Vancouver Market Flash January 2019

Government Interventions Likely Change Vancouver’s Rental Investment Outlook

Recently, the annual rent limit increase that the BC Liberals instituted in 2004 to equal the rate of inflation plus 2% was replaced with an annual increase to be no greater than the rate of inflation. With a combined 6.3% increase inproperty tax and utilities in the city of Vancouver, many landlords now suddenly have to contend with the possibility of negative income growth on their existing assets. This may have repercussions on valuation, financing, and any decisions about new investment or construction.

Changes in the current political climate have likely shifted the investment outlook so that there may no longer be an incentive to conduct repairs, construct new buildings, or make any acquisitions now that there is an expectation of decreasing returns into the future.

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