Realtor Dan Keeley, an agent with Royal LePage East Kootenay Realty, can help you determine if a revenue property is in the cards for you. He is pictured here in front of one of his listings on Stemwinder Drive at Kimberley Alpine Resort. Photo by Nicole Koran

Realtor Dan Keeley, an agent with Royal LePage East Kootenay Realty, can help you determine if a revenue property is in the cards for you. He is pictured here in front of one of his listings on Stemwinder Drive at Kimberley Alpine Resort. Photo by Nicole Koran

Want to become a landlord? You may already have a down payment!

Realtor Dan Keeley says property investing in Kimberley is not just for the wealthy

Is purchasing a second residence one of your investment goals?

Realtor Dan Keeley, an agent with Royal LePage East Kootenay Realty, has worked with many people on investment property purchases in his 15-year career. Often, he says, explaining the process can help inspire people to take action. “There is a huge misconception that only the wealthy can afford to buy second and even third residences.”

He quotes political economist John Stuart Smith: “landlords grow rich in their sleep without working, risking or economizing.” Given the current market in Kimberley, it’s an accurate statement, Dan adds, with rental rates high, vacancy rates low and prices not skyrocketing the way they are in nearby Kootenay markets.

So what’s the first step?

To take advantage of such an opportunity, you need a plan, a down payment and strategies to protect your investment, Dan says. “If you’ve owned your home five years or longer, you may have the down payment already and not realize it.” Lenders in Canada will loan up to 80 per cent of the value of your home, he explains, which could provide $50,000, $100,000 or more for a down payment.

The numbers speak for themselves

Consider this: Current mortgage rates of 3.24 per cent translate to $347 per month in mortgage payment for every $100,000 borrowed. Dan says there are local homes for sale for $350,000 that could rent for $1,600 to $1,700 per month. Did you know that all or much of that rental income can help you qualify for a mortgage?

If you pulled $70,000 in equity from your current home, your could be paying as little as $975 a month for your mortgage, Dan says. “I also encourage my clients to have a minimum of five per cent of the purchase price set aside to cover emergency repairs and maintenance.”

Real estate a long-term investment

Returns may be low or non-existent today, Dan says, but over 20 to 30 years your rental property is being paid for by someone else. Historically, home prices here double every 25 years or less. Even if they stayed the same for 30 years, you could own $350,000 in real property free and clear, for only the cost of your initial investment and maintenance.

“I’m fairly confident that if you handed your banker $75,000 today, you would not be able to withdraw $350,000 in 30 years,” Dan says.

If you’d like to chat with him about rental property ideas, or learn about his property management or strata management services in Kimberley, call 250-581-6683 or email info@dankeeley.com or find him on Facebook.

InvestingReal estate

 

The view out the front door of one of Dan Keeley’s property listings in Kimberley is of the ski hill. Photo by Nicole Koran

The view out the front door of one of Dan Keeley’s property listings in Kimberley is of the ski hill. Photo by Nicole Koran

Just Posted

COVID-19. (Image courtesy CDC)
Interior Health reports 70 new cases overnight

The total number of cases in the region is now at 1,426

RCR’s snow making is one of the bulk water users in Kimberley. Matt Mosteller file
Kimberley bulk water rates to rise 20 per cent if bylaw adopted

Bylaw given first three readings this week

David Moskowitz file
Wildsight to present webinar on Inland Temperate Rainforest

Join Wildsight next Tuesday, December 1, 2020 for a free webinar on… Continue reading

Carmen Hintz (right) donates $500 to Heather Smith (left) at the Kimberley Food Bank, leftover cash after fundraising to rescue four kittens. Paul Rodgers photo.
Local’s extra kitten fundraiser money donated to Kimberley Food Bank

Carmen Hintz donates $500, after raising money to support rescued cats

Ryder and Cohen of Kimberley Minor Hockey can play on with new mandates from the Provincial Health Officer. Photo submitted.
Kimberley Minor Hockey president hopes to see curve flatten for a return to hockey

New COVID-19 orders put in place by the government last week stated… Continue reading

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Barrels pictured outside Oliver winery, Quinta Ferreira, in May. (Phil McLachlan - Black Press Media)
B.C. Master of Wine reflects on industry’s teetering economic state

Pandemic, for some wine makers, has been a blessing in disguise. For others, not so much.

An employee of the Adventure Hotel was taken to hospital on Nov. 20 after she confronted a customer of Empire Coffee about not wearing a mask. File photo.
Nelson hotel employee suffers heart attack after being assaulted in anti-mask incident

An accountant at the Adventure Hotel is in hospital in Kelowna

Most Read