Now is the best time to start repairing and flipping real estate.
For example, there’s a Vancouver-based real estate research firm that has determined that Kelowna is at the start of a boom.
The Real Estate Investment Network offers investment advice based on the current state of the real estate cycle.
“We generate this information to help homeowners and investors make decisions based on facts, not emotions,” said Jennifer Hunt, vice president of the network.
“Kelowna’s economic foundations are strong as it transitions from a traditional agricultural and tourism economy to a high-tech hotspot. But even at the beginning of a boom, certain types of real estate investments are better than others. “
For example, it’s a good time to buy an inexpensive, well-located Fixer upper, renovate it, and sell it for a profit within a year.
The start of a boom is also a good, but not optimal, time to rent due to high rents and near-record property prices.
If you buy a property and hold on to it as an investment, there is a risk that the property will be worth less in a few years if the boom is inevitably followed by a slump.
The network’s real estate cycle clock is divided into nine phases: start, middle, and end of recovery; Initial, middle and final boom; and beginning, middle and end sink.
With Kelowna at the beginning of a boom, it means we have the middle and end of the boom to look forward to.
However, not all phases of a boom are the best times to buy real estate.
The fix-and-flip approach to real estate still works when prices are high at the height of a boom but other strategies become difficult.
Until the end of the boom, when prices and home sales decline, all three approaches to property investing are challenging.
There are good times and bad times to make different types of investments at each stage of the cycle.
For example, the end of a slump is the best time to buy and hold as prices will be lower and a rebound and boom to follow in the years to come.
And at the beginning of a dip, Fix and Flip should be avoided as you will have to wait too long to make a profit in a soft market.
The network bases its burglary-recovery-boom cycle on economic and historical security.
And while it can identify which markets are in which phase of the cycle, it cannot predict how long each of the nine phases will last.
However, if Kelowna is at the beginning of a boom, it will likely be a few more years for the city to work its way through the middle and end of the boom before a slump sets in.
Kelowna’s boom status is underpinned by the development of high and low rise condominiums and apartments, townhouses and single family homes to meet the demands of a growing population who are optimistic about the future.
Kelowna is also benefiting from an influx of talent and money from Vancouver, where people are selling their single-family homes for an average price of $ 1.7 million and moving to Kelowna, where the average single-family home sales price is $ 672,000.
The median sales price for a Kelowna townhouse is $ 454,000. It’s $ 319,000 for a condo.
The network’s top 10 list of British Columbia cities currently available for real estate investment is:
1.Surrey (start boom)
2. Abbotsford (end of recovery)
3. New Westminster (mid-recovery)
4. Victoria (end of recovery)
5.Kamloops (mid-recovery)
6. Kelowna (start boom)
7. Chilliwack (in the middle of recovery)
8. Tri-Cities of Coquitlam, Port Coquitlam and Port Moody (End Boom)
9. Burnaby (areas in all three phases of recovery)
10. Vancouver (end boom).
