Buying a condo in Van
 

We have a son and possibly soon a daughter living in Vancouver, but also a daughter and grandchildren in Britain. We are wondering if it would be possible to buy a small condo in Vancouver for our use when we visit but to rent out short term holiday let when we dont need it. Has anyone on the forum done anything like this?

Re: Buying a condo in Van
 

Yes you can buy a condo in Vancouver. As for size I have heard that they can be very small and expensive compared to other areas. Im sure you will be able to rent it out when not using it yourself.
My question would be could you afford to buy one in Vancouver and which areas are you looking at Downtown or North Vancouver etc.
http://vancouvercondo.info/
http://www.vancouvercondoreport.ca/Fcst2011.aspx
http://www.affordablevancouverhomes.com/

Re: Buying a condo in Van
 

Sure. Plenty of people do something similar. There is no problem with a non-resident owning real estate in Vancouver. However, rental income is a little more complex. You need a local "agent" if you are to avoid paying large amounts of tax.

The general rule is that a tenant of a non-resident landlord must pay 25% of the rent direct to the government and 75% to the landlord. If this happens then this is the end of the landlord's tax liability in Canada.

If you appoint a local agent to receive the rents, and you make an undertaking to file annual tax returns, the agent is only required to remit 25% of the profit on the rental to the government and you get to keep the rest. If you are borrowing money to buy the condo the chances are that the profit will be very small so you get to keep virtually all the rent.

There is a bit of paperwork involved: filing the undertaking, issuing tax slips, and filing an annual return. There are penalties for not getting the paperwork done on time.

There are professional property management agencies who will look after most of this for a fee. Some will also help find tenants. However, you don't have to use a professional agent. Your son could do it if he is willing.

Re: Buying a condo in Van
 

You would have to check the strata corporation rules set by the elected council of the building. Some allow no rentals at all and few would allow short term rentals. Besides - you lose all your towels within a few months!