The never-ending conversation around the hot Vancouver real estate market makes it difficult for one not to be tempted to participate. The increasing home prices continue to add fuel to the fire for many surrounding markets in the Metro Vancouver area piquing the interest of many who may not be your well-seasoned investor. Whether downsizing or simply getting into the market, often people ask — where’s the safest place to buy?
Historically, we’ve been drawn to established markets and neighbourhoods such as Downtown Vancouver or Vancouver West. These neighbourhoods feel safe but when housing prices increase 30%, it creates a barrier to entry and they may no longer be viable options. These considerations can motivate people to look at alternative neighbourhoods such as Brentwood in Burnaby, Burquitlam, or beyond. When considering sub-markets, here are some drivers that help with your investment decision:
- Proximity to the Central Business District (CBD) or other key hubs.
- It’s always positive when people can be close to where they work.
- Transit systems and accessibility
- The more accessible a neighbourhood is the more it opens itself up to having a broader mix of people in various life stages making for a dynamic and wonderful community
- Population growth
- When population is expected to increase it means people will need a place to live.
- Appreciation in home prices
- Looking at both historical appreciation and how much future appreciation could take place is important to understand.
- Various types of housing options
- As mentioned, a great neighbourhood often includes a mix of people who are at various stages in their life which also means different needs for housing. Having a mix of housing types means that people can often stay in their chosen neighbourhood as they move from one stage to another.
- Increase in rental income
- Looking at rental values in terms of how they have changed historically and how they might be impacted considering future city planning, population growth, etc can help you understand what to expect and how it might change moving forward.
- Future city planning and development
- Certain neighbourhoods may be poised to add housing, commercial space, transit infrastructure or amenities and these can significantly impact the livability and desirability of certain neighbourhoods. Staying on top of what major projects or changes are coming is definitely important.
Brentwood is a great example of a neighbourhood with an established transit and housing base with diverse commercial and housing options planned and underway. Its 20 minute proximity to downtown and major highways, and steady value appreciation give it great investment potential.
