The term renoviction has become the coined term for any major capital improvements on purpose-built rental buildings; however, soon this will be a word only used for history. With Vancouver poised to set up regulations stipulating strict tenant relocation policies, a court decision allowing tenants to come back into their renovated suite at the previous rent, and a provincial task force recommending a halt on all future capital upgrade projects, the writings on the wall. No more renovictions.
What this means for retrofitted properties
With future buildings only upgraded unit by unit on tenant turnover and strong demand for high-quality rentals, there is going to be increasing competition with tenants to find rental accommodations like 2425 York Avenue. This will likely put upward pressure on the rents and downward pressure on vacancy rates. Not only are you getting an investment that has increased potential for higher returns, but also stronger financing.
Financing gets better
Due to the higher cash flow and lack of any capital expenditures banks love financing newer rental stock. CMHC may give forty-year amortization meaning that you can leverage these properties considerably more than older rental stock. With less money down and optimized cash flow, the premium for these types of investments only will increase.
This is an excellent opportunity to take advantage of changing legislation with a low maintenance property that requires a much lower down payment. 2425 York is a prime example of how to capitalize on a shifting market. If you think this may be the right opportunity take a look at the property below to get more information on this kind of investment.