Why Read this Article?
Are you an Investor looking to purchase a Condo near UBCO or a Parent who has a Student about to attend UBCO Kelowna in the next year?
This article is designed to give you all the information and thought processes you will need to complete a successful purchase.
What do I need to do first?
As soon as you decide this is something you 'might' want to do, familiarise yourself with the UBCO Real Estate Market.
Give me a call, or send me an email, to set you up on an email search. You can then see what is available in the current listing and recent selling prices.
Which areas should I look at in Kelowna?
In the past, areas which are within walking distance of UBCO or on a good transit service have been the most popular with students to buy or rent.
There are 4 main areas that are in this category -:
U-District (Academy Way) & Quail Ridge - both within walking distance of the University.
On good Transit routes - North Glenmore & Rutland.
U District - this includes Academy Hill, U One, U Two, Three, U Five - already built. U Six, U Seven under construction (completion August 2019) U Eight (completion August 2020).
These are the nearest units to UBCO, and are within walking distance - 10 to 20 minutes, depending on which building.
They are also the newest, with a range of 1, 2 and 3 bedroom units offering modern design with the student in mind.
All come with one parking stall, some have two and occasionally a unit will have 3.
Rentals are allowed minimum monthly.
A rough guide to current U District rental rates -:
1 Bedroom $1350 - $1500
2 Bedroom $1,750 - $1,850
3 Bedroom $2,100 to $2,700
For more detailed information on each of the complexes -https://www.trishcenci.com/ubco-condos.html
Quail Ridge includes-:
The Pointe at Quail. Built 2005. 1, 2 & 2 bedroom & Den many have been converted as a 3rd bedroom. Rentals Minimum Monthly. Pool, Hot Tub & Bike Storage. Secure Entry & Underground parking & Bike Storage
Pinnacle Pointe Built 2008. 1, 2 & 2 Bedroom & Den units (many converted). Short & Long Term rentals allowed. Pool, Hot Tub & Exercise Room. Secure Entry & Underground Parking & Bike Storage.
Borgata Lodge Built 1994 - mainly 1 bedroom. Short & Long Term Rentals. No Pets.
Bella Sera Built 2005- Furnished upper scale Town Homes.2 Bedrooms, both with ensuites & a Powder Room. Outdoor parking only.
15 to 20-minute walk to UBCO, a 5-minute drive to UBCO, a 4-minute drive to shops near the entrance to Quail. 2 Championship Golf Courses, so an opportunity for summer rentals and 5 minutes to the Airport.
For more detailed information on each of the complexes - https://www.trishcenci.com/quail-ridge-condos.html
North Glenmore - includes the Verve (2005), Mosiac 2008) and Yaletown (2008).
These are about a 15-minute drive to UBCO and have a good bus route, both to UBCO & into Kelowna.
There are also new Condos being built at Glenmore Central.
All will allow minimum monthly rentals.
Rutland - popular locations include Ziprick Road (2006), Barber (2007), McIntosh (2008), Franklyn (2007) & Asher Place (2007).
For those looking for just living but don't allow rentals 250 Hollywood Road (2006) is popular as well as The Legacy Buildings on Rutland Road (2006).
All are within about a 15-minute drive to UBCO, near to shops & amenities and there is excellent bus service into the City or to UBCO.
It should be noted that rental rates are highest in the U District, with Quail Ridge second and Glenmore / Rutland third.
What costs do I need to consider?
- Strata Fees
- Utility Costs
- City Taxes
- Contents & /or Landlords Insurance
- Repairs & Maintenance
- Is it being sold furnished
What other things should you consider?
- Location in the building - is light important? Is it near a road- noise can be a factor? Is it a top floor unit, so no noise from above?
- Will the Student / Renter have a car?
- How easy is it to access shops?
- Is there a regular Transit service?
- Security - consider security for Vehicles, Bikes, Ground floor access to units, Security Cameras?
- Is it purpose built for Students or also suitable for Parents to use as a vacation home in the summer or would it appeal to other types of renters in Summer months to gain extra rental income?
- What is the re-sale potential - as many parents will probably only hold these properties for 3 to 4 years, they want to know there is good re-sale potential for their unit. In the same way, you will consider all of the items above, so will the next Buyer! The more these attributes your unit has the more it will appeal to the next Buyer.
Taxes & Other things to consider
- Property Transfer Tax - 1% on the first $200,000,2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018). Website link - https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
- Additional Property Purchase Tax (Foreign Buyers)- In addition to the property transfer tax, if you are a foreign national, foreign corporation or taxable trustee, you must pay the additional property transfer tax on your proportionate share of a residential property transfer if the property is within specified areas of B.C. - https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-tax
- Speculation Tax - Particularly if you are a Foreign Buyer, non-BCTax Payer or the property is going to be vacant at any time. Here is the link to the Government website https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax
- City of Kelowna Short Term Rental Legislation - the City is in the middle of reviewing its By-Laws regarding Short Term Rentals. As this is in transition as at the date of this blog post, it is important to be aware of changes as they are posted. Here is the City of Kelowna webpage https://www.kelowna.ca/our-community/planning-projects/current-planning-initiatives/short-term-rentals
Why work with Trish?