There are three housing developments in the works along Gottingen. The first is a horrendous looking apartment complex going up at the corner of Falkland (Hello! Street level parking garage?!), the second the more-promising Theatre Lofts project just to the north.
But the third is the most interesting on the street. Gottingen Terrace is the fourth and final project of the Creighton/Gerrish Development Association a decade-old organization formed to build high-quality affordable housing in the north end.
The project consists of 48 residential units—split between one, two and three bedroom units—to be built on the former Sobeys site across from the library. Architectural drawings depict a well-designed complex comfortably arranged, and there’s already a buzz in the neighbourhood.
Creighton/Gerrish is targeting long-term residents of the area as prospective buyers, as well as those with work and family connections in the north end. And these are exceptionally affordable—ranging from about $129,000 for the one-bedroom units to about $198,000 for the three-bedroom units. Monthly payments could be as low as $647, affordable to a family with total income of just $33,000 a year.
The obvious worry is that people would buy these condos to flip them, but Creighton/Gerrish has addressed that concern by collecting all their costs and time, and well as the increase in property value over the last 10 years, as a second mortgage to be held by the provincial affordable housing program. Residents could sell their units, but they’d have to first pay off off the second mortgage.
Grant Wanzell, president of Creighton/Gerrish, says he expects that property values in the area won’t take very long to exceed the collected price of the first and second mortgage, and so residents will realize a long-term equity gain, but won’t have incentive to flip their properties quickly.
Wanzell also has interesting things to say about gentrification in the area—he’s not concerned about it, noting that there’s much social housing that isn’t going anywhere. The new upscale residents, he says, “only add to the mix. That’s a good thing.”
You can check it out Gottingen Terrace for yourself at the Creighton/Gerrish office, 2020 Gottingen, or call Wanzell at 789-2432.
This article appears in May 28 – Jun 3, 2009.
So which bank or credit union is going to grant a morgage when an existing mortgage is in place ?
Looks like any buyer will need a heft down payment; normally 75% of the price and if more a buyer will have to find 2% of the full purchase price to pay for mortgage insurance. Don’t forget the 1.5% deed transfer tax on top of closing costs. What happens if a buyer defaults on one of the morgages ?
Will a buyer be required to send their kids to the nearest school and further revitalise the area, especially with a new elementary school soon to be built.
Should read -‘…normally 25% of the price and if less a buyer…’.
Brain running faster than my fingers.
Closing costs and taxes were including in all the payment info I reported. A buyer defaults, the same thing that happens when anyone defaults happens. There’s no expectation that there’ll be any difficulty selling these, or getting financing for buyers. It’s a great deal, for a buyer, or for the bank that ends up with a foreclosed property.
Tim, Thanks for the follow up info.
Nice to see that place cleaned up. May spur the adjacent properties to improve their appearance. Tourists coming into metro over the MacDonald bridge are told not to drive down Gottingen street.
As an aside,the site has a significant japanese knotweed problem, it’s a nightmare.
When is HRM going to clean up that old Metro store, quite a mess. Bt-law officers should be taking a serious look at that property instead of harassing old ladies who can’t paint their houses.
Tim, that ground level at Falkland St. is being left unfinished while they get the upper floors ready. If you’d actually stop and look you’ll see the plumbing and utility conduits are already in place and waiting for an eventual concrete floor. It will be retail space, not parking.