All Forum Posts by: Pawan J.

Those who know British Columbia BC, how would you rate Kamloops over Kelowna and surrounding areas like Vernon etc.?

So many questions here and hoping locals as well as investors in the area or investing there know and can chime in. 

1. Kamloops vs. Kelowna - pros and cons of each or both?
2. Anyone know or have any current real estate market info in these areas and forecasts?
3. Rental market analysis info if anyone has any?
4. Any areas within each city NOT to invest in?
5. Multi-family (4 units and more) are there many in these areas?
6. Single family (3 up and two down) can they cash flow in these areas?
7. Anyone managing student rentals from long distance?

Thank you and this could be a go to thread for many to come moving forward.

hi @John Lusk I agree for buy-&-hold Kelowna and Kamloops look like good places to invest in BC.

Hey @Mimi H. thanks for the explanation. I know many folks who have and are investing for long term in Vancouver and BC and doing well.

re the rent increase, when you sign a lease you can have a fixed term whereby the tenant must move out after the fixed term. It is my understanding that you can then re-advertise the property at a new rental price which could be more than the set rate as its a completely new lease.  Should you choose a lease that goes month to month at the end of the term then you can only increase by the set rate and with 3mnths notice. This was my understanding from what I read. 

Hence it would be ok for your tenant to re-apply each year along with others at a new market rent if you so chose to. 

Of course this wouldn't be the case year after year as Hopefully you have a good tenant and just go the set rate but in some cases you have the option to increase more using a fixed term.  Maybe I'm wrong...?

Welcome @Brian Hosier from another local investor. I own a couple properties in Langley also.

@Mimi H. Strong tenant rights are all across Canada I thought? As you found out in another post you can increase rents higher than the set rate by cycling through tenants on 1 yr fixed term lease. 

Also there are cash flow properties in Vancouver and across BC - I just bought one. 

I feel your recommendation is more related to your personal situation than a blanket recommendation. Maybe someone as a resident, who bought a cash-flow positive property, had good appreciation (added bonus) and recently cycled through a tenant and increased your rent 7% would you say otherwise? 

@Thomas S. I wouldn't say our market is over inflated at all. In fact it is coming in line with many other great cities/countries around the globe.

I think oil cities and coastal havens are very different. Yes our overall Canadian economy is heavily dependent on oil dollars but markets across Canada vary greatly along with many other factors.

Also Asian investment is getting stronger not weaker and much of this investment is long term meaning even if this slows down the market will simply hold or fluctuate maybe 5% and then climb again. There will always be changes in the market but Vancouver is far from bursting unless major global catastrophe.

reminds me of another post on this topic and my comments there reflect here: https://www.biggerpockets.com/forums/48/topics/287...

Hi @Peter Crisp we are doing flips in Vancouver and doing well.

@Myo Thein suggest depending on value and equity either looking at other areas on BC to invest but by the time you travel, find something etc. it may have costed you thousands already. Other option is to sell and then partner with a firm that does flips here locally to keep your funds making money without taking any exchange loss and move it when ready.

Feel free to connect to learn more..

This reminds me of a similar BP post for vancouver specifically.

 https://www.biggerpockets.com/forums/48/topics/287...

There I gave my 2c:

"Vancouver wont crash!

Being born and raised in Sydney Australia I have seen real estate rise, rise and rise some more. Even when people thought it couldn't get more expensive it went up another 20% in Sydney last year.

Vancouver and Sydney are very similar in that they are the most desirable places to live in their countries and until recently Sydney was also in the top 5 in the world but now only Vancouver remains there. both cities are land locked, and they are also both beautiful harbor cities. Australia sells non-renewable resources as its main export to China and Canada doesn't sell much to china instead more Chinese/Asia invest in property in Vancouver, also in LNG companies and resource companies in BC etc. Canada sells more to the USA (~87% of exports).

Even when china slowed down some years ago and stopped buying from Australia, Sydney house prices did nothing but stay stable. At the same time and to this day Chinese folks with money continue to get their money they make out of china and hence invest in real estate in Vancouver mainly due to instability in their own country and most don't care if their investment appreciates as long as its holds it values.

Long story short even if china crashes prices will do nothing in Vancouver but remain stable or maybe fluctuate no more than 5% even if their is more inventory than buyers.

Vancouver is an amazing place to live and the more the world knows this the more the prices will rise.

This is why our investors and I continue to make great residual income through buy, renovate or build new and sell in Vancouver and will continue to do so for some time."

Interest rate will rise in a few years and when it does the market will slow down and I wont be offering $100K over asking - but it would take a world economic crash for it to really crash here in Vancouver.