Since I previously referred them to a financial institution for mortgage pre-approval, after reviewing their options and looking at their pre-approved mortgage amount, they asked me whether a house or a condo apartment in Vancouver offers better value and growth in price?
In this case the family budget at its stretch may have been a possibility to search for detached houses in East side of Vancouver, but they could find townhouse and or condo apartment for sale in MLS® listing of Vancouver West side.
Traditionally, the data shows land provides better growth and value for its owners than any attached properties. But also this depends on
- Where the land is located,
Location and value go hand in hand. The old saying in real estate “location, location, location” is a true fact in this case. Depending on where the land location and the neighborhood improvement, the value also improves with it.
- What size it has,
Lot size is very important. Depending on the original Sub-Division of the neighborhood, every area in Metro Vancouver has different land sizes and the area offers a typical lot formation. In some areas, subdivision created density and other yet have larger size lots.
- What zoning and potential permit is allowed for development,
Depending on lot location and its size, local municipality has certain zoning and permit in place that is registered on the land’s title office. Depending on the potential development and already existing built, the value can improve.
- Land shape,
Shape of the lot is also offers potential value. A pie shape lot, is not as attractive as a perfect rectangle to many buyers, therefore not on top list of investors.
- Land character
The flatness of the lot, whether there are many protected trees, rock formation, hills, and or high bank on the water, all offer variety of values. It is best to review all these lot formations and study their trends.
In general living in a metro city, both Condo apartment and house values have been tremendously increased and as the trend shows the values go on top of their peak every 8-10 years’ period. It is also important factor to consider, for cities like Vancouver, we have mountain on one side and ocean on the other, therefor limitation of land. So it pushes the metro cities to go upward in direction of build and boom and boost in condo apartment development.
In the case of my clients, it all depended on where they wanted to be and what location was important to them Many families, they start and get into real estate world, entering into a condo market and after a few years of gathering equity and value on their original investment, expand into a larger townhouse or a house and grow as they go.
For them their daughter school was on Arbutus, Vancouver West, and it was important to be in a closer range of that area. So Single family detached homes where not an option. But with their budget we yet had great choices on attached market. I suggested townhouse which offers 3 bedrooms and is pet friendly.