THE EFFECT OF FOREIGN INVESTMENT

(July 01, 2015 , posted in Investment Property)

The Effect of the Chinese Buyer #CHINARISING

In the last five years, foreign investment in real estate from the Chinese Buyer has increased from $17Billion to $131Billion and it is climbing rapidly. The top countries for these Chinese real estate investment dollars are:
1. United States
2. Australia
3. United Kingdom
4. Canada
The most expensive cities like New York, Sydney and London continue to dominate the attention of the Chinese Buyer, but Canada is definitely in the running. The number one city in Canada that Chinese Investors buy property is Vancouver and as more luxury product becomes available here, this will only increase.
What do these real estate markets have in common? They are:
1. Strong
2. Regulated
3. Famous
4. Experiencing Long-Term Robust Growth

It is without a doubt that we will continue to see a rise in foreign investment from all over as Vancouver becomes more and more recognized on the global scale. Simply looking at the amount of land banking that is occurring by foreign buyers speaks volumes to the faith that the international community has in the future of Vancouver Real Estate. 

How To Get a Piece of the Pie.. #InvestLocally

Though it may seem at times that investing in local real estate has become too difficult, there is a ton of opportunity throughout Metro Vancouver where we can make solid investment choices.

Choosing Where to Invest
You want to choose an area that:
1. HAS VALUE
2. OFFERS GROWTH POTENTIAL
3. IS DESIRABLE TO LIVE

SOME EXAMPLES ARE:

Port Moody Centre & Port Moody
VALUE: Ave. Sale is btw $689-$709 - 50K less than the average Vancouver sale price
GROWTH: 26% increase in property value over past 5yrs - development & continued growth
DESIRABLE: Beautiful, Central, Close to City, Community & Diverse Inventory of Real Estate & appeals to wide demographic of buyers

Eagle Harbour, West Vancouver
VALUE: Ave sale is $1,275,800 - 35% below the West Van average.
GROWTH: 24% increase in property value over the past 5yrs - a lot of new interest in past year.
DESIRABLE: Beautiful, good schools, strong community, large lots & close to highway access.

Lynn Valley, North Vancouver
VALUE: Average sale $950,000 - get more for your money than in East Van.
GROWTH: 15% increase in property value over past 5yrs - strong Official Community Plan stimulating more growth & new interest.
DESIRABLE: Beautiful, good schools, large lots, strong community & close to highway & bridge.


Consider that in our lifetime there will never be another single family lot title issued in this city unless you tear a house down. Land is an asset that trades at a premium in Vancouver and that premium will only continue to rise as our population grows and more people want to live and invest here.
People are willing to be creative with the way they live in order to stay in the city and this is evidenced by several trends we are seeing throughout Vancouver: choosing not to have car, converting dens into bedrooms, living with extended family or having a tenant are just some of the ways we make compromises to invest in real estate and live in a city we love.

Affordability is a relative term and more people are focused on where they want to live rather than the size of their house. For example, $700,000 will buy you a 1000SqFt. ground level condo downtown Vancouver, OR a 1300SqFt condo in Burnaby, a townhouse in Coquitlam or a house in Langley. While there is a large demographic to whom Langley is appealing, there is a much larger demographic for whom proximity to the heart of Vancouver remains of utmost importance.

Waiting for the perfect time to invest in real estate is really a false endeavour. While the opportunity exists to get into the Vancouver market at currently low interest rates, it is without a doubt a good idea to invest. Make sure before you buy that you can afford what you are buying if interest rates do go back up to 5% but take this opportunity to get in while they are low.

For more detailed investment opportunities, please email or call me to discuss. 778-386-0771