What Home Buyers Can Learn About the Similarities Between the BC Okanagan Valley and Hawaii’s Valley Isle of Maui
The fearless leader of our Okanagan Valley mortgage brokerage – Rene Carloni – recently made an excursion to the Valley Isle of Hawai’i. For the uninitiated, the Valley Isle is the affectionate nickname for Maui, which it received due to its unique position between volcanoes that form a bridge of flat land. This feature is akin to our very own BC Southern Interior where there are 16 craters in the Penticton Group of Volcanoes. Our aina (land) is also similarly blessed with beautiful waterways and geographic embellishments that draw visitors from all over the world. You can even find Hawaiian style shave ice along the hot summer sands of Skaha Lake.
While Rene certainly enjoyed time with his ohana while on Maui, he also set aside blocks of his itinerary to asses of the island’s real estate market. He can’t help himself. What Rene discovered, is that the resort community of BC’s Okanagan Valley boasts many parallels to Hawaii’s beloved Valley Isle when it comes to real estate. Below is a breakdown of these similarities and why the services of a mortgage broker are just as important between the two kaikaina (siblings).
Same Dependence on Federal Interest Rates
Maui may seem as far removed from Washington DC as a the Okanagan Valley is from Ottawa, but both face the same dependence on federal announcements regarding interest rates and home loans. Like the Bank of Canada (BoC) the U.S. central bank’s main policy setting body known as the Federal Open Markets Committee (FOMC) has been raising the “prime rate” throughout the past annum. While the BoC finally put an end to the wave of persistent increases in their most recent announcement (while the FOMC has not) buyers have been faced with higher (when compared to the last half-decade) variable mortgage rates.
With prices in the Okanagan and Maui housing market both spiking at the end of last year, buyers are tired of the dependency on federal responses to inflation rates. As a result, prospective homeowners in both regions are instead relying upon the services of well-connected mortgage brokers. The right broker provides buyers with access to lower than advertised variable (and fixed) mortgage rates, and can even connect them (you) to alternative private lenders. This takes the power away from the big banks (and the feds) and places it in your hands. If buying a home in the “Hawai’i of Canada” (the Okanagan Valley) contact Rene Carloni to discuss preferred rates, terms, rebates, and more. Call 250.493.9111.
Real Estate is a Finite Resource
Being surrounded by mountains (past volcanoes) and water may make the Okanagan Valley and the Valley Isle ideal as resort destinations, but it presents a challenge to the real estate market. Simply put, there is only so much room to build. While there are new residential construction developments underway on both sides of the Pacific, lean inventory has a way of keeping home prices at a certain level. This makes households feel as if there are no houses for sale in the most desirable communities. On your own, this may be true, but when you partner with a mortgage broker a world of opportunity opens up.
A professional broker can increase your buyer power so that you may consider homes outside of your initially anticipated price range. This essentially increases the inventory you have to choose from. How can a broker make this happen? For one, we can help you qualify for first time buyer incentive programs that effectively reduce your downpayment requirements. We will also look into other options that you may not have considered, such as RRSP home buyer plans, first-time buyer tax credits, new housing rebates, and even green home programs. Furthermore, we can also connect you to alternative private lenders (as mentioned above) who look beyond your credit score. Moreover, our brokerage is also renowned for getting clients access to lower unadvertised fixed and variable rates, which can reduce your monthly expenditure requirement. Any of the above will allow you to afford a house in a higher price range. This is one of the most effective ways to beat the Okanagan Valley’s finite real estate resource. Call 250.493.9111 to discuss your options. Now if only Carloni would open up shop in Ka’anapali or Kihei. Maybe one day!
Short Term Rental Investment Opportunities
The descriptor “resort community” used above is certainly apt for the Okanagan Valley and Valley Isle alike. From a quality of life perspective, the Okanagan is the best place to get a mortgage in BC as much as Maui is to the state of Hawai’i. This fact has made both enticing to investors who want to buy a home that not only increases in value over time (which happens right here) but also for those who want their newly purchased property to earn consistent income on the short term rental market (STR).
While the allowance of short term rentals is a contentious topic on Maui, it has become a VERY lucrative way for homeowners to earn income on their investment. The same is true for the Okanagan Valley, where you can use Airbnb to generate revenue and pay down your mortgage accordingly. Call 250.493.9111 to discuss your options.
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