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Ron Rapp, CEO | Twitter: @HAVANofficial
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INDUSTRY News
A POINT OF INTEREST
Last week both the Bank of Canada and the Federal Reserve Bank in the US made interest rate announcements although in
different directions
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The US Fed led by Jerome Powell adjusted rates downward for the third time this year despite strong growth, effectively full employment, and a robust economy, while the Bank of Canada under Stephen Poloz has held rates steady throughout the year.
While both men see the global trade disputes and Brexit having substantial threats to the economy, they have distinctly different views of how to prepare for a potential downturn. Powell sees the lowering of rates as insurance against a potential downturn by keeping the pace high, whereas the BoC feels things are more or less stable at the moment and wants to leave room to maneuver should it become necessary.
It is important to note that mortgage rates are not directly linked to the prime interest lending rates, but rather follow the bond market, and recent signals and inverted yield curves are actually pushing rates up. After a drop in mortgage rates over the summer that saw competition between banks push longer term rates below 3%, indications are those rates will be north of 3% before the end of the next quarter.
LIBERAL THINKING
CBC contributor Mark Ting's Op Ed
discusses what the election results mean for housing in Vancouver.
The cornerstone of the Liberal's policy focuses on creating opportunity for first time buyers through their
First Time Home Buyers Incentive (FTHBI) for which they raised the eligibility to $780,000. This program sees the Feds taking a 10% equity stake in the home and can be discharged at the point of a future sale. The Liberals have also extended the dollars that can be pulled from an RRSP to $45,000 without penalty. The other policy being actively contemplated by the Liberals is the levy of a 1% Vacant Home Tax across the nation to stem speculation and encourage rentals.
Ting notes that neither of these initiatives is likely to have dramatic impact as giving up 10% equity is nothing to be undertaken lightly. More significantly, it is the announcements on transit funding for the Broadway line that Ting thinks will have more impact due to the increase in density and commercial activity that typically flows to enhanced transit corridors.
The issue of land speculation related to this transit enhancement can be dramatic as has been seen in the lands adjacent to the Canada Line along the Cambie corridor. In a move intended to forestall runaway land cost increases, the City of Vancouver is planning to apply a
"Development Contribution Expectations (DCE)" - fee (tax) that will be charged to developers but not paid to the landowners. Instead the money flows directly to the City and it is estimated to potentially generate as much as $12 billion in revenues - so no real change in price to the consumer, and no windfall profits to either landowners, or developers, but huge numbers for the City which are sure to be used to the benefit of all.
A LOT OF CLASS...ACTION
Vancouver lawyer Lawrence Wong is petitioning the Court to initiate a
class action lawsuit against the Provincial Speculation Tax
on behalf of nine individuals who have been caught up in the unintended consequences of the tax, wherein residences that can not be made available for rental, are subject to the tax,
forcing these parties to have to sell because they may have paper wealth but do not have the cash flow to pay the tax.
The suit is based on the law being unconstitutional and beyond the reach of the Provincial government. Wong characterizes the tax as:
"... a
huge element of propaganda ... because the government calls it a speculation tax and unfortunately the people who are affected are seniors and homemakers and people who are married to foreign spouses."
Carol James the Provincial Finance Minister on the other hand feels that:
The Speculation tax is a
"key measure to tackle the housing crisis in B.C.'s major urban centres" and maintains "99.8 per cent of British Columbians are exempt from paying the tax. I'm optimistic our plan is working."
Since the plan went into effect in 2018, the Province has collected in excess of $115,000,000 in revenue.
FALLING SHORT
Michael Ferreria from Urban Analytics Inc.
quoted in a BIV article suggests we had better stop talking about building more housing and get to it.
In his estimation we will need 68,000 rental and market housing units. Per Ferreira
:
"We have to stop talking and actually start building, because if even a fraction of this potential demand materializes, we're nowhere near where we need to be in terms of supply."
The article further suggests that anti-development postures such as demonstrated by the District of North Vancouver and Port Moody further exasperate the problem and contribute to the inflationary pressure on housing costs on the basis of simple supply and demand. This outlook reinforces HAVAN's GR Info Graph that demonstrates how woefully short this region is in fulfilling the obligations to produce housing under the Regional Growth Strategies.
As a matter of balance, there is an opposing view presented by Josh Gordon of SFU who suggests we have 45,000 units in the pipeline and there is no need for concern. The question I have is: Ok, where are these 45,000 units and when are they coming?
TECHNOLOGY ATTRACTS YOUNGER TALENT
Technology is an important part of attracting the next generation, as highlighted in this
CBC article. The introduction and use of programs used on smart phones and tablets to store information in real time not only saves time and money but will shake off the image of construction as an old school, legacy industry.
Jas Saraw, vice-president in charge of Procore's Canadian operations, said, "We have to look at construction as more of a STEM [science, technology, engineering and mathematics] field moving forward."
A thought-provoking read.
CHBA NATIONAL HOUSING AWARDS FOR EXCELLENCE
Representing the best in new homes, renovations, communities and marketing across Canada. Categories include Production Homes, Custom Homes, Mid- to High-Rises, Renovations, Net Zero Homes, Modular Homes, New Communities and Marketing. New for 2020: Renovation Excellence Award, Entry-Level Housing Affordability Award, and Video - Marketing. Enter to win!
Deadline November 15.
HAVAN SPOTLIGHTS
A great way to generate free content, online engagement, endorsed by the HAVAN brand, our blogs put the spotlight on you and your brand! Get connected in a transparent, friendly format. Check out
Blake Ponuick
, HAVAN Board member/COO Preston Mobility, and
Giovanna Perot-Averill,
Founder & Principal at Giovanna Averill Interiors spotlight features. Who knows, you just might find out something intriguing about one of your fellow members. Interested in being profiled? Fill out the online form, send in your headshot and 3-5 lifestyle pics to Vanessa@havan.ca and we'll take care of the rest!
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HAVAN Events
MEMBER CONNECTIONS
Upcoming member events and notices
are included in
Renée's weekly update
. Remember, your employees can help to leverage your membership too. Share this weekly update with your staff - they receive member rates at all our events and education sessions.
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Panel discussion '
Building the Region Part 2: The Missing Middle, plus Milestones + Rooftopper Awards.
Date/Time: Wednesday,
Nov 6th, 5:15pm - 8:30pm
Location: Riverway Clubhouse, Burnaby
Panelists: Jake Fry, founder/principal, Smallworks Studios / Laneway Housing and co-founder of SmallHousing BC; Daniel Oleksiuk co-founder of Abundant Housing Vancouver, and Gord Price, Director, The City Program at Simon Fraser University.
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OVATION AWARDS 2020 - NOW OPEN!
Why keep your best work a secret? Enter the awards and gain the recognition you deserve! Featuring 57 award categories, with opportunities for all members, the Ovation Awards offer year-round endorsement and exposure for your brand. To win, you must enter. Details and registration. |
COATS FOR KIDS
HAVAN's 24th annual coat and toy drive will be taking place November 12 - December 6.
Register your location(s)
as a collection point and be part of this epic event! We provide you with all the marketing materials - you just open your doors and take it all in!
UPDATE: The Reno Council has raised $4050.00 to donate to the Christmas Bureaus - thank you! Cash donations
can be made online or get together with your committee and help raise funds. We'll be presenting a gigantic cheque at the event. Donations are tax deductible. Contact Justine@havan.ca
The wrap-up party will take place at Trail Appliances, Richmond on Friday December 6th, where everyone will gather to celebrate the gift of giving and to present one GIGANTIC DONATION to the Lower Mainland and Surrey Christmas Bureaus.
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HAVAN Education
LOOKING FOR INDUSTRY COURSES? TELL US WHAT YOU NEED!
IN-CLASSROOM COURSES: Member Rates apply to your staff too!
Stay up-to-date on the latest course offerings by reading your
HAVAN Education Update
, delivered to your inbox every Thursday.
Thursday, November 14, 8:30 - 10:30 am
Cosentino Centre Vancouver, 8603 Glenlyon Parkway, Burnaby.
No CPDs offered for this session
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Member News & HAVAN Heroes
Got News?
Take advantage of our audience and leverage your membership via HAVAN's channels. We're always on the lookout to highlight members connecting with and supporting the communities where you build. In our eyes, you are real HAVAN Heroes. Send your press releases to dawn@havan.ca and we'll help share, tweet and re-purpose your news. @HAVANofficial
CERTIFIED PASSIVE HOUSE TOUR WITH NICK BRAY ARCHITECTURE
PART 2: Pre Drywall.
The project uses and tests innovative materials and technologies to overcome the many challenges it faces, including an integrated piling/shoring system, ICF foundations, HELIX concrete additive, SIPs panels, new eco-friendly spray-on membranes, fire-shutters etc.
Two tour dates:
Friday, November 8 | 12 - 4 pm
Saturday, November 9 | 12 - 4 pm
Organized tours each hour, on the hour. Max 30 per tour.
Site Tour: 465 East 18 Avenue, Vancouver
COURSE IN A BOX WITH MURRAY FRANK
Including a 3' square frame wall blank, pre-framed to accept a window, a dryer vent, a hose bib and an electrical penetration, along with all of the supplies to complete the installation of these details, the Course in a Box requires a couple of days, a place to work and simple hand tools to compete the work. Once complete, ship your work back to Murray who will put your work through air tightness and wind-driven rain performance testing. Including a
4-hour live, on-line testing session the debriefing will focus on the successes and challenges for maximum learning. Details.
ART OF LEADERSHIP - DECEMBER 2
We are excited to partner with The Art Of to provide our members with an exclusive offer for The Art of Leadership. This one-day event returns to Vancouver on December 2nd and Calgary on December 3rd! Featured speakers include; Marcus Buckingham, Neil Pasricha, Dr. Liane Davey, Robert Richman and Ron Tite.
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Committee News
NOVEMBER COMMITTEE MEETINGS
For a complete list of committees, and contacts, click
here.
Education & Training Committee
: Wednesday, November 6, 8:30am - 10:30am @ HAVAN Office. Contact Wendy@havan.ca
Marketing Communications Committee: Thursday, November 7. Location TBC 8:30am - 10:30am Contact Dawn@havan.ca
Tech Committee: Tuesday, November 12; 4:30pm, Innotech Contact Mark@havan.ca
U40 Committee: Thursday, November 14, 8:15am - 10am. The Ensuite Burnaby. Contact Vanessa@havan.ca
Government Relations Committee: Thursday 14 November, 8:00am @ HAVAN's Boardroom + RingCentral Meeting Call-in option. Contact Mark@havan.ca
Reno Council Roundtable: Tuesday, November 26, 5:30pm @ Joey Burnaby. This meeting is for Renovator owner/members only. Please pre-register with Sonali@havan.ca
For a complete list of upcoming committee meetings, please refer to the
Sunday Connections email.
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