The last affordability in city

With Kelowna’s average single-family home price hovering over $700,000 during a time when household incomes hover around $75,000 per year, it has many people wondering how they can afford to live here. 

Now, Im not saying that Kelowna is over priced, far from it based on what you get here in terms of lifestyle. But it cannot be denied that for the average person, affordability in single-family home sector is a challenge.

The Vantage Report released this July showed that there are still three neighborhoods that fit the average budget of a working family without leaving them house poor. 

Now, it should also be noted that in the same report you will see that these three neighbourhoods are among the fastest rising prices, so the window of affordability is rapidly closing.

The three neighbourhoods that a buyer can still obtain a nice sized home over 2,000 square feet on a generous sized lot at nearly a quarter acre for right around $500,000 are:

  • Rutland
  • Westbank
  • Glenrosa

Some may be saying to themselves, of course these are cheap, they are in the dodgy neighbourhoods, but that is far from the case these days. 

The local municipalities are pouring money and energy into the revitalization of Downtown Westbank and the Rutland communities. 

These amenity rich, self-contained villages are bustling with new commercial activity and new infrastructure.   Young families and people new to the area are making these areas home, partially due to budgetary constraints and increasingly to do with their walk score and proximity to amenities.

Why does this end up in an article about real estate investment? Well, you’ve been hearing me preach about investing only where the positive cash flow exists for years. 

It is in these very neighbourhoods that the best return on your investment can be found. Not only because they are less expensive, but because the rents relative to the price are still quite high. 

This means that a savvy investor can still expect to see a double-digit return on their investment and enjoy the best appreciation by purchasing homes like the three examples here.

For an in depth analysis of these neighborhoods and others in Kelowna along with some useful insight into the Kelowna market, heck out the Vantage Report here.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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About the Author

AJ is the owner of Kelowna’s downtown boutique firm, Vantage West Realty. The firm takes pride in breaking the mould when it comes to how they practice real estate. With a well-deserved reputation as a real estate renegade, Hazzi has been shaking up the Kelowna real estate scene since 2002.

Having been a student of real estate through two market cycles, AJ has come to see an absence of truly qualified professionals specializing in investment real estate. This has become AJ’s role within the firm and the community: To educate clients on how to achieve financial freedom through real estate.

Arming his clients with knowledge on where to find positive cash-flow, how to renovate for profit, and other creative avenues that most agents completely ignore, Hazzi has carved out his niche as a real estate investment advisor (REIA), and loves nothing more than educating people on the right strategy to capitalize on both boom and bust years.  AJ is a firm believer that the Kelowna market is rich with opportunity, if one knows where to look.

If you are in search of an advisor who practices what they preach, consider that AJ has built his own real estate portfolio up to include multi and single family cash-flow rental properties, development property, resort property, fix and flips, and commercial properties. By sharing the lessons learned from his own experiences, his clients get the knowledge and confidence to invest without having to make the expensive mistakes he and many new investors have made along the way.

His goal is to impart on people, especially of the X and Y generation, that depending on RRSPs and Government Pension Plans to look after us down the road is risky business. Most people don't realize that as little as one or two properties added to your real estate portfolio now, can secure a comfortable, even lavish, retirement.

Bringing a consultant's approach rather than the tired, old-fashioned sales approach, AJ and his partners offer a world class service from finding, pre analyzing, and negotiating your next acquisition, to property management, all tailored to today’s busy investor.

To hear what AJ Hazzi's clients have to say about his service view the testimonials.

Contact Information

For more details or to reach AJ Hazzi, please visit www.vantagewestrealty.com

Email [email protected] Cell 250.864.6433

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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