Vancouver Island

[Eddie]

Greetings all,



I wanted to open up a discussion to anyone living in Western Canada, particularly Vancouver Island. Being from Ontario, I know very little about British Columbia (never been). From pictures I've seen, it looks quite beautiful. I am considering moving out there in a year. If anyone had the time, I'd very much like to hear your general impressions of the area (with respect to investment, development, lifestyle, etc).



Thanks very much in advance,



- Eddie

 

[Thomas Beyer]

We own a property (65 units) in Campbell River .. close to the hospital.



I have been to the island often. Very scenic. Many remote and beautiful spots. Hiking, kayaking, beaches are beautiful.



Vancouver Island is pretty indeed, but economically POOR. Many retired folks. Retired folks SAVE MONEY. They don't spend (on average) like young people in AB or SK. They preserve capital, i.e. bring their old car/coat/skis/furniture/shoes/PC and don't buy a new one. They have no (young) kids and thus, need no new baby strollers, mini-vans, ski equipment, school supplies, PCs, bigger 3rd bedroom house etc. i.e. they stimulate the economy far less than a 30 year old migrant family to AB or SK who comes to look for a job or have a new job.



Do not invest in Vancouver Island without doing some in-depth local research.



Victoria and area is economically stronger due to government and university. But is is quite pricey and is overbuilt with too many condos. Condos have slid in price by 10-50% depending on project (yes 50%)



Nanaimo is OK too but has many rough pockets.



Courtney/Comox area has an airport with 2x daily flights for snow birds from Calgary and Edmonton. The typical 3 day trip is: one day skiing (Mt. Washington), one day golfing, one day looking for real estate.



Campbell River is more industrial and may be a great investment if you don;t pay too much and cater to average renters (like we do).



North of Campbell River is really remote and rough and for rugged entrepreneurs only.



Overall, I find BC a tough place to invest due to rent control laws, high prices and weak economy .. and that includes Vancouver Island.



On balance, SK and AB is a better real estate investment place due to more pro-business governments, younger population, higher wages and faster growth. But yes, golfing is better in Nov. to February in Vancouver Island. And yes, it is pretty and a great place to retire. Don't confuse pretty with "great investment".

 

[housingrental]

Golfing in January in Canada.... Really?

 

[jarrettvaughan]

I used to live in Ucluelet (moved to Vancouver in November), which is very close to Tofino. I loved living there as it is a very beautiful place to live with many out door adventures to be had. We surfed everyday and had many incredible interactions with wild life. However, this area is economically depressed, there are very few jobs, the prices are artificially high due to the control of one Realtor and it is very over built. I am glad that we decided to rent while we lived there as getting cashflow out of a property is impossible and selling one is even more difficult.



This is the same for Ucluelet and Tofino.

 

[Smith68]

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