Looking to invest in Vancouver

[Mrubas]

Good day,

My parents are looking to invest in a second property, they currently have a home and have saved around 17,000 for another investment. There home is paid off and were thinking of Port Moody as the evergreen line is coming but most the condos have rental restrictions. Can anyone advise on this and if you think there are betters areas to invest in.

Thanks

 

[Thomas Beyer]

For cash-flow: stay out of Vancouver .. ideally the Top 3 town in BC according to REIN: Maple Ridge, Surrey or Abbotsford



For equity gain, with negative cash-flow, in order of expected equity gain .. thus highly speculative:



ALL must have waterview for any sizable appreciation .. and ideally are within walking distance to water !!



a) Yaletown one block from water max. (due to no more land left to build except 2-3 towers)

b) Kitsilano (in walking distance to beaches, due to land / building restrictions)

c) UBC area (with waterview, i.e. Wesbrock Village or Chancellor Place where I now live)

d) West Van - near Park Royal (i.e. close to mall, close to SeaWall and Lions gate bridge)

e) North Van in walking distance to SeaBus

f) around Olympic Village if less than $800/ft and with water view

g) Port Moody with waterview



Related posts with Vancouver condo inputs by various folks:



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-14995-Predictions_for_the_Vancouver_condo_market.html





http://myreinspace.com/rein_members_only1/Members-Only_Discussion/81-17431-Pre-sales__a_good_idea__BUT.html





http://myreinspace.com/public_forums/Real_Estate_Discussion/62-17193-Real_Estate_Forecast_for_late_2010_and_2011_would_you_buy_a_rental_income_property_right_now.html

 

[Mrubas]

Thanks for your reply, the one in Port Moody is across the street from the water and park but no ocean view but with a greenbelt view. What are you thoughts on Langley? And condo versus home? I mainly would like the rent to take care of the mortage but am o.k with minimal negative cah flow as long as the value increases.



Thanks again.



Marek




QUOTE (ThomasBeyer @ Aug 23 2010, 06:26 PM)
For cash-flow: stay out of Vancouver .. ideally the Top 3 town in BC according to REIN: Maple Ridge, Surrey or Abbotsford



For equity gain, with negative cash-flow, in order of expected equity gain .. thus highly speculative:



ALL must have waterview for any sizable appreciation .. and ideally are within walking distance to water !!



a) Yaletown one block from water max. (due to no more land left to build except 2-3 towers)

b) Kitsilano (in walking distance to beaches, due to land / building restrictions)

c) UBC area (with waterview, i.e. Wesbrock Village or Chancellor Place where I now live)

d) West Van - near Park Royal (i.e. close to mall, close to SeaWall and Lions gate bridge)

e) North Van in walking distance to SeaBus

f) around Olympic Village if less than $800/ft and with water view

g) Port Moody with waterview



Related posts with Vancouver condo inputs by various folks:



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-14995-Predictions_for_the_Vancouver_condo_market.html





http://myreinspace.com/rein_members_only1/Members-Only_Discussion/81-17431-Pre-sales__a_good_idea__BUT.html





http://myreinspace.com/public_forums/Real_Estate_Discussion/62-17193-Real_Estate_Forecast_for_late_2010_and_2011_would_you_buy_a_rental_income_property_right_now.html

 

[Thomas Beyer]

QUOTE (Mrubas @ Aug 23 2010, 06:55 PM) Thanks for your reply, the one in Port Moody is across the street from the water and park but no ocean view but with a greenbelt view. What are you thoughts on Langley? And condo versus home? I mainly would like the rent to take care of the mortage but am o.k with minimal negative cah flow as long as the value increases.

Thanks again.

Marek
how big a mortgage ? 10% ? 25% ? 80% ? hard to cash-flow condos in Vancouver with over 50% leverage !!

Prices in Lower mainland are HIGH .. and may not go up for 2-3 years !! So focus on a hold with at least break even income !!!

a house with lots of land is better than a condo .. but a condo in a supply constricted high-demand area like UBC or yaletown or W-Van is a good bet too !!

langley is pastoral .. and many issues come down to PRICE i.e. if you buy 20% below "market" you`ll do OK in many locations .. and if you overpay even yaletown will take a decade to make up for it !

consider condos fees + taxes + HST impact + realtor fees on exit .. 2-3 years is a VERY short time frame and capital loss is a possibility !

look for WATER VIEW .. SW exposure .. and restriction for future buildup .. so if Port Moody allows 28 more 40 story towers supply will always suppress prices !

check out maple Ridge .. close to Coquitlam .. low low prices .. and a new bridge and a new bypass road with fast access to Hwy 1 !!!!

or new developments in Surrey (I am not up to Surrey plans .. so ask others please !!)

loads of discussion on Ozzie`s (poorly attended) forum on Vancouver & BC here: http://realestatetalks.com/viewforum.php?f...850c851a7f77701

 

[TheVancouverLife]

QUOTE (Mrubas @ Aug 23 2010, 06:55 PM) Thanks for your reply, the one in Port Moody is across the street from the water and park but no ocean view but with a greenbelt view. What are you thoughts on Langley? And condo versus home? I mainly would like the rent to take care of the mortage but am o.k with minimal negative cah flow as long as the value increases.

Thanks again.

Marek


Hello Marek,

There are a number of great areas in an around Vancouver and the lower mainland.

The most desirable areas are close to downtown or easy assess to downtown.

The further east you go the cheaper the prices per sq ft.

Personally I would invest as far east as Langley as the transport authority is doubling the Port Mann bridge and highway 1 up until Langley (200th Street).

Langley and Surrey have exploded with new developments (homes, townhouses, condos) selection is excellent and prices are still reasonable.

Port Moody, Port Coquitlam and Burnaby are very popular areas also.

Newer developments tend to allow rentals.
Also if you are the first owner you may be grandfathered if and when the strata council decide to restrict rentals.

Depending on what type of property your parents are interested in, as far as rentals go, a townhouse or condo is their best bet. They are popular with tenants and require less upkeep.

You should also check the crime reports of each area (see RCMP website) The further east the less incidents of crime.

If you have any questions about other areas do not hesitate to contact me.

Hope this helps...

Alan

 

[RussellWestcott]

This question was exactly why the Top BC Investment Town Report was written.

The research is compiled into one report... After reading this report you will have many of the answers you are looking for.

For more information --> click here

 

[TheVancouverMarket]

Don`t buy in Vancouver Westside yet...prices falling slowly...then pace of price decreases could gather pace into next year (Spring). If rates go up significantly (not certain if economy struggles) in next 12-24 months it will could crush Vancouver prices. Prices looking way too high now. Time for a correction maybe ? But could take 2-3 years before prices bottom out. In the last 2008 correction, Vancouver Westside went up the most but came down the hardest.

I watch all the market analysis and stats for Vancouver and the spin on the numbers from a lot of quarters is rediculous. Things changed for worse on April 19th with new mortgage rules and then HST. But the media reports whatever it`s fed. There is no real independent analysis so consumers are stuck in a blindspot as to what`s coming.

I get in my car and drive to Surrey, Poco and Maple Ridge looking for value and cashflow for my own personal deals (I am a realtor). The trick is marrying your own personal biases/preferences with a complex array of data. Then you got to really walk the area several times - check everything from the back alleys, area at night, local peak time traffic into and out of area, and get up close to the buildings and have a look and construction and condition.

Go to open houses and chat to realtors. Read the strata minutes BEFORE you make an offer. I also often do my property inspections BEFORE I make an offer as well. This prevents me making high offers on buildings that have crappy strata councils, property maintenance or tenant issues etc. Most sellers who are motivated or who are stuck in the downdraft of a buyers market will be OK with this.

There`s no cashflow in Vancouver now unless you are carrying a large downpayment but have a look at Downtown Poco and Maple Ridge. Lot of junk buildings out there but also a handful of very nice buildings with better tenant profile. But a lot of these areas are going through a resetting of prices to more realistic values. A local realtor in Downtown Poco told me "most of the listings here are overpriced". Lot of product sitting here. Prices coming down to earth everywhere-time to start that research now and be ready to find that sweet tasting cashflow while the market does it`s thing.

Good luck.