Vancouver is one of the top destinations in Canada for real estate investment. In fact, Vancouver has been ranked Canada’s #1 market for real estate investment in 2020. Why? Not only is the view spectacular, the city has all the same perks as Toronto or New York City. In my opinion, Vancouver is becoming the next Toronto, but with a view like Switzerland!
Just like other big popular cities, Vancouver can be a great competitor with its diverse culture, convenience, business, restaurants and much more. However, there is no denying that Vancouver’s real estate prices are infamously high. UBS Group’s Global Real Estate Bubble Index, ranked Vancouver as the fourth most inflated market in the world back in September 2019. With large amounts of global capital, low interest rates, and a lack of new housing inventory, it was basically impossible for home prices not to increase. Check here!
Here are 8 universal reasons why you should invest in real estate in Vancouver:
- High return on investment– There was a 68% increase in average home prices in the last 5 years. Additionally, there was 3-4% of annual gross rental yield.
- Low Financing Cost– Up to 30 years of mortgage amortization periods. Around 3.5% for fixed closed mortgage with a 5-year term.
- Weak Canadian Dollar value– Canadian dollar is less than USD
- Stable and growing Economy – Strong regulations ensuring sustainable growth. Vancouver is becoming hub for tech start-ups.
- Top ranked in terms of quality of living – Cleanest air in the world. 2nd highest Green City Index score (out of 120 cities). Low crime rates.
- Growing Population – Over 30,000 immigrants per year.136,000 international students in BC.
- Low Inventory for sale – Low number of new developments (less than 30,000 units per year). This would lessen the competition if you were thinking of renting out your condo.
- Low inventory for rent – Rental restrictions in large number of buildings.
Real estate in Vancouver, British Columbia has been under the spotlight for a recently and has turned into one of the most expensive regions on earth. The development of housing has been happening at a very fast pace to meet the increased demand. Unfortunately, there has been a scarce supply of land to continue building. Click here for more information: https://en.wikipedia.org/wiki/Real_Estate_Board_of_Greater_Vancouver
The city of Vancouver remains a popular choice for local buyers and investors abroad.Specific areas like North Vancouver, Surrey BC, Langley, Coquitlam, Port Coquitlam, New Westminster, Port Moody, Maple Ridge and even Mission real estate boards are all areas that are on the map to increase populations and job growth. Property market values grow where people go! As people are migrating to Vancouver, the success of real estate investing is increasing as well. Knowing the right sub-areas to invest with precise knowledge of population and job growth projections is key as a real estate investor.
References:
https://uniqhomes.ca/f/8-reasons-to-make-real-estate-investment-in-vancouver
http://www.kingswood.ca/5-reasons-investing-in-vancouver-real-estate-is-attractive/