Is Penticton Real Estate a Good Investment?
There’s no denying that our neck of the Okanagan Valley is the best place to get a mortgage in BC from a quality of life perspective. For that reason alone households buy their dream home in our quintessential resort community. However, a number of you are on the hunt for a pure investment. You’re not as dazzled by the beautiful lakes, friendly faces, and four season livability factors. Instead, you’re primarily interested in investment prospects. Is Penticton really as idyllic as you’ve heard when it comes real estate investing? Absolutely. Below is a succinct breakdown of what you need to know.
3 Reasons Why Penticton Real Estate is One of the Smartest Investments You Can Make in 2023 and Beyond
Experts Say So
As the area’s leading mortgage brokerage, we can tell you first hand that your investment is in good hands within the city limits. But we know our saying so may be construed as biased, which is why we defer to other experts on this particular topic. As Q4 of 2022 began its run, Western Investor (Western Canada’s trusted source for real estate, franchising and business opportunities) named Penticton BC one of top towns for real estate investors in 2023:
“Penticton is challenging Kelowna as the hot spot in the Okanagan. Facing two lakes, it is the centre of the South Okanagan which will lead B.C.’s recreational market in 2023, drawing investors from the Lower Mainland and Alberta.”Western Investor, Oct 31 2022
Lean Supply > New Construction > Lean Supply
The biggest Penticton real estate news story to come out of Q1-Q2 of 2022 was the lean supply of inventory or single family and multi family homes alike. This drove up prices, which made prior investors VERY happy. If only you invested a few years ago, right?
Fret not, because at the onset of Q3, a slew of new residential construction projects were announced to break ground immediately. This is where we are right now. After a period of lean inventory and rising investment returns (home values) supply is already bouncing back. In fact, home inventory has already jumped up by over 30 percent. Prices will come down for the remainder of 2022, which gives you a huge opportunity. To quote a popular expression in the world of cryptocurrency, you’d be wise to “buy the dip”. Get started by calling 250.493.9111 to get pre-approved on a mortgage.
Earn Monthly Revenue on the LTR or STR Market
Real estate investment isn’t just about watching the value of a home increase over the years, with an exit strategy to sell once you’ve hit your goal. In Penticton, savvy investors are further lured in by the prospects of monthly revenue on the rental market. At press, Penticton has a near-zero rental vacancy rate. That means if you buy a home in the city and place it on the long term rental (LTR) market, it will get snatched up immediately. You can pick and choose who you want as tenants, and charge the maximum allowable monthly rental rate. Alternatively, you may prefer to go the short term rental (STR) route. As a resort community bookended by two beautiful lakes to the north and south, and rolling hills to the east and west, Penticton is a massive draw on Airbnb through all four seasons. You’ll be able to charge a premium in the summer and Holiday season, while also enjoying a healthy occupancy rate through the remainder of the year. If you don’t mind putting in a little more effort you can leverage the STR market to pay down the loan on your investment and see an ROI in no time at all.
You don’t need to decide today, but we do encourage you to reach out to discuss the goals of your intended real estate investment. Contact our Penticton mortgage brokerage today to get started.