The home must be big enough with street appeal and in good enough condition with an attractive floor plan to renovate. If the house is below 2000 square feet in total, then the small size will take away from the excellent renovation.
If there is too much structural work to be done, then the cost goes up and the buyer does not want to pay extra because you had to redo the drain tile, for example. The renovation work needs to be mostly what the buyer can see, meaning mostly cosmetic work. If the home needs a new roof then this is okay as this will give the buyer piece of mind and look good to improve the house's street appeal!
The neighbourhood and the block need to be well taken care of. You do not want neighbouring houses in poor condition bringing the value of your house down.
The purchase price needs to be fair because if you overpay, this will cut into your profits when you sell. Don't always go for the cheapest house as there are reasons it is cheap and the renovations will not reach their full potential because the negatives of the house or property will hold back the effectiveness of the nice renovations. For example, buying on a busy street or buying a house with poor street appeal or buying a house with only 2 bedrooms on the main floor.
If you are a foreign buyer, the low Canadian dollar will give you more buying power. The interest rates in Canada are low at less than 3% and if you have 40% down, it is fairly easy to get a mortgage with no questions asked.
Taxes on the purchase are property purchase tax of 1% on the 1st $200,000 and 2% on the balance and because the property is not new, you do not have to pay the 5% G.S.T. one time tax.
My Real Estate fees on the sale only and not the buy are 7% on the first $100,000 and 2.5% on the balance plus 5% G.S.T on the total Real Estate fee.
I have a team of renovators that I have used for many years and they will ensure that you will get excellent prices. I make sure that you spend your renovating dollars on the areas where you receive the best return like modern colored interior/exterior paint for the walls, new flooring, bathroom and kitchen renovations and simple landscaping etc.
If you have any questions, please feel free to give me a call at 604-313-7280.
I have been a top producing Realtor® for 25 years with 22 consecutive years ranked in the top 10% and 16 consecutive years ranked in the top 1% of all the Greater Vancouver Realtors® (12,500 Realtors® in Great Vancouver in 2015!).*
I am a no pressure Realtor® who has experienced assistants behind me to help find you the best investment at the lowest possible price. To reflect the multiculturalism of Vancouver, I offer service in English, Spanish Mandarin, Korean and Malay.
Sincerely, Geoff Jarman, B. Comm.
NOTE: *This representation is based in whole or in part on data generated from 1991 to present by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assume no responsibility for its accuracy. Information from REBGV; updated JAN 2016.
This communication is not intended to cause or induce breach of an existing agency agreement.