This week I sold one of the least desirable properties and there were 4 parties who all submitted bids to buy it. Ok, let me clarify “lease desirable”, it was in very bad need of renovation; it was in the original 70s condition and was sadly rather dilapidated. Despite this, there was and is high demand for this type of condominium.
It would appear that in a softening real estate market people are turning to properties that are not at there maximum value potential. In a renovation crazed society that has been perpetuated by people like Martha Stewart, Home Depot, and my all time favorite Mike Holmes (on HGTV) many first time buyers are seeking properties that are “recoverable”. This has always been popular among speculators, but there is a growing demand for properties that are older and in ‘original condition’ that can be bought for more ‘affordable pricing’ and improved to modern day condition. Many of the older buildings in the Lower Mainland that were build in the late 70’s early 80s are perfect as they are rock solid buildings. North Vancouver has many of these as Central and Lower Lonsdale experience a building boom/craze in late 70’s early 80’s of affordable condominiums.
Fundamentally when looking to buy a condo that you are going to renovate the most important thing to question is: Is it in a good location and in a good building? A renovated condo in a poor building will be a hard sell no matter how shiny the granite stainless steel. Another factor that renders condos more or less marketable is the rental restrictions. Popular belief dictates that a building with no rentals is a better investment (less turnover and residents that “care about the property”). But with an older building, 3 and 4 story buildings in Central and Lower Lonsdale, North Vancouver for instance buildings that allow rentals are more marketable as they allow the owner the flexibility of holding the investment for a longer period of time.
Central and Lower Lonsdale are very easy regions to rent properties. When I personally rented out my 2 bedroom I had 44 calls on in with one ad. I just took the first 16 applicants and picked the best. Lower Lonsdale and Central Lonsdale with its many older buildings, prime location, easy access, and many amenities is the perfect spot to find a secure condo investment. Just this week I listed and sold a condo that I specifically marketed as being advantageous as a renovation project. The Central and Lower Lonsdale market will likely continue to see more of these types of products. If you are looking to buy or sell Central or Lower Lonsdale real estate contact Joel Carcone of Re/Max Crest 604-787-2052.