An apartment building for sale in Vancouver can offer a lucrative financial investment and yet, numerous factors should be addressed beforehand. This is even more critical when you consider that as of January 2016, the average price for a single flat was listed at $1,674 dollars. So, what are a handful of pivotal variables to address well in advance?
The Return on Investment
This term is often simply abbreviated as "ROI" in financial circles. In other words, how profitable is the venture expected to be over time? This should be looked at from a long-term perspective, because property values within Vancouver can change dramatically depending upon the state of the economy. Not only is this important before making a personal financial commitment, but it should be noted that lenders will take this very same factor under consideration before approving any type of loan.
Mixed-use apartments are complexes that represent a combination of offices and residential units. Normally, approximately 80 per cent will remain private flats while the remaining 20 per cent are designated as commercial spaces. This can be an excellent idea if the property is located within a business district or commercial centre. Should residential apartment sales drop, extra income can still be derived from office rentals.
The State of the Complex
Always employ a surveyor as well as an architect to examine the apartment buildings for sale. They will both be able to identify potential problems involving plumbing, heating, insulation, or electricity. Also, the building must be up to code in order for a purchase to be approved. Without this type of expert research, the owner may very well find that he or she must spend more to bring the unit(s) up to current standards.
It is apparent that purchasing any type of Vancouver apartment complex can be a tricky task. Even the experts will normally choose to take advantage of third-party services. These firms are able to streamline the entire process and highlight any factors that could affect the purchase price. Such an investment should be taken very seriously and eventually, your business dream will evolve into a reality.
Rent trend data in Vancouver, British Columbia, RentJungle.com
How to Buy an Apartment Complex, WikiHow