Suddenly there are hundreds of multi-million dollar mansions on the rental market in Vancouver for insanely low prices!
“The first day we moved in, me and my family were like, ‘What? Is this real?'” said a UBC Student who moved from Toronto into a 6,000 sq.ft home in West Vancouver.
It could be a combination for the city’s empty home tax or the province’s speculation tax that are dropping the rental rates for these mega-homes.
Some numbers for thought… One $4.64 million home with 5 bedrooms is being offered at $5,900 per month, and another $7.23 million dollar mansion with eight bedrooms for $7,000 per month! With these astonishingly low prices, the City of Vancouver may have the cheapest real estate in Canada right now.
However, these low rental prices definitely put landowners in a difficult position when you think about the tax rate on such a large home. Taxes can add up to 1% of the home’s assessed value, and if the landlord declares less than 50% of their combined household income for the year, the minimum tax rate will be 2%.
One of the reasons landlords are renting at low rates is not to make a profit, but rather to hang onto the property until they are ready to retire and move back to Vancouver. If they don’t rent it out, they’ll need to pay hundreds of thousands a year. If you rent out a building, it saves hundreds of thousands per year, even if the renter does not may any rent.
Many of the renters for these properties feel fortunate to have such an affordable and large home. A lot of them are being asked “How much are you paying?” and “Are you rich?!”… One can only hope that Toronto will see such rental prices for fabulous properties in the near future.
Are you looking for a great rental property in the GTA area? We have thousands of condos, houses and townhomes for lease right now!
Give us a call any time, we have real estate agents standing by waiting to help answer your questions and find you a perfect rental!
Sutton Group Realty Systems Inc., Brokerage
416-896-3333 / 905-896-3333