Investment Analysis | Bill 44
Bill 44 Investment Strategies: Profiting from SSMUH Zoning
Bill 44 created a generational investment opportunity in BC real estate. Learn which cities offer the best returns, how to structure your investment, and the strategies that experienced multiplex investors are using.
Why Bill 44 is a generational opportunity
For the first time in decades, BC homeowners and investors can build 3 to 6 units on lots that were previously limited to a single home. This is not a speculative play on future zoning changes — the zoning has already changed. The opportunity is in execution: identifying the best lots, running accurate pro formas, and delivering projects efficiently.
Early movers have a significant advantage. Construction costs are stabilizing, the permit process is becoming more predictable as cities gain experience, and buyer demand for multiplex units remains strong. As more projects enter the market, margins will compress — making 2025-2027 the optimal window for maximum returns.
Investment window indicators
- Zoning: Already in effect across Metro Vancouver
- Competition: Low — most homeowners have not yet acted
- Construction costs: Stabilizing after 2022-2023 increases
- Interest rates: Declining from peak, improving financing economics
- Buyer demand: Strong for sub-$1M townhouse/multiplex units
ROI comparison by city
| City | Land cost | Build cost | Sale value | Typical ROE | Units |
|---|---|---|---|---|---|
| Vancouver | $2.2M-$3.5M | $2.0M-$2.8M | $5.5M-$7.5M | 13-17% | 4-6 |
| Burnaby | $1.6M-$2.5M | $1.8M-$2.5M | $4.2M-$6.0M | 16-22% | 3-6 |
| Surrey | $1.2M-$1.8M | $1.5M-$2.2M | $3.5M-$5.0M | 18-24% | 3-6 |
| Coquitlam | $1.4M-$2.2M | $1.6M-$2.3M | $3.8M-$5.5M | 15-20% | 3-6 |
Ranges based on 2025-2026 market data. Actual returns vary by specific lot, design, and market conditions. Run a property-specific pro forma for accurate projections.
Three investment strategies under Bill 44
Build and sell
Build a multiplex and sell all units at completion. Highest immediate returns but requires construction management expertise.
- Capital: $200K-$600K equity
- Timeline: 18-24 months
- Profit: $150K-$400K per project
- Risk: Market timing, cost overruns
Build and hold
Build a multiplex and retain all units as rentals. Lower immediate returns but builds long-term equity and cash flow.
- Capital: $300K-$800K equity
- Cash-on-cash: 4-7% annually
- Appreciation: 3-5% annually
- Risk: Rental market, maintenance costs
Hybrid (sell + retain)
Sell 2-3 units to recover capital and profit, retain 1-2 as long-term rentals. Best balance of immediate returns and ongoing income.
- Capital: $200K-$500K equity
- Immediate profit: $100K-$250K
- Ongoing income: $2K-$5K/month
- Risk: Moderate, diversified
Financing approaches for Bill 44 projects
Construction financing
Traditional construction loans cover 65-75% of project costs, with draws tied to construction milestones. Rates are typically prime + 1-2%. Requires 25-35% equity and a proven builder.
Best for experienced investors with capital and an established builder relationship.
Co-development partnerships
Partner with a homeowner who contributes the lot while you contribute capital and project management. Profits are split (typically 40/60 to 50/50) based on relative contributions.
Reduces capital requirements and eliminates lot acquisition risk. VanPlex facilitates these partnerships.
Want More Details?
For detailed pro forma examples, financing case studies, and expert investment analysis under Bill 44, read our homeowner wealth guide.
Read: Vancouver Homeowner Wealth Guide →Run a free investment analysis
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