Have you been contemplating purchasing real estate as an investment in Victoria? Perhaps you own other properties here in Victoria or elsewhere and are ready to purchase another.
The real estate landscape has changed drastically in Victoria over the past few years. Prices and rents have increased, bylaws have changed. It is a sellers market right now, and getting the edge on purchasing an investment property is more challenging than it's ever been. (Don't worry though, that is what we are here for :-)
So, on to the meat and potatoes of the matter at hand. There are a few things to consider as you look for an investment in Victoria. Those include:
Are you looking for a Vacation Rental?
How do you intend to manage your rental?
Have you considered executive, furnished rentals ?
What are some important restrictions that I should consider prior to renting?
What is the difference between a building purchased from 2010 to present vs. prior?
Am I aware of the current tenancy legislation?
The above questions are all important and complex in their own way. That is why we've created this short e-book and blog with all of the information that you require as you are delving into purchasing a real estate investment:
1. Vacation renatls in victoria
Not all buildings and areas allow vacation rentals in Victoria and many buildings and regions are strict in terms of monitoring nightly rental activity. If you are looking for a vacation rental, it is vital to ensure that the buidling you purchase in is located in the previously designated zones allowing for transient use. If it is, you will still want to look into the costs of licensing and the potential GST implications for the purchase. We recommend that you consult with your accountant prior to investing in a vacation rental property to ensure that it is the right fit for your investment goals. We are, of course, here to answer additional questions on Vacation rentals, so please call us anytime.
2. Executive Condo Rentals
Primarily, executive rentals are furnished and include parking. These rentals typically generate much higher monthly revenues than your standard, non furnished rental. There are a handful of companies who specialize in executive rentals. These are a turnkey solution with hassle free managmeent. The kicker is that they take a significant percentage of the revenue for their service.
3. Regular condo rentals
Because the rental market is so tight in Victoria, there are a good number of options for rentals. From students to professionals, Victoria is home to a robust demographic of renters. Studios in Victoria can command rents as high as $1,500/month. Two bedroom units are renting for between $1700-$3,000/month depending on the size, location and quality of finish.