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Fraser Valley Market Could Be The Top Choice For Rental Investor

Fraser Valley Market Could Be The Top Choice For Rental Investor

For many mature British Columbians, real estate offers the best avenue for secure retirement income. Those who own even a modest house in Vancouver would attest to that. In 2015, the benchmark price of a detached house in the city increased by an average of $30,000 a month and ended the year worth more than $1.8 million. 

In a 2015 address to the Urban Development Institute in Vancouver, top Vancouver real estate agent Bob Rennie noted that “people 55 and up have home equity in Metro Vancouver valued at $163.4 billion.”

But banking on real estate income in retirement requires more than hoping for continued and accelerating appreciation.

The Lower Mainland, after all, is an anomaly in British Columbia. Knock out the Vancouver region and the typical house price across the province is around $400,000, just slightly above the Canadian average and up a modest four per cent from a year ago.

Yet investors can make steady income from real estate anywhere if they pick markets and property carefully and remain realistic.

Some Vancouver real estate investor recommends that middle-aged investors looking for future retirement income ignore the market noise and buy a condominium or house as a rental, and set a 17-year horizon. He explains that this is the time it takes, with rental income, to pay off a typical mortgage. “Then you have passive rental income for the rest of your life.”

Where should you buy? Steer away from smaller resource or resort towns. Buy where jobs are being created and where the population is growing. A key indicator is increased school and regional hospital construction, evidence that brains bigger than yours have decided where the population is heading.

The Fraser Valley markets of South Surrey, White Rock and Langley could be the top choices for better-financed rental investors.

Let Antonia Tong helps to find the perfect home for either rental investment or living in Fraser Valley market. Call 778.238.2836.