Investment Property Guide
There's a lot to consider when buying an investment property. First you need to be clear what your objective is. Are you buying for a long term investment to hold? Buy a property to rezone and develop? Or something in between? Here we cover some of the factors that you need to consider.
Costs
Whether purchasing a property for investment or for personal reasons the real estate transaction costs are the same. To get more information about the costs of buying and selling including closing costs and HST click here. In addition to the typical purchase costs you will need to consider the costs to get a survey done, architectural plans, rezone, renovations and to costs to build if necessary. If you don't plan on living there you will also have to be ready to pay capital gains tax. Get more info on capital gains tax by watching this video.
Zoning Bylaws in White Rock
| Permitted | Min Width | Min Depth | Min Area | Max Height | Max Lot Coverage (1) | Max House Size (2) | |
| RS-1 | One-Unit Residential Zone | 49.2 ft | 89.9 ft | 4,994 sq ft | 25.26 ft | 45% | 50% |
| RS-2 | One-Unit Residential Zone (Small Lot) | 32.8 ft | 89.9 ft | 3,897 sq ft | 25.26 ft | 50% | 60% |
| RS-3 | One-Unit Residential Zone (Hillside) | 29.5 ft | 89.9 ft | 3,000 sq ft | 25.26 ft | 50% | 70% |
| RS-4 | One-Unit Residential Zone (Estate) | 98.4 ft | 26,136 sq ft | 25.26 ft | 45% | ||
| RT-1 | Two-Unit Residential Zone | 29.8 ft | 100 ft | 7,989 sq ft | 25.26 ft | 45% | 50% |
| RT-2 | Three-Unit Residential Zone | 59 ft | 100 ft | 7,989 sq ft | 25.26 ft | 45% | 60% |
| RM-1 | Low Density Multi-Unit (3) | 59 ft | 100 ft | 7,989 sq ft | 25.26 ft | 45% | |
| RM-2 | Medium Density Apartment | 59 ft | 100 ft | 7,989 sq ft | 35 ft | 45% | 110% |
| RM-3 | High-Density Apartment | 59 ft | 100 ft | 7,987 sq ft | 75.46 ft | 45% | 200% |
| RM-4 | Marine Drive Low Density Apartment (4) | 59 ft | 7,965 sq ft | 25.26 ft | 50% |
(1) Maximum area of the lot you're permitted to cover. For example, an RS-1 lot of 5,000 sq ft can have a max lot coverage of 2,250 sq ft (5,000 x 45%). This does not mean your house size is limited to that. See (2) for more details.
(2) Maximum house size that can be built. For example, an RS-1 lot of 5,000 sq ft can have a max house size of 2,500 sq ft. RM-3 lot can have 16,000 sq ft of living space.
(3) RM-1 zoning allows for a maximum of 24 units per acre.
(4) Each unit needs to be a minimum of 1797.63 sq ft
Buying Direct for your Houses Renovations
Buying a fixer-upper is a great way to save money if you have the necessary knowledge, skills, funds and time. To have a good return on investment it is important to know which rooms to update to today’s standards.
Kitchen updates offers a great opportunity dramatically increase the value of your home. Cabinets made from beautiful, high-quality wood and fixtures in the latest materials enhance the look of your kitchen and boost your home's worth. Ceiling fans help reduce utility bills, add long-term value, and are available in increasingly diverse decorating styles.
Another important item that buyers want to see when entering the kitchen is dark granite countertops. They can be a high expensive, but they are very durable and will attract the potential buyer’s eye.
Appliances are also a good investment. Most buyers these days want to buy “move in ready” houses/ apartments. By updating the washer and dryer as well as the refrigerator and stove, you will increase the value of your property, especially when you install stainless steel appliances.
Hardwood floors offer instant appeal and a great return on investment. From sustainable bamboo to budget-friendly laminates, wood floors add beauty and value to your home. Lighting is equally effective at quickly transforming the look of your house. Dimmer switches and track lighting create instant atmosphere and brilliantly highlight artwork and other decorative elements.
All these elements can be expensive and it is important to find good deals in materials in order to save more. A good way to find savings is to compare prices with different stores and take advantages of promotions or sales.
Another way you might find interesting to explore is to buy direct from manufacturers. There are several companies that allow you to purchase directly, and avoid the retail markup. You generally will need a direct buy membership in order to buy but it can be worth it if you have to renovate several rooms.
Direct Buy is one of these clubs where you can find furniture, appliances, flooring and more for your renovations. To learn more about this company, and their Direct Buy membership program, you can visit one of their stores. You can even try their membership program for a month, free of charges. It is a good idea to do some research before deciding if that would be a good option for you. You can easily find Direct Buy reviews online, and see what customers think of it.