Tacoma, WA · Member since 2015 · 141 posts · 29 votes
Seems this is the trend in more expensive cities like Seattle and in Vancouver. Doesnt this go against the grain of investing in income properties? What happens when the economy turns sour and the vacancy rates drops and total stock for homes for sale in a town increases? Also, what is the reason why these houses look like a box instead of traditional slopped roof style?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
People that are tearing down small houses and building large houses aren't in it as a long-term investment that generates monthly income. They are building the larger houses and selling them to people who are moving into them, so future vacancy rates don't apply.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
People that are tearing down small houses and building large houses aren't in it as a long-term investment that generates monthly income. They are building the larger houses and selling them to people who are moving into them, so future vacancy rates don't apply.
Tacoma, WA · Member since 2015 · 141 posts · 29 votes
10y
East indians in Surrey where I reside would build a traditional slope roof home that is 3,000 suare feet. What is been practiced is that the east indian builders will extend the roof behind the edge of the house. The inspector comes to inspect the house then approve it and leave. The builder then pulls down the plumbing, electrical and wall in the massive decks and turns these into illegal rentable suits. The inspectors slap a stop order, which the builder ignores and finishes it. They get fined but its small and once the builder has lived in the house for a year, he sells it because no taxes are placed against the primary residence after the home owner has lived in it for a year. There are around 20,000 of these illegal homes built in our region. Past mayors turned a blind eye to it and did nothing to stop it.
East indians in Surrey where I reside would build a traditional slope roof home that is 3,000 suare feet. What is been practiced is that the east indian builders will extend the roof behind the edge of the house. The inspector comes to inspect the house then approve it and leave. The builder then pulls down the plumbing, electrical and wall in the massive decks and turns these into illegal rentable suits. The inspectors slap a stop order, which the builder ignores and finishes it. They get fined but its small and once the builder has lived in the house for a year, he sells it because no taxes are placed against the primary residence after the home owner has lived in it for a year. There are around 20,000 of these illegal homes built in our region. Past mayors turned a blind eye to it and did nothing to stop it.
Sounds like you answered your own question then...
Tacoma, WA · Member since 2015 · 141 posts · 29 votes
10y
JScott, the Indocanadians build for a different reason. They turn the houses extra space into rentable units collect rent and do not pay taxes on the rented space. The city provided a honor system of paying taxes on these rentable units and out of the thousands of homes that were given notice only one home/owner landlord complied.
East Indians in Surrey where I reside would build a traditional slope roof home that is 3,000 suare feet. What is been practiced is that the east indian builders will extend the roof behind the edge of the house. The inspector comes to inspect the house then approve it and leave. The builder then pulls down the plumbing, electrical and wall in the massive decks and turns these into illegal rentable suits. The inspectors slap a stop order, which the builder ignores and finishes it. They get fined but its small and once the builder has lived in the house for a year, he sells it because no taxes are placed against the primary residence after the home owner has lived in it for a year. There are around 20,000 of these illegal homes built in our region. Past mayors turned a blind eye to it and did nothing to stop it.
Sounds like you answered your own question then...
JScott, the Indocanadians build for a different reason. They turn the houses extra space into rentable units collect rent and do not pay taxes on the rented space. The city provided a honor system of paying taxes on these rentable units and out of the thousands of homes that were given notice only one home/owner landlord complied.
Yes, I understand. Your original post asked why they were tearing down and building larger, but it sounds like you already knew the answer to this question...to have more rentable units and avoid taxes.