Hire an Expert when Making Large Property Purchases.

Invest Wisely

• 
• By Nancy Smith
• Qualicum Beach REALTOR®
• Published: Dec 30th, 2019 at 4:44 pm

Hire an expert.

Today I chatted with a fellow who was interested in buying an 'investment property'.  He lived in Burnaby and was considering purchasing investment residential rental property in the Parksville-Qualicum Beach area.
The process of choosing an agent is often one of comfort, it is someone you know, someone you have used before or you just saw an ad or a picture and decided that person looked 'right'. Often a person will get a referral, because 'my relative' is in the business.
This person from Burnaby stated that he prefers to use the 'guy' that has managed all his previous transactions.

Over the years I too have hired an agent to assist me with purchasing or selling property before I became an agent, so immediately red flags popped up.
What knowledge does a Burnaby resident have of Parksville-Qualicum?  Sure, for investment reasons, the only important consideration are the numbers, so that is universal, isn't it?

Sadly the answer is no. Numbers do not explain the dynamics of the community, or of that location.  We are constantly reminded when purchasing property, the first three important criteria are: location, location, location. Numbers, pictures, maps and phone calls do not present the important details of location. The vibe of a community is not measurable.

Residential investment properties require tenants. Tenants need an income to pay rent, tenants need location so they can go to work, shop, commute and enjoy recreational opportunities. Do potential tenants in Parksville-Qualicum fit the same metrics as tenants in Burnaby? 

Sadly the answer is no.  The community dynamics and trends are important. Parksville is experiencing a huge boom in residential construction, many projects will come on line, some will be homes for sale, some will be rental units.  Knowing what is currently transpiring in the neighborhood within five years is an important metric when considering investing in residential real estate.

For example; rental availablility in Parksville area has been at a premium, and devastating fires have squeezed the market further, pushing rental prices above expections and affordability. Someone living in Burnaby will believe the rents in Parkville area to be reasonable in comparison to demand and pricing in Burnaby.  But those are numbers, which do not explain community dynamics.

A local real estate agent specialized and immersed in the local market, can feel and see community trends. I suggest when considering large purchases like property, you should hire a local expert, because they live here, and they have their neighbor's interest at heart.  After all, in a small friendly community like Parksville-Qualicum, you are going to see each other often.

PS There are no ocean views in Burnaby.