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Canadian Real Estate Wealth (CREW) has named Kelowna as one of the top 100 neighbourhoods to watch in 2016, but it will cost you a lot to live here.
The Canadian real estate market has seen a number of ups and downs in 2015, including record breaking prices in Toronto and Vancouver, making it nearly impossible for many to buy a home. The declining oil price has also impacted real estate in provinces and investors are not spending as much as in previous years.
Researchers at CREW have compiled its list of Canada’s Top 100 Neighbourhoods and 20 B.C. neighbourhoods continue to see significant increases year over year. This is the fourth year that CREW has issued the top neighbourhoods ranking.
“The story of Top Neighbourhoods in Western Canada is more complex than ‘BC is too pricey for investors to make a monthly profit from their rentals,’” said Canadian Real Estate Wealth Editor Vernon Jones. “In fact, this year’s list suggests that even with exceptionally high acquisition costs for some B.C. neighbourhoods, the value for property investors remains.”
According to CREW, recent development announcements such as Okanagan Centre for Innovation, the new Interior Health Community Health and Services Centre, Queensway Transit Exchange, and improvements to John Hindle Drive have helped create a positive impact on the real estate market.
With a population of 117,312, which is a 9.6 per cent growth over last year, Kelowna’s market is increasing year over year. Investors say a townhome is the way to go if you are purchasing property in Kelowna, but the average price of a townhome is $416,000. The average monthly rent for a townhome is $1,500 and projected cash flow is $3,330.
Other Okanagan communities also landed on the top 100 list including Winfield and Vernon. According to the data, the average cost for a home in Winfield and Vernon is identical at $428,490, with an average monthly rent at $2,300.
CREW used data from the National Bank House Price Index, along with information sourced from the Canadian Mortgage and Housing Corporation and Statistics Canada to determine a comprehensive list. The full results will be released in the magazine when it hits newsstands on October 5th.
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