Carlito Pablo, Georgia Straight
July 5th, 2018
Annual rent increases in B.C. have been computed with a formula since 2004. It’s a base increase of two percent over current rent, plus the cost of inflation.
Following this method, the maximum allowable rent increase for 2018 was set at four percent.
The following article was published in an earlier version in The Province on December 28, 2016. It has been penned by a prominent financial advisor and is intended to offer a vivid alternate perspective to the market.
Over my lengthy 45-year career as a financial advisor, I have been a strong advocate of owning apartment buildings.
Yet now, as much as it pains me, I am recommending to clients not to buy any further residential revenue properties in Metro Vancouver. More importantly, though, I am also recommending to them to consider putting their apartment holdings on the market to take advantage of this overheated apartment feeding frenzy that we are currently experiencing.
This decision has not come lightly, nor did I wake up one morning and decide to sell. Many of my colleagues have been shocked that I, as a financial advisor and experienced real-estate professional, should have come to this conclusion. My detailed research and the current geopolitical climate have made it obvious to me that the values associated with apartment buildings just do not make any economic sense. To quote Judge Judy, “If it doesn’t make sense, it cannot be true.”
Is there a bubble about to burst? No. Is this a crisis similar to the U.S. sub-prime fiasco? No. Then where has my epiphany come from?