Still Leaky After All These Years – “Our landlord, who bought new in 2008, is in a tough spot. Bought as an investment for about $450K, could sell for about $380K today.”

“[I’ve been] living in Vancouver as a renter in the same building for 7 years. Have seen since moving in telling signs the building had moisture issues. Finally are going through rain-screening right now. It is costing each owner $120,000. So glad I am a lowly renter, and not the couple who moved in 2 years ago who were in a bidding war and decided to waive inspection.”
machino at greaterfool.ca 30 Nov 2012 1:43pm

“We have friends that spent low six-figures in special assessments and had their buildings shrouded in green wrap for up to a year. Now many stratas are only able to get insurance with $100K deductibles (or more) and guess who pays the deductible when your sink leaks?
In our building (supposed high-end, granite, SS – etc) our landlord (who bought new in 2008) is in a tough spot. Bought as an investment for about $450K, could sell for about $380K today – not to mention their mortgage payments, strata fees, taxes and maintenance. At least they can write-off their losses, at least until CRA figures out there is no ‘expectation of profit’.
Their maintenance costs are high because of shoddy construction and cost-cutting.
No question renting is a ‘steal’ compared to ownership and certainly less risky.”

Snowboid at greaterfool.ca 30 Nov 2012 12:27am

“Vancouverites labor under the delusion that we live in Southern California and not southern British Columbia. For this reason, we tend to build structures that would be appropriate in the Mojave Desert but certainly not in a rain forest such as the West Coast of Canada.
For the last 20 years, the landscape in the lower mainland has been covered with envelope reconstruction projects galore. Some are being done for the second time. We simply can’t get over our infatuation with Adobe stucco.
It’s absolutely appalling to see the soggy rot underneath these porous exteriors. Toronto has nothing on us when it comes to building inappropriate structures. We have hundreds upon hundreds of them in varying stages of repair.
On the bright side though, it does keep a lot of construction trades busy.”

Mister Obvious at greaterfool.ca 30 Nov 2012

7 responses to “Still Leaky After All These Years – “Our landlord, who bought new in 2008, is in a tough spot. Bought as an investment for about $450K, could sell for about $380K today.”

  1. Pretty much every infill $1.5mm spec house that goes up in Toronto is stucco these days, too. Old place gets renovated? Stucco. It’s possible that this is part of a fancy new construction ‘system’ but from what I can see, it’s just a few mm of stucco over styrofoam — one tennis ball leaves an impact crater. Freeze thaw cycles? Who knows?

  2. I always wonder how the Vancouver skyline will look in 20 years, when all those highrise condos will look uniformly old.
    Outdated, at best. Rotten and crumbling, more likely.

  3. Well at least it will be a good politicaly correct Vancouver “Green Stucco”….
    Hee Hee Hee…
    … its called California stucco for a reason…, its also dirt cheap for a reason…
    and the houses here are covered in it… oh well smell a bunch of second mortgage’s coming…
    the banks will love it… start lining up now because its gonna get real busy…

    Silver

  4. Maybe… The correction is entering year number five.

  5. Real Estate Tsunami

    Well, buyers of new Condos and Townhomes have nothing to worry.
    They are covered by a 10 year building envelope insurance.
    (dripping with sarcasm)

  6. I feel bad for these buyers. They don’t understand the trades. Five years max, get in, get out.

  7. Maybe that’s why all this shoddy and bad constructions exist….it’s a way to ensure there will be steady work for years to come. If you build something that’s quality and don’t need major repairs every 5 years or less then how are you going to make a nice steady $100K to $250K+ income, with a good portion in undeclared cash earning to boot, year in year out? It’s all about ensuring a nice future backlog of work. 🙂

    The banks don’t mind either since they can now make even more money from the multiple mortgages people have to take on to do the repairs.

    The government gets to collect more sales taxes and other revenues.

    Win win for everyone! Ok, except maybe the homeowner but it’s a sacrifice for the greater good of people who otherwise will have to make way less money and actually live based on their relatively contributions to society well being.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s