Peter Gain & Associates

Excerpt "INVESTING IN RENTALS:
Western Investor, September 2010.

Condo rentals
The rental income potential, however, is also drawing smaller investors who are looking at condos for a landlord play.

Realtor Peter Gain of Peter Gain and Associates has been working in the Burnaby- Coquitlam-New Westminster market – three of the top rental markets – for 25 years and he believes the time is ripe right now for condo buyers planning to rent out their units.

“We are starting to see the investors coming back now that prices have dropped,” he said.

While official real estate board statistics show that average condo prices increased from 8 per cent to 10 per cent in the Tri- Cities from a year ago, Gain said the recent reality is widespread price reductions. “A lot of people have taken their homes off the market; those that are left really want to sell.”

Gain said investors can see positive cash flow if they are buying local condos – even in the $240,000 to $250,000 range – and putting 20 per cent down. However, there are plenty of condos listed for well below that price. As of press time, for instance, there were more than 30 condos listed for sale in New Westminster priced at less than $200,000, and another 55 in Coquitlam at the same price level.

 “The window for investors is wide open now,” he said, “but it is closing. Right now the investors hold the gold and make the rules.”

 Gain expects condo listings to decline and prices to firm up this fall and winter.