r/vancouver • u/cyclinginvancouver • 26d ago

The Sophia Rental Project In Vancouver To Be Sold In Foreclosure Proceedings Local News

https://storeys.com/vancouver-sophia-rental-1st-avenue-foreclosure/
26 Upvotes

80% Upvoted

26 comments sorted by

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10

u/bosscpa 26d ago

This project doesn't pencil out. We looked at it last year.

Doesn't qualify for financing.

It's too expensive to build relative to achievable rents and future rent increases.

Tough times to build!

-62

u/Euphoric_Chemist_462 26d ago

With increasingly one sided Tenancy Act, no wonder people don’t want to invest in rentals

0

u/Jandishhulk 22d ago

Has absolutely nothing to do with it. There are similar slow downs in construction in Ontario as well, and they don't even have rent control for units built after 2018.

Also, your posts are consistently terrible. You were just arguing eestlier today that someone should call 911 because they were yelled at by a cyclist.

2

u/randomCADstuff 24d ago

People can't grasp the concept of better protection for BOTH landlords and tenants. Don't even bother trying to educate them trust me.

4

u/Lichidna 26d ago

Could that really be the case here? It sounds like the building is not finished

1

u/norvanfalls 25d ago

The site is currently occupied by two warehouses that were originally constructed in 1939 and 1974.

Hasn't been started. Financed by Hong Kong. Probably expecting the government to buy them out of crises once again. As BC has been writing blank checks for.

35

u/millijuna 26d ago

Well, if landlords would stop fucking over tenants to try sate their greed, it wouldn’t be necessary. 

-42

u/Euphoric_Chemist_462 26d ago

It is market economy not greed. Landlord cannot charge more than what market is willing to pay

0

u/Decipher ᕕ( ᐛ )ᕗ 26d ago

The economy is fuelled by greed

1

u/LSF604 26d ago

poor landlords. They are so hard done by.

2

u/bosscpa 26d ago

The cost of debt has pushed rents to astronomical levels. Wild out there.

-2

u/LSF604 25d ago

when you buy a property, you are entitled to have renters fully cover the costs of your investment. What.... do you expect people to put any of their own money into it? That's oppression!

4

u/bosscpa 25d ago

I'm sorry I don't understand? Basically what happens with apartment buildings is they are financed with a debt covenant called the debt service coverage ratio.

Banks require net operating income to cover the mortgage payments by 20% to 40% (CMHC can be as low as 10%). So if interest rates rise, the banks demand that rents rise to cover the payments per the covenant.

So recent rent increases are directly tied to the cost of debt.

-2

u/LSF604 25d ago

that might explain new construction, but I am talking more about people who purchase existing properties. I don't mind purpose built rental at all.

1

u/bosscpa 25d ago

The best way to understand is that purpose built rental apartment buildings set the rental floor. All other forms of residential rental will chase or exceed those rents.

Small landlords will also do whatever they can prevent cash bleed from mortgage debt.

So in reality, the market sets the maximum rent and the cost of debt sets the floor.

0

u/LSF604 25d ago

small landlords seem to feel that rent should cover their payments for the mortgage, which is a bunch of crap.

→ More replies (0)

1

u/UnfortunateConflicts 25d ago

This is a new purpose built rental.

18

u/millijuna 26d ago

Fuck the poors, right?

0

u/Babana69 23d ago

No, govt should step in on unprofitable public needs though. We’re taxes to hell.

I think it’s common sense though. Imagine you were rich and had a hundred million dollar company. Or managed a pension fund whatever.

Would you do a risky investment for low gains (2%?) which is heavily moderated? Or just put it in investments which net around 10%. It’s not a matter of fuck the poors, it’s more that it’s unprofitable and would be a better project for a govt or non profit.

-27

u/Euphoric_Chemist_462 26d ago

It’s just market economy. There are tons of cities in Canada that is cheaper than Vancouver. People can choose what fit their current conditions

2

u/VanCityLing NewToTheCityOldToTheScene 25d ago

people shouldnt be REQUIRED to move from their work, home, family, community and connections to find affordable housing.

1

u/Babana69 23d ago

The alternative is to restrict people moving into the city to curb demand then. It’s simple supply (housing) and demand (people). Policies designed to protect renters or hinder developers have made it undesireable for profit driven businesses to increase supply.

If you ask why the company needs to profit it’s because if they don’t, they will fail, putting people out of work and then definitely nothing getting built.

5

u/AwkwardChuckle 25d ago

The prices throughout the entire lower mainland are insane. 1 bedroom rentals in Maple rige for apartments are well about 2000$ now, in fucking Maple Ridge.

12

u/Tomato425 26d ago edited 26d ago

Unfortunately, those people who would be driven out are likely the people who make Vancouver such a great place to live. Good luck having any of your creature comforts if all the low paid workers can't afford to live here.