Vancouver Condo Real Estate Video Blog #658 - April 25, 2011
THE REAL ESTATE BAND AID, If We Don't Make a Profit on My Vancouver Condo, I'm Renting It Out
Ian Watt video blogs about how many sellers have this idea, which Ian Watt calls the Real Estate Band Aid, of renting out their place if they don't make a profit selling their Vancouver condo. Unfortunately, this may be just delaying the inevitable loss and in the meantime damaging the condo which ultimately decreases its value. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs. Please note that opinions, real estate practices, prices and data always changes over time, so please keep in mind the date when this video was published as the information could have become irrelevant over the past days, months and years. Copyright iWatt Media © All Rights Reserved 2011 www.iWatt.ca .
Ian Watt: Hi good afternoon it's Ian Watt in Downtown Vancouver. Now we get this quite a bit when people are trying to sell their place in Downtown Vancouver and they're not achieving the prices that they wanting. They always say well maybe I'll just rented out and renting it out is great if you want to be a landlord and you wanna rented out rented out but chances are the prices aren't gonna change too much for the next few years so be prepared to be a landlord for awhile and be prepared that if it's a brand new property or a property in great condition it's not always going to stay that way when your rented out. Prime example hat it happened was a building that I own in one of a former hockey players on the penthouse and what he decided to do was rent out the property. So he rented it out and I think he was getting seventy five hundred dollars a month on a one year lease and of course with rentals as far as damage deposits are concern you can take a half month rent. Unfortunately the woman who rented it out even know she's wealthy and she was paying a lot of money she damaged the floor she wore her stilettos everywhere. Thirty thousand dollars worth of new floors later. He's got it fixed up, it's looking great but unfortunately the former player could only take a half months deposit it done even cover 10% of what the floor or roughly a cover of 10% of what the cost of the floor works and on top of that they painted out and clean it out and all those other things that go of being the landlord. So just because your going to rented out in cash flow doesn't mean at the end of the term the property is going to be worth the same. You might end up putting a lot more money into it and breaking even once again. My name is Ian Watt and if you have any questions. You can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!