Finding affordability in Kelowna’s red-hot real estate market is tough, but there is a solution for buyers looking for the conveniences of a new home in the city.
There has been a lot of buzz around new RU7 zoning over the last year. The RU7 zoning allows certain city lots previously occupied by older, single-family homes to be re-developed into duplex, tri-plex and four-plex properties depending on the lot’s dimensions.
The majority of choices for new home construction downtown are larger multifamily developments, ranging anywhere between $500-$700 per square foot. “While we have seen the prices for these older properties increase significantly over the last 18-24 months, the final price for these new homes, once they’re complete, is still far more affordable than the larger developments–like $70-$80 per square foot more affordable.” Says Century 21 Realty, because the price for this type of land is not going down anytime soon.
The other enticing feature of these projects is privacy. Each unit comes with its own yard similar to garden-style townhomes, and the living-to-sleep space is separated over two floors. There could be two or three bedroom units, ranging between 1158 and 1260 square feet.
They’re bigger than most new condos, but without the hefty price tag.
Timing is another huge factor for buyers looking into new construction pre-sales. A buyer purchasing during pre-sales of a larger project can expect an 18-to-30-month delivery time, but these smaller projects can be handed over in six to nine months.
Out-of-town buyers looking to invest in a city where our vacancy is under one per cent are jumping.
They like the idea of renting it out for a couple years, seeing some appreciation and rental income, then making the move to Kelowna or selling it for profit. Kelowna is a hot market and with it being on the top ten lost of towns to invest in, it would be a great way to get into the Real Estate market.
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