Will the inclusion of low-income family units in complexes really impact property values or is this another scare mongering tactic by a few?
Reporter: The lack of affordable housing is a big problem, but who should fix it? Should developers be forced to help low income families or is this a step too far? We find out in this week’s episode of Investor Insight on Crew TV.
The lack of affordable housing options is a big problem in many cities. Condo developers are being encouraged to include units for low income families. Is this a positive or negative move for all?
Christina Kroner, Sales Representative, Re/Max Legacy
Christina Kroner: Investor interest is mainly determined by the rate of appreciation of a property that’s projected over the coming years. Also end user interest is determined by location and proximity to transit and other amenities. If you include lower income housing as an option in these mixed use developments, you have a possible negative stigma attached to the property, because of not my backyard sort of mentality. However, we need to embrace this in the city of Toronto as more high rise developments such as Kensington Market, Regent Park and an example in Liberty Village as well are replacing the lower income housing solution.
Reporter: Forget the cash and the stats, do we have a moral obligation to help the low income market?
Shawn Maher, G.S. Maher Solutions Inc.
Shawn Maher: [Well] I don’t think it’s a moral obligation just for developers. I think it should be a moral obligation for the city [authorities] and developers to work together to find ways to make it work. Another way to make it happen is maybe to have people work together in buildings and have a building that maybe has a diverse group of people at different income levels and maybe the city planning will eat some of the cost for some of the development fees for the lower income units and maybe still charge them for ___ you know we wouldn’t have to do it to develop the units and it is very expensive to develop units. For example, I am doing a project with George Ross from the Trump Organisation in Hamilton and we have 40,000 units just in development costs [alone so].