[quote user=dchow]Dear Fellow REINers,
I keep on hearing about Kamloops being a good place to invest as one of the top REIN BC towns. Conversely, I hear that Kamloops is too overpriced for the size of the town.
Unfortunately, I don't live in Kamloops and have very little knowledge of the town. Could someone please fill me in what big things are happening there? I'm curious about why it's such a good place to invest? Is it relatively easy to get cashflowing properties by doing student housing? I know Thompson Rivers University is a major university out there. So student housing is definitely a good avenue. What other major industries are there that could contribute to rising incomes?
Thanks in advance for your information.
Kamloops is a good place to invest because of it's various economic factors. First, the population growth in the town has been quite rapid. In the last census, Kamloops was growing faster than the provincial average. It's also along many different transport lines, which makes it a hub for the area. Three highways and two rail lines converge here. Kamloops also has a diverse economy as well. The town isn't solely dependent on the forest industry, which is nice. To name some of the major employers in the town, you'd have the BC Lottery Corporation, Interior Health, the Highland Valley Copper Mine, the Thompson River's University, and more.
While real estate prices are high in the area, I don't know if they're 'too high' to invest. In the current economy, there are a tonne of properties that can cashflow, and they can be purchased for less than they were pre-recession. To top it all off, interest rates are still very low. Even better, vacancy rates in Kamloops are next to zero. For a while there, vacancy rates were at around 0%. Even during the recession, vacancy rates rose to around 0.5% for most types of property. That's still extremely low. I have heard from many people who rent their units that they are bombarded by inquiries the same day that they list their home for rent. I also believe that there are many niche renting opportunities available. Hardly anyone allows pets, and I know there are many people desperate for a pet friendly apartment.
And, there are many areas in Kamloops that you can choose to invest in, depending on what you're looking for. Average rents are highest in Aberdeen and Sahali, which is
the most popular place for people to live because they are close to
amenities and the university. That said, properties are most expensive
there as well. Rooms are currently being rented around $550 per month
to university students, and the average 2 bedroom apartment goes for
around $1000 - $1200, to be conservative.
In terms of population growth, Aberdeen grew around 14% according to the
last census (2001-2006). It's the fastest growing area in Kamloops.
Sahali is growing a bit slower because it has less developable land, but
it's still growing. North Kamloops is also growing at around 5%, but
rents are a bit lower there....but then again, so are prices.
If you're looking for areas that are near redevelopment, both downtown
Kamloops and North Kamloops have redevelopment plans in place, and there
are various incentives for developers who will work on certain types of
property. The amount of development that was completed in the North
Kamloops Community Centre area between 2009 and 2010 has been quite
impressive. There's a new old folks home, new condo apartments that
house the North Kamloops Library on the main level, a new hotel, and
more. It's a small area that has had a lot of work done in a short
period of time, which is nice to see.
There's a tonne of things going on in Kamloops that are nice to hear
about. Recently, the Highland Valley Copper Mine's life was extended by
6 years, pushing it's life expectancy out to 2025. The Thompson Rivers
University is getting it's own faculty of law, with the first semester
happening in the fall of 2011. The university is a huge employer in
the city, and it's great to see it grow and expand. And there's much
more.
Hopefully this answers your question a little. If you ever want to talk statistics or about investing in Kamloops, drop me a line.
Glen
250-318-0815
