“Get-Rich Fever” has Stricken Many BC Condo Buyers

A recent blog post by Tony Wanless (CEO of Knowpreneur Consultants), analyzes the recent trend of investment in condominiums for the purpose of renting the properties. He notes that a massive influx of amateur investors into the condominium market has led to many getting far less than they originally bargained for. Many new landlords are seeing an extremely low return on their initial investment; Wanless then makes mention of the fact that the original capital could have been invested in long-term GIC’s or strong dividend-paying shares for an equal or even greater return without the recurring costs incurred by being responsible for the upkeep of the property. The market is forecasted to cool by as much as 15% (Ohad Lederer, Veritas Investment Research) as a result of aspiring landlords deciding against the potential of receiving far less than the base-case investment of government bonds. As a topic I’m sure is near (though perhaps not so dear) to the hearts of many upper-year UBC students, the idea of a decrease in off-campus housing is troubling.  Wanless’ insight on the matter was extremely informative and insightful in its presentation, which made it easy to draw connections from the post to class topics and also glean an element of real-world relevance that could affect myself and many other first-year students in the not-too-distant future.