Can you get a rebate when buying a rental property?
Investors are often the people who care most about the rebate, because every dollar affects their return.
It works the same way
A rental purchase pays the buyer's brokerage the same way as any other. In the Lower Mainland, our partner returns 50% of it; elsewhere, 25%.
On a Burnaby rental condo
On a $1,100,000 two-bedroom in Burnaby, the buyer-side commission at the standard BC split is about $14,720. Half of it, about $7,360, comes back after completion.
Tax treatment
On an investment property, a rebate generally reduces your cost base rather than being taxed as income now. That means a slightly larger capital gain when you sell. Your accountant will want the rebate documented.
What investors should check
- Strata rental bylaws. Many BC strata buildings can no longer restrict rentals under 2022 changes, but age restrictions and short-term rental rules still apply.
- Short-term rental rules. BC's 2024 rules limit short-term rentals to principal residences in most larger communities.
- Florida HOA and condo rental restrictions, which can be strict.