03-11-2014, 08:06 PM
History was made up there in Pender Harbour this past weekend. A vacant lot owner in that sad sack development called Farrington Cove girded his loins, jumped in his 10’ aluminum skiff, fired up the 9hp outboard and crossed the Rubicon - figuratively speaking, of course.
You see he is the very first to drop his listing price below $100,000 and I can only imagine the reaction of other owners both at FC and Whittakers next door who have their lots on the market.
That newly priced 0.31ac waterview parcel, Lot 46 - 4622 Sinclair Bay Rd, was sold before July, 2006 according to the earliest record I've been able to access. Since it's still vacant, it's probably safe to assume the owner bought it as an “investment.” A July 2006 Realtor sale list has other available waterview lots priced at $175,000 but they’re slightly smaller; but for sake of argument let’s say Lot 46 was purchased for $175,000. Of course, the owner paid far more than that if you add in the 7% GST, the PTT, and lawyer’s fees. I figure this raised his outlay to $190,300. Now, let’s add in the eight years (2007-2014) of property taxes paid which I’ll average out to $860 per year (2013 was $879.00, 2012 was $852.00) for a total of $6,920.
So, the finally tally has the owner dishing out close to $200,000 (if not more) for his real estate “investment”; meanwhile, since 2010 the value of that land has depreciated. Between 2011 - 2013, his property assessment has dropped -16.1%. His 2014 Assessment is also likely lower judging by the 2014 Property Assessment of nearby FC homes currently listed on MLS - all their land values are down by -9%. The vacant lots likely didn't see as big a drop.
What was Lot 46 listed for on the weekend? $99,500!
If the lot sells for list, the owner has lost close to, if not more than, $100,000 or -50% of his “investment.” However, his loss is much greater if you factor in lost opportunity. If instead of investing in land, he had invested in a diversified portfolio of stocks then according to Garth Turner at GreaterFool.ca that portfolio would have earned on average 7% per year. Oh, dear.
Let’s look at the listing history of this lot. The owner sat on his “investment” from mid-2006 to mid-2012 hoping, no doubt, that the market would turn. It didn’t. So, he listed the lot in July, 2012 (V943698) at $129,000 which was below the 2012 Assessment. The price was dropped May 5, 2013 to $109,000. The lot was relisted November 18, 2013 (V103645) at $109,000 and this past weekend the price was dropped to that historical low; still, I wonder if it will sell.
I put together a collage below showing the new listing, a listing site map from an older Realtor ad, an nice aerial shot of the development, a pic of current vacant lot listings at both Farrington Cove and Whittakers, and a May 2008 pic of Realtor signage at the entrance to FC (a nice space filler).
What are the other lot owners thinking right about now? Just for fun, I’ve shown a lot listing next door in Whittakers. It’s a waterview lot, too, but it’s half the size of Lot 46. Nope, it’ll have to come down. The three other FC waterview lots up for grabs near Lot 46 are listed at: $169,000 (0.19ac), $149,000 (0.18ac) and $124,900 (0.26ac). Two of those lots were purchased back in 2006. The one at $149.000 - that lot never ever sold; yep, it’s a development owner listing. Will they sell at those prices? Nope, not now.
By the way, according to 2014 BC Assessments, only 15 homes (two are unfinished) have been built in this 49-lot development - 4 are currently listed for sale. A 6-unit townhouse complex sits on Lot 52. It eventually sold out with the buyers paying from $560,000 - $649,000. One of the units (2618sf) which sold for $614,000 in 2007 was put on the market back in 2012 and when I discovered the listing in early 2013 the asking price was $499,000. It was relisted in March, 2013 (V995284) at $499,000 and on July 25 this was reduced to $439,000 ($175, 000 from original purchase price or a drop of -27%). The unit did not sell and was removed form market in early fall. There is currently another unit (#54) up on the BCforSalebyOwner.com site at $595,000. The site says it went up on August 8, 2012 - I wonder if the owners have forgotten it’s there.
I drove through Farrington Cove back in 2006 when it was spanking new with all the lots nicely prepped. Let’s take a look at good old Lot 46. These listing picks were likely taken back in 2012 when the lot first went up on MLS. Those alders are a lot bigger now. Sad looking tennis court, too, all surrounded by broom and weeds. That ‘thing’ on the right could be a fountain that might be fed by what…rainwater? If there is a tap, there is no point in turning it on since there is hardly anyone to share the cost of running it.
The FC’s strata corporation put up a website in 2012, but it’s not finished. It offers the names of the 2012 Council’s six directors: 4 have lower mainland addresses, one has a Calgary address and only two call FC their home. I wonder how many of those directors "from away" get up and over to visit.
I researched Farrington Cove last spring and have the ownership history going back to 1989 all thanks to court cases. The original owner sued the SCRD over zoning. The second owner (1989 - 1995) sued his builder and the builder sued him right back. It ended in a draw. The third owner (1995-2005) was in court in 2007 applying for an absolute discharge from bankruptcy a move fought by the Canada Revenue Agency - CRA won. The fourth owner, 2005 - present (I assume he still is) probably figured he had scored big time picking up the development for $1.8 million during the court-ordered "fire" sale. I somehow feel he's not thinking that now - he put his own house and lot on the market back in mid-2012. It’s still listed - 606 days and counting (V962882). Its listing pics show the fountain, too, and the water is green - stagnant water will do that. This fourth owner - he owns the Deep Cove and Ganges Marinas.
One of these days, I’ll post about this development’s sad saga. It deserves to go into the history books or, at least, Google’s archives.
You see he is the very first to drop his listing price below $100,000 and I can only imagine the reaction of other owners both at FC and Whittakers next door who have their lots on the market.
That newly priced 0.31ac waterview parcel, Lot 46 - 4622 Sinclair Bay Rd, was sold before July, 2006 according to the earliest record I've been able to access. Since it's still vacant, it's probably safe to assume the owner bought it as an “investment.” A July 2006 Realtor sale list has other available waterview lots priced at $175,000 but they’re slightly smaller; but for sake of argument let’s say Lot 46 was purchased for $175,000. Of course, the owner paid far more than that if you add in the 7% GST, the PTT, and lawyer’s fees. I figure this raised his outlay to $190,300. Now, let’s add in the eight years (2007-2014) of property taxes paid which I’ll average out to $860 per year (2013 was $879.00, 2012 was $852.00) for a total of $6,920.
So, the finally tally has the owner dishing out close to $200,000 (if not more) for his real estate “investment”; meanwhile, since 2010 the value of that land has depreciated. Between 2011 - 2013, his property assessment has dropped -16.1%. His 2014 Assessment is also likely lower judging by the 2014 Property Assessment of nearby FC homes currently listed on MLS - all their land values are down by -9%. The vacant lots likely didn't see as big a drop.
What was Lot 46 listed for on the weekend? $99,500!
If the lot sells for list, the owner has lost close to, if not more than, $100,000 or -50% of his “investment.” However, his loss is much greater if you factor in lost opportunity. If instead of investing in land, he had invested in a diversified portfolio of stocks then according to Garth Turner at GreaterFool.ca that portfolio would have earned on average 7% per year. Oh, dear.
Let’s look at the listing history of this lot. The owner sat on his “investment” from mid-2006 to mid-2012 hoping, no doubt, that the market would turn. It didn’t. So, he listed the lot in July, 2012 (V943698) at $129,000 which was below the 2012 Assessment. The price was dropped May 5, 2013 to $109,000. The lot was relisted November 18, 2013 (V103645) at $109,000 and this past weekend the price was dropped to that historical low; still, I wonder if it will sell.
I put together a collage below showing the new listing, a listing site map from an older Realtor ad, an nice aerial shot of the development, a pic of current vacant lot listings at both Farrington Cove and Whittakers, and a May 2008 pic of Realtor signage at the entrance to FC (a nice space filler).
What are the other lot owners thinking right about now? Just for fun, I’ve shown a lot listing next door in Whittakers. It’s a waterview lot, too, but it’s half the size of Lot 46. Nope, it’ll have to come down. The three other FC waterview lots up for grabs near Lot 46 are listed at: $169,000 (0.19ac), $149,000 (0.18ac) and $124,900 (0.26ac). Two of those lots were purchased back in 2006. The one at $149.000 - that lot never ever sold; yep, it’s a development owner listing. Will they sell at those prices? Nope, not now.
By the way, according to 2014 BC Assessments, only 15 homes (two are unfinished) have been built in this 49-lot development - 4 are currently listed for sale. A 6-unit townhouse complex sits on Lot 52. It eventually sold out with the buyers paying from $560,000 - $649,000. One of the units (2618sf) which sold for $614,000 in 2007 was put on the market back in 2012 and when I discovered the listing in early 2013 the asking price was $499,000. It was relisted in March, 2013 (V995284) at $499,000 and on July 25 this was reduced to $439,000 ($175, 000 from original purchase price or a drop of -27%). The unit did not sell and was removed form market in early fall. There is currently another unit (#54) up on the BCforSalebyOwner.com site at $595,000. The site says it went up on August 8, 2012 - I wonder if the owners have forgotten it’s there.
I drove through Farrington Cove back in 2006 when it was spanking new with all the lots nicely prepped. Let’s take a look at good old Lot 46. These listing picks were likely taken back in 2012 when the lot first went up on MLS. Those alders are a lot bigger now. Sad looking tennis court, too, all surrounded by broom and weeds. That ‘thing’ on the right could be a fountain that might be fed by what…rainwater? If there is a tap, there is no point in turning it on since there is hardly anyone to share the cost of running it.
The FC’s strata corporation put up a website in 2012, but it’s not finished. It offers the names of the 2012 Council’s six directors: 4 have lower mainland addresses, one has a Calgary address and only two call FC their home. I wonder how many of those directors "from away" get up and over to visit.
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I researched Farrington Cove last spring and have the ownership history going back to 1989 all thanks to court cases. The original owner sued the SCRD over zoning. The second owner (1989 - 1995) sued his builder and the builder sued him right back. It ended in a draw. The third owner (1995-2005) was in court in 2007 applying for an absolute discharge from bankruptcy a move fought by the Canada Revenue Agency - CRA won. The fourth owner, 2005 - present (I assume he still is) probably figured he had scored big time picking up the development for $1.8 million during the court-ordered "fire" sale. I somehow feel he's not thinking that now - he put his own house and lot on the market back in mid-2012. It’s still listed - 606 days and counting (V962882). Its listing pics show the fountain, too, and the water is green - stagnant water will do that. This fourth owner - he owns the Deep Cove and Ganges Marinas.
One of these days, I’ll post about this development’s sad saga. It deserves to go into the history books or, at least, Google’s archives.