For several years now it seems like the standard real estate investment model of an owner being able to make a profit from rent has been turned on its head. Recent buyers going the landlord route are paying more in mortgage bills than they can bring in from current rent rates – they’re counting on capitol gains to fill in that hole and hopefully turn a profit in the future.
Hence today’s question for discussion: When will rental rates in Vancouver make sense from an investment perspective? As I see it there are only a few ways to get there: local incomes rise so that people will pay higher rents, prices drop so that new landlords see a profit margin at current rates, or a combination of the two.
What do you think is the most likely scenario?