I have never seen rents this high. There are currently people looking for housing and offering rents higher than market.
This is great news for landlords, and presents a great opportunity for investors.
If you check Kamloops housing numbers, you will see that housing sales and prices are down, and are forecasted to stay down for 2013.
We are in a unique time. The demand for housing by first-time-home-buyers is lagging due to new mortgage rule changes(max 25 year amortization), keeping prices flat. As result it will take new home buyers longer to save for a downpayment to avoid the CMHC rules(20% needed), or they will need a much higher income to qualify for the 25 year amortization. This explains why rents are starting to amp up.
This is a perfect scenario for savvy real estate investors. People are moving to Kamloops for work, and are offering landlords HIGHER than market rent to find a nice place to live.
Take the time to read my report on Kamloops. You will see that the “real estate crystal ball” shows that we have 6 to 12 months before housing prices start to climb, once new homebuyers have saved enough, or gotten the income raise needed to qualify for mortgages.
This cycle has happened before, and will happen again. Why not catch the wave on the way up this time instead of waiting for the next wave in perhaps a decade from now.
By purchasing a property in Kamloops now, savvy investors have plenty of high paying tenants ready to move in. Factor in the added bonus of appreciation, (very likely and very soon!) and you have a long term recipe for success with bonus built in equity.
The proof is in the pudding(read how Real Estate Appreciation is like dessert); see these recent kijiji listings for housing wanted.
Until next time, stay S.A.F.E.