Vancouver Island on the ground knowledge

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Vancouver Island on the ground knowledge

Adrian Masterskaya
Member since 2021 · 4 posts · 1 vote

Hello all,

I am masonry contractor (brick, block, stone, etc) who is moving to Vancouver Island (likely Victoria) in April with my wife. I lived in Vancouver for 15 years previously and know the Island and coastal areas fairly well. 

I'm asking for advice of anyone with experience property investing on Vancouver Island, the Sunshine Coast, Sea to Sky area corridor and/or the Gulf Islands. We love these areas and are wondering what opportunities there are for investing in these areas long term. My intention is to transition from contracting to investing. Some questions I have are;

  • is there opportunity for wholesaling? would this be in the older towns (Duncan, Port Alberni, Nanaimo) or somewhere I wouldn't suspect?
  • Are pre-sales for apartments offering good returns on Vancouver Island?
  • Is there a demand to convert commercial/industrial (mostly masonry) buildings into residential? 
  • How do you invest for cashflow successfully in isolated communities (Gold River, Quadra Island for example)?

Any help would be appreciated, thank-you, 

Adrian

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  • Dean Eggleton
    New to Real Estate · Whistler, British Columbia · Member since 2020 · 3 posts · 0 votes
    4y

    Hi Adrian,

    I have experience in Short Term Rentals in Whistler. Expensive market but cash flow is more than worth it; and as the world opens up a little more over the coming year the data suggests tourism in the area will explode (on top of how busy it already is from the lower mainland)...I can also tell this is true from how booked out we are (almost fully) from Dec - Mar already this coming winter. 

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  • Jason Ridout
    Rental Property Investor · parksville, bc · Member since 2017 · 153 posts · 148 votes
    4y

    Hi @Adrian Masterskaya

    Wholesaling isn't really a thing in BC. The BC Financial Services Authority (formerly the Real Estate Council of BC) has rules in place restricting the assignment of real estate contracts. You can no longer get a house under contract and sell that contract for a profit, without consent from the original seller. If you get written permission from the seller it can still be done, but most sellers won't sign off on that if there's no benefit to them. It still happens from time to time but mostly on commercial real estate. 

    Pre-sale apartments can offer good returns, but we're in a crazy inflation market right now. If you were to tie up a pre-sale, and while it's under construction the market takes a downward turn, you're going to be at a loss. This is really no different than doing a flip and seeing the market take a downward swing mid rehab. 

    Converting commercial buildings into residential use could be a real money maker. It would require a rezoning and approval from local municipalities. Obviously the conversion would require meeting all building codes which might be challenging depending on the building. Most municipalities are in favour of more residential housing, so this might be a solid idea.

    Investing for cashflow in isolated communities isn't much of a challenge really. You just need to find a decent property manager in the area. If you need to do any renovations to the property, a contractor might be difficult to find, but if you're willing to pay a premium, you can find one. Vacancy rates are very low everywhere on the island and golf islands. Finding tenants won't be a challenge. I recently placed tenants in Youbou, and had a lot of response to the ad for the unit.

    I think some of the smaller communities are under valued right now and a good place to find cashflow and potential appreciation.

    Feel free to reach out if you have any other questions

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  • Cameron Robinson
    Whistler, British Columbia · Member since 2020 · 22 posts · 10 votes
    4y
    Originally posted by @Dean Eggleton:

    Hi Adrian,

    I have experience in Short Term Rentals in Whistler. Expensive market but cash flow is more than worth it; and as the world opens up a little more over the coming year the data suggests tourism in the area will explode (on top of how busy it already is from the lower mainland)...I can also tell this is true from how booked out we are (almost fully) from Dec - Mar already this coming winter. 

    Hi Dean,

    Have you been in the Whistler market long? I'm thinking about purchasing there in the next 6 months with a STR. Are you booked up mostly through Air BNB?

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  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    Renters are desperate on the Island. A surge in demand for home purchases have driven prices up 30% over the year, with many buyers evicting tenants for personal use. Victoria North to Cambell River has been affected, I perform trade work for several investors developing short term rentals in Tofino, and the revenues are mind blowing. The biggest obstacle you'll run into is competitions. MLS listed properties are being sold first day, receiving 10+ offers, 100k over ask, no conditions. Listings have largely dried up, and I joke with my Realtor that he looks thinner than the last time we met.

    One thing to consider is that this market is largely driven by the baby boomers fulfilling their dreams. It won’t end anytime soon.

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  • Adrian Masterskaya
    OP
    Member since 2021 · 4 posts · 1 vote
    4y

    Thanks for the responses,

    Dwayne, is the demand for housing affecting lots in the same degree or less so? I plan on building my own rentals using masonry. There’s a lot of commercial masonry (ex. Split face concrete block in schools) methods of building that could work for residential. I’ve seen it done before, not a lot on the west coast though.

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  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    Does the building code in regards to earthquakes have any bearing?, I don’t know. Residential lots are under the same pressure. You may be better served by looking into commercial type construction. I see a number of rezoning applications targeted at commercial, which I see needs a lot of catching up. 

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  • Adrian Masterskaya
    OP
    Member since 2021 · 4 posts · 1 vote
    4y

    Converting commercial buildings to rentals is interesting to me. Also, if anyone needs renovation advice on anything related to brick, block, stone, glass block chimneys/fireplaces, concrete etc feel free to reach out. 

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