Uncovering “Lesser-Known” Questions in the Vancouver Real Estate Market

If you’re in the Vancouver real estate market, you probably have many questions on your mind. While some of the most commonly asked questions are important, there are a few less frequently asked questions that are just as vital to consider. We have listed the less commonly asked questions to help you make informed decisions: 

What is the impact of transportation infrastructure on the real estate market?

The answer is significant. Transportation infrastructure significantly impacts Vancouver’s real estate market, making properties near public transit or major routes more desirable and costly. Think of the under construction Broadway Subway Project. Properties located near public transit or major transportation routes tend to be more desirable and can command higher prices but you also need to be mindful of the changes that new infrastructure will bring to the surrounding area. Often community plans and land use see significant changes and this is important to be aware of before you buy. It’s important to consider changes that new infrastructure could bring to the area before making a purchase.

What is the impact of heritage designation on the real estate market?

Heritage designation is a designation given to buildings or properties with significant historical or cultural value. It can have an impact on the value and marketability of a property, as well as the ability to make changes or renovations. One major impact is the potential limitation on property alterations and modifications. Heritage properties may have restrictions on renovations or additions to preserve their historical character, which can limit the flexibility for buyers who desire extensive customization. On the other hand, heritage properties often hold a unique charm, historical significance, or architectural appeal that attracts buyers who appreciate the character and cultural heritage they represent. The scarcity of such properties can drive demand, leading to higher prices. It’s important to be aware of any designations prior to making a decision. 

What is the impact of the housing market on the rental market? 

The housing market and rental market in BC are closely intertwined. The high cost of real estate in Vancouver can have an impact on the rental market, as more people may choose to rent instead of buying a home. This can lead to higher demand for rental properties and potentially higher rental rates. Low vacancy rates may result from high demand and limited rental availability. Housing market conditions can also influence the construction of rental housing, with developers responding to demand fluctuations. Additionally, factors such as migration patterns and government policies can impact the rental market. It’s important to be aware of this dynamic when considering an investment in the real estate market. 

How do strata fees work and what do they cover?

Strata fees are fees paid by owners of strata properties, such as condos or townhouses, to cover shared expenses like maintenance, repairs, and amenities. These fees contribute to shared expenses and maintenance of the strata property and its common areas. They cover costs such as building insurance, utilities for common areas, landscaping, garbage collection, and general maintenance. Some fees may also go towards amenities, professional services, reserve funds for repairs, and contingency funds for unexpected expenses. The amount of strata fees varies based on your unit entitlement. It’s important to understand what is covered by the strata fees before purchasing a property, as they can add up and affect your overall budget.

Expert Tip: Is there any major work coming up in the building over the next few years? Do a quick calculation based on your unit entitlement, the proposed expense to help you better budget for any upcoming work. 

What is the difference between a leasehold and freehold property in Vancouver?

Leasehold properties are owned by the leaseholder, who pays rent to the landowner. Freehold properties, on the other hand, are owned outright by the buyer. Leasehold properties can be more affordable than freehold properties, but there are also additional risks and restrictions associated with leasing land rather than owning it outright. It’s important to note and understand the two types of ownership to help you become more educated in your purchasing decision. 

We hope these answers have been helpful. If you have any questions of your own about the Vancouver real estate market, please feel free to ask in the comments section below, we have also linked our FAQ page: Click Here 

We are always happy to provide guidance and assistance!