Station Park | 18, 28, 36, 43, 50 fl | U/C

[DHLawrence]

One problem is that the regulations on renting condos is a lot looser, especially when it comes to rent increases. They can do what they like, unless the province has finally closed that loophole.

[Elmira Guy]

According to a news article The Barrel Yards is 5.1 hectares (12 acres).

Thank you.

[taylortbb]

One problem is that the regulations on renting condos is a lot looser, especially when it comes to rent increases. They can do what they like, unless the province has finally closed that loophole.

No, but it's not limited to condos. Any building that was not occupied before 1992 for residential purposes (so new construction and conversions) is exempt from rent increase limits. I live in a 1999 high rise apartment building and fortunately my landlord always follows the rent increase guideline, but they're under no obligation to. For example, anyone who smokes in their unit gets an above guideline increase the cover the costs associated.

[MidTowner]

The exemption for newer buildings is not a loophole, it is an admission that rent control in Ontario was artificially restricting the number of new apartment units being built. Before the exemption, our stock of apartment housing was rapidly aging without being replaced by new, because rent control made the economics of new apartment buildings untenable.

If the concern being expressed is that this development should be heavily mixed-use, then I share that. But it is mixed-use...making sure the retail components interact well with King are important details, but details.

[Canard]

Why do we care who owns the units in a condo building? And where they happen to live?  Are rentals inherently bad?

To an condo owner living in a condo, yes, rentals are bad.  They change hands frequently, and the tenants tend to care far less about the building than those who own and live there - their "home".  We left the Kaufman Lofts after the building slid downhill due to all the rentals - it was something like over 50% at the last AGM.  They were talking about trying to cap it but it was too late.  The noise from parties and overall condition of the building deteriorated rapidly.

...so seeing the "investor" button and option to buy 10+ units kind of makes me barf a little.

[tomh009]

So in that scenario it effectively becomes a rental apartment building. We do need those, too. It doesn't make it a bad building, just a different one.

Our condo building has about 25% rentals, and at least at the moment the people renting are not causing any significant problems. And if that changes, the condo rules actually give the board a lot of leverage for dealing with unruly residents.

[Viewfromthe42]

We are more in need of purpose-built rentals that don't start at over $1,000 for a one-bedroom or $1,600 for a two-bedroom. And there's not much of that. Trio is right in that neighbourhood as a purpose-built rental apartment.

[Markster]

I'm frankly amazed that The Barrelyards is as full as it is. That place is $$$. If you're willing to pay $1600/month home ownership is still within reach.

[Canard]

So in that scenario it effectively becomes a rental apartment building.  We do need those, too.  It doesn't make it a bad building, just a different one.

Our condo building has about 25% rentals, and at least at the moment the people renting are not causing any significant problems.  And if that changes, the condo rules actually give the board a lot of leverage for dealing with unruly residents.

I agree, we need rental and condos, but when the rental is happening via sublet to an owner in a condo building who may not have the same priorities as an official apartment building owner, the results are... chaotic and uncontroalble. I'm glad your experience is working out - it absolutely did not at the Kaufman Lofts.

...and $1600/month on a mortgage would get you one hell of a home!

[Viewfromthe42]

You mean one hellish home?

[MidTowner]

$1600 per month in rent is properly compared not with a mortgage payment, but rather at minimum mortgage cost, property taxes, maintenance, insurance, and opportunity cost of the equity in your home. In Waterloo Region, $1600 a month does not get you much home, if you're accounting properly (in my experience, many home owners do not). On average, in the current market, it is cheaper to rent than to own.

I have to agree with Viewfromthe42 that we are in need of more affordable purpose-built rental units (I don't mean to be biased against retrofit units here- they can be quality, but it seems to me can't be depended on to be a big part of the mix). I'm not sure of the instrument to make this happen.

[danbrotherston]

I'm frankly amazed that The Barrelyards is as full as it is.  That place is $$$.  If you're willing to pay $1600/month home ownership is still within reach.

Some may still prefer not to buy a home.  There are plenty of countries which are not as obsessed about owning our homes.

Not owning a home, even a condo gives certain freedoms.

[tomh009]

$1600 per month in rent is properly compared not with a mortgage payment, but rather at minimum mortgage cost, property taxes, maintenance, insurance, and opportunity cost of the equity in your home. In Waterloo Region, $1600 a month does not get you much home, if you're accounting properly (in my experience, many home owners do not). On average, in the current market, it is cheaper to rent than to own.

Yes.  Independent analyses agree, too, our rent:property prices ratio is skewed and rentals are relatively inexpensive.

And I do agree with the need for more affordable housing (but in addition to, not to the exclusion of nicer units).

[Canard]

While it may be cheaper in the short term, in the long term, when you own, you eventually stop paying... and then you have a couple hundred thousand dollars sitting there that are yours.

[rangersfan]

I think it is a little less cut and dry than that.
1) a huge factor is the local real estate market condition ( I know someone that bought a property when their town was booming for 150k and 6 years later the market has these same places for 40k due to the local economic conditions) .
2) if you are the type of owner that is willing to put the effort into continuously maintain and upgrade your property
3) what you do with the money saved ( the difference between the monthly owning cost - renting cost) if this is regularly invested and performs well you may see very similar financial gains to home appreciation without as much effort
4) Life style choice, some people want to live their lives doing what they want to do and are less interested in doing the elements in 2) meaning there is some sacrifice ( time, enjoyment) gains potentially when owning due to the amount of work required.
5) perhaps a smaller factor is family size but this is more about unit type. I think it becomes more economically friendly to live in a house/town house with increasing family size. As discussed earlier finding a suitable condo/apartment for 4 or 5 people. Is significantly more expensive and difficult than a similar unit for 1 or 2 people.