That?s my building. I rent the best unit in that building for the last 13 years. There is a unit in that building as #1 on Vancouver Price Drop last week. Here is my Facebook update this morning:
Update January 17, 2013
2013 Assessment: $316,000
Total Rent Collected (annually): $12,000
Property Taxes for 2013: $1204.43
Strata Fees for 2013: $250/month = $3000
Assumed Marginal Tax Rate on Rental Income: 30%
Assumed Outstanding Mortgage: $0
Assumed Outstanding Mortgage Interest: $0
Assumed Maintenance: $0
Total Return for 2013: ($12000 ? $1204.43 ? $3000) * 0.7 / $316,000 = 1.7%
Average Inflation of Canada in 2012: 1.58%
Assuming my landlord has no mortgage interest expense, they are barely able to keep their invested money from devaluing against inflation. I appreciate them taking this risk and letting me free up my capital for a diversified investment account. It?s interesting that the landlords could take their entire $316,000 (if they could get that on an immediate sale) and put it in any of the following High Interest Savings Accounts and they would make more money than owning and renting out this home, risk free.
AcceleRate Financial, 2.00%
Achieva Financial, 2.00%
Ally High Interest Savings, 1.80%
Bridgewater Bank Smart eSavings Account, 1.85%
Canadian Direct Financial KeyRate Savings Account, 1.90%
Hubert Financial Happy Savings Account, 1.85%
MAXA Financial MAXA Savings, 2.00%
Outlook Financial High Interest Savings Account, 1.95%
Peoples Trust Peoples Choice e-Savings Account, 1.90%
Source: http://vreaa.wordpress.com/2013/01/16/house-price-and-family-income-growth/
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