I think it is just a case of greed causing people to jump the gun. It is amazing that large property companies don’t do better research. With all the construction going on, labour would have to be brought in from outside the city and/or province. The decrease in the availability of rental properties, and the high increase in rent doesn’t make it worth the trip.

BTW if all they improved was flooring and paint, then I hope they wouldn’t charge too much more. Those things were probably due for a change.

It will be very interesting to see what is going on out there this Spring and Summer. It will also be interesting to see what happens with the sale of those buildings.

J

I heard today that these buildings are now for sale. I suppose that’s probably the rest of the story.

J.

There hasn’t been a lot of positive news lately for Canada because of our U.S. relations, even our PM is bearish…

Here’s an interesting poll on Canadian’s outlook on the housing market:

http://www.globeinvestor.com/servlet/story/RTGAM.20080304.wrbcpoll0304/GIStory/

I’m excited to see the Bank of Canada cutting interest rates by 1/2 percentage point:

http://www.globeinvestor.com/servlet/story/RTGAM.20080304.wboc0304/GIStory/

The Bank of Canada has also implied that further cuts are down the road. Many people think SK, and Saskatoon specifically will not be affected by what’s happening in the US – I don’t believe that but it’s looking like Canada’s economy is in for a bumpy ride over the next year, maybe two.

Thanks for the input on this and I’m sorry to hear of the challenges you’ve had to face as a result of this changing market.

To be clear, when I said “pretty positive” I was thinking more along the lines of “encouraging to see a prospective conversion go back to the rental market on the premise that it makes more sense to rent than sell.” I’m hoping that we see more owners decide to continue renting and fewer explore the option of converting. Not intended to be a note of praise for the owners of the building at all.

I lived in the Kelsey Apartments for 10 years and was a good tenant. I started noticing something was up when as people moved out, nobody moved in. On January 9, 2007, we were given a notice that stated “that an application is being made to the City of Saskatoon for the conversion of the said buildings to condominiums.” This was not a notice to vacate.

On May 15, 2007, we were given a notice to vacate by June 30, 2007, “Further to (their) notice given to (us) dated January 9, 2007.”

They had not at this time, nor on June 30, 2007, made an application to the City of Saskatoon for the conversion to condos. It is easy enough to check on; one just has to call the proper department within City Hall.

We were all faced with the stress and difficulty of finding new accommodations in a shrinking market. I ended up paying more that $200 more per month in rent, not to mention the costs incurred by hiring a moving company, etc.

Needless to say, I was not filled with a warm, fuzzy feeling when these units went back on the rental market. It is sad to think that the rental shortage in this city has progressed to the point where it seems to be forgotten that many, many people were evicted from apartments in a very callous and uncaring manner, and we are now “grateful” to them for putting 77 units on the market??

They say rent will be up $80 on average from where they were at when they vacated the building.

Larry,

That’s certainly possible. Now that the units have their own titles they can change their mind any time an take them to the resale market. No frustrated buyers on this one though. They hadn’t even begun to market them.

In the past week we’ve had 3 major condo pre-sale developments, fall into receivership leaving approximately 400 buyers without a roof. High unanticipated construction costs being the named culprit.

It’s “black speculation” but this post might be a comment on a new twist conjured by developers to put themselves back in the profit game.

My simplistic obscure black thought cycle:

Pre-sell + construction follies + oopps, give back deposits + oh shucks, lets rent at high rates + oh, now let’s sell later at higher prices.

(Well maybe in Vancouver only as prairie people don’t think like this – right?)

Nice package if it is the reality.

Increases in rental units is certainly good during these times. I hope they aren’t overpriced…