Friday, July 27, 2007

Niven Lake nature preserve illegal tree removal


Time now for a midsummer update on the extensive damage done to the Niven Lake Nature Preserve trees and trail system.  This was done by not only the developer during his infamous ‘seismic cut line’ along the back of all the residential lots or one of the multiple ‘tree thinning’ episodes that the developer was ‘unaware’ were not allowed.  No, this recent damage was done by the new residents themselves who decided that they didn’t want trees in the park behind their property and would rather cut a wide path to the Niven trail through Nature Preserve property, likely to blaze a path for snowmobile access in winter (also note that snowmobile use of the trail is not permitted). 

City staff eventually sent a letter to the two property owners requesting the damage be undone and the lands ‘remediated’ by mid July.  Well mid-July has come and gone and I am dismayed to report that the situation is far worse now than immediately following the vandalism of the park.  By using a bobcat to remove the gravel laid down on the illegal trail in the process of ‘remediation’ the cut and damaged area has grown substantially in width and more vegetation has been ruined.  The install of a hideous white chain link fence has done little to restore the damaged area.  In fact the entire mess has become precisely the sort of eyesore that the City needs to address in future Greenfield residential development.  Check back for some pics of the remediation process that is now underway.

Thursday, July 26, 2007

Real Estate Watch #1 - a questionable listing


Address - 3505 Ingraham Drive
Asking Price - $649,900 July 2007
last on the market - $599,000 April 2005 (don't know sale price)
Year built - 1975
notable - major renovation and contains a rentable suite ($1300 monthly)

So what have we got here? Owners expect to receive $50k in profit over a brief ownership period of two years, that works out to about $2k every month or $68.50 every day since the new buyer moved in.  This doesn't even begin to account for the serious gain made by the previous owner (whether he was a long-time resident or reno-flipper is not known).  The date of the renovations preceded the listing by just enough that one might conclude the repairs were made to fluff a tired mid-70's building).  

Let us look a little deeper into the ownership fundamentals:

fuel - approaching $6k per winter
electricity - perhaps $1.5k each year
water - perhaps $1.2k (trucked water)
tax - $3.7k (this could easily be more)

25 yr mortgage with 25% down at 5.5% - $2,976
total monthly house cost including tax and utilities - approximately $4k

Well, if you can come up with a down payment of $168k and find a tenant to stay at $1300/month and have no unexpected repair costs then you are only on the hook for $2700 a month...  Seems a bit dependent on a lot of other factors, primarily a huge chunk of cash and a perfect tenant to pay the bills, not to mention paying $2700 each month on top of the truck, boat, food and other costs of living essential to YK.  

Lets put it this way.  If you had an option to rent this place like it was a duplex would you be willing to spend $2700 a month for the top floor?  I didn't think so.  The interest cost on this place is $2200/month based on the favourable mortgage terms mentioned above.  

You may only pay $500 down on the principal each month out of the total cost to run this place ($4k) but at least you can bank on the continuous profit of $68.50 you receive each and every day as the new owner!

The smart renter (one capable of buying this place) could invest his $168k at 4% easily and earn almost $7k each year.  That would easily cover three months rent just about anywhere in town and leave his capital intact, risk free and unencumbered.

(Rusty is making sarcastic noises in the background)

Rebirth of the Rusty Blade

Have you ever felt that the mainstream press in Yellowknife is unable to cover many newsworthy items important to the community properly?

Is the brief coverage provided by the media of local issues often lacking in understanding of the subtleties of complex events at the Council and Territorial levels?

Are many policies that impact the lives of people in Yellowknife beholden to entrenched commercial interests?  Why else are those in the media reluctant to tread or even offer opinion on various subjects?

Look to the Rusty Blade for a regular source of local, news, insight, opinion and other interesting events.

Regular features are sure to include:
  • Analysis of developments at City Council, at committees, public hearings and development initiatives including bylaw changes and permits
  • Real Estate watch
  • Territorial Governance issues affecting Yellowknife
Stay Tuned....Rusty!