Buying a Condo as an Investment

British Columbia

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Some Things You Should Know!

Owning rental property in Victoria has historically been a good investment.  Although the actual income from the property may not give a huge (if any the first few years) profit, the fact that Victoria Real Estate doubles in value approximately every ten years is a major consideration for many investors. Recently, many investors have turned to condominiums rather than single family homes or duplexes because of the affordability and  lower maintenance.

Before purchasing a condo for investment it is important to understand how The Strata Property Act and the By-laws of the Strata Corporation affect your right to rent or lease a property.

  1. Under the standard by-laws provided by the new Strata Property Act, rental or leasing of a Strata property is allowed unless the Strata Corporation changes the By-laws to restrict rentals or leasing in that particular Strata Corporation.

  2. A Strata can pass such a by-law at anytime and with one exception the by-law will apply to all strata units (see section 143 Strata Properties act for time frame to end tenancies).

  3. The exception relates to first owners and the Rental Disclosure Statement filed at the time the Strata is registered by the Developer.  In most cases the First Purchaser (the buyer from the Developer) has a guaranteed right to rent, regardless of by-law changes passed by the Strata Corporation. The Property Disclosure is not a standard form and as a result each Strata must be dealt with on an individual basis.

  4. Being the first owner of a strata unit is the best way to guaranteed the right to rent your strata property but if rental is your objective you should have your lawyer check the Rental Disclosure Statement, the Strata By-laws and any other documents they may think relevant before you purchase.

If you have any questions please seek legal advice before purchasing a strata property!

Philip Illingworth
DFH Real Estate Ltd.

Philip Illingworth    DFH Real Estate Ltd.
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