This is my analysis of a CBC Article on the Olympic Village condo sales in Vancouver (available for download here), my home-town and local community. I quote from the article three times below, with permission, and these quotations are italicized.
I find that my views differ from the authors and find it necessary to include some quotations to indicate my point
Let’s do the math here for a second. If the average strata fee is approximately 250 dollars, at 12 months that’s a total of $3,000. For a condo priced at 400,000 that’s less than a 1% discount from the listing price. Would that entice you? The answer to that is all on your perspective of Value, I suppose. Rennie marketing wants to convince you otherwise.
“Bob Rennie of Rennie Marketing contemplates absorbing some costs — such as the HST or a couple of years’ maintenance fees — to lower the prices at Millennium, which the former Olympic Village is now called.”
Does that mean that selling a 483 units of a 2 years period is successful? The answer to that is how much these units actually cost and what cost would render their 2-year-long price-tag acceptable for a developer. One has to wonder what kind of profits are had despite the 2-year-late sale of such condos. The number, very simply, are staggering.
“To date, 254 condo units have been sold, and 483 remain."
Again, the question is how much money is still being made and how profitable developments like this really are. We are only looking at wholesale versus retail pricing here, with the spread between these which is a mystery to every man.
“Buyers of at least 13 units want to take Millennium to B.C. Supreme Court to win the right to back out of their contracts."
REFERENCES:
CBC.ca, Read more: here.
Comments(3)