Quote:
Originally Posted by GenWhy?
... Others that have had their land for a long time (discounted land) and maybe get some lucky density either outright or rezoning, why would they market units for less? If the market says $x for a 2-bed in east van I swear it'll re-sell to an "affordable" rate in this market anyway.
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In this case,
in a down market, if the CAC was lower, the developer would at least have the option of undertaking a project with a lower margin and still have a pricepoint that appeals to the market, rather than continuing to sit on the land. i.e. flexibility to respond to market conditions. Why would they market units for less? Because "less" is market pricing.
Quote:
Originally Posted by WarrenC12
CACs don't go into a black hole though, they provide community resources in the direct area of the development. Without them, the developer would collect more cash, and we'd either not have the amenities, or other taxpayers would be on the hook for them...
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You have to wonder whether the newcomers to the neighbourhood should be the only ones bearing the cost of the amenties provided by CACs (such as daycare centres, social housing, cultural amenities, etc.). Is the need for those facilities solely exacerbated by the new construction and residents? Or is it an extension of a NIMBY sentiment against change and a monetary trade-off or buy-in (that introduces a barrier to entry through high units prices)?