All Forum Posts by: Jonny Van Dyck

In BC, the BC Assessment website (https://www.bcassessment.ca/)  has Sold Comps.   Very useful feature.  There are likely more and more of these tools popping up online.  For example, in the lower mainland around Vancouver, zealty.ca lists sold comps.

+1 for Don Campbell's book. I just finished reading it. It's fantastic. It is a comprehensive system on REI - kind of a one-stop-shop type of book. If you follow it, you don't really need to read anything else, IMO.

Annual inspections and annual maintenance should be kept up whether it's a mobile home or big fancy house.  Shouldn't have to wait for tenants to ask (although I ask them often if there's anything that needs attention).  Better to find things early.

I budget these costs into my cash flow calculations when I purchase the property.  Makes it easier to spend the money.

it really depends on the tenant.  A lot of times they have a great job and even own their own house elsewhere.  So then it's just a matter of verifying it's all true.  

otherwise just the usual...  Check all references,  credit checks where necessary, meet them, chat with them. 

I have 7 doors in BC and have not had any issues.  There's usually a workaround. And I only invest in higher end places which usually yields high salary tenants.  When I post one of my places, I usually have 50 respondents in the first few days, I have to pull the ad down. And I vet the hell out of them.  No issues.

Hey there, 

I've been asking around to different banks, brokers, and credit unions in BC, Canada regarding HELOCs on rental properties and not getting great responses. I am looking to secure a HELOC on a mortgage free rental that I own in Vancouver (market value $600k). My wife and I have 7 doors between us. So far I have not found a lender that will go above 65 % LTV on a HELOC, even though there are no other mortgages, loans, or liens on the property.

Anyone know any other options or strategies that I could be trying?  Any banks that are particularly friendly in this area? Thanks

I believe in some cases it is not like a loan on a rental property.
One accountant ran the numbers for me on a property I was selling that had appreciated >$300K and I was going to owe, in recapture, something like 2x more than what I received as tax benefit over the 4 years that I claimed it.

My hunch is that this is an area where Canada and US tax laws differ greatly.  I think you really need to know the intricacies of Canadian tax law to comment on this.  In the past when I've brought this question up the answer is usually "go see (pay) an accountant".  Which I did.  In fact I saw a few, and they all gave me different answers.  It's complicated.  You have to run the numbers on the recapture equation. 

Thanks for posting, I have the same question. I've heard not to claim it unless you are definitely holding the property for the long haul … absolutely no plans to sell. One part I'm unclear on is that I've heard the recapture can be substantially more than the tax benefits received.  Particularly in the case where the property has appreciated substantially (like a lot of our properties have, in Canada). If it was simply that you have to repay what you received, then the answer would be pretty simple: a dollar in your pocket today is better than tomorrow, so you might as well claim it so long as you are fully prepared to pay it all back upon selling.

I would love if an accountant would chime in. For example, let's say you purchased a rental property 10 years ago for $500k and have claimed max CCA (depreciated) for the property each year. Today the property is worth $900k and you want to sell it.  Let's say the refund you got was $2500 each year for the depreciation expense.  How much would the CCA recapture be?

I am also looking for one in Canada on a mortgage free rental property that I own.  So far I've asked Tangerine - they said no. I'm waiting to hear back from my mortgage broker who usually works with Scotiabank - sounds like it's a maybe from them at Prime +0.5.  Going to talk to my local credit union soon.  I also plan to ask a contact from Canada Life if they will do it.

you need to check your provinces tenancy laws.  Here in BC it doesn't matter whether they have a lease or they are squatting in the property.  They have a ridiculous amount of rights when it comes to increasing their rent