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Real Estate

Income properties for sustained recovery

by Contributed - Story: 92147
May 17, 2013 / 5:00 am

 
It appears as though more people these days are looking for an investment in real estate which offers cash flow returns.
 
The fundamentals of cash flow type properties had been turned upside down in the feverish real estate markets several years ago when rental rates could not keep pace with asset inflation. Resort properties often carried higher management overhead which made them more susceptible to a real estate correction than main street or subdivision type properties.
 
The Okanagan however is seeing a greater interest in cash flow investments and offers a good opportunity for the investor to take advantage of discounted real estate values currently and a rental market that is remaining quite strong.
 
With a high percentage of the labour pool being service, retail and tourism the demand for rental properties has remained steady through the real estate downturn yet asset values have diminished to the point where the investment now makes sense. Having a busy University and College in town that is attracting more faculty and students also helps the equation.
 
At the end of the day, a carefully selected real estate investment can quite easily out perform a managed stock market investment and the asset value historically has always grown on pace or ahead of standard stock market indices.
 
If you are looking for that opportunity to combine low asset value with good rental demand and an opportunity to diversify your real estate portfolio, now would be a good time to contact your REALTOR® to discuss the various options available currently.
 
It was refreshing this morning to scan the global real estate headlines and read about general optimism in the global economy in relation to real estate... a rising tide floats all ships. Happy long weekend.
 


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The Accidental Journey

by Contributed - Story: 91629
May 10, 2013 / 6:00 am

I think many people are coming to the realization that we are living in a new reality. A reality that is a little unfamiliar to many of us.

What we used to think would work perhaps doesn’t work as well anymore. What we used to count on for our future can no longer be relied on.

So where do we go from here?

I thought about that question a lot and decided that I would like to explore the topic at an event. On June 19th, there is a collection of amazing speakers who are gathering at the Kelowna Community Theatre to share with you some of their insights into what can make a difference in your world today.

It is a collection of athletes, entrepreneurs and health professionals who will let you see what life can be like if you are willing to make a simple 1% difference to the way you run your life.

Fascinatingly, water at 99 degrees is inert. It just looks like, well, water quite frankly! Yet with a 1% difference that same substrate transforms into steam, and steam powered a whole revolution, the Industrial Revolution. It allowed us to manufacture materials and move materials around the world. Steam changed our lives and I firmly believe that the power of a 1% change can change your life too.

If you attend the event, some of the speakers you will hear will talk about some incidents that may in fact appear accidental. In reality you will learn about an aspect of their life that was very focused and created a set of circumstances that led to the journey they are now on. So perhaps the journey is not as accidental as we may think.

The speakers will convey the power that subtle changes in your life can bring. The power in paying attention to the employee that has been asking for a few minutes of your time. The power in answering the phone and taking the time to listen to the idea instead of saying you don’t have the budget without knowing what you are saying no too.

Attendees will receive a copy of an eBook, The Accidental Journey. For $20 you will be able to listen to six speakers who will not only inspire but empower you to make subtle and important changes in your life. For $40 you will receive a VIP ticket which will allow you to attend a VIP event in advance of the talks. You will be able to meet the speakers and participate in a media panel forum and of course, you too will receive a copy of the eBook, The Accidental Journey.

Tickets are available at www.TheAccidentalJourney.com and I hope that you can clear your calendar that night and join us for what could quite possibly be a life changing event for you.



The bell rings in April!

by Contributed - Story: 91420
May 3, 2013 / 5:00 am

Some great stats showed people are tiring of sitting on the sidelines and even though April weather was nothing to write home about, people still took the opportunity to buy homes in the Okanagan.

In general, April stats over the same month last year were up considerably which is welcome and refreshing news and supports the statement in one of my recent articles that talked about busier offices in general.

Specifically, we saw sales increase from 341 units in April last year to 406 units this year with a corresponding increase in sales volume from $140,992,881 last year to $155,860,251 this year.

While encouraging, it is not a predicator of turn around in the real estate market but again it points to sustained stabilization and does a good job of bringing our year to date numbers much closer to parity with last years year to date numbers.

The Residential category was up on average 15.58% in terms of sales numbers compared to last year and up 10.2% in terms of sales volume, good news indeed. Also encouraging is the fact that residential median values are showing a softening of less than 2% on year to date comparisons.

Speaking personally, it was as if a switch had been turned on a few weeks ago with consistent telephone and e-mail traffic from clients leading to contracts being written.

Thanks goodness the rains may have disappeared for a while and at the least the real estate markets can dry out a little as we move into the summer months.



Springing into action

by Contributed - Story: 91057
Apr 26, 2013 / 5:00 am

 
There are more than a handful of REALTORS® who are very active at the moment. We always expect a lift in the spring activity although it hardly feels like spring outside. That however, is not preventing potential buyers from stepping out and purchasing.
 
The majority of our buyers are still domestic Okanagan residents who are moving up or entering the market for the first time although that is now being supplemented by some out of province buyers.
 
There was a substantial uptick in the volume of home sales in March, particularly in the duplex, townhome and acreage categories. Those three categories, compared to March last year were up between 34% and 67% and we are not talking about a single sale radically swinging the figures, the actual number of sales were up substantially which is very good news frankly.
 
Overall, sales in the apartment and single family category were down slightly and because their volumes are very high, it skewed the overall board numbers to a decline of 6.27% but that is hiding what I consider to be good news.
 
Year to date numbers are showing similar trends which is not a surprise after such a slow start to the year.
 
Our pricing is almost mirroring the sales numbers with some increases in the acreage sector in particular but mostly holding fairly steady compared to last year with a few percent up or down depending on whether you are comparing median or average price.
 
If anything, it is continuing signs of stability in what is very much a Buyers market. But frankly, I believe it is a new reality since increases from here are going to be minimal IMHO.
 
If you have friends or relatives working in the oil patch in northern Alberta you, like me will be hearing about the layoffs happening and about to happen in the oil patch. All is not well with our cousins to the east. The price of “heavy oil” that is produced from the tar sands projects in the north is too low for many companies to sustain the level of operations currently and so we are starting to see a reduction in the labour force. That has more than one effect in our region, one of which is less Albertans shopping here for their retirement or recreational home.
 
As we look to the future and attempt to guess as accurately as possible what may happen, it is difficult to suggest anything other than “more of the same”. Confusion and surprises will reign. My suspicions are that the world economy will provide a strong enough negative impetus to hold back Canada’s potential to recover more quickly and a weakening in the Asian economy is going to rearrange the numbers we see currently in stock markets around the globe. 
 
For any entrepreneur or business person, it makes planning a nightmare and certainly an art and not a science at this point in time.
 
The good news is that today, in this buyers market, there are some fabulous examples of quality homes at value prices. A scan of the current MLS listing shows plenty of choice below $400,000 that is good value for a growing family and yet 5 years ago any REALTOR® I knew was reticent to show a property under $450,000 because you knew how much work would be involved to make it livable.


Read more The Accidental Journey articles

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About the author...

For the past twenty years Mark has been involved in real estate development and consulting and is currently a REALTOR with Realty Executives in Kelowna.

His column, brings a unique perspective on what may be important to us in the future as we come to grips with fast paced change in a world that few people barely recognize.

His influences come from the various travels he undertakes as an Adventurer, Philanthropist and Keynote Speaker. More information can be found on Mark at his website www.markjenningsbates.com

 




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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet presents its columns "as is" and does not warrant the contents.


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