With rising prices many First-Time Home buyers are looking to continue to rent in their ideal location and buy an investment property in more affordable cities across the lower mainland. An important side note, 20% down is needed to buy an investment property. Since the buyer will not be living in the property they save their First-Time Home Buyer property tax exemption for when they buy their primary residence down the road and after they have built equity on their investment property.
Thinking of buying an investment property? If the condo has a tenant that would like to stay, this is what you need to know as the landlord. Becoming a Landlord can be a rewarding experience if done correctly, for more information on how to protect yourself as a landlord visit Landlordbc.ca and Landlordregistry.ca.
Tenancy issues to consider before purchasing a condo:
- Is there a written tenancy agreement?
- What rules – such as smoking and pets prohibitions – are in place?
- Did the seller take a security deposit from the tenant?
- Was a move-in inspection report completed by the seller and the tenant at the beginning of the tenancy?
- Did the seller increase the tenant’s rent at any point in time during the tenancy?
- If the property is sublet or the tenancy is assigned, did the seller provide their written consent to this sublet or assignment?
- Is there history of disputes between the seller and the tenant?
Questions? Comment below.