Good news for owners and tenants! … Bad news for 1st-time buyers and low-budget buyers!
One of the biggest roadblocks to selling your unit in BC has always been rental restrictions, since it requires the buyer to be an end-user. This will change when this policy becomes law!!!
Owners who own a condo with rental restrictions will no longer be forced to sell when they move. They can keep their unit and now rent it.
Second, owners will see their home values increase by tens of thousands of dollars because they can sell to anybody—not just end-users. For example, a $600K unit will see a bump of about $20K to $30K once restrictions are lifted, because there’s more buyers for the unit, which makes the unit more valuable and pushes up prices.
The benefit to tenants is obvious. There’ll be more rental options in some of Vancouver’s oldest but most desirable neighbourhoods like Kitsilano and West End, where it seems that half of buildings have some form of rental restrictions.
There’s no telling how many units this will add to the rental pool, but my guess is that it’s in the hundreds for Downtown Vancouver and areas like Kitsilano and West End. In many strata
s, I find rental waiting lists that are years long with 10 or 15 owners wishing to rent their home only to be thwarted by a set of bylaws that handcuff their options.
Again, the restrictions will disappear later this week when the legislation is passed.
Make no mistake! Don’t expect this to lower rents. The big bonus is that it provides more options to tenants who want to enjoy the Downtown lifestyle and live within walking distance of work.
However, this comes as a body blow to 1st-time home buyers. They’ll now have to compete with all other buyers, including deep-pocketed investors for the same condos. Prior to this change, stratas with rental restrictions were great options for 1st-time home buyers. There was less competition for these units because investors avoided them.
In a nutshell, this will increase rental supply and give more options to homeowners.
What is your opinion on this? Happy to see restrictions lifted?
Call or write me if you want help understanding the impact this has on you and your family!
CHRISTIAN BUTZEK
OAKWYN REALTY DOWNTOWN
c: 778 322 6745
e: me@vancityhomelistings.ca