ChelseaFC

Hello Again ...

Is anyone (especially recent Brit Expats) involved in Property Developing in the Vancouver region?

Have been property developing as a sideline here in the UK and was wondering if it could be a potential full time occupation for me when I come to Vancouver.

Do you think its worth getting into? What are the potential profit margins?

Cheers
CFC

Frank'n Sense

Hi CFC,

While I am not into property development myself, I am a realtor, and have helped a few people buy investment properties to reno and flip - which is basic property development. There is potential to make money at this, but you do need to factor in the relatively high price of property in Greater Vancouver area.

Where we are, on the north shore, and I am sure elsewhere, the bigger bucks are made by those buying old homes on adjoining plots of land, and then knocking them down and buildiing a duplex or even townhouse development. This kind of property development is going to require deep pockets and is not the place to start your career - but perhaps it is where you can aim for.

Start small if you are considering it. Buy an older apartment - put some hardwood floors (if allowed), new kitchen, bathroom and then watch buyers fall over themselves trying to buy your reno'd property.

Let me know if I can help when the time comes...

Warmly,

Frank

JonboyE

I never cease to be amazed by the lack of imagination of house buyers. So many will pay over the odds to have their "dream home" put on a plate for them.

For smaller scale development try looking for areas with 1960s or 70s housing where the city will not allow houses to be torn down and replaced by monster homes. Some of these homes have been lived in by the original purchaser since they were built and the windows, flooring, kitchen and bathroom suites will put the vast majority of buyers off. I guess for most people house buying is an emotional rather than rational process.

In the strong market we have experienced in the last few years I know a few people who have bought houses like this, spent around $100,000 on renovation and sold on for $80,000 to $100,000 profit. If you can do that twice a year you will have a very, very acceptable income.

ChelseaFC

Thanks Frank and Jon ..

Frank I am an avid reader of your website.. I think you have done a wonderful job.

Another question, am I able to buy a property in Canada whilst still being a British citizen (and not being a Canadian resident)? if so, how do the mortgage agreements/taxes work?

JonboyE

Yes, there are no residency restrictions to owning real estate. However, finding a mortgage will be very difficult. I don't think the main banks will be interested so your best bet is to go with a mortgage broker who might have access to some other funders. Expect to put down a substantial deposit.

Property taxes are generally collected from you by the mortgage holder who then pays them to the city. If not, you are responsible for paying them on or before the 4th July each year. If you are late there are stiff penalties and if you are delinquent the city can sell the property from under your feet. It is best to pay.

There are tax complications when a non-resident sells real estate in Canada. See this http://britishexpats.com/wiki/Tax_and_House_Sales

live to ski

Some friends have just bought in the interior, so this is pieced together from what they've told us and what I've read elsewhere.

I think that most mortgage providers like non-PRs to put down a 35% deposit, especially in the recent sub-prime chaos going on in the US (and UK??).

If you have less than 35% then you need to take out insurance.

If you have lived in Canada less than a year you have to pay an extra tax as well.

Can anyone clarify these?

Then there is the annual property tax that everyone has to pay, which JonboyE mentioned.