Situated on the western coast, Vancouver is one of the prettiest cities in Canada. Part of the province of British Columbia, Vancouver has a population of around 2.5 million people. However, it is also one of the more expensive cities in terms of house prices in all of North America and the most expensive in Canada.
Vancouver was hit quite hard during the GFC, but unlike most other cities, it has bounced back incredibly since then. Since 2009, the median prices have gone up approximately 35%. This surge has been attributed greatly to international investors such as those from China.
Types of Property
Greater Vancouver’s median detached house price is around $890,000 as of May 2011. You can still buy houses for under $500,000 in areas such as Sunshine Coast and Maple Ridge, but in areas like West Vancouver and Richmond, you will easily pay over $1 million.
Condominiums (Apartments) are significantly cheaper and you can get into the pricier area of West Vancouver for around $600,000 or if that is still too much, you can pay around $250,000 in Port Coquitlam.
(Source: Real Estate Board of Greater Vancouver.)
Just like with most cities that have high property prices, the rental yields in Vancouver are quite low. 4% to 5% would be considered an achievable yield in most of Vancouver. However, you can achieve better yields in other Canadian cities such as Toronto and Montreal.
Just like with all property markets, there are opportunities if you are willing to do your research. Vancouver is a high priced city for housing and it would be wise to stay away from the higher end of the market that is possibly over-inflated at the moment. Stick to the fundamental principles of investing and find an area that is cheaper, with an increasing population and future development to attract people to the area.
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