BHC portfolio value going up
The assessed value of the Banff Housing Corporation’s entire housing portfolio has increased by four per cent compared with the overall residential jump in Banff of less than one per cent.
The value of the BHC’s entire portfolio went to $104,440,650 in 2012 from $100,236,630 in 2011. That compares to the overall town-wide residential assessment of $1,196,547,580 in 2011 to $1,200,328,410 this year.
Town of Banff officials say there are a number of factors that affect the assessed value, but generally residential assessments – which are contracted to Bow Valley Property Valuators – are based on sales within a similar zone.
Chris Hughes, Banff’s senior accountant, said assessments are based on lot size, house age, size and quality, including main, upper, lower floor and garage areas, and then a value model is used to determine the assessment.
“BHC house sales are only used to value BHC zoned houses, and if the sales prices of the BHC are more than homes having similar size and quality but on different land zoning, the assessments could be different, depending on the sales in the different zoned properties,” he said.
“If the rate of increase in sale price of this housing is greater than housing in another zoning district, then the assessed value of those properties will follow suit.”
The assessed value of the BHC’s equity share portfolio increased by 4.35 per cent to $94,535,560 from $90,424,550 in 2011. The value of price-restricted homes went up by 0.95 per cent to $9,905,090 from $8,262,608.
The assessed value of the BHC’s overall portfolio includes $3,443,840 in assessed value from the 10 Peyto Place units in downtown Banff.
Paul Baxter, chairman of the BHC’s board of directors, said there are many different factors that affect assessments based on set criteria.
“There’s not a lot of wiggle room in there, but yes one per cent and four per cent are a fairly noticeable difference,” he said. “But what’s happening for sure, I don’t know.”
Local realtor Ray Horyn, an associate broker with RE/MAX Alpine Reality, said he believes the difference in assessment is because the BHC homes are more affordable compared to a similar home on the open market.
When people buy through the housing corporation, he said, they generally have to pay anywhere from 70 to 80 per cent of the value of the home, noting the equity share does change depending on the property.
“That is keeping their prices high. The problem some people have is if you a have a home that is $600,000, for example, and the person only has to pay $400,000, or $450,000, so there’s not a problem selling that,” said Horyn.
“If someone had to buy at 100 per cent they probably would not be able to sell it for $600,000 or $650,000 so it becomes a different market altogether from the open market and that’s kind of the problem,” he added.
“The idea was that this equity share would be something that in perpetuity would be a value to new people buying in down the road, but what we’ve seen is that equity share is eroding a bit.”
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