Sell Now vs. Later

Am I better off to sell my property now as a land assembly or wait?

Land Facts

  • There is no more land left to build new single family homes in Greater Vancouver
  • Cities have the ability to rezone as many areas as they want
  • Building generates a lot of tax revenue (Property Taxes, Community Amenity contribution, Development Cost Levies, Translink Tax, GVRD Tax, etc.)

Housing

Housing and land prices are a function of supply and demand.

Every time a city rezones a single family area they reduce the supply of houses by that amount.

Detached Housing Supply

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Most of these owners repurchase at least one new home with less available. Plus a significantly increasing population.

Detached Housing Demand

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bc pop estimate

Land

Every time the city rezones these single family areas more redevelopable land is created.

Land Supply

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As demand increases from growing population the supply also increase from new areas getting rezoned.

How do I know when I'm better off selling?

The bigger the gain the better off you are from selling. The gain is the extra money made from selling as a land assembly vs. selling as a house. Here is how to calculate the gain:

[ LAND PRICE – REPLACEMENT COST (HOUSE PRICE) = GAIN $$$ ]

If your land price goes up less over time then your replacement cost (the gain from selling as a land assembly) will decrease.

Other Land Price Factors

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Construction Costs

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Municipal Taxes

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Land Price

gain

Final Verdict

In the future, red down houses available and red down land available = red down replacement house costs and red down gain from house value to land value.

IF YOU WANT TO STAY AHEAD OF THE MARKET, CLICK HERE