Rental potential??

[hi-revs]

I'm looking at a house approx. 3min drive from the Queensborough landing in New Westminster.
There is a legal 2 floor, 2 bedroom 2.5 bath rental property attached to the house.
Currently it's one family occupying the entire house. House was built in 2011 and this family has lived in it since.


My question, how difficult would it be to find a renter for the rental suite of this house being in Queensborough?
Our realtor says rental income is approx $1200/m. But how desired is this area?

I mean, obviously the renter would likely need their own car as transit sucks there.
There's an elementary school and community center approx 3min drive away. No high school I believe in the area.

I've noticed hat there's a lot of new town homes and houses being built there, so I'm assuming its a developing area.

Would you rent in Queensborough?

[nabs]

I personally would not rent in Queensborough because there are a bunch of new developments in that area. If I was to choose to live there and own a vehicle I would opt to purchase in that in that area because the prices of the new developments are about as much as rent would cost.

[Gridlock]

Queensborough is a world upon itself. Not Richmond, but part of New West in name only. The best thing you can do is check your own comps. Find properties in the area that match the specs and see what they are renting for...are good people actually renting for that money in that area?

Your realtor may have a slightly different idea on that than others.

[dinosaur]

Originally Posted by hi-revs

I'm looking at a house approx. 3min drive from the Queensborough landing in New Westminster.
There is a legal 2 floor, 2 bedroom 2.5 bath rental property attached to the house.
Currently it's one family occupying the entire house. House was built in 2011 and this family has lived in it since.


My question, how difficult would it be to find a renter for the rental suite of this house being in Queensborough?
Our realtor says rental income is approx $1200/m. But how desired is this area?

I mean, obviously the renter would likely need their own car as transit sucks there.
There's an elementary school and community center approx 3min drive away. No high school I believe in the area.

I've noticed hat there's a lot of new town homes and houses being built there, so I'm assuming its a developing area.

Would you rent in Queensborough?

Queensborough is definitely one of the new up and coming neighbourhoods in New Westminster. It appeals mostly to young families or couples looking for an affordable place to purchase.

The upside is that there is (or they are building) new schools, new recreation centre, small shops, and restaurants. It is relatively close to transit and a good central location for commuting.

The downside is that it can be a little "land-locked". Although it is very walkable to the main bus routes, you still need to walk and when you are trying to appeal to renters, that isn't a good selling point. Yes, there is the POTENTIAL to have a rental income of $1200/month but this is not guaranteed. The rental market is VERY soft right now and in this location, it is even softer.

At $1200/month you are appealing to a young family....and pretty much only a young family. Students won't look because it is too far away from school, roommates don't want to be that far away from "the city" or transit, and you are priced out of welfare (which is a good thing). Although you may get great tenants (you are appealing to a good group of people), it may take longer to rent...and you may need to reduce ($1000/month is more appropriate).

If this $1200/month is a major factor in being able to afford the home, you need to walk away now. A rental in this location is more of a long game than a short game.

On the flip side, if this rental income is more of a bonus and you can easily afford to have it sit empty, then you may want to consider it. As I said above (and nabs pointed out), Queensborough is under HUGE development right now. Most of the New Westminster's new housing is being built there and it is turning into a pretty nice "community".

But to answer your question in brief...is it a desired location? At this very moment? Not to renters.

[hi-revs]

Thanks for eveyones comments so far.
I know that for $900-$1200 people can rent closer to "the city" or even pay their own mortgage. But there are those people/young families who even if they make a decent salary, just doesn't have the downpayment to get a mortgage approval. Those are the type of renters I'm wanting to attract.

I am definitely not needing it to be rented to be able to afford this property, but it would be a big bonus. Plus my fiance and I don't need tyat big of space.

There's just too many things to consider and debate with buying in this area.
As someone mentioned, its not exactly in the middle of nowhere, but it isn't really clos to anything either. Lol. But it is central if the person drives.

We're considering this area because for what we are paying for this property, we'd be looking at +20yr old houses in richmond, burnaby, vancouver.

Condos just aren't big enough. And townhomes have too many restrictions. Thats why were opting for a single detatched home.

Btw, this will be a purchase for the long term. Its not exactly an investment property for us.

P.s what other resources can I utilize to research if that area is desirable to renters?

[dinosaur]

Just look at comps on CL.

If you are buying for long-term and don't need the extra money, then don't worry about it.

In terms of location, Queensborough is no different than residentially dense areas in Surrey, Richmond, Burnaby, etc. If anything, Queensborough is closer to a lot more than most.

Give it 5 years and that area will not be recognizable so I would not be concerned. Transit access will increase and more shops and services will be built.

At some point, you will find renters it just won't be as easy as it would in other locations....but, does it matter?

[SumAznGuy]

The great thing about the Queensborough area is that it is literally in the middle of everywhere. By car, take the 91 west and in 10 minutes you are in Ditchmond.
10 Minutes on the 91 east and you are in Slurry/Delta.
Less than 10 minutes you are in Coquitlam and less than 10 minutes you are at Metro.
Downtown is a little further away obviously, but still not too bad, assuming traffic is ok.
Down side to the Queensborough area is that during rush hour, traffic is BAD.
If there is an accident, then things go from bad to horrible.

[bcedhk]

There is a lot of people who rent rooms out to international students who attend those english schools in New Westminster and Burnaby.

[bcedhk]

Look into the Official Community Plan for the area. Although it is only a "plan", however, it will give you a good idea of what the region is aiming for in the long run.