Q: I own an old home in Tsawwassen that I am renting out. It is not in great condition and I am thinking that I should sell it before major items happen. The assessed value is $479,000. It is basically lot value as the house is valued at less than $20,000. I own a condo in South Granville in Vancouver. I work for the City of Vancouver and will retire in 4 years with a healthy pension plan. My question is, should I put the proceeds of the sale of the home in another rental property? Thanks very much.
A: Personally I always like the certainty of rental income that is also coupled with the potential for capital appreciation.
There is also the fact that interest at the bank is in the 2.5% – 3% range – historical lows.
In an ideal world of course you find a property that cashflows based on say – 25% down payment – and the tenant pays off the rest over time for you.
In Vancouver that is no longer possible. However in the general Mission, Abbotsford, Chilliwack areas there are fine duplexes, 4-plexes or simple near new condos that give a much better return on your investment.
I would pick a realtor in those areas and see what my money would buy, how much income it would bring and then decide.
Finally make sure that you have a good professional Realtor in Tsawwassen who gets you the best price possible for your existing home