Many people in Vancouver plan to buy investment properties to help fund retirement
Posted May 28, 2015 6:55 am.
Last Updated May 29, 2015 9:55 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – It’s no secret home prices here in Vancouver are too high for many people to buy.
Even still, a growing number of people expect to turn to investment properties as part of their retirement plan.
Just over half of those interested in buying an investment property plan to make a purchase within the next 1-5 years. More than a fifth already have one, according to the BlueShore Financial survey.
The condo rental market is the fastest-growing one, says Kristine Skinner with BlueShore. She notes getting into the market is not a decision to be made lightly and it’s not a strategy for everyone.
“It’s more for someone who really is ‘buy-and-hold.’ It’s not a short-term investment because you never really know if the property value will go up or down or if you’re able to sell the property. So look at it as a longer-term strategy.”
She says you need ensure you are considering all the costs associated with buying a property, which can include things like strata fees on top of property taxes and utilities.
The types of property and investment strategies are also things to take into account.
She says every investor is different.
“It’s important to consider what their personality is. Definitely someone with a higher risk tolerance would be a candidate or someone with a higher income or cash flow. That’s mainly for the purposes of covering expenses if the tenant happened to moved out.”
You’ll also need to know if you will be hiring a property manager or act as manager yourself.
Skinner says it’s important to differentiate between buying a property to generate income or having the goal of the home appreciating in value so you can flip it — which are both very different things.
