Your Fraser Valley Real Estate Market Update
  
Demand for Fraser Valley real estate remained solid in October with overall sales the third highest on record.
Here is the summary of the market for October, 2021
Total Sales Processed - 1,938 (Increase of 3.9% compared to September)
Total New Listings - 2,188
Total Active Listings - 3,447
For the Fraser Valley region, the average number of days to sell an:
Apartment (Condos) -27 Days
Townhomes - 18 Days
Single Family Detached - 28 Days
Of the total transactions Fraser Valley Real Estate Board processed:
505 were Townhouses
556 were Apartments (Condos)
699 were Single Family Detached
HPI Benchmark Price Activity
Apartments/Condos
Benchmark Price - $514,200
Price increased 18.3% compared to October 2020
Price increased 1.9% compared to September 2021
Townhomes
Benchmark Price - $720,500
Price increased 26.6% compared to October 2020
Price increased 1.9% compared to September 2021
Single Family Detached
Benchmark Price - $1,396,700
Price increased 33.4% compared to October 2020
Price increased 2.5% compared to September 2021
For the most updated market information on what is happening in your neighborhood, give me a call at 604 308 6404 or e mail at RealtorNischal@gmail.com.
The support of a real estate expert goes a long way when navigating a busy market in the Fraser Valley..
Reminder: As you know that I am in real estate investment and sales and my passion is to bring buyers/sellers together. Who have you talked to in past couple days that might be thinking about buying/selling in British Columbia or anywhere in Canada (I am blessed to be a part of a huge network that I meet/talk-to on regular basis which is the backbone of my business that my clients benefit.
Also, we offer a $500.00 referral fee to anyone that leads to successful completion of a sale.
Is Self Storage Investment Better than Multifamily?
Is self-storage a good investment and is it as good as or better than multifamily?
The short answer to the first part of that question is yes, but if you want the reasons for that, read the rest of this newsletter.
Here are the reasons why I like self-storage:
IT'S LARGELY RECESSION-PROOF.
This makes it profitable not only during the good times, but also during the rough times. During the Great Recession of ‘08, self-storage was among the only real estate classes that produced positive returns.
THERE’S CONTINUED AND RISING DEMAND FOR SELF-STORAGE.
This is true, especially in areas experiencing increasing populations or high unemployment rates. The reason for this is as people move, they need a place to store their belongings. High unemployment rates could potentially be good. Since people can’t afford their rents, they may be forced to move in with friends or family. Now they don’t have space for all their stuff, which leads them to searching for a place to store it.
THE EVICTION PROCESS IS SIMPLE
When someone stops payment, it’s a clear procedure that’s laid out in the contract. For example, if you’re 30 days late, on day 31 they’ll send you a letter. And if you haven’t responded by then they’ll start the eviction process. The whole thing is a very simple, well-defined process.
THE VALUE-ADD COMPONENT IS COMPELLING.
The application of self-service technology increases revenue, and at the same time, simplifies management. If all you have is the “guy in the chair” who answers the phones and talks with all the clients, then when he’s gone you can’t lease any units and your business goes stagnant. The more self-service it can be, from sign-in or access, is something that the clients want and are willing to pay for.
WHY I DON’T LIKE SELF-STORAGE
SELF-MANAGEMENT IS A MUST IN SELF-STORAGE
One of the biggest reasons is that it’s difficult to outsource management to professional management companies. The people I know who’ve tried haven’t gotten very good or consistent results. There just aren’t that many people who specialize in outsourced, professional management of self-storage units. As a result, most successful self-storage operators self-manage. The secret to being successful in self-storage is self-managing.
MY TIME AND EFFORT IS IN MULTIFAMILY
Another point for me when comparing multifamily and self-storage is there is a matter of focus. I want to focus on one thing, and get really really good at it before looking elsewhere. I want to focus on multifamily and build my portfolio, so that I get repeatable, consistent results. I want to get to the point where we have systems set up so the whole process can fly on autopilot.
SO THERE YOU HAVE IT: SELF-STORAGE VERSUS MULTIFAMILY.
Is self storage as good as multifamily?”.
No, not for me.
That being said, it’s still a solid choice for investing because of its recession proof nature and the fact that it’s increasing in demand in growing areas. The self-service automation part of it is really compelling and is what makes this asset class so appealing to me.
How to Handle Emergency Maintenance Over the Holidays
You might think the most important point regarding emergency maintenance is the speed, but I would say it’s actually the expectations. Tenants need to understand what you are and are not willing to do up front.
If it’s not a real emergency or it’s something that can wait until tomorrow, you have to be firm and say “no.” As far as real emergencies go, the vast majority have to do with
1) a water leak
2) a sewage backup
3) no functional toilet. In other words, it’s generally water-related.
Emergency Property Maintenance During the Holidays
With regard to the holidays, stick to the same response you’d give any other day of the year. After all, your maintenance technician probably also has plans.
You should still take emergency calls, though (or your manager or maintenance tech should). Even though the tenant will be disappointed, it’s still better for them to feel that way than to feel completely ignored. And remember, you should set the expectations as to what you can and can’t do up front during the lease signing. This needs to include what is and what is not considered an emergency.
Another reason you need to take these calls is that, unfortunately, some emergencies are so dire that you need to do something—even if it’s 11:59 pm on December 31st (which in the year 2020, may be an even bigger celebration than usual).
These emergencies are those water-related incidents noted above, particularly a leak or a sewage backup. If you have a maintenance tech or contractor willing to go out on New Year’s Day, then go ahead and send them out. Or on the odd chance you are a skilled plumber who invests in real estate, you could do it yourself.
“Emergency maintenance does not happen often. For each unit, it will happen, on average, less than once a year. Just make a plan and follow through on that plan.”
But even still, the fear of middle-of-the-night emergency maintenance “is so paralyzing, in fact, I’ve heard stories where people eschewed becoming a landlord just to avoid it.” This is completely unnecessary. And luckily, holiday emergency maintenance is even rarer.
That being said, it does occasionally happen. Have a plan for extreme issues, and stick to it. Don’t let the paranoia consume you. You will be fine.
Happy Holidays!
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