When I arrived, I found a parking spot right in front of the venue and assumed it would not be well attended. Boy was I wrong. Once inside, I discovered hundreds of predominantly 30 and 40-something men and women waiting for the program to begin. I was told there was broad mix of builders, developers, investors, finance and design professionals, and homeowners. The event was organized by the Toronto-based Canadian Real Estate Investor Podcast hosted by Daniel Foch, a real estate broker and analyst, and Nick Hill, a real estate investor, which has over 100,000 monthly listeners. This was their first Vancouver event although similar events had been organized in Toronto.
The program featured three panels: a Finance Panel that included representatives of CMHC, a mortgage broker, and Vancity; 
a Contemplation Panel including a realtor specializes in multiplexes, an architect, and representative of Small Housing BC; and an 
Execution Panel that included a multiplex developer and property manager. All the speakers were men, but I subsequently learned a lady scheduled to participate on the final panel cancelled at the last minute and so the moderators filled in. The following are some of my key highlights and takeaways
In Toronto, multiplex developments now make up half of all multi-unit starts. This is because they are generally exempt from development cost charges and most condominium and rental apartment developments are no longer financially viable.
While most projects in Vancouver are four units and strata-titled, in Toronto most projects are five units or more rental units. As a result, CMHC is insuring many of the loans. Vancity is actively involved in financing projects in Vancouver for both small builder/developers and multi-generational families, also referred to as ‘citizen developers’.
Too many people appear to be seduced by misleading social media reports on how investors can get involved in these projects with as little as 5% down. In fact, upfront costs can easily top $100,000 for plans, studies and reports, permits, etc. before a loan can be arranged.
Projects catering to families with adult children are popular since some units may be kept and lived in and others sold. However, these projects can be complicated because you’re dealing with families with adult children!
It is important to carefully consider all the site features, not just location and size. Many ignore soil and environmental conditions, until it is too late. It is also important to begin the project with a team approach including the designer, the builder, the environmental consultant…. and a yes, a realtor.
Don’t always try to maximize the amount of floor area. Try to find the 'sweet spots and include a mix of unit types and sizes. If the units are too big and expensive they may be difficult to sell, especially if they cost more than conventional nearby houses. Larger units also need at least one parking space which can not always be accommodated on site.
The final session explored some of the real problems that can be encountered once projects get underway. For example, while Vancouver claims that approval times have been improved, the builder said it can still take 6 to 10 months to obtain approvals.
Also, a major problem often arises when third party utility companies cannot perform on time. Special mention was made of BC Hydro since many projects require substantial upgrades including pad mounted transformers. It is not uncommon for a project to complete construction but still not have permanent power.
It is important not to ignore property management considerations especially if the project includes a mix of ownership and rental units. Many small landlords do not appreciate the importance of properly screening potential tenants to ensure they have sufficient income or are not going to operate illegal activities in the unit.
Interestingly, the property manager suggested that in his opinion the ‘sweet spot’ for rental units is often a two-bedroom, one bathroom unit which is not that typical today. With Luxury Vinyl Plank (LVP) flooring in case a dishwasher or washing machine break down.
It was suggested that as more ownership multiplex projects come on stream, there may be a need to revise the Strata Property Act to better accommodate smaller projects such as these.
I encountered this issue when I developed three small developments in West Vancouver. These projects are bound by the same comprehensive legislation, regulations, and bylaws as a 100-unit high-rise. This creates a high administrative burden for owners who must manage insurance, contingency funds, and repairs informally or risk legal non-compliance.
Small multiplexes can rarely afford to hire professional property managers, meaning owners must manage building operations together. The Act requires formal meetings and strict financial management, which is often impractical for a small group of neighbours.
While most projects in Vancouver are four units and strata-titled, in Toronto most projects are five units or more rental units. As a result, CMHC is insuring many of the loans. Vancity is actively involved in financing projects in Vancouver for both small builder/developers and multi-generational families, also referred to as ‘citizen developers’.
Too many people appear to be seduced by misleading social media reports on how investors can get involved in these projects with as little as 5% down. In fact, upfront costs can easily top $100,000 for plans, studies and reports, permits, etc. before a loan can be arranged.
Projects catering to families with adult children are popular since some units may be kept and lived in and others sold. However, these projects can be complicated because you’re dealing with families with adult children!
It is important to carefully consider all the site features, not just location and size. Many ignore soil and environmental conditions, until it is too late. It is also important to begin the project with a team approach including the designer, the builder, the environmental consultant…. and a yes, a realtor.
Don’t always try to maximize the amount of floor area. Try to find the 'sweet spots and include a mix of unit types and sizes. If the units are too big and expensive they may be difficult to sell, especially if they cost more than conventional nearby houses. Larger units also need at least one parking space which can not always be accommodated on site.
The final session explored some of the real problems that can be encountered once projects get underway. For example, while Vancouver claims that approval times have been improved, the builder said it can still take 6 to 10 months to obtain approvals.
Also, a major problem often arises when third party utility companies cannot perform on time. Special mention was made of BC Hydro since many projects require substantial upgrades including pad mounted transformers. It is not uncommon for a project to complete construction but still not have permanent power.
It is important not to ignore property management considerations especially if the project includes a mix of ownership and rental units. Many small landlords do not appreciate the importance of properly screening potential tenants to ensure they have sufficient income or are not going to operate illegal activities in the unit.
Interestingly, the property manager suggested that in his opinion the ‘sweet spot’ for rental units is often a two-bedroom, one bathroom unit which is not that typical today. With Luxury Vinyl Plank (LVP) flooring in case a dishwasher or washing machine break down.
It was suggested that as more ownership multiplex projects come on stream, there may be a need to revise the Strata Property Act to better accommodate smaller projects such as these.
I encountered this issue when I developed three small developments in West Vancouver. These projects are bound by the same comprehensive legislation, regulations, and bylaws as a 100-unit high-rise. This creates a high administrative burden for owners who must manage insurance, contingency funds, and repairs informally or risk legal non-compliance.
Small multiplexes can rarely afford to hire professional property managers, meaning owners must manage building operations together. The Act requires formal meetings and strict financial management, which is often impractical for a small group of neighbours.
In summary, while there was literally no discussion about neighbourhood concerns towards multiplex projects and how these might be addressed, the session offered a lot of down-to-earth practical advice. I suspect those in attendance left with a much more realistic understanding of both the pitfalls and opportunities offered by multiplex developments. I am glad I attended. I'm also going to check out this podcast.
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