Landlords, Think About Your Target Market!

Before you buy, consider who is going to be renting your suite and whether that sector can afford what you wish to rent. Be aware that a person on a salary of $45, 000 per year (well above average wages for office/retail workers etc in the Vancouver BC area) takes home $1,300 every two weeks. So ask yourself the question: how can these people afford my suite? Some developers are selling new one bedrooms for $450,000 which cannot rent for more than $1500, how many people will be able to rent them? Furthermore with $100, 000 down mortgage payments will be over $2000 per month + maintenance and taxes. So, don’t buy if you need the cash flow. If you are in the market for long term appreciation – and I mean long term – then go ahead as the average price of a British Columbia home will rise 10% this year and a further 5% in 2008, and hopefully this will keep on going up over the years.

Here at Downtown Suites Ltd. we know how important it is that landlords understand Vancouver’s current rental climate.