Multi-Unit Family Residences – Apartment complexes in Kamloops BC

Kamloops has always had a great rental market when compared with other BC interior cities like Kelowna and Vernon. Kamloops is known more of working class town where as Kelown and Vernon have had more interest seniors downsizing from large cities like Vancouver and Victoria.  As a result home prices tend to be a little more expensive in Kelowna and Vernon.

One of the reasons Kamloops has had such a great rental markets over the years has been a lack of multi-family residential units – apartment complexes.  The majority of apartment complexes that are out there are old (40 years) and have been well used. Look for this trend to change a bit as demand continues to grow for rental properties in Kamloops.

On top of this large corporations have snapped up a majority of the apartment complexes in Kamloops, with the Kelson Group leading the way.  This all translates into a Seller’s market for multi-unit residential rental units (6 or more units) as well some rent stability for current landlords.

Kamloops Commercial Real Estate

Kamloops commercial real estate is thought by many as one of the best investments you can make.  Unlike residential properties commercial real estate serves really only one purpose, makes money.

In commercial real estate prices are usually determined by CAP rate.  The cap rate is a measure of the income of the property after fixed costs like taxes, management, and common yearly maintenance are taken out. The lower the CAP rate usually means the more likely it is that the investment is risk free.  For example, for mobile home parks where there are many income streams (renters) and relatively low risk of non payment (at least in theory) and steady income through out the year, it is not uncommon for properties like this to fetch 6% cap rate.  Where as for self storage business the cap rate is usually a little higher do to the more risk involved.  For example in self storage businesses there usually more employees, more client turnover, and more seasonal type income, so the cap rate for this type of business is usually around 8%-10%.  For business like u-haul it classified as a retail property and there for it usually at a 12% rate.

Going forward, what is great about owning commercial real estate is lower mortgage rates get the better the CAP rate you could potentially command.

If you are looking for a Kamlooops commercial real estate for sale.