The Bow LiveSmartPlan
FAQs (Frequently Asked Questions)

The LiveSmartPlan is based on a business model that has been used in Europe, the U.S. and Australia for decades.

What is the LiveSmartPlan?
The rising cost of home ownership in Canada can be traced to one key factor – the cost of land. With the LiveSmartPlan, you own the home, and we lease the land to you on a long-term basis. The Bow project is now in the building phase, and our Presentation Centre is open for viewing. This is a project that has been many years in the making. You can learn more by visiting us in person or at bowliving.ca.

 

Who owns the land?
The land is owned by Her Majesty the Queen in Right of Canada (the Federal Government), who has leased the land to the Developer for 150 years. The Head Lease is between the Developer and the Crown and the Developer will sublease to each of the 46 homeowners.

 

At what frequency do I pay my land lease?
Monthly.

 

What is the duration of the leasehold agreement? Should I be concerned that the developer may decide on other uses for the property?
The Headlease is for 150 years, ending April 30, 2166. The Developer negotiated a 150-year agreement on the entire development with the Crown. The use of the land cannot be changed without your consent as you will have a registered sublease for the balance of the 150-year term. Your sublease will be registered with the Indian Land Registry, in Ottawa. Such agreements are becoming very prevalent in housing developments across Canada.

 

What are the costs associated with the LiveSmartPlan?
Beyond the initial purchase price of the home, there is a monthly rental fee allocated to the use of the land on which your home sits. The cost varies and depends on the size and location of your lot. The average monthly land rental fee at The Bow ranges from $364 – $533 per month.

To ensure ongoing maintenance of the development, common areas and amenity spaces homeowners can expect to pay an estimated $102.00 per month for 3 bedroom lots or $80.00 per month for 2 bedroom lots to cover Common Costs.

 

What are the details about yearly rent increases?
The rent can be raised by a maximum of CPI +2%, you’ll see under British Columbia on the attached pdf shows the annual averages, we take a 12-month average. Whether it stays the same, goes up by 1% or up to the maximum is dependent on the Developer’s discretion and what the market is doing.

Consumer Price Index (2002 = 100) - 12 Month Average
Month-Year Average All-Items Index 12-Month Average % Change
May - 17 123.5 2.0
June - 17 123.7 2.0
July - 17 123.9 2.0
August - 17 124.1 2.0
September - 17 124.3 2.0
October - 17 124.5 2.0
November - 17 124.8 2.1
Dec-17 125.0 2.1
January - 18 125.2 2.1
February - 18 125.5 2.1
March - 18 125.8 2.1
April - 18 126.0 2.2

Produced by BC Stats using Statistics Canada CANSIM Table 326-0020

Note: The 12-month average % change is calculated using unrounded 12-month averages, not the rounded figures that appear in this document.

Note Also: December figures are annual averages published by Statistics Canada; all other months are calculated by BC Stats./p>

What other costs are the responsibility of the Homeowner?
It is the responsibility of the homeowners to pay utility fees such as electricity, gas, water, sewer and property taxes on the house. The homeowner is also responsible for snow removal on their own driveway and pathways as well as their own landscaping maintenance and upkeep. All landscaping in homeowners’ yards requires very low maintenance as we have implemented “xeriscape” planting with an efficient underground irrigation system.

What costs are the responsibility of Warren Avenue Development Corp (WADC)?

  • Property taxes on the land only
  • Capital items such as roadways, pathways
  • The amenity building

Can I ever lose my home?
No, as long as you are honouring your commitments under your sublease (paying your land lease fees, taxes, common costs, mortgage payments, etc.) your tenure is assured. The Headlease is fully prepaid.

What does a fully pre-paid lease mean?
A prepaid lease is simply a lease that has had rent paid fully in advance instead of paying the rent over a period of time. In this case, the Developer has already paid the rent that is to be charged under the Headlease for the full term, therefore the Headlease is said to be a “Fully Prepaid Lease” for the full 150 years. This is similar to many of the developments of this nature in this region and thereby avoids the problems that some prior developments have had where rents were not prepaid.

What are the advantages of the LiveSmartPlan?

  • The cost of the home is typically 30% less than a freehold purchase, so you get more home for your money.
  • You can invest the unused capital or use it to fulfill personal goals.
  • You will live in a desirable community that is well-designed and well-managed.
  • You will have the privacy and space that comes with owning a detached, single-family home but at a much lower price.
  • Building lots in Penticton typically start at $200,000. You can put this unused capital to work for you by choosing the freedom of the LiveSmartPlan.

Can I sell my home at any time? Are there any restrictions on the sale process?
Yes, you can sell your home at any time. The buyer must pass a credit check, which will be conducted by WADC. An added bonus is that the next purchaser does not have to pay Property Transfer Tax on their purchase, saving them approximately $5,000 and making the resale of homes in our community more competitive.

Are there any restrictions on pets, visitors, or the parking of recreational vehicles such as motor homes or boats?
Pets such as cats and dogs are permitted but must be pre-approved by WADC. Pets must be on a leash at all times when they are outside in common areas. WADC reserves the right to restrict certain breeds of animals that might prove aggressive to others. There are no restrictions on visitors to your home. All recreational vehicles must be parked in your garage, except for purposes of loading or unloading (within a 48-hour period). Recreational vehicles are not allowed to be parked on the street, or in the visitors’ parking area.

 

What is the LiveSmartPlan?
The rising cost of home ownership in Canada can be traced to one key factor – the cost of land. With the LiveSmartPlan, you own the home, and we lease the land to you on a long-term basis. The Bow project is now in the building phase, and our Presentation Centre is open for viewing. This is a project that has been many years in the making. You can learn more by visiting us in person or at bowliving.ca.

 

Who owns the land?
The land is owned by Her Majesty the Queen in Right of Canada (the Federal Government), who has leased the land to the Developer for 150 years. The Head Lease is between the Developer and the Crown and the Developer will sublease to each of the 46 homeowners.

 

At what frequency do I pay my land lease?
Monthly.

 

What is the duration of the leasehold agreement? Should I be concerned that the developer may decide on other uses for the property?
The Headlease is for 150 years, ending April 30, 2166. The Developer negotiated a 150-year agreement on the entire development with the Crown. The use of the land cannot be changed without your consent as you will have a registered sublease for the balance of the 150-year term. Your sublease will be registered with the Indian Land Registry, in Ottawa. Such agreements are becoming very prevalent in housing developments across Canada.

 

What are the costs associated with the LiveSmartPlan?
Beyond the initial purchase price of the home, there is a monthly rental fee allocated to the use of the land on which your home sits. The cost varies and depends on the size and location of your lot. The average monthly land rental fee at The Bow ranges from $364 – $533 per month.

To ensure ongoing maintenance of the development, common areas and amenity spaces homeowners can expect to pay an estimated $102.00 per month for 3 bedroom lots or $80.00 per month for 2 bedroom lots to cover Common Costs.

 

What are the details about yearly rent increases?
The rent can be raised by a maximum of CPI +2%, you’ll see under British Columbia on the attached pdf shows the annual averages, we take a 12-month average. Whether it stays the same, goes up by 1% or up to the maximum is dependent on the Developer’s discretion and what the market is doing.

The Bow Livesmartplan vs. Comparable Freehold Single Family Project
FreeHold LiveSmartPlan
Your initial purchase (inclding GST): $597,450 $399,000
Style of Home: Single Level Rancher Single Level Rancher
Size of home (sq. ft.): 1,449 1,526
# of Bedrooms: 2 3
# of Bathrooms: 2 2
Attached Garage: Yes, 2 car Yes, 2 car
Land Plot Size (sq. ft.): 6,142 4,305

All costs quoted herein were accurate as of January 1, 2018, but are for comparative purposes only, and are subject to change. Prospective homeowners are urged to consult current interest rates and lease agreements, through their individual financing arrangements as well as their WADC representative.

This is living.
The Bow Logo

A: 351 WARREN AVE WEST.

T: 778.531.4222
E: thisisliving@bowliving.ca

WARREN AVENUE
DEVELOPMENT CORP.