Will The Softening Market & Empty Homes Tax Increase Vancouver Rental Inventory? For the time being, some of the heat has come out of the Vancouver real estate market. The days of seeing buyers line up around the block and struggle for access to buy off-plan presales may be temporarily gone.
Today we are seeing investors who were savvy enough to have purchased a coveted piece of Vancouver architecture now choosing to hold these investments. They are now renting them out instead of selling or assigning their contracts. That new strategy in the softening market means there’s a renewed emphasis on reliable and skilled property management services. Vancouver’s Bodewell Real Estate Management has stepped into that emerging space.
Mr. Tize is an active real estate investor who has been strategically investing in Vancouver’s presales real estate market. His strategy until most recently has included buying off-plan and lucratively selling the same contracts even before completion of the buildings. However, Mr. Tize recently revised this strategy. When asked why the change of strategy he replied:
“It’s a good time to hold and rent the properties I purchased in the now formerly hot market. I am working with a licensed property management company. They find me the right tenants, processes them through a vetting process, collects the rent,
and manages everything for me. It has made me worry free. This way, my investment property is taken care of, my tenants are happy, and I can enjoy the passive income.”
“There is always an opportunity in every kind of market,” says Donald Mackenzie, CEO of Bodewell. “Rental incomes are secure passive incomes and an ideal way to safeguard your money. “We are seeing more and more investors bringing inventory to the rental market with many presales now completing in combination with the Empty Homes Tax.
“Smart investors are enjoying hassle-free returns and passive incomes by hiring companies like ours to safeguard their investments and manage their properties within the ever-changing legislation of the Residential Tenancy Act.”
Softening markets resulting in increased supply should have some impact in a small sector of the market. We will also keep an eye on how well our city manages the now projected $38 Million incremental tax revenue from the controversial new empty homes tax. We know $8 Million has been allocated to affordable housing so far. It was reported that setting up the collection of this tax costs $7.5 Million. Furthermore, it will cost at least another $2.5 Million annually to manage the collection of these taxes. That leaves a projected $20 Million unallocated that needs to be wisely and strategically spent.