The biased view :) Real Estate.
So I think I know a little bit about real estate at Big White. I live here, been a realtor here, owned 7 properties here and since 2001 have developed these developments below. Whitewolf, Glacier, Timbers, Raven and The Edge.
A bit of an evolution... if only I knew what I was doing...
But I don't really know how to start.
Do I start with property values, what they were, do I use my properties illustrating how far they have fallen - is this saying my developments have under-performed the market? Do I start with other properties and look biased to my own projects...?
In 2001 we built Whitewolf and the costs including furnishing were around 200 per sq ft. At the time my project manager was paying as low as $9 p/h for labor. In Kelowna at the time you could build around $95.
Glacier/Timbers and Raven continued to increase, eventually getting to $300 - $400 per sq ft including soft costs (marketing, real estate commissions, design, furnishings etc.)
Edge, is a little harder to estimate because we completed the whole site, site-work, individual lot improvements, 100% paving, and infrastructure for the whole site. and land costs. However we only completed 60% of build-able space. But $400+ per... would not be too far off the mark - the glass in one building ran at $160k.
Why were Costs are so high?
Snow loads, 390lb per sq ft, means more concrete more structural elements, more design costs more labor... And getting labor from Kelowna? At the peak of the construction real estate boom, getting people to Big White when they are over worked in Kelowna? Not easy at premium rates...
Today?
Today is a different construction market, I have not built for a while but quotes are running at $200 - $250 per sq ft. for a single family home.
But What does this mean for real estate?
Great question, glad you asked. We have a 1050 sq ft Raven for sale at $249k, we originally had it at $424k (back in the day) - this is fully furnished, rental ready, heated floors, hardwood, geothermal... You can buy 1700 sq ft in Treetops for $199k - unfurnished and needing TLC but $199K?
So, before land costs, marketing (if), real estate fees, design costs, DCC's etc. At current construction rates Treetops would cost $340k+? As you can imagine very limited construction is happening at Big White.
But it also means (in my (biased) opinion that real estate values are unsustainably low.
Another interesting Statistic.
Property values at Big White in some instances are below the levels in 2000, Kelowna on the other hand are estimated at roughly 250% of the 2000 levels - really glad I bought at Big White... But every market has its cycles, will Big White recover? I think so, I have more confidence in Big White recovering than the Kelowna market significantly improving. But remember I am Biased :)
And the Pitch :)
You can switch of now if you want.
But if you are still reading, and own a property at Big White that you want to rent, Sólido Properties can look after it for you. We are now already receiving enquiries for next season. And if interested in real estate values at Big White, look at Mountain Realty.
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