Hi!
I am a REALTOR based in Nanaimo (for RE/MAX OCEAN POINTE) and I have helped hundreds of peoplewith purchasing (and sometimes maintaining) revenue properties up and down the island. Here is my analysis:
Overall, certain areas of Vancouver Island are excellent for cashflow positive properties. The central area (Nanaimo - Parksville) should DOUBLE it's population in the next 15 years. There is a migration trend from Alberta/Sask, Northern BC, and from the Lower Mainland (Vancouver area). This is always a good thing for a savvy real estate investor.
NANAIMO - Nanaimo is an excellent place to invest in residential properties. The rental vacancyrate is still hovering at just under 1% and it is easy to find quality tenants - except in May when the university caledar year is over. There tends to be a bit of a higher vacancy rate during this month.
There are certain areas of Nanaimo you should be wary of - such as Haliburton Street, parts of Victoria Ave, Irwin St, etc. These look like great deals on the MLS - but they are in a skid-rowish area of town.
Also, it is important to understand how Nanaimo classifies suites (legal, authorized, and unauthorized) and what that means to a landlord.
PARKSVILLE - Also a very good place to invest - especially in homes with suites, duplex, or multifamily. Parkville has a VERY tight rental market.
QUALICUM BEACH - Good place to invest in rentals but very hard to find anything.
LADYSMITH - It is hard to find good long-term tenants in Ladysmith. Best to avoid for rental properties.
CHEMAINUS - Ditto
CROFTON - Ditto. Plus Crofton is a mill town and often there s a stench from the mill - which means that it is difficult to resale properties there.
DUNCAN - Duncan is booming right now. A university is being built there over the next few years and it has become a bedroom community to Victoria. An excellent place to invest.
LAKE COWICHAN/ SHAWNIGAN LAKE - Too few renters available, and rents too low, to make this area worthwhile despite sometimes attractive price tags.
VICTORIA and AREA - Trying to find a decent cashflow-positive property in Victoria is next to impossible - unless you get into multifamily apartment blocks of 60 + units. Also, Victoria itself is cracking down on suites at the moment.
PORT ALBERNI - This town is in decline and has no real employment. I've seen some really scary rental situations there. It seems 3/4 of the tenants are on welfare and there are many issues with substance abuse. Port Alberni is one of the few places n the island where home prices are on a steady decline. Houses can be on the market for years there.
CORTENAY/ COMOX - Generally a good place to invest. Half the town seems to work at the military bases there - the other half in Northern Alberta (being flown back and forth on 2 week on/ 2 week off shifts). There are a steady number of quality tenants here.
CAMPBELL RIVER - With various industries shut down, people are moving out of Cambell River - so I would avoid. A much nicer area than Port Alberni, however.
TOFINO/ UCULET - These towns have a nice niche with year-round tourism. Rentals can be good here - and properties are inexpensive. HOWEVER - it will take forever and a day to get out there if you need to (4-5 hours from Nanaimo). There aren't many property managers in the area.
ANYWHERE NORTH OF CAMPBELL RIVER - avoid. Prices might seem good, but you are in the boonies and there isn't much industry left in the northern areas of Vancouver Island - which makes any kind of rental dependence extremely risky.
Back to Nanaimo/Parksville - here is a run down on market rental rates for properties in good condition (plus utilities).
3 bedroom + freestanding house $1200 - $1500
3 bedroom upper suite in house $1100 - $1400
2 bedroom upper suite in house $900 - $1100
2 bedroom lower suite in house $800-$1000
1 bedroom lower suite in house $600-850
Bachelor Suite (lower) in house $500 - $700
Bachelor Apt $500-$600
1 bdrm Apt $550 - $750
2 bdrm Apt $700 - $900
3 bdrm Apt/Townhome $900 - $1200
If I can be of any more help, please contact me at the numbers below:
Wes Smith
THE WES SMITH HOMESELLING / HOMEBUYING SYSTEM
RE/MAX Ocean Pointe Realty
Tel: 250-758-3700
Tel: 1-800-665-8313
Cell: 250-947-0314
FAX: 250-390-3105
Email: [email protected]
www.wessmith.ca