As many of you may have noticed, I haven’t been active with newsletters or marketing since February, given the current situation of a global pandemic.
My approach to real estate is as an ‘Organic Realtor’, where I put out the information on buying, selling, and investing and if it eventually fits with your timing in life and your decisions to add or reduce your real estate asset(s), then I’m here. With this approach, I naturally see an influx of demand with seasons and with changes in interest rates etc., as demand in my business is not tied to changes in the number of sales calls that I’m making.
However, since the beginning of April, demand has surprisingly sky-rocketed. Why?There are a few reasons that I am seeing:
1) Investors want to liquefy old real estate assets to have cash available for new opportunities.
2) Interest rates are fantastic right now. My 3.35% mortgage dropped to 1.85%, increasing cash flow by $250 per month on that one property. With low interest rates, investors are on the hunt for investment properties.
3) If you’re thinking of selling and then buying (upsizing, downsizing, relocating), depending on where you own, properties are selling incredibly fast! For instance, twice I have had multiple offers on a Surrey listing. The buyers coming through the homes are qualified, as COVID has eliminated looky loos, and buyers are making their move.
You may be wondering if there have been any changes in real estate prices in Southern BC. No. There have not been price drops and I barely have seen a dip in pricing.
Prices drop when sellers substantially outnumber buyers. As long as there are buyers that want to purchase, then they will compete with each other to purchase. The more buyers there are, the more competition there is. And as mentioned, with low interest rates, buyers are incentivized to buy now.
What will happen in the future? If I had a crystal ball, I’d share it with you. But I am starting to conclude that we will not see any changes in the Southern BC real estate market. Despite what media publications publish. They love to drum up drama.
Out of all of the markets that I watch and analyze, there hasn’t been a shift, so what will it take to finally see a shift? We’ll have to wait and see.
Greater Vancouver Market Highlights
If you’re interested in the stats for a particular area, please reach out! I’d be happy to provide further info.
If you have been looking to acquire a fourplex or an apartment building, then you will have quickly determined that previously owned multi-family buildings (4 units or more) usually do not break-even.
Their acquisition costs are quite high and their long-term tenants rarely pay current market rental rates, so they don’t cash flow well.
However, investors look to add these properties to their portfolio because of their appreciation potential. There is a limited supply of them for sale, compared to other investments such as an apartment unit or duplex.
Courtenay, BC – Vancouver Island
INVESTMENT OPPORTUNITY – This FOURPLEX is an 8 bedroom, 8 bathroom, brand new development in the City of Courtenay on Vancouver Island, BC. Minutes from the Courtenay River, close to shopping, schools, transportation. There are many new multi-family properties in the area and rentals like these are in high demand with less than 1% vacancy rates! Each suite features its own kitchen with quartz counter tops, all appliances -including a stackable washer and dryer, vinyl flooring for easy long-term maintenance, in-suite bike storage, plus private balcony or patio space. MULTI-GENERATIONAL or CO-HOUSING opportunities. ‘House hack’ by living in one unit and renting out the other suites, or stratifying to sell off units in the future. Approximately 4.5% cap rates, great holding property, make the smart move now. This is a must see. Inquire now about potential market rental rates.