NEIGHBOURHOODS IN VANCOUVER, SURREY, KELOWNA, VICTORIA RANK AMONG CANADA’S TOP 100 LIST
- VERICO mortgage experts say Bank of Canada unlikely to announce change to overnight rate; attractive mortgage rates will remain for time being
- Low vacancy rate and natural beauty make for investment hot spots
- Rule changes in July have complicated mortgage process, investors should seek expert advice
Vancouver, BC Oct 19th, 2012-- A special report by Canada Real Estate Wealth Magazine has uncovered the top 100 investment neighbourhoods in this country – communities most likely to swerve a coming correction.
Twenty neighbourhoods in BC have outshone recent housing trend predications and ranked in the Top 100 list including Yaletown, South Surrey, Kelowna North and Fairfield.
“For investors, trendy Yaletown often boasts residential vacancy rates under 1%. Such high demand has generated very favourable returns for investors in both rental income and significant property value appreciation,” says Garth Ellis, President of VERICO Ellis Mortgages Canada.
Although the Bank of Canada is making its overnight rate announcement on Tuesday, Ellis says that no changes are expected.
“Bank of Canada will be cautious about raising interest rates too much or too soon. That said, savvy real estate investors will see inflationary pressure, that can serve to increase interest rates, may also serve to increase potential unit rental income and also increase the value of the rental until itself,” Ellis adds.
Jared Dreyer, President VERICO Dreyer Group Mortgages says that South Surrey is a hot spot in the second largest city in BC. “House prices in South Surrey are substantially higher than Surrey combined (Surrey Central, Surrey North and Cloverdale) sitting at an average of $1.1 million. Surrounded by the Pacific Ocean with lots of natural greenery, South Surrey is a great investment area,” says Dreyer.
The Okanagan has traditionally been a retirement community but with the average age of the population getting younger, Kelowna North has caught the eye of investors.
“We are experiencing record levels of students entering kindergarten this year, so our population make up is changing and we are attracting younger families. The main reason people are moving to the area is the outdoor activities like boating and skiing,” says Daryl French, owner of VERICO LendingMax.
“Inventory in Kelowna is also down from August 2011 and with demand increasing, home values are likely to hold and if we see multiple offers, that could create some urgency in the short term,” says French.
French also agrees that the Bank of Canada will not announce any changes on Tuesday, meaning mortgage rates will remain low for the near future.
“If we start to play with rates too soon, we will see the Canadian dollar rise, putting more negative pressure on exports at a time when unemployment in Canada is just starting to improve,” adds French.
However, French says that because many are merely talking about the possibility of a rate change, investors sitting on the fence may be motivated to make a move.
Also on the Top 100 list is the neighbourhood of Fairfield in Victoria which boosts tree-lined streets and character homes.
While prices for homes with rental suites in Fairfield generally start closer to $700,000, capital appreciation potential has made this a favourite for investors for years says Geoff Parkin, CEO of VERICO Select Mortgage. “The average rent in the City of Victoria is $1,353 per month for a two bedroom unit, but character suites in Fairfield homes can rent for a good deal more. A quick look at rental listings reveals unique character two bedroom units renting for up to $1,650 per month, making rental returns good compared to other markets like Vancouver,” says Parkin.
Ellis adds that the rule changes brought in by the government this past July have enhanced the need for investors to seek expert advice from mortgage professionals. “While opportunities to purchase and re-finance investment real estate are still available, the new rules have added complications that now may make the mortgage process too difficult or too expensive for some investors to attempt without the assistance of a licensed broker,” says Ellis.
Other BC neighbourhoods that ranked in the Top 100 list include:
||Average home price*
||Coquitlam Town Centre
||Central Dawson Creek
||Old City Quarter of Nanaimo
||Northern Oxford Heights
||The Bowl District
*source: Canadian Real Estate Wealth Magazine Top 100 Report
Extensive industry analysis and statistics were used in this report including population, average home price, capital growth and vacancy rate.
The most comprehensive list of its kind, the Top 100 Neighbourhoods to Invest report was compiled by Canada’s leading real estate magazine, Canadian Real Estate Wealth with the support of Verico Financial Group, Canada’s #1 Mortgage Broker Network and Re/Max Real Estate.
The results – set to hit newsstands on Oct. 22 – identify the exact locations investors should focus on as a hedge against short- or long-term corrections.
For a list of media contacts for each city and neighbourhood, please visit www.verico.ca/newsroom
p: 604.681.6155 ext 230
About Verico Financial Group Inc.
Verico Financial Group is Canada’s largest network of independent mortgage brokers comprising of over 190 offices with over 2300 brokers who originate over 12 billion dollars in annual loan volume. Our brokers collectively originate approximately over 45,000+ mortgage transactions per year.
VERICO is comprised of the top professional and influential mortgage companies and originators in the country.
The VERICO Mortgage Broker Network prides itself on our core pillars of excellence, professionalism and ethical standards; as a result, we have earned a reputation that is coveted in the industry.
For mortgage help, contact a VERICO mortgage broker near you.
About Canadian Real Estate Wealth
Canadian Real Estate Wealth magazine is Canada's only monthly publication dedicated to Canadian real estate investors. http://www.canadianrealestatemagazine.ca/