1. inner-city home is not only a great alternative

 

 

1.  
Table of Contents
 
1.      Table of Contents. 1
1.      Introduction. 2
2.      Vision & Mission. 3
3.      Objective. 3
4.      Scope of the Project 7
5.      Project Cost and Schedule. 7
6.      Risk Identification. 8
7.      Key Stake holders. 8
8.      Estimated Timeline (2 units) – 12
months. 9
9.      Conclusion. 9
 

1.            
Introduction

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Calgary is the third largest
municipality in Canada with a population of 1.2 million according to the latest
census. About 40,000 new immigrants arrive each year from all over the world.
It is considered to be one of the most livable cities in the world providing
excellent quality of life, safe communities, lower taxes and proximity to
nature. In the next five years, Calgary Suburbs will see an higher than normal growth1.
The city is therefore increasing the density of inner city developments to
limit outward growth. To better utilize the land availability in established
inner city communities, developers are maximizing the space by using the lots
efficiently. This helps the builders with construction of more spacious homes
and duplexes on smaller lots. The city and the builders are aiming to create more
affordable inner-city housing in family friendly and desirable communities.

The inner-city Calgary
neighbourhoods were established 60 to 100 years ago. Most of the bungalow style
houses need to be teared down for a re-built due to age, style and change in
the building codes. Other factors promoting inner-city development is the
downtown focused living. One fifth of the total jobs in Calgary are located in
downtown. So, buying an inner-city home is not only a great alternative to
living in the far away suburbs, it is also a great investment over the
long-term.

Housing prices in Calgary has seen
an exponential growth in the last decade and inspite of the slowdown in the
overall economy, the prices have not seen much of a correction in the near
past. Inner city properties are getting pricy year over year mainly due to the
location and proximity. This has resulted in skinny homes with lower-maintenance
yard compared to homes in the suburbs, and proximity to inner-city amenities.

2.            
Vision & Mission

The vision of this start-up is to
be the most trusted and innovative real estate builder in the inner-city developments
providing enhanced life style coupled with sustainable quality living in terms
of affordability and accessibility. The purpose of this start-up is to acquire suitable
or discretionary inner-city land for re-development and build houses using progressive
architectural engineering and environmentally friendly construction materials. This
start-up has also partnered with a company to bring in vast real estate
expertise with infills experience for many years.

3.            
Objective

Calgary’s housing market which is already
seeing densification in the inner-city development will reshape the city in the
next 10 to 15 years.  The city planning
foresees the future growth in the current city boundaries, which means more and
more families are expected to move into the city over the next few decades. The
equation of land to house cost ratio is changing now. The traditional 2/3 to 1/3
cost of land to house is not feasible as the life style expectations. Smaller
lots and bigger houses are the requirements of the newer generation. The intent
of this start-up is to capitalize on the emerging trend of the housing market
and develop into a sustainable and reputable provider of modern and affordable
housing in the city. Some of the salient features of this start-up is to create
more value for money by providing simple yet modern design that reflects urban
lifestyles. Some of design features of this start-up would include:

3.1.      Smart Homes

i)      
Superior
design by maximizing living space by intelligent interior space planning

ii)     Green roof terraces where possible
to reduce storm water run-off and provide oxygen-rich additional outdoor living
space.

iii)    Systems for rainwater harvesting
and secondary water source for indoor or outdoor green spaces

iv)    Radiant heat systems in basement
floors for an efficient, comfortable and dust-free heat source

v)    
Electric
car charging station in garage

vi)    Home Automation

 

 

3.2.      Efficient Construction Techniques

i)      
Using
cold pressed steel

ii)     Less wood

iii)    Recycled materials

iv)    Pre-engineered and Pre-fabricated

v)    
Light
weight and easy transportation

 

 

3.3.      Modular Style

i)      
Build
and ship in Modules

ii)     Durable

iii)    Sustainable

iv)    Affordable

 

The idea here is to covert the old
bungalow style homes and build two single homes or side-by-side attached homes
utilizing more vertical space and provide reasonable square feet in the same
square footage of the available land space. This concept has gained great
acceptance as new families and grandparents have the options to stay closer, families
willing to upsize or downsize can stay in the neighbourhood together. Also, Calgarians
prefer to have neighbourhoods that provides an easy lifestyle, meaning better
accessibility to work, transportation connectivity; access to amenities, such
as shopping, dining and recreation; close to schools; and they have affordable
housing with smart spaces that work for growing and changing families.

 

Calgary’s inner-city is mostly
focused on daytime business. The shifts in land-use & zoning rules are
gradually transforming inner-city lifestyle and that will boost revenue for the
city. Increasing the density of inner city means more utilization of the
inner-city infrastructure and amenities.

4.            
Scope of the Project

High level project scope includes
the following:

4.1.      Acquiring suitable land (parcel
development and applicable land use district)

4.2.      Engaging Architects (Design,
Development Permits and Building Permits)

4.3.      Choosing the right Builder

4.4.      Construction

4.5.      Project Management

4.6.      Advertising & Marketing

4.7.      Completion & Warranty

 

5.            
Project Cost and Schedule

 

High level costing of the project is as shown.

S.No.

Item

Description

$ Amount

1

Land
Cost

Single
Size lot

           550,000

2

Design
& Permitting

For
two single homes

             30,000

3

Demolition
& Construction

For
two single homes

           756,000

4

Project
Management

For
two single homes

             40,000

5

Marketing

For
two single homes

             30,000

6

Total
Cost

Including
GST

        1,476,300

7

Profit

12%

           177,156

8

Sale
Price

Each
Unit

           826,728

 

A detailed costing will be developed during in the
subsequent stages of the project report

 

6.            
Risk Identification

6.1.     
Permits &
Zoning

6.2.     
Project Financing

6.3.     
Overall Real Estate
market trends

6.4.     
Liquidity &
Interest rate

 

7.            
Key Stake holders

7.1.      Municipality

7.2.      Financial Institutions / Venture
Capitalists

7.3.      Airport Authority, Calgary

7.4.      City of Calgary

7.5.      Energy Providers & Distributors

8.            
Estimated Timeline (2 units) – 12 months

8.1.     
Land acquisition

8.2.     
Design – 6 weeks

8.3.     
Financing &
Approval – 2 weeks

8.4.     
Permits – 4 weeks

8.5.     
Demolition & Construction
– 32 weeks

8.6.     
Completion &
Handover – 4 weeks

 

The level one schedule of the aquisiton and
construction process is as shown below. Detailed schedule will be established
in the due course of the development of the project report.

9.            
Conclusion

Canadian real estate market seems to be all over
the place with property values increasing in some places and other places seeing
a dip. With cities like Toronto and Vancouver almost at its peak and with the
new tax regulation, Calgary seems to be the next destination for foreign buyers.
Foreign investors who want to invest in Canada will shift to Calgary considering
the attractive returns in Alberta. The province is crawling out of the slowdown,
so it is not exactly clear in the minds of the investors the direction it will take
in the next few years.  One thing is clear
that the real estate market seems to be stabilized in the last few years. With more
sustainable solutions and integrating innovative technologies in the real estate,
there seems to be a great potential in offering greener, energy-efficient and smart
homes making it more attractive to the first-time buyers and investors to the modern
concept of inner city lifestyle in the expanding city of Calgary.

1 http://www.avenuecalgary.com/City-Life/11-New-Development-Trends-In-Calgary