I detail the coming boom in Kamloops(and why we are in the middle of the Recovery Phase of the real estate cycle) in a recent article you can read here.
I will be publishing economic news here and putting it in context on at least a monthly basis, so if you have not yet subscribed, please do so and keep up to date on the Kamloops markets. You will be glad you did!
Invest Kamloops Economic Fundamentals
Low Oil Prices a Boon to Kamloops Residents and Transportation Industry– Dec 19: With fuel under $1, both consumers and transportation companies benefit. Since Kamloops is a transportation hub with many related companies, low oil/gas is actually helpful to many.
Pipeline twinning may have massive impact on housing – Dec 17: 270 workers will be in Kamloops for the duration of the Kinder Morgan pipeline twinning construction, with a peak of 800 possible. This will put a big strain on the hotels/temporary housing and may present an opportunity for landlords to drive already high rents even higher by offering shorter term leases or furnished suites.
BC Housing Construction up 10% in October BC is the 2nd fastest growing place for investment in Canada.
2015 will see $3.8 million upgrade to Columbia Street – Nov 25 “The project will add turning lanes at 3 Avenue, 4 Avenue, 5 Avenue and 6 Avenue as well as a new raised centre medians. A sidewalk will be added on the south side connecting 3 Avenue and 4 Avenue (in front of the hospital), a bus pullout will be added and traffic and pedestrian signals will be improved. Repaving, street light improvements and enhanced landscaping is also planned. One of the biggest concerns, turning left on 2 Avenue, will be eliminated with the addition of the raised centre medians, which will eliminate left hand turns on or off of the street. All driveways from 3 Avenue to 6 Avenue will also become right-in right-out only.”
Kamloops to spend $10M upgrading water supply: There is a second water intake being planned as a prudent(and needed) redundancy system is being integrated into
What some call waste, I call investment The Canadian Federation of Taxpayers is crying foul because Kamloops’ Thompson Rivers University president spent $11,898.89 on airfare to Austria, $9,342.85 on airfare to China, and thousands in airfares from Kamloops to Vancouver. I agree that first class travel may be unnecessary, but if being well rested and comfortable allowed the president to perform well in meetings that will bring more students to Kamloops, this is fine by me! Each student spends at least $1000/mo on rent and food, and over $1400 per course. To qualify as full time(3 course per semester), this equals $8400/yr. One additional student would pay for his expenses($20,400). Since TRU has over 1750 existing international students that represent $35M of revenue for TRU and Kamloops businesses, even spending that money maintaining relationships with host countries would be worthwhile. 1750% return on investment is just good business.
As you read these news articles, try to piece together the big picture for Real Estate Investors and why it matters to you! Use this REIN GDP Graph to try and see what these headlines mean to the price of housing and rental rates.
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Until next time,