John Scott has agreed to participate in my blog interview about the 2007 real estate market. John Scott is Chief Executive Officer of the Scott Construction Group. A professional engineer, John founded the company in 1984 and turned it into one of Western Canada’s largest and most respected construction firms. The company has distinguished itself through the construction of many Vancouver landmarks, including Waterfront Place, the Morris J. Wosk Centre for Dialogue, and renovation of the Hotel Georgia. www.scottconstructiongroup.com
Q. How did you get into the real estate business?
A. I was trained as an engineer and started out in consulting and design. I found I preferred to be directly involved rather than providing advice and ended up gravitating to construction. I worked for a developer for 4 years and then started my own construction company in 1984. The construction business has been my first priority but I do some development when I see opportunities where I can afford the risk. I also invest in income property where I think I can add value because of my construction experience. Rather than say that I am in the real estate business I would say I am an active watcher.
Q. What are your thoughts about the 2007 real estate market?
A. The world is awash in money looking for a return. As a result the cap rates will trend down even further than they are now and the risks inherent in real estate will be ignored even more as time goes by. It has never been more important to do your homework: know your costs, understand the market, and make sure that the real estate you invest in is going up faster than your cost of borrowing money.
Q. What do you think the real estate market will be like in 2012? (2 years after the Olympics)
A. Cities will continue to attract people and therefore real estate will continue to go up in all vibrant cities. Vancouver is just getting started and over the long run, real estate here, will be a good investment. The winter Olympics will be great for Vancouver but there are so many other larger factors working in Vancouver’s and BC favour, such as the port expansion, oil and gas in the north, and the fact that Vancouver is a desirable place to live.
Q. The Environment and Energy Efficiency seem to be a big topics these days, is Scott doing anything unique in these areas? (ie. using rainwater within a building, etc)
A. We have put half a dozen of our people through LEEDS training and are working with Clients and designers to green building as much as possible. The most cost effective green system we have installed to date is geothermal heat for several high rises in down town Vancouver.
Q. What is your favorite source of real estate news? why?
A. Realtors, lawyers, mortgage brokers, and architects
Q. Do you read any real estate blogs? if so, who? why?
A. No but if you could recommend some I would be interested
Q. Any new projects coming up that we should know about?
A. We are finishing the first phase of Quest University in the fall this year. I think it’s presence in Squamish combined with the improved highway will increase the real estate values and have a very positive effect on the community.
Q. What was your favorite project you worked on? why?
A. Our family cabin at Whistler because it was fun to build and we enjoy it so much now.
Q. What area within BC do you think is the next “hot” area? why?
A. Residential real estate in Vancouver is slowing down which is healthy and not surprising given the price escalation over the last few years. Industrial will be steady and we might even see an office building announced this year. Commercial is doing better and we are seeing major chains positioning themselves to take advantage of the exposure and tourist visits generated by the Olympics. Recreational real estate will continue to be hot as a result of Alberta money and foreign buyers. Whistler real estate has gone no where in 5 years and could be an Olympic champion by 2010.
More Blog Interviews:
Blog Interview: Colin Bosa, President of Bosa Properties Ltd.