Victoria

[Cam Kirkpatrick]

Hello, All...
Just getting started, and I'm wondering if Victoria is truly a viable market.
My concern is trying to get to the magic 10% number in the cash flow zone. I'm looking for a relatively low priced place (for Victoria) in the low $500's, but even if I suite either the basement or a garage, I'm not sure the rents will make the numbers work. Perhaps I'm underestimating the rent values.
Anyone have any insights?
Thanks.

 

[Thomas Beyer]

10% gross annual rent / house price does not exists in Canada in any larger city. It does exist in the US in some cities.

Victoria is a pure equity upside speculation play with no cash flow ( even with 30-35% down) and sub 5% cap rates.

It is however the warmest climate in Canada with no snow and no 15% tax on foreigner. ( not yet anyway)

 

[adriano]

I find that a good deal now days is 6% cap . But as Thomas said , it is an equity play.