With Vancouver’s hot real estate climate, it’s more and more challenging to get into the real estate market, and while finding a property in Vancouver with a barter component may be unlikely, there are other great options to use barter dollars to purchase real estate and get on the property ladder.
One such opportunity exists in Merritt. There is a real estate group which owns 7 townhomes and is using barter as a way to attract potential buyers. These 3-bedroom, positive cash flow townhomes are being offered for $125,000, with $25,000 of that payable in First Canadian Barter dollars. They are currently rented and can even come with rental protection and property management services if desired.
This isn’t the only opportunity to use barter dollars to purchase real estate. 7 km west of Sun Peaks Mountain Resort, 6 acres of land in a picturesque valley is being offered for $199,000, with 40% of that payable in barter dollars. A lot in New Brunswick, upon which you can build 2 dwellings, is also for sale for $25,000, with 50% accepted in barter dollars.
For sellers, accepting payment in barter dollars allows them to attract new buyers that they wouldn’t have found otherwise, and it makes their properties more attractive compared to others on the market. Last month a 4-plex in New Brunswick was sold for $138,000, with $27,600 accepted in barter dollars. The seller was able to free up the cash he had tied up in the property so he could pursue another opportunity. The buyer was able to purchase a property that generates cash flow. She is also looking forward to taking advantage of the New Brunswick government grant that contributes up to $25,000 per door to revitalize older properties.
John Madsen has been involved in barter for many years and has used barter in more than 100 real estate transactions involving land, mainly in rural BC. John was able to pick up properties using barter dollars during the ‘80s when interest rates spiked and people wanted to unload their recreational and holding properties. Several years ago, he sold a property near Shuswap Lake to a computer repair company that belonged to First Canadian Barter Exchange.
Timeshares are another form of deeded real estate that can be purchased on barter. Over the years, many First Canadian Barter Exchange members have purchased timeshares in various locations including Mexico, Hawaii and Arizona.
Even in a hot market, there are still barter opportunities if you look for them. First Canadian Barter Exchange also has realtors, mortgage brokers, architects, renovation companies, movers, cleaning companies and many other members that will help you to reduce the costs associated with buying and selling real estate. The key is being creative and keeping in touch with your barter broker.