budget found that the vast majority of British Columbians were in support of the province’s proposed taxation measures, including the speculation tax.

Copyright © 2018 Western Investor

Tax ranges from 0.5% on secondary homes left vacant by B.C. residents, to 2% on foreign-owned properties

other

B.C.’s finance minister has introduced legislation to move ahead with a controversial speculation tax on vacant or underutilized properties.

The bill ends months of speculation about how the province planned to use the new levy to help deal with runaway housing prices in some B.C. communities, outlining a range of tax rates from 0.5 to two per cent and a number of exemptions.

If the legislation is passed, the new tax will apply to all properties in designated regions of B.C. These include most parts of Metro Vancouver and the Capital Regional District (excluding the Gulf Islands), along with Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.

Homeowners who live at their properties — or rent them out — will receive an exemption by filing an annual declaration form.

For the remaining properties, a tax rate of 0.5 per cent of the assessed value will apply for 2018.

In 2019 and subsequent years, B.C. residents with vacant or underutilized properties will continue to pay that rate, while Canadian citizens or permanent residents who are not B.C. residents will start paying one per cent. 

Foreign homeowners will pay more

Foreign homeowners or “satellite families” who make 50 per cent of their income outside B.C. will pay two per cent on all properties, unless they rent them out.

The goal is to prevent housing speculation and help turn vacant properties into rentals, said Carole James, B.C.’s finance minister.

“As a government, we have a responsibility to act, to make sure that people can afford a home in the communities where they live and work,” she said. “The speculation and vacancy tax is a critical piece if we want to moderate our overheated housing market.”

Some opposed mayors in regions where the tax is set to apply had called on the finance minister to allow an opt-out clause, but James declined.

“When you face a major provincial crisis, it is the responsibility of the provincial government to act, not to let municipalities pick and choose about whether they want to address affordable housing,” James said.

‘NDP arrogance and hypocrisy’

However, the opposition Liberals say the tax punishes people in B.C. who want to have a retirement home and it will do little to improve housing affordability.

“This is the height of NDP arrogance and hypocrisy,” said Liberal leader Andrew Wilkinson. 

“Our goal is to defeat this bill because it is a phony tax. It accomplishes nothing except to grab revenue for the NDP.”

Green Leader Andrew Weaver, who has been critical of the tax in the past, said he’s still reviewing the fine print to determine if his concerns have been addressed, and any changes that may be necessary.

“I still have concerns that Canadians are not being treated equally and that there is an insufficient role for local governments in determining what happens in their communities,” Weaver said in a statement.

Exemptions

The legislation also includes a number of exemptions for what the province calls special circumstances, including major home renovations and divorces.

Properties that are under development or renovation are also exempt — something that will keep the tax from discouraging more housing to come online, James said.

It’s estimated that more than 99 per cent of people in B.C. won’t pay the tax, James said.

©2018 CBC/Radio-Canada.

The legislation did not contain an opt-out clause requested by municipal governments, many of which are warning the tax will have the reverse effect and actually discourage development of new housing.

Rob Shaw
The Vancouver Sun

Finance Minister Carole James introduced enabling legislation for the tax, eight months after it was first announced in February’s provincial budget. It will levy a surcharge on vacant second homes in much of Metro Vancouver and other areas, in an attempt to push owners to either rent out those homes or sell them to boost the housing supply.

The legislation did not contain an opt-out clause requested by municipal governments, many of which are warning the tax will have the reverse effect and actually discourage development of new housing.

“When you face a major provincial crisis like (affordability), it’s the responsibility of the provincial government to act, not to let municipalities pick and choose whether they want to address affordable housing,” James told reporters.

“Affordable housing is a crisis and it’s our responsibility as government to act on that.”

The Union of B.C. Municipalities, whose members voted in September to demand an opt-out provision, expressed disappointment.

“It seems the premier heard many of our local governments, but went in a little bit of a different direction,” said Chilliwack Mayor Sharon Gaetz, UBCM’s second vice-president.

“I know the issue is not going to go away. I’m really hoping it will be carefully monitored and may be an opportunity to look at it again in the short future.”

James did extend an olive branch to the development community by exempting companies holding multiple properties for new housing development if they can show they are moving forward on a regular permitting, consultation, financing and construction project schedule “without undue delay.”

Urban Development Institute president Anne McMullin said her organization was “pleased” with that exemption.

“In the midst of a housing crisis, we applaud the government’s recognition that taxes on development lands will increase costs on the delivery of all types of new housing,” she said in a statement.

“We encourage government to also act in budget 2019 to apply similar exemptions for the new school tax and other new property taxes that are passed on to eventual homebuyers and renters.”

James said those exemptions are not planned.

The speculation tax will apply to those who own multiple properties in Metro Vancouver, the Capital Regional District (excluding the Gulf Islands and the Strait of Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission.

The tax will apply at a reduced rate in 2018, based on property owned as of Dec. 31. It expands in 2019 to 0.5 per cent of assessed value for B.C. residents, one per cent for Canadians from outside B.C., and two per cent for non-Canadians.

Owners are exempt if they rent their properties for at least six months a year. And there is also a tax credit for B.C. residents with second homes valued under $400,000.

James pointed to exemptions she said will make the tax fair, including for people facing medical emergencies, people who have to relocate suddenly for a job, seniors who enter care homes, people undergoing a separation, and those with disabilities.

“If people choose to leave their homes vacant where the housing crisis is the deepest, we are asking them to pay their fair share. All that revenue will be returned to British Columbians in the form of affordable housing,” said James.

Academics are split on the effectiveness of the measure. It was partly based upon work done by professors to improve housing measures. However, Andrew Pavlov, who specializes in real estate at Simon Fraser University’s Beedie School of Business, said the tax is poorly named because it does little to curb speculation and is actually more of a vacancy tax.

Pavlov said it might provide short-term relief for rental vacancy and housing prices, but government’s move to limit homeowner rights will actually discourage long-term development.

“It does not address the root cause of the problem,” he said. “I call it symptom relief. That’s fine. But unless it’s very clear this is temporary, it’s just going to backfire in the long run because that measure alone without the corresponding increase in supply is going to reduce new supply even further.”

Pavlov said government should focus more on improving municipal development times.

Government estimates almost two-thirds of those expected to pay the new speculation tax — about 20,000 of the 32,000 homes that qualify — will be British Columbians, not foreigners or residents of other provinces.

James argued Tuesday that figure includes satellite families — defined as B.C. residents who obtain more than 50 per cent of their income from worldwide sources outside of the province. However, she admitted B.C. does not know how many satellite families actually exist in the province.

The tax is expected to generate $201 million in revenue.

Although the legislation was introduced Tuesday, the fate of the tax remains unclear.

The NDP government doesn’t have the votes in the legislature to pass the tax into law without the support of either the Greens or Liberals, both of which have said they want the bill changed to include the opt-out. It remains unclear if the Liberals and Greens can actually work together to pass amendments.

“We’ve said clearly from the start we are opposed to this phoney speculation tax and will be voting against it,” said Opposition Liberal leader Andrew Wilkinson.

Green leader Andrew Weaver said he is still reviewing the bill.

“I still have concerns that Canadians are not being treated equally and that there is an insufficient role for local governments in determining what happens in their communities,” he said.

© 2018 Postmedia Network Inc.

Quicken Loans to open a new office in Canada

Steve Randall
Canadian Real Estate Wealth

Quicken Loans, the largest home mortgage lender in the US, is to open a new office in Canada.

The firm including its ‘Family of Companies’ is leasing more than 9,000 square feet of office space in the Old Fish Market Building in Windsor, ON, and intends to employ around 100.

While it does not currently offer mortgages in Canada, it has stated previously that it wants to understand more about the Canadian mortgage market.

A firm owned by Quicken’s parent firm Rock Holdings Inc., Rocket Homes, entered the Canadian real estate market in 2016 when it acquired Toronto property tech firm OpenHouse Realty.

“We learned a lot more about Ontario’s deep technology talent pool over the past couple of years as we explored pitching the international border of Windsor/Detroit to various companies,” said Jay Farner, CEO of Quicken Loans. “As Quicken Loans continues to grow and set the standard for innovation, we remain focused on recruiting additional technology talent to our brainforce. With our headquarters located in downtown Detroit, we have a tremendous opportunity to tap into the rich technology pipeline both stateside and in Canada.”

Welcomed by the mayor The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017 and has been top 30 in Fortune Magazine’s top companies to work for over the past 15 years.

Windsor Mayor, Drew Dilkens, has welcomed Quicken’s decision to open an office in the city.

“The relationship we developed recently with them as we jointly pursued various technology companies to our international border cities helped us share the strong value proposition of Windsor,” he said . “Quicken Loans is an amazing company with a great work culture. We look forward to working closely with them in the months and years ahead as they grow their presence in our city.”

Copyright © 2018 Key Media Pty Ltd