3 Reasons Why First-Time Buyers and Investors Are Flocking to The BC Southern Interior to Buy a Home
You’re spreading your wings and looking to buy and/or invest in a home somewhere in beautiful British Columbia. With so many great cities and towns to choose from you’re at a bit of a crossroads. Should you hop over to the island? Stick with the Lower Mainland? Perhaps somewhere up north, or kiss the border along the neighboring province of Alberta? We’d like to suggest an alternative – the BC Southern Interior. And no, we’re not biased because we have our mortgage brokerage here in Penticton. In fact, the chicken is ahead of the egg, as we chose this neck of the woods because it’s the best place to get a mortgage in BC. Here’s why.
Affordability, Meet Dream Home
Two of the top three markets in BC are Greater Vancouver and Victoria. It’s the former that we’d really like to draw your attention to when mulling over where to buy (or where not to buy) in BC. Let’s look at a recent graph from the National Bank of Canada for reference:
Vancouver is out of reach for first-time buyers and new investors. But even Victoria is pricing you off the island and away from the coast. According to July 2021 MLS statistics, the average price for a single family home in Vancouver BC currently stands at $1,283,217. The same MLS Home Price Index benchmark value for a home in Victoria BC is $1,082,000. Do you have a cool million-plus laying around? And to be honest, even if you did, don’t you feel as if you can get more bang for your buck in the resort communities that comprise the Southern Okanagan valley? Current data from the Association of Interior Realtors shows that the average price of a family home in the South Okanagan is just $780,000. For a comparable property in a more attractive place to live you get way more for your dollar. This is one of the key reasons young couples are fleeing western BC and coming to the Interior. Simply put, the Southern Okanagan is one of the few (or the only?) places in BC where you can afford a dream home in a dream location.
Now we know that as a first-time buyer the $780,000 average price may still seem a little out of your range. But when you consider the price of a town home or condo your buyer power grows to super heroic proportions. Need an example? The average price of town home in Penticton is about $450,000. Savvy buyers with the right Realtor can offer even a little less, or outright find a dream townhouse for around $430,000. What would a mortgage today look like on something like that?
Sustainable Economy
The state of the local economy is a key qualifier when deciding on where to live and buy a home. Sole reliance on one industry is high risk. Look at what has happened in Alberta over the last 5-years or so. The prices of homes have fallen down the well with the oil sands. The Southern Okanagan has a more diverse and therefore sustainable economy. Prime industry sectors include agriculture, tourism, retail trade, manufacturing, forestry and construction. When one suffers, another grows to buffer the blow. Sometimes these sectors fire on all cylinders and the economy responds with a resonating boom. All of this bodes well for your real estate investment. Where an economy thrives, so do home values. Buy now while the market is prime and you can sit back and enjoy the view as your real estate equity builds with each passing annum.
OK, Wine Has Something to Do With It
We tossed around the term “resort community” above for a good reason. The Southern BC Interior, namely Penticton, Naramata, and Summerland are vacation beacons for people from all over Canada and the world. Our renowned wineries are a major draw, and you wouldn’t believe how many people are hunt for homes in the thick of the province’s designated wine country. We’re to BC what Napa Valley is to California. But it’s not just about the vino, as the community is a four-season draw for all sorts of outdoor leisure and recreation. The region is bookended by lakes, golf courses, hiking and biking trails, ski hills, and more. This is not only great for those who will choose to call the Penticton area home, but for investors who plan on leveraging their new home to earn income on the long or short term rental market. Aspire to pay down your mortgage by renting out your property on Airbnb? Plan to rent it out on an annual lease? No problem when your property is located in the BC Southern Interior.
The best place to get a mortgage in BC is right here. Get pre-approved today, or tap the following numbers into your phone for a friendly conversation about your goals.
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