The maintenance costs for an aging and deteriorating apartment building may grow exponentially over years. Hence, this factor contributes to the need to redevelop these aging properties. In fact, many property owners may not be aware of the values that their existing property may create for them, in contrast, they are more concerned about the expenses involved to upgrade or redevelop their properties. This article will discuss the advantages of property redevelopment and how property owners may take advantage of the services provided by real estate development management companies to maximize their economic well-being.
- Increase of supply benefits the tense housing market
While the economy is recovering from the pandemic and people’s lives are going back to normal, the population in the Vancouver area has increased significantly. According to McElroy’s (2022) posting in CBC News, “the shortage of housing supplies drives the cost of housing to a crazily high rate in comparison to the other metro areas in Canada”. As such, transforming the aging properties into modern high-density properties will increase the market supply and put downward pressure on housing prices.
- Enhance the community’s living quality
As reported by Beattie (2022) in the CBC News, aging buildings cost millions of dollars to preserve, also, other apartments collapse like the Champlain Towers in Surfside can happen. Undeniably, the old-fashioned properties can be liabilities from the inside out. The unforeseeable potential safety issues threatened the health and safety of the tenants in the building. Therefore, it’s time for the property owners to decide between:
(a) protecting the well-being of the tenants at the same time maximizing the property value or;
(b) leaving the buildings to deteriorate, putting the tenants in a potentially dangerous situation, and doing nothing with the shrinking property values.
- Create job opportunity
Another amazing thing, property owners may not be aware that their decision to develop can feed the stomachs of many families. The construction phase in property redevelopment to build a high-density property requires huge efforts from the professionals like engineers, plumbers, designers, etc. Not only that, upon finishing, an office, restaurant, shop, or any business operating in the new property are going to create more opportunities in the job market. Hence, as property owners and real estate developers are constantly taking up property redevelopment projects and each of these projects lasts years, the contribution to the job market will be sustained.
- Save the forests
Regardless of an individual or a corporation, we always owe the responsibility to take care of the environment. Since the supply in the housing market is scarce and the Government of BC encouraged more property development, especially in the Greater Vancouver area, it is obvious that new property development requires more and more land clearing for the properties. According to Somma (2021), land clearing is likely to contribute destructive consequences to the environment such as erosion, pollution, or flooding. In fact, sacrificing environmental health to cure the housing crisis must not be something that everyone expects. Thus, property redevelopment seems to be the most suitable solution to deal with this situation, in which the necessity for land clearing is minimized, and housing supplies can be boosted. If people can build a better community with minimal harm to the environment, how could they say no to that?
- Conclusion
The future of Greater Vancouver’s housing market is in the hands of property owners. By joining part of the property redevelopment movement, property owners could make a symbolic contribution to social, cultural, and environmental issues. Additionally, to reduce the negative consequences of the housing crisis, the Government of BC is even easing the requirements for rezoning, so that property developers can work on their best abilities to solve the housing crisis (Fletcher, 2021).
While some owners might hesitate to take the next move due to the concerns of losing property ownership, financial constraints, or technical limitations, IDS Group could be the best option for these property owners to proceed with. This is mainly because IDS Group provides exceptional support and solutions to inexperienced property owners in the redevelopment process, including but not limited to financing, design, construction, and asset management. IDS is committed to helping clients to create developments that are attractive, economically viable, socially responsible, and environmentally sensitive. Apart from that, previous clients of IDS Group also left an excellent review to the company for the services they received.
IDS GROUP is a real estate development management company based out of Vancouver. Their are-as of expertise include project financing, architectural design; project, construction, property, and as-set management; sales and leasing; land assembly, and investment. For more information, visit www.IDSgroup.ca