When looking for a great, high-performing Vancouver rental property, look for the following things:
1) Maximize the ratio between rental rate and purchase price. Just because you pay more or less for a property does not mean that the rental rate increases or decreases proportionately. For example, Chinatown in Vancouver tends to sell for less than Yaletown. Yet, rental rates aren’t really much (if at all) different.
2) Choose something that prospective tenants would love but where the supply of the product is low. An example would be exposed brick and beam lofts downtown. So, something with a ‘cool’ or ‘uniqueness’ factor that will resonate with your target tenants. Lofts on Beatty Street (Crosstown) or Alexander Street or Powell Street as far west as possible would be other good ideas.
3) Choose something that theoretically should appreciate faster than the average market appreciation. An example might be something close to a new pocket of the city under huge development. An example in Vancouver (at the time of writing this article) would be the southwest pocket of Chinatown, where the Viaducts will be coming down and huge new development is in the medium-term future.
We hope that this overview is helpful in planning your next Vancouver investment property acquisition.