How much would you pay for a tear-down property? In most cities, you’d think these houses aren’t worth much, but in Vancouver it could be a gold mine.
Located at the corner of West 41st and Cambie Street in Vancouver, there’s a property that at first glance you may assume it’s just a run of the mill run down home. However, nowadays in Vancouver even a run downs will cost you a pretty penny. Especially if its on a lot where developers are looking to build condos.
This particular house has been listed for a whopping $11 million. The property itself is actually assessed to be worth $3.89 million.
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Why The High Ticket Price?
The 3-bedroom, 2-bathroom, 65 year old bungalow is located on a lot that is a prime spot for new developers.
The home sits across from the Oakridge Centre new development and on an “inner street” at 481 West 40th Avenue. Therefore, the corner itself is not super busy. As a result, sellers tend to target developers that plan to build up. Knowing that they want that home to expand their development, gives sellers an advantage to ask well above assessed value.
Run Down Vancouver Houses Can Make Bank
Although a $11 million sticker price is shocking when you see that it’s not a mansion, it’s actually not too uncommon. Potential buyers often purchase adjacent single-family lots and apply for rezoning. This allows them to build multiple units, low-rises, or even apartment buildings.
This happened in Vancouver before, when investors purchased homes along the Cambie Corridor. It now houses multiple apartment buildings and condos.
So while, we may see a run down Vancouver house, investors see an opportunity for more than the assessed value.
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