Rentals: Where to invest in Canada BC.

11 Replies

@Ryan Prokopetz

Welcome to BP!

Depending on the type of property you seek and where in the country you look there are deals to be found.  Here at home we invest primarily in the Maritimes.  The economy is a bit slower here, but prices are more affordable (Moncton, NB was rated as Canada's most affordable city last year.

Hi Ryan,

I'm in Surrey and while we have a rental house and basement suite in Surrey, I decided early that to meet my investment goals that I'd have to go outside the Lower Mainland. We bought a fourplex in Windsor ON which has done well. I still like Windsor but the pickings compared to 2-3 years go are slim (the best was 2008-09 when everyone thought that Windsor was going to zero). We also have properties in New Brunswick and I agree with Roy that New Brunswick has some good values - but don't expect major price appreciation. No market is perfect and NB has low population growth (or negative), high property taxes and low rental rates. However, I can buy a fourplex for under $25,000 and a similar fourplex in Surrey would be over $1,000,000.

I don't think there's any 'right' answer to your question, because it depends on how comfortable you are investing from afar, your skills, how much money you have to invest, your goals and time horizon. To invest out of town, you have to have a trustworthy local partner (person, co-investor and/or property management company), and you have to put the trust in them to deliver. I'm deliberately trying to spread risk geographically so that I'm not relying on any one market, and you might want to consider this strategy also.

Hope that helps!

-P

@Ryan Prokopetz

I feel I need to qualify @Peter Crisp 's portrayal of NB a little, but letting you know he picked one of the most challenging parts of the province (Bathurst, baie de chaleur) in which to invest (Saint John  would be next on that list).   Moncton and Fredericton have more stable economies ... and a quadruplex will run you $180 - 250K rather than $25 - 50K

Originally posted by @Ryan Prokopetz :

I'm new to investing and am wondering where some of you guys are investing in Canada. Did you stay local or invest in another city? Thanks and best of luck to you guys in the new year!

 Welcome! I did the research to identify a city with great growth potential, job creation,  affordable homes among many other things. Most importantly positive CASH FLOW.  I would say that if you don't have any great attachments to your current area move closer to the growth and cash flow and invest there. 

Hi Guys, I'm a real estate investor from White Rock, BC. We just bought a house out here 6 months ago and the market has gone nuts since (But then again, when hasn't it?). I also own 2 trailer parks in Indiana which have done quite well. Together my partner and I have over 120 tenants. But I am also looking to find something a little closer to home. Market here is just so tough to get in for anything multi-family that's under $1 Million, but I've done the out of province, out of country investing and would like to try and find something that I can drive to if need be. Thoughts?

Hi, I am a new investor from Surrey, BC. I have been looking into investing closer to home as well, but the numbers simply do not crunch easily- it's very difficult to break even with rental income in the Lower Mainland area, never mind have positive cash flow. I am considering Chilliwack (2BR apartments) and also looking into purchasing a townhouse that occupies the first 2 floors of a 5-floor apartment building in Fleetwood. 

Hey @Betty Ho and @Matthew Jarvis There are some cash flow positive (or break-even) places in the lower mainland however they are hard to find. Try condos in Langley and further out. I am also looking at Kelowna and Kamloops also. These are more for passive income purposes. For residual and active income this is why we take on the Reno&Flip and New construction deals either on our own or partnering with investors. Vancouver is great for this.

Kelowna is a very unique market at the moment with some incredible rental rates and property prices that are still reasonable. Some of our downtown homes with suites can be bought still under 500,000 and bringing in around 1700 up and 1200 down. @Matthew Jarvis @Betty Ho @Pawan J. If you would like me to send you some of property breakdowns I would be happy to. I have been looking at all of the options and just locked one up downtown. So I will need to wait a few months until I am back in the market.