New Mortgage Rules ~ Effective Monday October 17, the federal government announced changes to the process of mortgage qualifications that have been sending shockwaves throughout real-estate market Canada-wide.
In Kelowna, these changes are unfortunate news for millennials looking to buy their first homes. As of Monday, the changes instituted by the federal government reduce their purchasing power by up to 20%.
While this has unfortunate repercussions on the lower end of the market, it holds fantastic opportunities for those who are able to purchase an investment property in Kelowna or the Okanagan. There will be an increase in the number of local renters, making now a great time for investors to purchase a rental property and take advantage of the new situation.
The Kelowna Luxury and Investment Property Situation
In Kelowna, the luxury and investment property market is seeing a wave of baby-boomers looking to retire or purchase investment properties in the area and move from Vancouver due to prohibitively high property values there.
Many of these soon-to-be retirees are buying their properties 2-5 years in advance of retirement, taking advantage of the massive year-over-year gains to property values in Kelowna and the Okanagan. Many of them are renting their properties out to young families until they are ready to move in. Purchasing an investment property and renting it out prior to retirement is a great way to earn some passive income, especially with the newly changed mortgage rules.
Incredible Investment Property Opportunity
Before Monday October 17, Kelowna was already enjoying among the lowest rental vacancy rates in the nation at a jaw-dropping 1%. As of Monday, a significant portion of the lower end of the buyer’s market just became part of the renters market.
This is great news for those who are looking to enter the Kelowna investment property market before retirement. Not only are there considerably more renters available as of Monday, but each and every one of these new renters are extremely high-quality. These renters (until Monday) have been in the process of home purchasing, suggesting they have jobs with consistent income and a level of maturity ideal for renting your future retirement home.
Navigate the Market With Quincy Vrecko & Associates.
When it comes to navigating the ins-and-outs of the Kelowna and Okanagan luxury/investment property market, there is no better guide than Quincy Vrecko & Associates.
With over 60 million dollars in Okanagan luxury and investment properties sold to date and over 28 years of experience in Luxury Sales there is no better source of information and guidance than Quincy Vrecko.
If you’re looking to take advantage of this historically unprecedented opportunity to purchase an investment property, or looking to learn more about the effects of the recent mortgage rules change, call Quincy Vrecko and his team at 250-863-8810.