How will the 15% Foreign Buyer Tax affect the Rental Market?
Hi I’m Emily Coates with Crosstown Marketing Group and I’m here to talk to you about the residential rental market here in Vancouver.
As the residential real estate market continued to increase this year with prices sky-rocketing, so were rents. In fact rents have continued to go up and up over the course of the year this year. With vacancy rates at less than 0.6% it created a huge demand for rental supply that just does not exist.
Most landlords, when one renter moves out, rent is increased significantly before the next set of tenants moves in.
With the new 15% Foreign Buyer Tax, we are anticipating seeing:
- People who were looking to purchase a home in Vancouver who do not have a Permanent Residence card will be holding off until that status comes in causing them to have to rent
- The number of renters competing for rental properties will increase greatly as more people immigrate to the country
- This will create even more demand on an already taxed rental market
If you are renting or looking for a rental there are some tips that I can suggest in order to stand out from the crowd:
- When you reply to an ad, consider telling them a little about yourself
- Have a list of references with you when you go to see a place
- Also carry a cover letter to hand to the landlord when you go to look at places
- Job Employment letters can also help as a handout for you to leave with the landlord
If you are an investor and are looking to purchase, now is a great time to buy. Because things are staying on the market a little longer than earlier in the year, there is a little bit of uncertainty that you can capitalize on and rents are incredibly high and likely to move higher, now would be a great time to buy that investment property.
I’m Emily with Crosstown Marketing Group and I talk Real Estate.