Hari___Seldon t1_iqz6gpe wrote
Two things happen with this proposal. First, this will dissuade many of the smallest, least prepared from attempting to flip properties. Overall, that's probably a good thing. Many of those (at least here in the US) are often in over their heads. They either end up in financial trouble beyond their means or their "improvement work" on the properties is substandard or even dangerous in some cases.
Secondly, this sort of change may lead to consolidation of properties into the hands of fewer, larger property companies who are more financially stable. That sort of consolidation (again, in the US) has led to situations where flippers/rehabbers/remodelers sit on properties longer and end up artificially inflating already elevated prices for properties. This seems to happen most noticably when one or two larger companies begin working through many properties in a neighborhood.
Overall, the intent behind the bill isn't a bad thing. I just hope they learn from their neighbors to the south and are prepared to counter some of the pitfalls that may come along in practice.
zachem62 t1_iqzfv58 wrote
This proposal is primarily targeted at Vancouver and its surrounding regions, which have one of the most unaffordable housing markets in the world. Imagine a scenario where you have Mississippi wages with San Francisco real estate prices. That's the situation Vancouver has been in for a while now. The speculation is so out of control that a lot of investors don't even have to renovate and can still turn a big profit by flipping a property in less than 2 years. And those who do renovations or tear-down for new construction reap profits that are substantially higher than that, to the point where real estate transactions are now the primary component of GDP. This insanity has been going on for a while in Vancouver and this is the first time there's been a proposal to tackle the issue head-on.
Sharkbits t1_iqznfh0 wrote
Yeah, living here kinda sucks. I’m only in university, and I realise that in all likelihood, I will never own a house here, or hell, even own an apartment. It’s kinda depressing that if I ever really want to strike out on my own it will mean abandoning the city I grew ip in.
zachem62 t1_iqzqozr wrote
If the status quo continues, you're right. But this, among other proposals that David Eby has included in his housing policy are a big step in the right direction, even though they don't go far enough IMO.
But the biggest impediment here are the city councils that decide the zoning. The current system is made to restrict supply to artificially inflate the price of houses to benefit investors and existing homeowners. The only way to change this is to make sure you vote in the upcoming municipal elections for candidates that support making housing affordable.
ash_274 t1_ir0fjuk wrote
I bought my first home because of that sort of person.
They bought at the highs of 2007, demo’ed, finished the kitchen but then 2008 happened and they ran out of money and out of marriage and sold it (in an uninhabitable state) to my wife and I. We finished it and lived there for years before buying a bigger home and now rent it out
Hari___Seldon t1_ir0wm3c wrote
I'm always happy to hear when good outcomes come from bad situations like that. I ended up taking over several rehabs in the 90s for friends who got in over their heads thanks to late night infomercials promising then untold riches from flipping. Hopefully your new home has been as welcoming as your first!
ash_274 t1_ir0y33h wrote
It was a short-sale hell and the contractor that finished the work could give Satan some tips, but it worked out in the end, and the lower cost to buy means that I can offer lower rent than market
wag3slav3 t1_ir10axe wrote
Must feel good to be able to force some other family to pay you to live in their own house and let you build equity while they get nothing because housing has become an investment vehicle.
ash_274 t1_ir1o7wt wrote
It would be an investment vehicle if I bought it to rent out. I bought it for my wife and me. I kept it for my daughter to live in some day. My tenant, who had shot credit from a divorce and was self-employed needed a place to live. Should he have to go to government housing? Would they have let his rent slide to over $18k behind when Covid hit and he lost his clients and couldn’t pay for months? I carried him and accepted the 20% cut from the eventual reimbursement
But yeah, I’m the bad guy
booch t1_ir9pcbk wrote
I have had several landlords over the years and the majority of them have been absolutely wonderful. I am grateful to them for taking on the risk, responsibility, and commitment that was not appropriate for me at the time. I know reddit hates landlords, but they serve a valuable role imo.
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