Who is buying a property in Kelowna?
Those Escaping Vancouver – That’s right, Vancouver housing prices are astronomically high meaning homeownership is completely out of the question for most families, especially first time homebuyers. So many Vancouverites are looking East at the central Okanagan area. While Kelowna real estate is not cheap, it is generally a lot less than the Lower Mainland.
Albertans – Albertans have been buying a property in Kelowna as a way to escape the cold temperatures that haunt the province every winter. The economic challenges in Alberta have hastened the migration trend.
Out of Country Buyers – Out-of-country buyers have been buying up real estate in the Okanagan for the last decade. In 2018, the BC provincial government implemented a speculation tax targeting foreign buyers to ease the demand for BC real estate.
Long Term Rental Investor – These conventional investors have been around since the dawn of time, but they too have had a sudden surge of interest in the Kelowna market. With all of the economic growth of the last few years, many long-term investors are seeing an opportunity for appreciation and cash flow.
Vacation Rental Investor – With the rise of platforms like Airbnb, VRBO, and Homeaway, there has been a surge in interest from investors looking to purchase second homes, cottages, and short-term rental-friendly accommodations. Many of these investors choose to self-manage or partner with a vacation rental management company to assist with the day-to-day operations.
Many homeowners/ investors love this type of real estate because it helps off-set the cost of ownership and still allows them to use the property whenever they want.
Come May 2024, a lot of major changes will be impacting the laws around operating a short term rental in Kelowna. You will only be able to operate a STR if it is your primary residence, have a business license, and register with the provincial government.