The Long Game With Land Lots | The Big Story | Real Vision™

TL;DR

Teardown development in the family-oriented outskirts of Vancouver offers affordable opportunities for buyers looking to build and raise a family, despite the high property prices.

Transcript

Yeah, so I wanted to bring you here, because it's basically like the east side of Vancouver. It's more on the outskirts. It almost borders Burnaby, which is like the adjacent city, and it's basically very familyoriented. You get a lot of renters. Like, none of these houses are going to be like vacant. So this is more like what you typically find fo... Read More

Key Insights

• 👪 Teardown properties in the outskirts of Vancouver, especially family-oriented areas, are highly sought after and sell for over a million dollars.
• 👀 Buyers in this market are often families looking to settle down and establish roots, rather than investors or speculators.
• 🇳🇿 The potential rental income from a new house in this area is not enough to cover the mortgage costs, but buyers bank on the appreciation of land value over time.
• ❓ Basement suites are common in this neighborhood, providing additional rental opportunities for homeowners.
• ✋ The high demand for teardown properties in this area can be attributed to the relative affordability and proximity to amenities.
• 👶 The estimated value of a new house on a teardown property in this neighborhood is around 1.5 to 1.6 million dollars.
• 🎴 Investors in this market typically consider it a long-term play, relying on the appreciation of land value rather than immediate cash flow.

Questions & Answers

Q: Why are teardown properties in the outskirts of Vancouver selling for over a million dollars?

Teardown properties in these areas are in high demand due to their family-oriented nature and relative affordability compared to other parts of Vancouver. The limited supply and proximity to amenities contribute to the high prices.

Q: What is the most likely scenario for buyers of teardown properties in this area?

Buyers are commonly families looking to settle down for the long term. They are not necessarily speculators or flippers but instead aim to establish roots and raise a family in these more affordable neighborhoods.

Q: Is the potential rental income enough to cover the mortgage of a new house in this area?

No, the estimated rental income of around $4,000 per month would not typically cover the mortgage costs. However, investors see the value in the land increasing over time, which offsets the negative cash flow from the rental property.

Q: Are basement suites common in this neighborhood?

Yes, basement suites are prevalent in this neighborhood and are often utilized by homeowners to generate additional rental income and support the mortgage costs.

Summary & Key Takeaways

• Teardown properties in the outskirts of Vancouver, particularly in family-oriented areas, are in high demand and often sell for over a million dollars.

• Buyers in this market are typically looking to build a new home and settle down in a more affordable area.

• The potential rental income from a new 2,500 square foot house in this neighborhood is estimated to be around $4,000 per month.