In a much improved Okanagan market as we have experienced competing offers on waterfront property, frenzied interest on housing in certain price ranges and continued strong building starts, we search and FIND one lagging indicator: LOTS
This is the weak link, and your opportunity to own. Seen it many times over, this segment is the last to come around and the first to jump in price once the economic improvements really take a firm grip on a market.
Reason? It’s very difficult to create any new supply, even when demand is once again strong. It’s also very expensive and is also very slow to create any supply of new lots. So, now while supply is here and demand frankly is not…now is when the smart money can pick up very good Okanagan value.
Over the years, lot ownership has been a very good way to participate in a soon to improve/improving, local market.
– There are no tenancy headaches
– There are pretty much NO maintenance & upkeeping requirements
– Cost of purchase is considerably less than the price of a house
– Many of the lots that come to be created once demand returns are “bare land strata” with monthly fees
– Most newly created lots have restrictive developer controls placed on title
– Many of the newly created lots will often have covenants on title forcing the new owner into cumbersome and expensive situations
– When economic conditions are strong, the real estate market is strong, and in THAT window, a lot becomes a very sought after commodity in the real estate cycle
So, let’s now examine which lots might make some sense for ownership…
Well, let’s start with the lowest price lot in Summerland for a non bareland strata title. $137,000 on Prairie Valley, easy to build, easy to own, easy to sit on, and the lowest price option with no monthly strata fees. This lot has interesting upside with the little house next door also up for sale right now, potential land assembly for rezoning. Heres a link:
When considering purchase options, look for “upside potential” with hidden value such as proximity to amenities, what kind of housing is in the surrounding vicinity, and are there perhaps some particular features that could make this lot unique?
Lakeview with privacy and space are some key factors, and proximity to the highway (but far enough away to avoid highway noise) are a couple very nice features of this half acre lot in a quality subdivision. A great example that can be missed here is the distinct lack of visible power lines. The developer paid to bury the lines and if you want to see what a difference an open, inimpeded view of the lake can make, pay this lot a site visit! Expansive, unimpeded and big are the words for this view lot in Jewell Place, for only $217,500 and NO GST NO HST! Buy it and hold, here’s a link:
In terms of location, one of the distinctly sought after benefits the lifestyle buyer is attracted to is an established neighbourhood. If you like the Okanagan, if you like Summerland, you will LOVE the Trout Creek area. We have a lot listed there, but first, click this for area info:
Now, more about this lot…Here’s a couple things this lot is NOT:
– NOT in a new, stark, bare new development barren of mature trees
– NOT right next to highway 97 noise and exhaust fumes
– NOT in a town that explodes with tourism every summer
– NOT in a busy area where grandkids need to be closely monitored
– NOT in a location where you need to pack up the car and DRIVE to a beach
– NOT in a party area of campgrounds, motels and bars
– NOT in the middle of nowhere
Enough already, here’s the link to an easy build Trout Creek lot with no builder imposed restrictions or timelines:
The lot backs to an organic apple orchard, is across from a lavendar farm, beside a brand new house, seconds away from Okanagan Lake, bike ride away from tennis courts, walking distance to a BOTTLENECK Drive winery, a back country road bike ride away from one of the Okanagan’s most respected family fruit stands, easy access to:
a dog beach, a popular dog walking trail, a KVR Trestle overlooking spectacular Trout Creek Canyon, a beautifully kept gardens (Friends of the Garden) that each year hosts many Okanagan Wedding photo settings, 18 hole golf course, numerous fine restaurants, local grocery stores and driving distance to the mayhem of Kelowna traffic…if you must.
Then we have a two and a half acre rural lot at $300,000 which offers so many recreation and housing options to the smart buyer in todays market. Here’s a look at the only lot this size for sale in Summerland:
That lot, in what the locals call “Paradise Flats” (for good reason!) cries out to those who love wine and those who love golf. Situated within a beautiful back country roads, level bike ride of the majority of Summerland’s best known wineries, including Thornhaven with its fabulous deck, Dirty Laundry with its fabulous deck (remember the flame dancers at one event last summer?) and so close to the famous back 9 of the Summerland Golf and Country Club. Own this lot, won’t you?
Patrick Murphy call or text anytime 250 486 2529