Fixing the Crazy Cost of Housing
Ordinary people in BC can no longer afford ordinary homes. First in a series searching for solutions.
Burnaby beyond reach: Two incomes buys half a home.
A Home for All
- Fixing the Crazy Cost of Housing
- Affordable Housing: Five Myths
- Homes that Cost Less than Rental
- No Money Down Mortgages Still a Good Idea? This One Works
- 'We Need Rental, Today': Toderian
- The Path to New Rental Homes: One Broker's View
- Basement Suites in the Sky
- Rennie's Remedy: Taller, Cheaper
- Do It Yourself Home Lauded by Housing Minister Coleman
- The Coming Co-op Crunch
- In Vancouver, a Renter's Rat Race
- Let's Create Housing Policies Young People Can Afford
Related Document
Ordinary families can no longer afford to buy or rent ordinary homes in British Columbia.
Vancouver is the fourth most expensive place in the world in which to buy a house, according to a recent study by the Winnipeg-based Frontier Centre for Public Policy.
Victoria, Kelowna and Abbotsford also rank among the world's 25 least-affordable housing markets, according to the survey of 265 markets in Australia, Canada, the U.K. and the U.S.
As a result, a two-paycheque family earning a median income can no longer hope to qualify for a mortgage large enough to buy even an entry-level home in Metro Vancouver.
And a single-parent family cannot affordably rent a two-bedroom apartment.
This article measures the gap between what ordinary British Columbians can afford, and what ordinary homes cost in this province.
And over the next few weeks, this series will explore ways to close that gap.
Half a home: What first-time buyers can afford
Ordinary families earn $64,332 a year. That's the median income among all "census families" in the Vancouver metropolitan area, according 2005 census data provided by Statistics Canada. Province-wide family income is a wee bit lower at $62,346.
An ordinary bank will loan that household enough money to buy a $258,142 home, with monthly payments of $1,466. This mortgage calculation assumes a typical down payment of $12,907, a 5 per cent interest rate, annual taxes of $1,200, utilities and strata fees of $200 a month, and payments toward other credit of $200 a month. Fiddle with those assumptions, and the amount of money available to a median family with ordinary credit could rise or fall. (With a down payment of $27,449, for example, a median family could afford a $274,487 home.)
An ordinary home costs $484,211 in Metro Vancouver. That's the residential benchmark price of all homes sold in December 2008, as calculated by the MLSLink Housing Price Index. That figure averages condos, attached homes and detached homes throughout the region; apartment properties averaged $333,275 in December, while detached homes averaged $648,418. (Obviously, home prices vary across B.C., with places such as Whistler costing more, and many northern communities costing less.)
So, the gap between what an ordinary family can afford and what an ordinary home costs in Metro Vancouver is about $226,069.
Half a home is all that most Vancouver-area families can afford.
Single parents: Sleeping on the sofa
Single-parent families have it worse.
About 15 per cent of Vancouver-area families are headed by single parents. Four out of five of those are women.
The median after-tax income for a single parent family headed by a woman was $34,350 a year. That translates to take-home pay of $2,862 a month.
Buying a home is out of the question for these families. Most aspire simply to an apartment in which children have their own bedrooms.
Financial advisors suggest that no household should spend more than 30 per cent of its income on housing. (It's called shelter-to-income ratio, or "STIR.")
For a female single parent in the Vancouver region, that 30 per cent works out to $859 a month.
One-bedroom apartments rent for an average of $880 a month in Metro Vancouver, according to October 2008 data from the Canadian Mortgage and Housing Corporation (CMHC).
Two-bedroom apartments fetch $1,124 a month.
As a result, 42.7 per cent of British Columbian renters spend more than the 30 per cent shelter-to-income threshold, according to CMHC figures.
Kelowna is the least affordable rental market in Canada, with 47.9 per cent of renters paying more than the threshold. In Vancouver, 43.8 per cent spend over the limit; in Abbotsford, 43.2 per cent do so.
As a result, many single parents are sleeping on the sofa.
The best solution: Boost family income by 85 per cent
There are two ways to narrow B.C.'s housing gap: Either raise incomes, or lower the cost of housing.
Social policy experts claim raising incomes is the better option. They note that B.C. households bring home lower median incomes than Canadians as a whole. They warn that as the income-to-housing-cost gap expands, hundreds of thousands of British Columbians fall within a few missed paycheques of becoming homeless.
Economists also believe that raising incomes is the better option. They note that renters who spend 42 per cent of their income on housing are a drag on the economy because they have that much less to spend on cars, clothes, furniture and other goods that stimulate the economy.
"We argue that the ultimate solution to the affordable housing problem is to raise market incomes and develop a more effective and equitable income transfer regime to help lower-income households," wrote TD Economics chief economist Don Drummond in a 2003 paper on affordable housing.
How much would family incomes have to rise in order for an ordinary family to purchase an ordinary home?
About 85 per cent.
Median family income would have to almost double in order for an ordinary family to afford an ordinary home in Metro Vancouver.
A family would need an income of $118,930 a year in order to purchase a residence costing $484,211, assuming 5 per cent down and all the same mortgage terms described above (except for higher taxes on the more expensive property).
Unfortunately, as the TD Economics team observed, ordinary incomes are not rising in this country.
"Over the past decade, income disparities have widened, due to both the changing structure of the Canadian economy -- which has favored highly-skilled professional occupations -- and reductions in federal and provincial support under social assistance programs," the TD paper noted.
Other ways to whittle down the gap
The other way to close the gap would be to lower the cost of housing.
While there is no one solution that will close the $200,000 canyon between what British Columbians earn and the homes they seek, there are more than a dozen strategies that could each help close the gap by tens of thousands of dollars. All are already working elsewhere.
The Tyee will explore these in the weeks to come.
On Thursday: Myths about housing affordability.
Related Tyee stories:
- Crazed by House Prices? Try 'Co-Housing'
Here's how our Vancouver experiment works. - 'Housing' is a filter category on The Tyee's political blog, The Hook. Bookmark it.
- Housing market 'rebound' unlikely, say local bloggers
![[Tyee]](http://thetyee.cachefly.net/ui/img/ico_fishie.png){kind=small}
Monte Paulsen
09-02-2009
Where do you live?
Hi everyone,
Let's try something different in this thread. Rather than rehashing the political rhetoric, I challenge you to share a bit about yourselves: Tell us about where you live.
I'll go first.
I live with my family in a very small (850 s.f.) and fairly old (104 years) house in East Vancouver. My two young sons share a bedroom. Our house sits on a small lot, but the yard provides enough space for the boys to play and for an organic garden. We know almost every family on our block. We love it here.
How 'bout you?
bentrider2010
09-02-2009
Vancouver - Third World Living Conditions
I rent a 500 square foot apartment in Mount Pleasant. It's in a new building and costs $1300/month. Thank goodness I don't own it because the quality of construction is very poor, it leaks (from faulty plumbing) it has mould and the bathroom and kitchen exhaust ducts are connected to another apartment that was a drug lab until recently. Supposedly it's a fashionable neighborhood but two of my neighbors were arrested and given free apartments (in a penitentiary, which may not be much worse than a Vancouver apartment).
I'm depressed about the bad landlords in Vancouver and I'm even more depressed about the crappy, poorly constructed condos with prices determined by speculators and not local incomes. My income is about $60,000 and obviously way too low for Vancouver. I'm planning on moving to another town and probably another Province. This town went past its best before date.
cocean
09-02-2009
Am a 58-yr-old woman with
Am a 58-yr-old woman with back and hip problems arising from an old injury; thus I've been increasingly challenged with problems associated with mobility and access to employment.
I rent a bachelor apt in Duncan - Cowichan Valley on Vancouver Island - on the 3rd floor of a 3-floor walkup. The bldg sits at the top of a steep hill. Would like to move to a bldg that isn't uphill from shopping and to a unit on the ground level. However, vacancy rates and rent amounts are such that I must stay where I am.
Have struggled to maintain self-employment for the past eight years; on average, my annual income is under $8,000. Rent for the bachelor apt consumes more than 70 percent of that; it's presently $5,800, not including hydro.
Have long been eligible for subsidized housing. However, I've an animal companion whose existence is essential to my wellbeing; she has kept me alive.
Only one in approximately 100 subsidized housing units - whether run by BC Housing or privately - are open to people with pets. Therefore, subsidized housing is out for me. Sooner rather than later, I will be homeless.
VivianLea Doubt
09-02-2009
What a refreshing idea, Monte
I am one of those renters paying a huge chunk of my "income" - which is a student loan. I live in a small, one bedroom apartment in a so-called low-rent area of my community, but the rent here cannot be managed within the 30 % of income rule by anyone working for minimum wage:not even double the minimum wage. I know all my neighbours and I can walk to town (which is handy because I can't afford gas), but there is a lot of petty crime and drug dealing, and I don't feel very safe. My rent increases by the legal amount every year, but no maintenance except for emergency repairs is ever done, and cleaning is minimal in public areas.I will finish my degree program in April, and if I don't find a job immediately I will be living in my truck, because I have had to use my credit card to pay for food that the student loan doesn't stretch to. At this point, I feel lucky to have a home - and hope I still have one in a few months. Wish me luck!
dgrant
09-02-2009
huh?
This article is completely out to lunch.
"There are two ways to narrow B.C.'s housing gap: Either raise incomes, or lower the cost of housing. Social policy experts claim raising incomes is the better option. . . economists also believe that raising incomes is the better option."
The author then quoted an economist was from 2003 yet in the same breath you say that incomes would have to rise 85% in order to buy a house in 2009.
The author seems to conclude that a salary increase of 85% is out of the question. He got that right. Why the prospect of increased salaries is even mentioned is mind boggling.
In the last paragraph there is a brief mention of "lowering the cost of housing" and that there are "a dozen strategies that could each help close the gap". Are you kidding me? Housing prices are falling as we speak, and becoming more and more affordable every day. Market forces will cause housing prices to fall, without the need for any "strategies."
sunshine coast girl
09-02-2009
Back to Monte's idea....
We were fortunate in that we bought our first house in 1990, just before prices started their insane climb. We got a smallish (1,000 sq.ft) three bedroom home in Gibsons for $76,000. We sold the same house in 2004 for $199,000 which enabled us to pay mostly cash for the two bedroom condo that we now live in. (The same house was on the market recently for $299,000) Good thing we have smallish payments because all three of our children are needing financial assistance for both living expenses and schooling in this wonderful province that the Libs have been in charge of for the past 8 years.
Tbarnston
09-02-2009
Co-ops
We need more quality built housing coops. Plain and simple. The municipal and provincial governments could spur this process by offering advatageous land leases to cooperatives and insuring construction loans and mortgages. Cooperatives would then have access to land and financing, after which they would be able to offer below market housing charges to members because there would be not be a massvie capital investment required from acquiring the land at these insane land values. This approach should be a top priority as it is a low cost way for the province and municipalities to create self managed, affordable housing that is benefitial to communities.
Fii
09-02-2009
My digs
I live in a dog-friendly, one-bedroom ground level suite in Cedar Cottage, east Van. I can ride to work downtown year-round, and it's close to amenities. I pay $850/mth inclusive which works out to be about 30% of my income, but having said that, I only work between 25-30 hrs a week, and the reason I can get away with that is because of what the author in this article mentioned: "They note that renters who spend 42 per cent of their income on housing are a drag on the economy because they have that much less to spend on cars, clothes, furniture and other goods that stimulate the economy".
I'm a nightmare for the economy- I buy NOTHING haha.
Vivian- I too lived on a student loan while in uni and post-uni, ended up going overseas to pay it off or I never would have (hopefully your degree is more useful than mine :)... my advice to you is get the hell out of debt and cut up all but one credit card asap. I'm in my late 30s now and have a huge sense of freedom because though I have few assets (other than RRSPS), I have NO DEBT. Good luck!
Cocean- You hold that pet close! When the last place I lived in was sold and I had to move I thought that was it- if I couldn't find a place that would take my dog, bye bye Vancouver. I did find a place, and it costs $350 more than my last one, but I picked this dog off a road in Asia 10.5 years ago and I will take the best care of him I can until he leaves me!
Then?? I love the nature, but otherwise- I'm getting the HELL OUT of this overrated town!!
DPL
09-02-2009
Co-Ops and social housing
Co-Ops and social housing starts are badly needed in BC. Many folks can't come up with the downpayemtns or monthly payments on way out of line units not counting a actual house. Not to be political but I can't resist the BS from the government which spends millions telling us. BC Is the best Place to live. Not any more. Yes some folks bought homes a long time ago,stayed in one place, but many other folks move around for years keeping food on the table. They have no equity.
Check the rental prices in Vancuver or Victoria, it will curdle your coffee.
A single parent family simply doesn't stan a chance of being anything but a renter, subject to be gouged at the whim of the building owners.
mattlamb
09-02-2009
Life style.
I live On Vancouver Island and have owned houses since 1984.
1st house was $44,000 and it cost me over 40% of my net salary to pay for the mortgage at 13%.
Same house would now be about $450,000 so you would need to earn about $30.00 an hour (or two people earning $15.00 hr) to buy this house on a 25yr mortgage @ 4%. ( 5% down payment)
Seems like nothing has changed really except peoples un- willingness to live on less and have fewer luxury goods until they are over the 3-5 year initial hard hump of owning property.
I do know a lot of people that have spent $1,000,s on stereos, cars (new), dvd's by the $1,00's, "new kitchens", big screen TV's etc, I would maintain we used to be happy without all those luxury goods in the early house owning years and thats what made it affordable to start house ownership.
amackay
09-02-2009
it is pricey
I've lived in East Van for a few years and like many people I know in this area pay more than 35% of income on rent (3 bedroom). I expect housing prices to continue falling and rents will follow shortly after that as the housing market seizes up.
I'd agree with previous poster that the idea of raising (subsidizing?) salaries is highly unlikely. But then the idea of bailing out bankers and sending them packing with multi million dollar bonuses would also have seem far-flung not long ago. Vancouver's poor need a bailout and the money would go further if everyone had a little instead of a few having a lot, so why not...?
wacqueline
09-02-2009
Excellent article.
Thanks Monte and the Tyee for publishing this. I'm still not sure if I would ever be able to afford to own a house, much less upgrade from the apartment that I am living in now, no matter how far housing prices fall. Because even at their lowest, they remain quite unaffordable for me. Perhaps my rent would equal a mortgage payment, but scraping together the money for a down-payment seems impossible. Even so, I feel extremely fortunate to enjoy what I feel is a high quality of life and comfortable living.
I live in the West End of Vancouver in a one-bedroom apartment with my partner. $1450 a month. This is the highest end of the rent bracket that I can afford--even though we are evenly splitting the rent, which works out to less than the cost of a bachelor pad in the neighbourhood, it is at the top end of our price range. We absolutely love the neighbourhood though. Being able to walk, bike, or transit everywhere with close access to grocery stores/work/etc is something I appreciate every day.
wacqueline
09-02-2009
But still, singles...
And you're right about a lot of single parents sleeping on the couch. I could not possibly live where I do without my partner. Single folks have a much tougher go at finding a place to live on their own, without roommates, especially with kids in the mix. I've seen a lot of landlords discriminate against single parents with children while letting a young couple move in right away. Pets too. And to be a new person in the city wanting to take a stab at living on your own can be a total nightmare, rent-wise.
Peter Dimitrov
09-02-2009
85% rise in wages is not a solution
Just what sectors of the BC economy can be relied on to increase wage/salaries by 85% is not addressed by the author....and to do so in a sustainable fashion?? IMO that "solution" is completely 'out to lunch' from a practical perspective. We can't even get $10/hour minimum wage legislation in this Province.
One solution, surely lies in modifying the role the Bank of Canada plays in our country - given the downturn in property prices this is an opportune time for the BOC to provide financiing to Federal and Provincial Crown authorities to (a) purchase lands and (b) finance the construction of much more public housing in this country. That is a solution that works in Scandanavia...and get our 'publicly trading banks' - you know the names- out of the business. Ownership of that property & the homes built would remain public- with conditional access rights given to the family/person who resides therein. The rents would be lower due to taking the profit margin out of the equation. Secondly, the BOC could find ways & means for direct provision of low cost/long term mortgagses to home buyers.
Simply put, the high cost of housing in BC, is directly proportional to the high profits extracted from wages by the banking sector and the profits of developers - and the de-regulatory neo-liberal "solution" has facilitated that considerably. So, IMO, part of the solution, is to reverse that trend, to reverse that unjust enrichment, to vote out off office governments and political parties who espouse the TINA party line- and that "you're responsible" and no one in Ottawa or Victoria is responsible for the scandalous mess that simultaneously brought about the housing bubble and its demise. Credit, especially as it applies to housing, and perhaps others sectors of the economy too, should not be in the hands of bankers and stock brokers, or white collar criminals who by enriching themselves ...defraud working people of their hard earned money and savings.
dogs
09-02-2009
Entitlement
Why do people with low incomes believe they are entiled to housing, Just saw an article on a 60 year old lady with numerous bills who thought she was entiled to a nice condo and all the add ones (she had better stuff than I have- but I do not eat bread for 3 meals a day) get with it no job no nice housing- you have to earn this- we all what the best but can not have it- the harder you work more education and better performance the more you can expect. Not everyone can have this best.
quarry bay
09-02-2009
Hello freinds
I live in Garden Bay,waterfront,dock,boat,a view to kill for,it`s been in the family for 40 years,no,I could never afford to buy a place like this,low bank waterfront.
People get penalized for owning,or having passed down the line valuble property.
I get sick and tired of the Bill Good`s and Gordon Campbell`s of the world telling me,people like me,"hey if you can`t afford it,sell it,move to Regina,or moosejaw".
The whole property assessments are all wrong,assessment should change until a property is sold,or passed on to another generation.
Property value will drop 30% more this year and 20% more next year.
I live in god`s country,deer munch plants in my yard,salmon used to be here,I love the peace and quiet,there are drawbacks living.....
No healthcare,no garbage pick-up,no police,no mail,no 7/11, no transit,no taxi`s.
Anyways,more positives than negatives,.....
And when I get lonely,I reach out and touch you all,do you all not get mental images of what people look like?
I do,like an old radio drama,everybody has a diffrent looking cast of characters.
Cheers all, don`t try to find me,I have the place boobby trapped, just kidding!
snert
09-02-2009
Don't fix anything
Until I've sold my house for $350K that I bought for $92K.
Bobbi
09-02-2009
Environmentally friendly-deliberately underhoused
We moved to Kelowna as it was taking off, and lucked out on rent and a loopy landlord who only raised rent this past year for the first time. So five kids under the age of ten in 2 bedrooms plus den and 1.5 baths townhouse, 650 square feet on each of two floors = 1300 sq feet total. The two rooms are relatively large so 3 middle kids in one room, oldest kid in the den, baby in master bedroom corner. One large shed in fully fenced back yard plus smallish storage unit allow us to live here. Was $750 for the longest time, now just undr $800. I work part time from home, hubby walks to work, kids walk to school. (Do own two vehicles, could get by with one, but use SUV for summer recreation). I figure I can last another two years in this place minimum, but then I am ruthless about recycling whatever is not useful, and am darn cheap about purchasing anything.
Bobbi
09-02-2009
Know your neighbor
Like Monte, we know everyone on our block, and love the neighborhood where we live.
Palharry
09-02-2009
OVERPAID
I've avoided commenting on the tyee because of the proliferation of rightwing trolls on this and other sights like CBC. I'm one of the overpaid union workers that all of you complain about. I work fairly hard and can afford to live in a 300 foot rental house in New West.I like it. My pension , as a forced savings plan, is going to allow me, after 29 years to leave you. Bye.
kristye
10-02-2009
kristye
i'm in a good apartment in Victoria, 2br for 900 and well maintained. Been here five years with only one rent increase! I make 33000 a year and am thankfully debt free after selling my deceased mother's house. (a trailer in a trailer park for 51000, paid off her debt and my student loans). Now I have a few thousand in savings and as soon as I have a serious career path in mind I'll be tentatively thinking about buying.
The only reason I'm in any sort of financial health is because my inheritance paid off 40,000 in student debt which would have been with me for decades.
Dan the socialist
10-02-2009
When I was living up in Fort
When I was living up in Fort St. John in the 90's I bought a 3 bedroom on 5 acres for $82,000 sold in 2002 for $86,000 and moved back to the coast for my job and the prices are so out of lunch I refused to buy and pay the exorbitant prices. So I bought 160 acres in the 'middle of know where' to park my money from sale and I just rent now.
We need a better redistribution of wealth in this country, the very few have too much and they should be stripped of their money and assets and use that money to give people 'grants' so they can afford a house and to build more low cost affordable housing.
Metro Vancouver has been a place for the rich for a while now and getting more so everyday. Old houses bought up, torn down down and huge monster houses built with 2-3 basement suites.
I dunno how any average person can afford to buy, even used in the Metro Vancouver area unless it is a townhouse or small condo, then you have monthly maintenance fees added on top of you mortgage.
At one time moving to Surrey, Langley, Matsqui, Maple Ridge etc used to be cheaper but not anymore, plus the traffic gridlock you have to deal with.
I dunno what the solution is anymore. Hopefully this Tyee series will come up with some ideas.
jdn
10-02-2009
Either raise incomes or lower cost of housing
Vancouver's housing market is exactly that, a market. It is not a completely free market, but it is one that must adjust nonetheless, eventually.
Family incomes will NEVER be raised by 85% in the short term, because the market (employers) have to pay for those raises, and they never will. Look for incomes to grow 3% a year, roughly the rate of inflation.
So then lowering the cost of housing becomes the only viable option. Again, the market will have to dictate this, and I think it is finally beginning to now.
What I think this article describes is the housing challenges in Vancouver, at the peak of a housing bubble. Much of the U.S. was beginning to experience these affordability challenges when their housing peaked in April 2007.
Look to Dubai for a foreshadowing of Vancouver's upcoming housing price decline.
Once the government-funded Olympic projects end, and the temporary laborers leave the city, you will also see an easing in the city's rental markets.
Vancouver will be unfordable to buy for some time yet. The prices are going to adjust downwards now for some time; at least a year but probably much longer. (remember, the U.S. is now into its 21st month of declines in their housing bubble)
When the average price declines eventually bottom out in Vancouver, then you can determine if affordability has been restored. I assume it will not have.
Perhaps Vancouver is just one of those places where you should rent, and not own?
Bobby Peru
10-02-2009
Green Acres is the Place to Be
Nice idea, Monte. All of us on Tyee should get to know each other better as it and Vancouver is a diverse city and we should encourage diverse views.
My family goes back three generations of working class in Vancouver, all from East Vancouver. I am locally educated, but made my money internationally, in banking and industry. I am self-made and ambitious combining East Van's working class toughness with American style aggressiveness. For example I own some factories in China that make products for Walmart and Cosco, retailers you love to hate, but love to shop at.
I live in Point Grey in an expansive home. I love Vancouver. But, I spend only enough time in Vancouver to see my family and friends enjoy my old haunts which are quickly vanishing and to mind my tax exposure. Like the other homes I own around the world, I really don't know my neighbours. I enjoy and am willing to pay for privacy. Compared to other major cities, Vancouver has become overrated in all ways over the years.
Palharry's loathing of 'right wing trolls' represents a problem that afflicts social discourse in Vancouver: parochialism and a love of cliques. Vancouverites invite diversity, but privately hate outsiders and contradictory opinions. Over the years, Vancouver has become balkanized with a veneer of courtesy hides the undercurrent of racism.
Vancouver's grotesquely inflated real estate market is a result of geography and earnest urban planning gone awry. Social assistance can't possibly help anyone buy or rent a place in Vancouver. Vancouver is prime land on a relatively thin peninsula so land is scarce. The govt's land policies (regardless of party) mistakenly favour preserving green space over development. Urban planners hoped that higher densities in condos would relieve congestion.
Since urban sprawl wasn't desired, substantial infrastructure development was neglected for decades. Our highways and public transport network rates as one of the worst of any major city in a first world country. Everything we do is halfhearted, mediocre and compromised by accommodating even the most meaningless special interest group. Like the Burrard Bridge where we are going through another ludicrous experiment in bicycle lanes. All this to satisfy noisy bicyclers on a bridge while 95% of the traffic is comprised of cars. The inconvenience to downtown commerce is never considered. In a city that rains most of the year, how many of us can ride to work on bicycles?
The real, workable solution to Vancouver's housing problem is for the govt to manage urban and suburban sprawl, L.A. style. More public transit and highways should be built outwards, radiating from Vancouver, allowing people and commerce to freely move about. More land should be released for development. All of that combined with an economic slowdown will reduce prices.
turtleman
10-02-2009
Ordinary Citizens facing Extrordinary Challenge
To follow initial direction:
I live in Kelowna with my wife; empty nesters, 3500 sq ft. Lived here since 1969...moved from Winnipeg.
A possible solution: Paradign Shift to new construction techniques. Scroll down on www.monolithic.com 1500 watts will heat on coldest day in winter.
Cost to build "envelope" is $10 per square foot. One may ponder: unsightly, unconventional, not an ordinary solution. This is an extraordinary time and conventional thinking will definitely not be the answer. Call me crazy...but I'm building a fifty footer next year.
Jim Ripley
Kelowna
www.turtletanks.com
www.fromthegroundup.net
www.enviromix.ca
G West
10-02-2009
Not sure this 'personalizing' is such a good idea
Although there is evidence that people tend to be more truthful online than on the phone, the idea that an 'anonymous' disclosure of one's living conditions adds anything to the discussion is tendentious at best.
In my view it will provide little more than a grandstand for those who wish to brag and promote the 'success' of a particular point of view and the 'failure' of others.
Although I don't disagree with your theses Monte, I'm afraid this exercise isn't going to get us very far in exploring and understanding the problem and its genesis. It may provide some interesting insights into the ‘character’ or lack thereof of various unnamed participants in these debates.
Disclosing the 'fact' that two thirds of the province’s population can't afford suitable and decent housing is not particularly helpful and far from ground-breaking.
Organizing the grass roots into mounting an effective 'political' response - now that's another matter.
RickW
10-02-2009
quarry bay
You are right in that property tax assessments are purely speculative. No one knows what a house will sell for, until it is sold. Property taxes should be based on the last sale price. It would be a great break for those living on fixed incomes.
Imagine (for instance) paying income tax on what the government thinks one SHOULD be making......
disturbia
10-02-2009
Banks hate coops
I bought a 480 sq. ft. mobile home in a coop park on the outskirts of the Victoria area. A few years ago banks stopped providing mortgages for these properties. To buy one you must pay cash.
I'd like to sell, but am finding that homes in this park took an average of a year to sell (even during the boom), as people looking for affordable housing rarely have such a large down payment. In order to take advantage of low pad fees ($160 includes water, cable, garbage and park maintenance), you have to pay the whole shot up front. Instead, people wind up buying in a rental park, since banks will finance those, even with the likelihood of the park being sold, forcing you to either move your home or abandon it, while still being on the hook for the mortgage.
I just don't get it. No money available for a permanent trailer spot, but if you want to take a big chance and buy when you have no idea how long you will be able to stay, the banks will provide financing. What's wrong with this picture?
KevinC
10-02-2009
I hate to say it ...
... but in order for this particular problem to be definitively addressed, the economy has to get worse. A lot worse. And stay that way for a long time. Japan-style. A case of the cure being worse than the disease.
Rod Smelser
10-02-2009
My Housing Situation
My wife and I own a 1961 bungalow in Maple Ridge on an 8500 sf lot. It was appraised for tax purposes at just over $400,000 two years ago, which was probably "realistic" at the time, but would probably sell for less than that today. We bought it in 1997 for $192,000, and the remaining balance on the mortgage is $24,000. Our combined gross income from two full-time, public sector, unionized jobs is $145,000.
I bought my first house in Maple Ridge in 1979 for $62,000 at a time when my salary was about $25,000. I sold it in 1993 for $180,000 and moved into Vancouver and rented for four years. I was single until 1995. My wife and I rented together in 1996, and then I persuaded her, against her better judgement, to move to Maple Ridge, to a home just three blocks from the first one I had owned.
I agree with those who say that an 85% increase in wages in Greater Vancouver is not in the cards, but I do believe that over the medium to long term demographics will force BC employers to raise wages. BC wages have in recent years fallen behind those of Alberta.
As to where housing prices should be in Vancouver, take a look at rents and then derive rational housing values from there, using rents as the earnings in a price to earnings ratio. If that were done, prices in Vancouver would have to fall by a very considerable amount before housing became a rational investment choice. Off the top of my head, I am guessing that one would have to return to year 2000 levels in the suburbs, and to more like late 1980s price levels in Vancouver in order to rationalize the market given today's rents.
verso
10-02-2009
...
My GF and I rent in the Westend and pay $1450 a month for a 1 bedroom.
Last year, we were paying $950 a month for a one bedroom in the Westend. Unfortunately, we were evicted (along with the other tennants) so the owner could "renovate". Check it out, he's now asking for 2500+ a month (furnished):
http://www.rentalstays.com/Canada/British+Columbia/Vancouver/The+Roslyn+West+End+Heritage+1-Bedroom/100311.html
In fact, that photo looks like it was our old place and as far as I can tell, the only renos done were new coat of paint and some ugly tiles in the kitchen.
Cool, eh? BC the Best place on Earth!
HippyTreeMan
10-02-2009
My Housing Situation
Hi,Monte,great piece,great idea.I live in my 1974 school bus,converted into motorhome I drove here(Ladysmith/Nanaimo)from Windsor Ont.I pay $360 a month some pay $410 for electric heat,I use wood.I am self-employed tree trimmer/landscaper and pay about 40 to 30% of my income.Many here on fixed incomes in dilapidated trailers that would not be allowed in other campgrounds,including my bus."No bus conversion,No old campers,Park policy".Legal discrimination,I call,"Wealthism",poor people are not a recognized group,just a permanent under-class.This is great place to start building a grass-roots movement to hold BC's political party's feet to the fire to do something about poverty in this province.May 12 is coming.Vote!Excuse my soapbox,thanks Shawn.
Stump
10-02-2009
seeing isn't understanding
"And to Stump: we need more roads to get to our parks and homes. Yes, I've seen the study and to reduce the lanes on the bridge for a tiny minority of cyclists is ridiculous. Even the trial is a waste of time as it's been done before with inconvenient results. Stump, imagine office workers or other people who can't afford to be soaking wet in front of clients. Then, you'll see why it doesn't make sense"
The trial is important for a number of reasons. First, safety. The current situation has already cost the city money in out-of-court settlements to injured cyclists. Putting others at risk to facilitate your commute says all too much about the priorities of opponents to this sensible experiment in road re-allocation.
Second, the major barrier for most people who would use the bridge is safety. The two lane trial gives users the peace-of-mind necessary to make the switch from cars or buses to bikes, reducing congestion. If people of all ages can't use the bridge as pedestrians or cyclists without fear of serious injury, then the current system isn't working.
Third, rain is a non-factor. It simply doesn't rain as much in Vancouver as people like to believe. Barely a third of the time in fact... and not necessarily all day or during rush hour. On those days where the rain does fall, by all means take the bus or your car if necessary.
Fourth, cycling and pedestrian use of the bridge is growing, Car use is declining. It will decline further once the Canada Line comes on stream.
Fifth, Electric bikes are opening up cycle commuting to a whole new audience. Ebikes allow one to enjoy the benefits of cycling without getting sweaty. The sales numbers say it all in this instance. Huge growth over the past few years and no slowdown in sight.
Sixth, the only reason not to try this experiment is fear of success. If you truly believe it's a bad idea, what better way to make your point than allowing a few months of experimentation during a relatively quiet time for traffic volume on the bridge?
Characterizing anything as ridiculous without trying it long enough to figure out the strengths and weaknesses of the idea is foolish and puts people in danger of serious injury or death. Just like your idea of Northern Gulags for drug addicts, this opposition to bike lanes on Burrard is ill-thought-out and fails to consider all the factors Bob. As a factory owner surely you wouldn't advocate 18th c. working conditions in the 21st c? Why stick with 20th c. travel solutions when we have better ideas based upon 21st. century values ready and waiting for the political will to have them implemented?
PatrickMcEvoyHalston
10-02-2009
Hippietreeman
Nice post, HippyTreeMan! Not quite up for living in a bus--though it does kind of sound Chris Stevens/Northern Exposure romantic. But maybe this place could prove a good one for those interested in putting a bunch of fabprefab houses together, and creating new and more interesting points of civitas.
morechatter
10-02-2009
And the bubble has burst
BC propety has always been higher than most provinces as Alberta and Ontario also have over priced units causing many a middle class a big headache or the now "No Class" thanks to Governments high risk speculative games with BC Real Estate Market. Sure they sold more cars, and more homes but at what expense that residents can barely pay the bills because rents and mortgages are blow right up there while many maxed out on credit. Sure your home prices went up big deal so did the price of everything else meaning you are on the losing end. And real estate agents talk of how in the future home owners could make millions. Where have you heard that before?
Home prices are coming down as they say 13% but I'm still thinking its more like 33%. May I suggest not putting in a bunch of land developers and used car saleman to screw with your heads along with the housing market so many families struggle. And the debt is surmounting when it comes to Liberal spending so no breaks there and what does the future hold? Well one thing I know for sure in this province the best our Government has been able to come up with housing the homeless is cheap talk as all they are going to end up doing is put up a few more cots and fix up a few run down hotels and its a done deal. And the new "No Class" are going to be wondering if I lose my job will there be a cot for me.
Wilfred Laurier
10-02-2009
My Digs
I live in a very modest three bedroom, 1000 sq ft townhouse in Fairview. I bought it in 1983 and made astronomical (for the time) payments. Now it is paid for and I am rather insulated from the housing bubble but let's face it: Vancouver is a desirable place to live and it is all about supply and demand. It has always been more expensive than the rest of Canada.
Over the years, various shysters fresh from their commerce degree have tried to lend me scads of cash against my little house and I always refused. I still drive a little car and the very room I am in right now is quite little. I remember the hard times when I bought this place, 1991 and now. People who live modestly will always find a way. At the moment people under the age of 35 are trying to sell their leakers all over the place here and are panicking. But I didn't see the need to live anywhere else or anywhere bigger.
Raising wages by 85% just plain absurd. It is pie in the sky and is not possible. What is possible is the city releasing some of its endowment land to actually create affordable co-op style housing and geared to income. The Dunbar-Kerrisdale areas of Vancouver are so sterile now that I can't ever imagine living there while Fairview, with co-ops and geared to income, is a thriving neighbourhood with families doing family things.
morechatter
10-02-2009
And Your Right Bobby Peru
That is more the true number of the homeless in this province , hundreds and thousands as people on assistance receive token amounts for rent and food. And there is no plan on changing that as how can BC be expected to give people enough to live, really dosen't matter if they are children or can't find jobs or sick. Bobby says no get to the street you bum. And so my now "No Class" it looks like you better hope and pray you are not one of the unlucky slobs to become sick or injured because its a cot for you or a cold sidewalk until you move on up to meet your maker in the sky. And Bobby you know that Hep C well I'm thinking its moved on to E, F and Gee what are we going to do now. Good idea to get people of the streets as many are sick and not getting better and mutants are taking form and are starting to land.
bentrider2010
10-02-2009
Dear Mr. Peru
Bobby Peru, contrary to your assumption, I am not buying manufactured goods from Wal-Mart and Costco that were shipped from your factories in China. You are going to have to do something about quality control. Sorry guy, I buy stuff that lasts.
I am also not buying your argument that unrestrained development would solve any housing problems in Vancouver. More sprawl will only cause more transportation problems. There is plenty of room for raising density with careful planning, as has been done in more advanced cities.
As for your plan to allow private automobiles to dominate Vancouver - you are plainly out of your area of expertise. No one will benefit from a car-based transportation system in Vancouver. Besides the fact that automobiles are not manufactured in British Columbia and are a drain on the BC economy, saturating Vancouver with cars will interfere with the operation of local business and remove money that could otherwise be used for housing.
I recommend a combination of buses, light rail, bicycle lanes and less public space for private automobiles. Cars also have lots of room for improvement. The remnants of the iron age that people drive now are way too heavy and unsophisticated (besides ruining the local air quality and causing climate change).
mjscox
10-02-2009
where we live
My wife and I bought our first apartment about three years ago (we'd been renting for over fifteen years by then). It was a new building, still unfinished when we purchased our suite, at the advertised price of 199,999. We still live here (on Fraser Street) but our freelance income is often insufficient to meet our expenses.
If the city would allow laneway houses and other creative densification options of single family neighbourhoods, such as more (and legal) multi-unit houses, we'd have some viable options for purchasers and renters. I would also like to see all non-resident owners of condominiums taxed sufficiently as a disincentive to leaving the city with thousands of empty condos.
Rod Smelser
10-02-2009
What is Vancouver's transportation system based on right now?
bentrider2010
As for your plan to allow private automobiles to dominate Vancouver - you are plainly out of your area of expertise. No one will benefit from a car-based transportation system in Vancouver. Besides the fact that automobiles are not manufactured in British Columbia and are a drain on the BC economy, saturating Vancouver with cars will interfere with the operation of local business and remove money that could otherwise be used for housing.
Doesn't Vancouver already have a car based transportation system? I am referring not only to the City proper, but to the entire GVRD. And isn't that likely to remain the case for the next 50 to 100 or more years?
If all vehicles on the road were ZEVs, would you still be opposed to the use of cars?
I take your point that vehicles are manufactured elsewhere, but are we in Vancouver so insular, so inward looking, so immature, that buying an Canadian made car from Ontario or Quebec is somehow seen as a lack of loyalty to the local economy? And please don't forget that when cars are maintained and repaired there's a high percentage of the costs that goes into local labour and shop owner profits, over and above parts and materials sourced elsewhere.
BTW, ... is your bicycle manufactured in Canada?
Luke Skywalker
10-02-2009
Bobby Peru...
Some good points...
Calgary, Edmonton, Toronto, Montreal, Quebec City, etc. certainly stand above us head over heels in that regard. While one can move around in the compact highway networks in the foregoing cities, it can be brutal and time-consuming here in Metro-Vancouver. Especially on 4-lane goat trails.
Fortunately, that seems to be changing with the planned 12-lane express-collector set-up for Hwy 1 in Burnaby, the 10-lane express-collector set-up for the new Port Mann Bridge, the 6-lane Golden Ears Bridge and expressway, the upgrade of the Mary Hill Bypass to free-flow standards, the SFPR expressway etc.
Another social engineering experiment that will see the wheels eventually fall off the cart. The first 1-lane closure experiment years back witnessed a virtually empty lane for cyclists while vehicular/bus traffic back-uped into Kitsilano, media cameras were on scene, irate drivers were venting, etc.
And traffic counts on that crossing have increased since that time.
This time around the experiment will be 2 lanes. If one does not learn from history they are doomed to repeat it. And I'm an avid cyclist.
G West
10-02-2009
Umm - don't think so
Calgary DOES not have a 'compact' network of highways.
In fact, in geographical area, it's one of the "largest" cities in the country. In terms of average communiting distance it ranks ahead of Vancouver as well...
Toronto has by far the longest average commute (9.2 km). Montreal is next at 7.9 k followed by Ottawa at 7.8 and Calgary at 7.7 and Vancouver and Edmonton round out the top group at 7.6 k. (Stats Can)
Ottawa is third in the percentage of short commutes. One-third (33.9%) in Ottawa travel less than 5 km to go to work. Vancouver leads the nation's big cities with 34.8% of commutes under 5 km , Montreal comes next with 34.1%, Edmonton and Calgary follow with 33.7% and 31.9% respectively. Nationally, 37.8% of commutes to work are less than 5 km.
Which just goes to show how easy it would actually be to get away from cars.
monty
10-02-2009
Bring your sense of humour
A decade ago I moved to Tsawwassen. When I called my editor (at that time) Charlie Smith of the Georgia Straight he said
"what are you doing in white Rhodesia?"
I had no idea what he was talking about. Now I know! It is truly bizarre.
Folks here do not smile or greet strangers on the street. Scary stuff. In contrast when you walk on the dyke everyone speaks!
In contrast I go to Ladner and play outrageous senior with a friend. We speak to everyone, get into great conversations and have much fun. Reifel bird sanctuary is a great attraction.
I pay $968 for a 2 bedroom (1100 sq. ft.) and it is very well maintained.
Years ago I handled pr for the R-2000 building program. The CHBA engaged in some pretty strange building practices so I quit. The leaky condos are still happening due to the shortage of building inspectors, builders who cut corners, use substandard products, etc. etc.
The drive through the tunnel is terrific if you choose the off hours. Come, see green fields, birds (250 species or more),
the quaint village of Ladner, Canadian made products, etc.
(EDITOR: please note: I find it offensive the you allow that polling firm to publicize its existence. The firm is funded by a Conservative!)
Illahie
10-02-2009
The solution to high housing prices
Is high housing prices
The volume of housing sales in Vancouver has fallen off a cliff compared with last year.
Housing prices in Vancouver are falling as a result, and will likely continue to fall for some time.
As for my housing situation, I live on a boat, a million dollar view, and no property taxes. It has been 15 years since I have last mowed a lawn.
rangergord
10-02-2009
affordable housing
I do not live in Vancouver or in any of the 25 most expensive housing markets in the world. I was forced to realize that I could not afford a home for my family in the recession of the early 90's. I moved to northeastern BC where there were plenty of good paying jobs, and cheap land. Bought rural acreage for no money down and a payment of $200/month. Built my own house from scratch and lived mortgage free. A few years ago I was divorced and after a couple of years renting cheap apartments purchased another rural acreage with a mobile home and a shop for $25 000 and payments of $500/month. Paid it off last year and I am now living debt free again.
Simply cannot beleive that the author of this series would consult an ivory tower bank economist from Toronto to determine what to do about affordable housing. Wages have not risen over inflation since the early 70's and Don Drummond has the nerve to say that we should just earn more? This is
classic delusion. We all want to believe that everything would be so much better if we just earned more money. Nothing could be further from the truth.
Affordable housing is priced at 2-3 times annual income. The reality is housing is priced at 5-10 times annual incomes. Two income earners and long term mortgages only made prices rise further. Now the housing bubble has popped! Woohoo! See doctorhousingbubble.com for an in depth analysis of the issue. Housing prices are predicted to continue falling for at least 2-3 more years and are likely to continue going sideways for years to come after that. Even worse, incomes are more likely to continue falling in real terms as we go forward from here. The government bailouts are the wrong response to affordable housing. Real estate prices should be allowed to free fall. This will hurt in the short term but would fully resolve the issue of affordable housing. The bail outs will fail because the economic crisis was caused by excess credit. Pumping money into the economy will only lead to more inflation and is like treating a poisoned patient with more poison. Any solution to affordable housing that fails to consider these basic economic issues is destined to fail spectacularly.
alive
10-02-2009
Why?
There is so much landbase in Canada, that nobody need go without owning some land.
As it happens all too many want to live in the same area and only a few are prepared to "rough it" in less populated places.
If the term democracy means anything, then nobody should be allowed to own housing in the demand areas, unless they actually live there!
We have a large number of houses and apartments sitting empty practically year round, for the benefit of people living elsewhere, in case they happen to feel like spending a few days here.
We also have some residents who refuse to parcel out their extra large estates and grounds.
One could wonder why such large lots can be passed down through generations?
Maybe a stop to inheritance privililges begin to make sense when some areas become too crowded?
VivianLea Doubt
10-02-2009
Why Indeed?
Well, I hope I don't draw too much ire here, but I liked Monte's idea.No governments - either BC or federal - have been able to stem the rise of foodbanks, homelessness, and poverty in general in the last 20 years, but it could be argued that along with a will to change, the knowledge of what exactly is needed might be a good starting point. It does not matter how much you make if half, or more, of your income is spent on simply housing yourself...and when that reality applies to too many people the economy obviously suffers. But for those that got it - that knowing a little about each other's reality is the begining of change - thanks. Golly gee, can you imagine a world where people shared their ideas about real progress instead of prescribing the solution for everyone else?
frank2
10-02-2009
Downsize
I'm fortunate enough to have inherited water front, and to have earned enough in a career spent abroad to make major renovations on the family home. That isn't replicable. Nor should it be. At some point, we North Americans must recognise that we (including most of those on "low" incomes, and certainly the others, including the "middle class") are using up resources (including the recuperative power of the environment) at a totally unsustainable rate. Our overconsumption is even greater if the rest of humanity to "catch up" -- and we can be sure that they will, whether peacefully or otherwise. Conclusion: we need to consume much less. Our main choices are whether we try to plan for and achieve this result -- or whether we leave it to the "market" or fate. On the assumption that we try to control the process, here are a few ideas to work on: (a) tax those with above median incomes MUCH more heavily, (b) use the extra public revenues to provide services for the least well-off (including housing), to upgrade public services such as education and health used by all, and to improve relationships with other poorer countries; (c) devote serious research, design and development effort to high density development and housing, including co-housing, rooming houses, maximum allowable areas of residences, etc.; (d) raise carbon taxes to levels at least equal to the estimated external costs of green house gas emissions; (e) use the current "crisis" to start action in these directions, not to go back to where we were (we know how that ends). I'm old enough that continued short-sightedness won't hurt me too much. (The pension and my investments are fine -- even if less than they were a year ago.) But I worry about the challenges which will be faced by my beautiful grandchildren. Is it too much to hope that those challenges will be faced collectively; not left for "fate" to decide?
greengreen
10-02-2009
how lucrative is owning an apartment bldg.?
Lots of responses. I am wondering....how much profit is there in an apartment building? I live in a seven story/35 unit apartment in the West End, and have had the rent raised by ~4% annually. No complaints; are there any statistics showing the rate of return for apt. owners. (never heard of them going broke, just changing hands)
Stump
10-02-2009
Back to Monte's thread request
East Van renter. Great landlord. Great location. Great place. Backyard, deck, room for my various bikes. Fair rent. Would sooner live here and have the amenities of the city and the time to enjoy them over owning a small box in the burbs and a a two hour commute to see my kid.
Booker
11-02-2009
Incomes
I agree that a big part of the problem is income, but that is an issue with all of the western industrialized world, not the Lower Mainland. Our real incomes have not increased for 25 years, but the cost of housing obviously has.
The author, in his calculations, assumes a downpayment of only 5 or 10 percent. When did that become the norm? A "standard" mortgage requires 25% down. A couple making over 60K per year needs to live on one income for two or three years (as our parents and grandparents did) and make a decent downpayment. And they may have to settle for a condo as their first home.
Noha Sedky
11-02-2009
Incremental infill and intensification
I am a planner by profession and I spend a great deal of my time working on policy and program development related to housing and homelessness. My husband and I bought a house in East Vancouver this fall, just a few weeks before the global financial crisis came to a head. We bought an old timer and have been busy renovating the basement ever since. In a month, it will be home to a second household - a great and dear uncle who is currently living on his own or we will rent it out. And in a few years, our plan is to put a coach house in the back yard along the lane. Our property will effectively provide housing for three households and form its own little micro-community. We see this as being part of the solution.
Incremental infill and intensification is one of the ways that we can increase the supply of housing and improve housing choice in our older neighbourhoods. Municipalities can do a great deal to support and encourage this type of renewal.
Rod Smelser
11-02-2009
Frank: The sardine cans are already on sale for just $500 per sf
Frank
Fine, so let's say the Lower Mainland's population doubles and we double the capacity of the road network and Luke's prediction that all the new transit won't increase ridership comes to pass.
How are we better off? By expanding our road network to handle more people and more big trucks and then bringing in more people until we're at capacity again how exactly have we gained anything?
We'll all be living in sardine cans since the US border, the ocean and the mountains limit where we can put people and the roads will be as crowded as ever with 4 million electric cars. We won't be any further ahead and in fact we'll be worse off as ALR land will have to be used for housing the people you want to build all that new road capacity for.
Over the next quarter century, BC Stats projects that the population of the GVRD will increase from 2.3 million today to 3.3 million by 2036. So that's not quite double, or even half as much again, rather it's about a 43% increase. Still, it's another million in absolute terms, and it cannot happen without some considerable impact on the existing infrastructure, including roads and transit as well as sewer and water and phone and cable and gas, etc., to say nothing of the private housing stock.
To answer your question, will we be better off if we increase everything by 40% to match the rise in population, surely the answer is yes, since to do nothing would mean that 40% increase in population would overwhelm existing utilities and systems. Ask yourself if you think we'll be better off if we provide more sewage treatment capacity, or just save our money and refuse to do so? Do you want to be trying to complete a phone call in 2036 when the population has risen by a million if Telus and/or Shaw do nothing to increase their capacity?
Why is it that people take it for granted that all public utilities must be increased in capacity to manage an expected rise in population, but that the highway system is some kind of special exception to that rule?
As for using more land and altering uses in the ALR, that's simply not necessary. There are plenty of mountain slopes on the north side of Metro, and BC has an endless supply of mountains but only a small amount of arable valleys.
As for those sardine cans, they are already for sale downtown, and prices have dropped, from $600 per sf to a mere $500 per sf! Such a deal! What's needed, of course, is family-sized apartments, 1500 to 2000 sf, at more affordable prices in the $200,000 to $400,000 range. Unfortunately the urbanista and environmentalist communities are opposed to zoning changes that would increase affordability, since they see high prices for housing in the same way they see high prices for gas, a deterrent to excess consumption, which they in turn see as an undesirable American idea, rather like freeways.
Rod Smelser
11-02-2009
Noha Sedky: Missing price and income data
Noha Sedky
... My husband and I bought a house in East Vancouver this fall, just a few weeks before the global financial crisis came to a head. We bought an old timer and have been busy renovating the basement ever since. In a month, it will be home to a second household - a great and dear uncle who is currently living on his own or we will rent it out. And in a few years, our plan is to put a coach house in the back yard along the lane. Our property will effectively provide housing for three households and form its own little micro-community.
It's a good plan, but not one everyone can undertake, since some face credit constraints, and others may not have the skills or inclination to undertake the home reno challenge, even after repeated viewings of Holmes on Homes.
I wonder if you could provide some data on prices you paid for this property, what kind of rental income you expect, and the incomes of yourself and your partner to put all this into a more realistic perspective.