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Saturday, December 18, 2010

Vancouver laneway house rental prices

I will soon be researching rental and resale prices of laneway homes to get a sense of how much value Laneway housing can bring to the owner. Currently I have a few rental numbers
East side @  E.2nd 500  sq ft at $1500 total high end finishing
               @E.Woodstock 500 sq ft includes 225 garage $1500
westside @ W 12th  750 plus 225 garage included at $2200

For these owners who may have invested $250 or more to build the home it represents a cash positive investment. Unlike an investment condo, there will be no  monthly strata fees, and Property tax will go up only marginally adding the 250K to the existing mill rate.  Mortgage at todays rate might cost you $1300 a month so you can pocket the difference. What I suggest homeowners to do is use the existing equity ( we have several lenders that will loan on the total value of your proerty taking into account the rental laneway in the calculation!) and taking out the cost as a line of credit. Conceivably, you could be throwing almost $800 a month at reducing that LOC if you could build the 2 bedroom option on the West side.

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