New Federal Regulations Make Kelowna Rental Properties a Strong Investment
According to the CMHC, as of October of last year, Kelowna’s vacancy rate was amongst the lowest for any municipality in Canada at a staggering 0.7% across the board, and 0% for rentals with three or more bedrooms.
The federal government has instituted new regulations concerning the approval process for mortgages, resulting in an approximate 20% loss in purchasing power for first time home buyers. This will result in a massive increase to an already overpopulated market of renters.
While unfortunate news for those looking to purchase their first home in Kelowna, these circumstances are ideal for those interested in purchasing investment properties in Kelowna and throughout the Okanagan.
The Current Kelowna Rental Situation
Previous to this month’s change; Kelowna was already enjoying the lowest vacancy rates in Canada.
Demand for rentals has been growing aggressively as a massive market is displaced from Vancouver, due to soaring property values.
The technology industry in Vancouver is known for recognizing that much of the worldwide talent it seeks to recruit is simply incapable of affording Vancouver’s enormous cost of living, and these renters are looking for alternatives beyond Vancouver.
With a substantially lower cost of living, businesses and renters alike are attracted to Kelowna, and have both flocked to the city in tremendous numbers. The city has been struggling to keep up with demand for new home rentals and properties, and the government’s changes to mortgage rules are set to only exacerbate the situation.
Outlook on the Future
A report from Kelowna city council shows the city has responded to this bleak situation for renters by approving the construction of 1430 new residential units, but this measure is not likely to impact rental availability for several years.
Those looking for 3-4 bedroom rental accommodations are the hardest hit, a 0% vacancy rate in that category making it nearly impossible to find vacant rentals, which makes now a perfect time to purchase a investment property.
While the new federal mortgage rules unfortunately disadvantage those seeking to buy their first home, a large benefit can be drawn for those looking to invest in Kelowna properties, especially those in the 3-4 bedroom range.
Capitalize with Quincy Vrecko
If you are interested in the possibility of taking advantage of this historically unprecedented opportunity, then there is no-one better to guide you through the ins and outs of the Kelowna real-estate market than Quincy Vrecko.
With over 28 years in luxury sales and over 60 million dollars sold in Kelowna real-estate, Quincy and his team represent the ultimate authority on the Kelowna market. For up-to-the-minute information on the opportunities available throughout the Okanagan for investment properties, get in touch with Quincy and his team, or call 250-863-8810.