Die Rettungsaktion für Eigentumswohnungen in Vancouver stützt ein gescheitertes Wohnmodell – Wie viel sollte die Regierung für eine unverkaufte, leere Eigentumswohnung zahlen, damit sie „erschwinglich“ ist?
https://www.policyalternatives.ca/news-research/the-vancouver-condo-bailout-props-up-a-failed-housing-model/
28 Kommentare
This is a big L for the carney/liberal government. I can’t believe they are bailing them out
The only unsold condos are 400 sqft micro suites or super expensive penthouses. Who wants these units?
Carney is a snake. This is the absolute worst outcome for Canadians. The private losses on condo development are paid for by Canadian taxpayers
Carney is a man of the system, he will do anything to protect it
The underhanded real-estate speculators should not be rewarded for their unsustainable and irrational debasement if the housing market!
Between 25-30% of the ACTUAL build cost MAX. IF the developer fails at that price too bad, C YAH
This is so fucking infuriating.
Alternatively, the government could tax the living hell out of these vacant units (ie. compounding tax for each year of vacancy and number of units owned, the higher both the larger the tax squeeze), essentially forcing the builder to sell at a loss. These builders have massive mortgages that they are paying interest on. Throw an absurd tax on that, and eventually they’ll buckle. Then the government gets tax revenue, and the same outcome.
Crazy that I’ve read so many liberals defending Carney’s grift.
To clarify, this is not a developer bailout; it is a bank bailout. They mainly care about the entities that provided lending for these developments.
To be fair, how much the government will pay hasn’t decided yet. That will greatly impact the perception of this bailout.
I would have liked to see the housing prices fall some before bailing them out. Funny thing is though that is a known factor that whenever there’s a condo boom, the last wave always has trouble selling them.
The numbers in this article are pretty wild. 58% of unsold Metro Vancouver units are listed above $800K, 35% above $1 million. Only 8% below $600K. And most of this inventory is 450 to 500 square foot micro units nobody actually wants to live in. Median individual income in Vancouver is $47,000. Average purchase price at $1.45 billion for 2,200 units works out to $660K a unit. That’s not affordable housing.
What kills me is BC cut $1.4 billion from the Community Housing Fund in February. 89 non-profit projects, 7,700 homes, zero funded. Same money, completely different result.
Government needs to keep the doors closed and let the housing market collapse if we want Canadians to afford homes. There is no other option.
This is actually exactly what we need. Provided the government doesn’t overpay and really squeezes these developers for these units. It is a win win situation, the government is able to create and manage more rental housing which will have its own impacts on the condo market. These units are nearly ready to go and instantly be injected into the housing market, vs waiting however long for foreclosure and resell etc
How much should the government pay? Zero. Stop intervening and let the market cycle function. Allow prices to fall to the level where the market decides the value. There is tons of demand for condos like these, the only problem is price. Let prices crash and allow people to scoop up units at affordable prices.
Given the surplus, why won’t the market force rents down and make these small units affordable, even in the absence of government support? Nobody has clearly explained the rationale.
>A press release issued by the Prime Minister’s Office on June 18 said Ottawa and the B.C. government plan to “leverage innovative financing tools to convert more than 2,200 vacant condo units in priority growth areas into affordable homes.”
>Carney said Thursday the federal government would put up 10 per cent of roughly $1.45 billion in total potential spending to convert the units, with the B.C. government footing the rest of the bill.
>These vacant units would be offered to Canadians under a rent-to-own framework.
Source: https://www.ctvnews.ca/vancouver/article/carney-says-bc-condo-buyout-proposal-is-about-affordability-not-bailouts/
It’s not a Vancouver bailout program. Those units are too expensive to qualify. This is going to be used for places like the Okanogan.
.
I don’t want my tax dollars bidding against me on the house I want to buy.
I agree with the article that we should be building public housing. But until we have actual numbers comparing how much it is to build vs buyout. These are all just wishful numbers.
I tho>!ught this was all cancelled?!<
Well people wanted to see the numbers. Here they are.
A country with a housing crisis and this is the shit we get.
Absolute embarrassment.
The LPC doing everything they can to protect a housing crisis that they were essential in creating
If you don’t want blue tarps, tents in your backyard. Our tax dollars need to go, not to Corporate welfare or tax breaks, but to help our communities.
I thought they weren’t buying in greater vancouver
Reality:
Land prices are high and deeply entrenched
Approval processes are expensive and lengthy, adding cost to any project
Construction labour is finite and pricey, as these people do deserve to earn a living wage
Construction materials are limited and costs are elevated
For these reasons, the cost to acquire land, get approvals, break ground and furnish new homes – is intractably high.
Carney’s condo bailout doesn’t address any of these concerns. Future inventory won’t materialise. Demand will overcome supply over time, and prices will rise.
This is an unavoidable cycle in major centres, particularly places like Vancouver and Halifax which are bounded by oceans, and clogged traffic arteries.
Affordable housing won’t be achieved by changing anything on the development side.
It will happen through economics. We need more economic activity, more jobs, more investment opportunities. We need to reign in inflationary Liberal spending to ensure CAD can be used to acquire the resources we need.
It will also happen through market controls. Maintaining foreign buyer bans. Reforming immigration to retain only economically viable applicants – able to drive higher per capita GDP.
It will also happen through accepting future generations will not have the same housing opportunities as previous generations. You probably won’t get a detached home in Vancouver or Halifax proper. You may not be able to live in Vancouver at all. And that’s fine – there are future centres to build outside these areas. Or for those who insist to live in the city centres, it’ll mean small housing at a high cost per sqft.
In the short term, Carney’s condo bailout will drive prices higher as he removes units from the market.
It’s terrible policy and isn’t focused on anything structural that will benefit future generations. Canada had a chance to change directions, and didn’t do it. So we’ll have to wait another few years to see if the nation is really ready for progress.
Some of the most insane doublespeak. Govt making housing affordable by artificially inflating prices. Does a single person believe this garbage?
I’m seeing hard costs for building in Vancouver all over the place but $550 per sqft is the absolute highest I’ve seen, so let’s use that. That’s a hard cost of $275000/unit. Let’s add another 2.5x/unit at the extreme end for soft costs, bringing us to $687,500/unit. Then let’s add on another whopping 20% profit margin on the extreme end for the builder, and we get to $825000/unit.
So these units justify their price if we use the highest building costs, the highest soft costs, and the highest builder profit margin.
All 3 of those variables can be reduced to sell the same unit for less. There are absolutely builders who will do so.
This is straight greed and/or mismanagement by the builder. Neither justifies the taxpayer bailout.
To front load: I am personally strongly opposed to this bailout, so I even wrote a letter to my MP. However, Eby mentioned that Vancouver is not the targeted location for support, yet this article contains Vancouver-heavy statistics.
Eby’s statement.
https://youtu.be/IWyl7b2mUT8?si=STlfWfYlwnIB7elh
These little micro units will house the worse of the worse. These are not for families that need housing
Don’t need more welfare drug units
We have have these housing units in Toronto and what a disaster in most of them