Has anyone had any experience in the Prince George market? I searched the BP forums and it seems like virgin territory. I took a look at CL rental prices for one bedroom it is around $550 - $675 (I'm assuming for forestry and UNBC students) for a 3br unit it costs around $850-$1200. I did a quick analysis of a duplex on the market and it proved to be cashflow positive. http://www.realestateanalysisfree.com/1423-1425-NA... The reason I took interest in Prince George is because my work (TSX:ZZZ) is actually sending me there for a week or so to train some new staff. At that time I'm going to schedule a realtor to take me around (anyone have any recommendations?) and at the same time check out the local market. Before I do that tho.. Is there anything that I am missing fundamentally? Is it just a ghost town that should be avoided in the entirety? Can't be THAT bad if Sleep Country decided to open shop there.. Looking forward to hearing from all you smarter people.

Hi Stanley Kong, We have 3 single family homes with suites up there and know the area very well since we lived there from 2012 to 2015. Nation Crescent is one of the bad streets. Much crime, low end rentals. When you think slumlord thats one of the streets. Not saying that this isn't a good investment for some people but wanted to warn you of its title. All the street surrounding are pretty much fine, just this one street. We would never invest on Nation Crescent too many problems. We also wouldn't invest in VLA, South Fort George, Ruggles, Cuddy Crescent or Mcintyre. Plus our management wouldn't even take them on currently. We meet investors always looking to sell these property but....... According to many wonderful real estate investor the ghetto's appreciate the fastest if you can put up with the tenants and they would invest in them everytime. We were very interested in a duplex on Ruggles st when new to the area (its still for sale today i believe 3 years later), and almost put an offer on one in VLA (still available), and went through a crazy 4 plex on Mcintyre. Feel like we dodged a bullet on those three! We often went on nightly drives to check out areas and we drove by the duplex on Ruggles st about 6 months after at 1:00am and it had tenants big parties on each side. We felt lucky that wasn't our place. Any questions about Prince George I would be happy to answer. Amanda Saarela

That would be great. We so far have stayed out of the VLA as it is known as (and is) the ghetto. although, the numbers there are higher for you. Our property management wont or at least prefers not to take that clientele. Our rentals are in the more desirable parts of town, lower numbers more quality tenants (UNBC students, CN rail employees, police officers, sheriffs, and so on). We are looking to head up there to do an annual check-up (me in person, not management, which by the way is an even 10% and no hidden levees and is adequate, lol...) oh ya and it is only about a 9 hour drive from Vancouver if you do not wish to fly,like myself, who books weeks off work to bring his mini-van full of tools and do some of the repairs and maintenances immediately on site seen.

The problems that I see with Northern BC is the uncertainty in the LNG projects. Prince George doesn't have much to offer for job growth/creation, and as @Pawan Johar mentioned, the population hasn't increased in years. Even if LNG did ever go through, the majority of the jobs created are going to be a the source of NG and at the LNG export terminals. Prince George will be a hub for workers out of BC, but the only thing happening near it as far as LNG is concerned will be pipeline construction. And once the pipeline is built, the workers will be gone. I would look at areas like Fort St John, Dawson Creek, Kitimat, Prince Rupert and Terrace were long term jobs will be created.

@Stanley Kong if you just want a cheerleader, it won't be me. I've been a long-distance landlord and it didn't work out. I know of others who have had bad experiences, too. You may be someone who never experiences the downside. But, I think you need to consider the possibility and look realistically at the difficulties. As far as enlightening you with my brilliance LOL - google to see if you can find some copies of property management contracts and look at all of the fees they can charge you. A month's rent to get it rented, a fee for kicking out a tenant, a fee for finding a new tenant, fees for overseeing maintenance, inflated fees to use their maintenance guy and their contractor pals. And a fee to fire them, if you're not happy with them. I suggest you enlighten yourself thoroughly if you intend to buy an investment that would require a $300 plane trip - if the weather will permit in Northern BC - to go find out what is wrong, if your property manager turns out to be a thief, or you need to go see in person the supposed new sewer line they say you need to put in at the cost of $5,000. When, all that it really needed was to be snaked. If you knew someone personally, that you knew your could thoroughly trust with a reserve fund of thousands of dollars, with your investment that is worth thousands of dollars, in Prince George, then it would make sense. Or if you are willing to gamble that investment money in the hands of strangers. I wouldn't be. You may think I'm just a negative person. I like thinking I'm the voice of reason here :-) Whatever you do, I sincerely hope you never have bad luck and make tons of money.

@Stanley Kong 10% for a manager is unrealistic. That's just their monthly fee. Read the contract with a fine tooth comb for all of the other fees you will encounter. Saying any city (and there are few) in "Northern BC" isn't remote, is kind of funny in my opinion. But, I hope you get rich on your Prince George investments. Best of luck to you.

But you would be the property manager, right? And you are in Vancouver, right? Not local. Property managers also cost money. And their fees can often break a landlord. So, I still differ with you on the reality of making a profit by investing in this remote location. To put it nicely, I think you are encouraging someone to invest in a remote location, where they cannot personally visit their investment, and rely on a manager who also is not local. Or am I missing something?

Prince George, British Columbia Rentals?

Pawan J.

Developer · Vancouver, British Columbia · Member since 2014 · 122 posts · 26 votes

10y

Hey I've been up there quite a bit in a past life for work also. Apparently the population hasn't changed much in a while 70k ish so not seeing much population growth is likely. Heard they are putting in a winery also over the river. Wondering what your capex is that your estimating, vacancy rates and appreciation rate? When you go pro on BP there is a great rental calculator to use.

1 Reply

Stanley Kong

OP

Specialist · Vancouver, BC · Member since 2016 · 63 posts · 7 votes

10y

I was told after doing my first analysis that the rental calculator is US market specific. I did it quickly and selected 50% rule. I set appreciation as 1%

Prince George, British Columbia Rentals?

Most Popular Reply

45 Replies