10 Key Questions For A Sane Real Estate Investment

The October 2007 issue of Money Sense included an article on Don Campell's book 97 Tips for Canadian Real Estate Investors.  Here are some of the highlights!

1) "Is the area's average income or population increasing faster than the provincial average?"

Generally, this information can be found at City Hall.  For census information in the the Greater Vancouver Area, check out this report from BCStats.

2) "Is the area creating jobs faster than the provincial average?"

Again, City Hall and other government offices will give you this information.

3) "Does the area have more than one major employer?"

The GVA has many major employers in a variety of sectors.  Some examples are Telus, Best Buy, HSBC, Ledcor Group, and Terasen Gas Inc.

4) "Is the area's RBC Affordability Index between 25% and 39%?"

For British Columbia on a whole, the affordability conditions are deteriorating (i.e. rising).  However, there is expected to be some relief and a general rebalancing of markets.  Read RBC's full affordability report here.

5) "Will the property value benefit from a new development nearby?"

Luckily, Vancouver is a fast-developing city, and many projects are underway that will benefit local property values.  Some examples include the Carrall Greenway project, the 1 Kingsway development, and the Chinatown and Downtown Eastside Revitilization initiatives.  More information on these projects and others can be found at City Hall, or the Greater Vancouver Regional District website.

6) "Has the local and provincial political leadership created a 'growth atmosphere'?"

In Vancouver, the upcoming 2010 Olympics have clearly created such an atmosphere.  Areas like East Vancouver and Squamish are key beneficiaries of new projects in a variety of areas.

7) "Is the neighbourhood located in an area of renewal or gentrification?"

Within the city, there is no better example than Mount Pleasant, which is seeing a boom in condominium construction and an influx of upscale businesses such as Starbucks, Lululemon, and Capers.

8) "Is this area attractive to Baby Boomers?"

Baby Boomers are a large, influential section of the population.  Many will be retiring an downsizing by moving into condos, and many will be travelling in their retirement. 

9) "Is there major transportation improvement occurring nearby?"

In Vancouver, there is the current construction on the Cambie Line, and plans in the future for expanding Skytrain lines to the Broadway corridor and Port Moody.  There is also ongoing improvement of the Sea-To-Sky Highway, making areas like Squamish and Pemberton much more accessible.

10) "Are prices bein driven down by a short term problem that will disappear?"

Much of the media coverage of gang violence in Vancouver in the past year has been negative and sensationalized.  While it is a problem, the reports have concentrated on areas like Langley and Surrey, which are no less livable in spite of the coverage.

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_{source: Bennet, Jane. "13 Steps To Sane Real Estate Investing". Money Sense; Oct 2007 p 56}