Best Place to Invest In Victoria British Columbia Area?

Geoffrey

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Oct 7, 2007
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#1
Hi all,

I am looking to buy/invest in the Greater Victoria Area for the 5-10 year range. Can anyone suggest areas or neighbourhoods where property value growth may be higher for the baseline in the Area?

For example, Langford currently and historically has had many fundamentals, while Victoria City has had fewer, yet data shows that historically the increases have not varied between the two. Any thoughts? I have not been able to find a written report or independent research on this question, but would be great to hear if anyone else has.
 

ThomasBeyer

Senior Forum Member
REIN Member
#2
Look for high end nice neighborhoods.

Ocean front will appreciate most.

Then oceanview.

Then close to ocean ie within 5-6 blocks.

Then close to downtown or inner Harbour or UVic.

Trick is to cash flow as rents are far too low for already 30% appreciated properties relative to a year ago.

Look into proposed LRT line. Close to stations - within 800 m.
 

Geoffrey

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#3
Thanks, Thomas

Lots of options to think about you've given me.

What are your thoughts on Langford?

Yes the cash flow part looks tough without a big downpayment
 

ThomasBeyer

Senior Forum Member
REIN Member
#4
Langford may get an LRT. Follow that debate closely. it may or may not happen in the next decade, maybe never. But it may. Then certainly Langford will benefit more than other areas. Otherwise not as good as the corridor up to airport and ferry, but still decent.

The issue in Victoria in general is that there are few decent jobs, i.e. mostly government related jobs (provincial government, navy, hospitals, university), students and retirees. It is highly speculative with no or negative cash-flow but given weather, ocean and sunshine it will attract more and more retirees from Lower Mainland and prairie provinces. I'd expect the 15% tax to be expanded to all of BC within a few years as Kelowna and Victoria residents scream like in Vancouver.

Buy anything that cash-flows and you will be OK anywhere in Victoria the next few years as more and more AB, SK and MB folks get sick and tired of cold weather as their bones age. Don't buy condos. Not as good as SFH. Think like a student or a retiree. Is this a decent area to get to UVic or retire ?
 

Geoffrey

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#5
Good points. I am going to look more into Sidney/northern Saanich. I guess you expect the new expansion in Sidney to have a positive affect of values?

Some of the townhouses in Gordon Head are still priced fairly low, under 300 and some under 200. Positive cash flows seem tough to come by.
 

Marnie

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Oct 6, 2016
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#6
Hi all,

I am looking to buy/invest in the Greater Victoria Area for the 5-10 year range. Can anyone suggest areas or neighbourhoods where property value growth may be higher for the baseline in the Area?

For example, Langford currently and historically has had many fundamentals, while Victoria City has had fewer, yet data shows that historically the increases have not varied between the two. Any thoughts? I have not been able to find a written report or independent research on this question, but would be great to hear if anyone else has.
Geoffrey you may also want to speak with an investor minded realtor in Victoria who knows the areas that work well for investing. Check out the forum post HERE for a couple of referrals.
 

Willyboy

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Aug 19, 2016
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#7
Why are you concerned about cash flow? IMO cash flow would be a factor in stable markets where no major price appreciation is expected but when talking about markets like Vancouver or Toronto and maybe Victoria or other BC areas, who cares about cash flow where price appreciation is 30% every year and where the average house price will be ten million dollars in ten years.
 
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REInvestors888

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#9
Why are you concerned about cash flow?
Unless you are using own money not OPM and have deep pockets, then, it's entirely your call. However, for investors/money partners, I think it is critical for them to know total ROIs for their money or 'What's in it for them?'
 

DanJonesBC

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Nov 23, 2016
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#10
Recently I have come across a venture started by a less than qualified, uneducated, and ultimately an incapable narcissist, Craig McMorran stands as a wielder of such a delusional reality that I'm shocked the project in Sweetwater on Lake Koocanusa is still in developemnt. DO NOT BUY HERE, a simple google search of sweetwaterBC, his dodgy alias cabindeal.ca, and a google search of Craig McMorran should be evidence enough not to trust any interaction with this man. Simply enough, purchasing a cabin on Lake Koocanusa does not guarantee any title to land and in fact may be deemed unsafe as problems with the middle terrace have forced geologists to stop construction all together due to unsafe foundation.

Do your research here. Do not deal with Craig McMorran or any of his affiliates (check his previous scam greatcarsandtrucks). BUYER BEWARE!!
 

Marnie

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Oct 6, 2016
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#11
Hi all,

I am looking to buy/invest in the Greater Victoria Area for the 5-10 year range. Can anyone suggest areas or neighbourhoods where property value growth may be higher for the baseline in the Area?

For example, Langford currently and historically has had many fundamentals, while Victoria City has had fewer, yet data shows that historically the increases have not varied between the two. Any thoughts? I have not been able to find a written report or independent research on this question, but would be great to hear if anyone else has.
Geoffrey, click here to get REIN's latest free report - Victoria Economic Fundamentals.
 

Geoffrey

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Registered
Oct 7, 2007
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#12
Positive cash flow is essential for those without a big reservoir of cash because things can go wrong.

1. Vacancies
2. Building or property surprise expenses.
I'm not into that big risks, and, it's not necessary to take them.

Thanks for all the replies. Still in the market here and can afford a 400K condo as I've been out of the real estate market for over a year and moving from a cheaper part of the country. Meanwhile the local market has continued to climb. So I'm thinking ahead now to the second property and how to finance it without OPM.

Given the market may well continue to climb, a second property in two years of value to me/us -- better value than the first one, while renting out the first condo -- could easily be 40% more expensive than currently. For example, a 700k Victoria condo in 2 years should be "better" to live in than a 4ooK property in Feb 2017 Victoria market. So it's obviously a challenge to outpace that change, but I could have a 20K/a higher professional income, a small amount of principle paid on the first property, and maybe 25K saved up. Where could I get the 700k?

1. Readvanceable LOCs are just advances on the principle paid and obviously insufficient to buy a 700K property.
2. Second mortgages seem to be too small to buy a second more expensive property, for some clear reasons.

Any advice?

I'm going to start a second post on this problem as well.
 

As Dhaliwal

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Feb 19, 2017
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#13
I would say you have missed the bus on real estate in Victoria. Last year, prices have gone up. I would first rent in Victoria for a year and look up Port Alberni or Duncan.
 

Geoffrey

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Oct 7, 2007
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#14
Well, I would argue no bus has been missed in Victoria. The fundamentals are there for a generation of reduced housing affordability in major Canadian centers. When last I checked the RBC housing affordability index had households dedicating 65% of of their income to housing costs in Vancouver and only somewhat less than this in Toronto, yet prices continued to climb in both areas (except in some parts of Van since the tax). Victoria's rating on this index is still far below 65% and has a ways to go! It's true the house price increases relative to inflation cannot go on forever and will plateau eventually, but this will not necessarily happen in any city or region prior to 60-70% of household income is dedicated to housing costs (maybe more) there. Victoria is still a long way off that.
 

ThomasBeyer

Senior Forum Member
REIN Member
#15
Victoria is very sunny, warm and beautiful. No 15% foreigner tax .. yet. Most of BC will do well: Okanagan, Kamloops, V Island, Sunshine Coast, Lower Mainland even remote soon weed growing regions like Cranbrook, Creston or Nelson.

The issue is more and more a decoupling of house prices and incomes or rents, ie a long term hold is often difficult with achievable rents.

Try Bowen Island, Pender Harbour, Sechelt or Gibson. Under appreciated gems very close to Vancouver !
 
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Geoffrey

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Oct 7, 2007
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#16
Yessir! It's a beautiful thing :)

But yeah, it's difficult to find meaningful cashflow.

Speaking of islands, any thoughts on Saltspring?
 

ThomasBeyer

Senior Forum Member
REIN Member
#17
The more remote a place is in terms of driving distance plus ferries the less appreciation potential.

Best upside is with already expensive mansions on large lots with SW exposure on the ocean, followed by S, W, SW or NW ocean view, lakefront or riverfront in or close to urban centres.

The most expensive best located assets will go up the most but are the toughest to cash flow for a medium to long term hold.