Five Metro Vancouver mansions rented for (relatively) cheap, cheap, cheap
An $8 million home renting out at $4,000 a month gives the owner a rate of return of just over one half of one per cent — but it's better than paying hundreds of thousands in vacancy taxes.
It’s being reported that dozens of multi-million dollar homes on Vancouver’s westside have come up for rent as a result of the provincial Speculation and Vacancy Tax and the city’s Empty Homes Tax.
The empty homes tax is set at one per cent of the home’s assessed value, while the provincial tax is set at two per cent of assessed value. So, if you own an $8-million home that sits empty for most of the year you will have to cough up $240,000 a year extra in taxes. The easy way around that is to rent out the property, keeping it occupied for most of the year.
As Postmedia reported last month, there are two Twitter handles (@mortimer_1 and @VanREflipflops) that have been making hay by highlighting the losses some Vancouver homeowners are taking as the property market drops.
Now, Mortimer_1 has widened their scope to look at mega homes being rented out relatively cheaply.
Here’s a list of five mega homes up for rent, or just rented, in Metro Vancouver that are relatively cheap.
1: 4714 Drummond Avenue, Vancouver.
This one was highlighted by @mortimer_1 and used to be the home of the UK Consulate — as of July 1, 2018 it was valued at $12.6 million (in July 2017 it was worth $15.1 m). The home was bought in Sept. 2016 for $15.6 million.
It’s now being offered as a rental at $11,995 a month, which is a number thought up by a realtor I’d say. Why not just ask for $12,000? The home is “Available ANYTIME” and comes with a 26,000 square foot garden, a guest suite, monster views and all the rest. They will even consider a dog. And while $12,000 is steep, now’s a good time to negotiate.
2: 4473 West 5th Avenue, Vancouver.
This home is a new build, and even comes with a laneway house. The Point Grey property was purchased in Sept. 2017 for just over $4 million and is now for rent for $6,800 a month. It has six bedrooms and bathrooms and the laneway house has one bedroom.
It’s absolutely new and looks it. I doubt it will go to a group of Irish youth, who are coming to Vancouver more often now (which is nice to see), but at seven rooms that’s still less than $1,000 per person. The listing is here.
LISTEN: Heather McNell of Metro Vancouver, Chris MacCauley of CBRE, and Vancouver Sun reporter Derrick Penner join host Stuart McNish to discuss pressures on industrial land in the Lower Mainland and Fraser Valley.
3: 1491 West 46th Avenue, Vancouver.
This $4.6 million home fits the mansion bill. It sits upon a 66-by-125 foot lot that was purchased in Feb. 2016 for $2.7 million. The ’70s special house on the site was knocked down and in its place is a 5,000 square foot stone-clad home heavy on arches with a “Chinese kitchen”.
This home is now for rent at $6,200 a month and offers four main bedrooms and two other rooms that could be bedrooms as they have their own bathroom. One thing to note, the basement is rented to someone else. It’s located at the boundary of Kerrisdale and Oakridge.
4: 1141 Crestline Road, British Properties.
This home was bought in Feb. 2017 for $5.5 million and offers stunning views of English Bay and UBC. It sits on a 0.66 acre lot and has 5,000 square feet of living space with six bedrooms, an outdoor pool and an indoor sauna. The property’s assessed value now sits at $4.6 million, and it’s for rent for $5,000 a month. The listing is here.
5: 1163 West 39th Avenue, Vancouver.
This is another Shaughnessy mansion and unlike all the other homes on this list it has not been sold in the past three years (if it had been, then that record would be on the B.C. Assessment Authority’s website). Its assessed value as of July 1, 2018 was $4.7 million, which is $300,000 less than its 2017 assessed value.
The house was built in 1990 and has six bedrooms, six bathrooms and is being offered at $5,800 a month. It comes with a gym and proximity to Vancouver’s best private schools.