One of the golden rules of real estate is to be successful , you must be ahead of market trends. Once the market catches onto a trend the value of the assets tend to increase, ultimately reducing the value of the previously ignored market.
One of the surprising facts of the Vancouver condo market is that prices in many areas of the city and the North Shore have not seen any great increases for almost five years. In fact there are units currently on the market that are listed at a lower price than the current owners paid for them . Combine that with the gradual rent increases that have occurred across every market in the region and suddenly buying a rental property actually starts to make economic sense.
As the price of single family homes skyrockets to levels unseen or unheard of in Canada, another story remains untold. Multi unit purchases can offer excellent long term investments. When I work with a retail investor who wants to diversify their portfolio, I always recommend real estate. For thousands of years, the wealthy have grown and preserved their assets by investing in real estate in its many different forms .
Right now, today , you can pick up a number of condos, from West Vancouver to the Frase river, that are less expensive to own than to rent. Of course not all buildings are created or maintained equally. A good Realtor will caution you to take your time and do your research to ensure that you find the best value possible for your budget and investment goals that are measured against your risk tolerance.
In sum, this market is at a crossroads that it has not been at for some time. Many condos have seen little to no appreciation in value , yet rents have risen substantially. In my professional opinion the current run on single family homes north of the Fraser river is going to produce more renters and more buyers for condos and townhouse. Which will inevitably lead to further rental increases and likely increased prices.
Real estate markets are not static and I am of the opinion that if you have been considering a real estate investment for long term capital appreciation or a source of passive income as part of a long term retirement plan , than now is the time to start looking at becoming a landlord.
I have helped many investors become landlords and I have a highly detailed action plan for success. If you are considering some diversification and retirement planning in regards to real estate as a hard asset, I can help .