Problematic Pricing

, Problematic Pricing

Are Buyers getting priced right out of the apartment building market?

Apartment building market prices remain consistently strong all over the Metro Vancouver area due mainly from the limited supply. What constricts or releases that supply is you, the apartment owners. However there are many influences outside of your control that seem to affect most people’s decision making process.

The biggest concern we hear is “what do I do with the money?” This is a problematic scenario, as it diminishes any motivation to keep investing. For example, when you sell your property the gain will be susceptible to a tax of approximately 22%. Even after you receive market value for your property, and pay taxes, you no longer can afford an apartment building of equal size, defeating the purpose of re-investing your money. Without more profitable alternatives, apartment owners will continue to keep their money safely invested in their current properties. For this reason, sales typically occur as a couple wishes to retire, or no longer wants to dedicate their time and energy into the upkeep of the property.

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