I was wondering if Marko could give us his thoughts on bylaws and restrictions in condos, and their impact on resale value and time on market.
Obviously bylaws can be a rather divisive issue for many, with some seeking the restrictions hoping they bring about peace and quite, but others want more freedom and flexibility in their homes.
I can tell you that younger buyers, even if they plan to occupy the unit, prefer a no rental restriction to allow flexibility in terms of moving for a job, upgrading to a home without having to sell the condo, etc., etc.
No rentals takes out a big chunk of your market.
A lot of people have pets; therefore, restrict pets and there is another junk of the market gone.
Age restrictions are fairly obvious as is no BBQs.
My best random guess is if you have those three restrictions in place you probably take out 70% or more of your potential market which probably affects the market value of the unit anywhere from 5 to 20%.
There are exceptions to this such as super high-end buildings that have no rentals where people pay top dollar to be part of an exclusive club. Not too many in Victoria.