BCB MayJune 2022_LR

With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.

Issue link: http://digital.canadawide.com/i/1468031

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Page 32 of 83

MAY/JUNE 2022 BCBUSINESS 33 ISTOCK The Pandemic Trend Matrix Look for all of these shifts to affect the B.C. real estate market, to varying degrees T E M P O R A R Y P E R M A N E N T R E V E R S A L A C C E L E R A T I O N Borders closed, limited migration Inflation Aversion to public transit, elevators Work from home Ultralow interest rates Demand for living space E-commerce, home delivery Affordability crunch accommodate both groups, but it will take years to get built. If there's one new wrin- kle in the post-pandemic statistics, it's the lengthening time to completion for hous- ing construction. For the foreseeable future, then, demand will be strongest in the Metro Van- couver suburbs—especially the relatively affordable ones like Surrey and Langley —for millennials, and Vancouver Island and the southern Interior for soon-to-be retirees. Still, price pressure in any one market seg- ment will ultimately affect the others. "All these markets trade at a long-run ratio to each other," Batch says. "Those ratios are pretty stable over time." The upshot for investors in residential real estate? Assuming you're not simply a flipper and intend to hold the property for five years or more, don't overthink the type of property and location. Buy neighbour- hoods you know and property types you understand—and can afford. Look for unrec- ognized value. Think about how you're going to attract and retain good tenants. That, and any broad-based market appreciation, is where your return will be made. R E A L E S T A T E I N V E S T M E N T G U I D E 2 0 2 2

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