The Leprechaun Effect
Some apartment owners are sitting on a pot of gold but don’t realize it.
All of the municipalities around the lower mainland are experiencing population growth, and in an attempt to maintain a high standard of livability through the retention of green space and community amenities, planning departments are rezoning strategic areas to allow for increased density.
The increased density is the key. In Burnaby, the property must be located in a town centre area and be approved for extra development density in the community plans for Brentwood Town Centre, Lougheed Town Centre, Edmonds Town Centre, or Metrotown. In Vancouver, there are several areas, most notably the Cambie Corridor.
Which brings me to the “pot of gold”. Within the amended development areas there are several small to medium sized apartment buildings. In many cases those buildings are older, in need of some major renovations or repairs, and because of their inclusion in the areas designated for higher density are actually worth more as development properties than they are as rental properties.
I’ve been working with Ben Williams from London Pacific Property Agents, a company that specializes in land assembly for redevelopment, and we’ve identified and worked with property owners and property developers to fully realize the potential locked up in the apartment properties. In several cases, we have gotten a substantially increased price based on the unused potential density calculations, and after factoring in the capital gains taxes have helped the selling owner either retire or recapitalize a newer, or larger rental property.
If you’d like to discuss your current situation and see where you fall within the new zoning density guidelines, Ben and I would be more than happy to discuss this with you.