When we think of Okanagan Real Estate and our local housing market we tend to think in terms of our own requirements. What type of home do we need, what can we afford, what are the mortgage rates and the required down payment? Then we look for amenities, services, and shops and what are popular Okanagan real estate neighborhoods.
What you may not consider are external factors and how Okanagan real estate appeals to a larger audience. One such influence is a foreign investment and how it affects real estate in BC. Canada is the 10th largest economy in the world and three of the larger economies – China, Japan, and Korea, are all Pacific neighbors and a relatively short flight from Vancouver and YLW.
Having BC as a destination to move to and invest in is not a new phenomenon. Thirty-five years ago there was a concerted effort to attract families from Europe to relocated and buy Okanagan real estate. Large immigration from Germany came to the Okanagan Valley in the late ’70s and ’80s. More recently similar campaigns focused on South African families. And now a steady rise in foreign investment from China and Korea is forcing prices in Vancouver to record highs.
Foreign buyers are not just interested in buying an investment. They are also sending their children to schools in BC and looking long term at what the Okanagan lifestyle has to offer. They want a real estate investment that is in a stable country, has a strong economy a high level of confidence and quality of life. Their children might stay in Canada and they may retire here. Hence, why Okanagan real estate appeals to a larger audience.
Tracey Vrecko comments
“BC is attractive for several reasons with the Asian market. They value our education system, our strong economy, our proximity on the Pacific Rim and our amazing lifestyle. Why not invest in Okanagan Real Estate if you are looking for an alternative to Vancouver.”
In the Okanagan, foreign investment in real estate has not hit the astronomical levels of Vancouver or Toronto but it is still a factor. Real estate investors are looking for growth markets and Kelowna is showing tremendous promise.
We have several winning indicators:
- Extremely low vacancy rates
- Strong real estate sales
- Booming new home construction market
- Record level of townhome, condominium and high rise tower developments underway
- Low-interest rates
- A pro-development city council
Last Fall, Vancouver imposed a 15% foreign ownership tax to stymie speculation in the Vancouver real estate market. Now, these offshore buyers may turn their sights on communities like Victoria and Kelowna for real estate investment opportunities.
One thing is certain and that is wealthy families’ abroad view BC as a safe and desirable location to send their children to school, invest in property and start businesses. If these trends continue then Okanagan and surrounding area will continue to expand. Vancouverites will continue to sell their homes and move to the desirable Okanagan and the Okanagan real estate continue to appeal to a larger audience.
If you are starting to consider investing in Okanagan real estate, check out our previous blog or contact one of the knowledgeable associates Quincy Vrecko and Associates 778-760-2860!