Week 2 - Affordable Housing Flashcards

1
Q

Gordon Pape is a Financial Advisor and Broadcaster. What are his ‘4 Pillars of Wealth for retirement planning to retire comfortably without a great deal of worry?

A
  1. Be debt free 2. Max out RRSPs 3. Have an investment portfolio outside of your RRSP 4. Home ownership
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2
Q

Advantages of owning over renting.

A

-you don’t have to pay rent -greater security, stability, and control -acquire a valuable asset/collateral -equity accumulation through home price appreciation (varies greatly with location) -Housing has historically been a good long-term investment

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3
Q

Advantages of renting over owning.

A

-Buying without proper financial consideration can leave you house poor, ex. Bank loans you too much than you could pay back -When a house costs more than 200 times the monthly rent it generates, it makes financial sense to rent rather than own. There are certain areas in Canada where house prices and rents are out of balance.

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4
Q

Pick the correct answer: In Canada, the average net worth of (renting/owning) households is about 8 times that of renting households.

A

Owning -due to the equity value of the home and the fact that most households seek to buy a home once they earn enough to have a choice -people who can’t afford to own don’t own

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5
Q

What percent of Canadians own their own homes?

A

-about 69% of Canadians own their own homes

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6
Q

What is Hugh Pavletich’s definition of housing affordability?

A

-housing prices should not exceed three times gross annual household income of the urban market -for metropolitan areas to rate as ‘affordable’ and ensure that housing bubbles are not triggered -Called the “Price to income ratio” or the ‘median multiple’ -3.0 or less is “Affordable”, 4 or more is “Seriously Unafforable”

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7
Q

3 ways housing can be made more affordable

A
  1. reduce development costs -land, building materials, infrastructure costs & labour -generally, higher density, doesn’t equal lower infrastructure costs per unit, why?because land costs more, in higher density areas 2. increase stock of rental housing 3. reduce operational costs
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8
Q

Define low, medium, and high density.

A

Low density: 5 to 8 units per acre Medium density: 11 to 18 upa High density: 20+ upa

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9
Q

Define zero lot line development. Why it is a method of reducing development costs for affordable housing?

A

-building on the line gives usable space on the side for home owner -these side yards are more desirable to home owners, make people more likely to buy these houses -gives people less land but still makes it more appealing

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10
Q

Define zipper lot development. Why it is a method of reducing development costs for affordable housing?

A

-lot patterns where the rear lot line alternately jogs back and forth to create open space in one portion of the lot -increases density in a conventional subdivision without giving people more land

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11
Q

Define pinwheel plan development. Why it is a method of reducing development costs for affordable housing?

A

-all four houses are roughly the same amount of space -house looks bigger from the front, trick of the eye -failed because two of four houses lack road access, cross over the property of others, communal outside space not always practical

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12
Q
A
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