[supafamous]

Originally Posted by Traum

With a building cost of $1.2 - $1.8M, only developers and deep pocketed investors would be able to pull it off.

A suitable house for this (to get torn down and rebuild) is still going to cost $2 - $2.5M in CoV. Add the construction cost, and you're looking at having to spend $3.2 - $4.3M.

So you sell for $4 - $5M from the whole thing, and you turn in a $700k - $800k profit over the course of 12 - 18 months (of pure construction time). That leaves around a 12 - 18% per year profit?

But you need to start with $4M+ in the bank first. And then take on a lot of risks. And do a lot of work. I'm not so sure whether it is still a good investment...

If you don't have a lot right now then it's totally developer territory in Van/Burnaby. If you have a lot like my parents and in-laws have then this becomes much more realistic for folks with a reasonably high level of earnings.

Keep in mind that what Vancouver is doing for 4plexes is likely what every lower mainland city will have to do b/c of provincial legislation so places with cheaper land like Langley or Maple Ridge become good fertile ground for small time "investors".