The perfect storm brewing for real estate investors in B.C.

With rising global tensions, shifting economic policy and affordability challenges across the province, many would-be investors in B.C. are hitting pause.

But those who’ve been through a few real estate cycles know something most don’t: the best opportunities rarely come when it feels like the right time — they come when uncertainty creates undervalued deals. Right now, that moment is here.

Why smart investors are watching B.C. closely

Across British Columbia, we’re seeing a rare combination of market forces:

• Higher interest rates have cooled demand and sidelined buyers.
• Sellers are facing holding fatigue and tighter cash flow.
• And rate cuts from the Bank of Canada appear to be right around the corner.
That’s a classic accumulation phase — one that typically rewards those who act before the recovery becomes obvious.

Lower rates, higher appraisals

As inflation cools and GDP growth slows, pressure is mounting on the Bank of Canada to lower rates in 2024.

For investors, this unlocks two major advantages cheaper borrowing and higher valuations.
That means it’s not just about getting a better rate, it’s about setting yourself up to refinance at a higher appraisal down the road. You reduce your capital stuck in each deal and free it up to go again.

After more than 20 years in this business, I’ve seen these patterns before. The noise grabs the headlines but behind it are the signals. This one’s flashing green.

Distress is quietly growing

In markets like the Okanagan, Greater Vancouver and Vancouver Island, landlords who bought during the peak are starting to feel the pinch. High rates, tighter CMHC rules and stagnant values are creating cracks. That’s when motivated sellers begin to surface.

The key is spotting the value others miss—properties with upside, overlooked income potential or simply owners looking for an exit. With inflation still lingering, the ability to lock in mortgage costs while rents rise with CPI gives you a real edge in terms of cash flow stability.

Tax policy may tip the scales

Just as this window opens, a proposed policy is adding even more incentive.

Federal Conservative Leader Pierre Poilievre has promised the Canada First Reinvestment Tax Cut—a proposal that would allow capital gains deferral when proceeds are reinvested into Canadian assets by 2026.

It’s modelled after the U.S. 1031 exchange and could give Canadian investors more flexibility, more liquidity, and fewer tax headaches, at least for the next two years.

If that becomes reality, it could be the most investor-friendly tax change we’ve seen in years.

Want the playbook?

On April 24, I will host a private investor event where I’ll walk through exactly how investors can capitalize on this moment in the BC market.

You’ll learn:

• How to find and fund distressed opportunities

• How to scale with the BRRRR strategy and keep more capital free

• How to build passive income through purpose-built multi-family development

• How tools like AI underwriting and tokenized real estate are changing the game

If you’ve got capital to deploy, or want to make your next move the right one, this session could change your financial trajectory. Spots are limited. Register here

AJ Hazzi is Kelowna realtor.

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