Kelowna香蕉视频直播檚 supply of micro suites has become a speculator香蕉视频直播檚 haven.

Kevin Bird of K West, the developer of Cambridge House on Leon Avenue, said many of the building香蕉视频直播檚 313-square-foot units have had multiple owners before it was even complete. Prior to registration, the complex香蕉视频直播檚 units have changed owners more than 40 times.

Royal LePage real estate agent Andrew Smith said there have been 38 sales after its registration.

Nearby, Sole KLO, another property touting affordable micro homes for Kelowna香蕉视频直播檚 residents, has also built significant interest from investors, with the property now 75 per cent sold.

While Smith said it香蕉视频直播檚 not possible to see if speculators are eyeing up micro suites at Sole KLO until it is registered香蕉视频直播� registration being the point when the building is complete and livable香蕉视频直播� his suspicion is that building will follow the same trend.

香蕉视频直播淢y guess is it would be over 50 per cent speculators,香蕉视频直播� he said. 香蕉视频直播淧eople are buying and renting them out, or people from outside of our market area are using them as an intro to the market, if you will. I doubt very much it will be (buyers) living there full time. I think it香蕉视频直播檚 speculators, people who think the market is going to go up by the time it香蕉视频直播檚 finished or at least people who are going to put renters in there.香蕉视频直播�

Andrea Kelly, in sales at Sole KLO, said the building has gathered interest from investors who continue to sell units. There are some people who purchase with the intent to live there, but rent them out afterwards, she said. Investment properties are common, she added.

At Sole however, people can香蕉视频直播檛 purchase and reassign their contract to make money, so flipping before registration isn香蕉视频直播檛 possible, Kelly said.

香蕉视频直播淚t has mostly been investors and there have been a few purchases from single males who are just looking to get into the market,香蕉视频直播� she said.

Not an affordable housing solution

But for Kelowna resident Jack Vogt, who researched micro suites when his son Nico was looking for buy a home a few years ago, micro suites were more expensive than he initially thought And he found them impractical for his son香蕉视频直播檚 needs.

香蕉视频直播淚t seemed like we were lured in, or he was lured in with the price,香蕉视频直播� said Jack Vogt. 香蕉视频直播淏ut then you know you have to start considering (specialized) furniture, because you can香蕉视频直播檛 put regular furniture in there, and there were all kinds of other costs that came up that ended up being significantly more.香蕉视频直播�

香蕉视频直播淭hey actually weren香蕉视频直播檛 set up in a way you would want to live long-term. It was more of an investment for people, turned into long term rentals.香蕉视频直播�

His son opted for a regular three-bedroom apartment that ended up being cheaper than the micro suites, he said.

RELATED: Seniors living paycheque to paycheque in Kelowna

Kelowna city planner Ryan Smith said micro suites are filling the community香蕉视频直播檚 need and there have been other projects in the past seven years that the city has been building in terms of townhomes and condos.

Those micro homes are good for people from places like Alberta who spend a small amount of time in the city, and there hasn香蕉视频直播檛 been a negative impact on the city with the suites, he said.

Foreign buyers make up less than two per cent of Kelowna香蕉视频直播檚 market, so Smith doesn香蕉视频直播檛 think it will play a significant role in preventing speculators in micro suites.

The largest number of micro suites are being built near the university and are being used for students, he said. The project, Veda 2, was planned in 2016.

RELATED: Micro-suites put in their place by Kelowna council

There香蕉视频直播檚 room for micro suites to be student rentals and investments, said Smith. But with the province香蕉视频直播檚 new speculation tax coming into effect, he expects people will buy fewer for that purpose.

香蕉视频直播淪lowing that trend down is good but certainly the micro suites are an important component that is filling a need in the market,香蕉视频直播� Smith said.

While he feels it香蕉视频直播檚 unlikely a micro suite would be more expensive to furnish香蕉视频直播攁s there香蕉视频直播檚 less furniture needed than for other larger homes香蕉视频直播攖he challenge would be in the places that are unfurnished and where special furniture needs to be purchased.

Purchased at a good time

Chuck Spence, an owner at Cambridge House, said he bought a suite in 2016 for about $160,000 in order to downsize. He said the complex was in a good location and a decent price when he purchased it, but 香蕉视频直播渁 lot of these places have been bought on speculation and a lot of them are for sale. They香蕉视频直播檝e upped the price considerably.香蕉视频直播�

香蕉视频直播淚t香蕉视频直播檚 small but it香蕉视频直播檚 fine. It香蕉视频直播檚 like a nice hotel room.香蕉视频直播�

Spence said the units in his building are practical for young single individuals as they are close to downtown. But he said he wouldn香蕉视频直播檛 buy a micro suite with today香蕉视频直播檚 prices. A 313-square-foot one-bedroom was listed in the complex on Nov. 14 for $220,000.

RELATED: Kelowna city council shocked by micro suite rents

Kelowna Mayor Colin Basran said micro suites have a benefit to the community when they are rented, but he would like to see a flipping tax imposed by the province to prevent owners from reselling their properties prior to the complex香蕉视频直播檚 completion, instead of the speculation tax.

香蕉视频直播淚 don香蕉视频直播檛 believe someone is going to purchase those and leave them vacant (so)there香蕉视频直播檚 still a benefit to people living in the community.香蕉视频直播�

He said micro suites are affordable compared to the average price of a home in Kelowna, which is now around $700,000.

But Basran said it is concerning that there are Kelowna residents who want to own their first home but aren香蕉视频直播檛 able to because someone has seen it as a way to earn easy money.

The market dictates the price

Coun. Luke Stack had concerns with micro suites when they were first proposed.

香蕉视频直播淚 do have an issue with them not paying (development cost charges), particularly if you have a tiny space,香蕉视频直播� he said 香蕉视频直播淒CCs help pay for community parks. So they don香蕉视频直播檛 help to pay for parks or roads or any public service. I would think in a small suite you would want to use stuff like that.

香蕉视频直播淚t also means those taxes are loaded onto your neighbours,香蕉视频直播� he said. 香蕉视频直播淲hen I saw them a couple years ago I had some issues. I would personally like to see them become affordable but they weren香蕉视频直播檛 pitched as being affordable, they were pitched as being less expensive to build but there was no promise they would be affordable.香蕉视频直播�

Stack isn香蕉视频直播檛 sure if micro suites will catch on in Kelowna.

It may just be a one-time wave,香蕉视频直播� he said.

He香蕉视频直播檚 also not a fan of investors taking advantage of the market situation but doesn香蕉视频直播檛 see a problem with investors renting out units in the building.

香蕉视频直播淚香蕉视频直播檇 love to see the people that need the housing get the housing, unfortunately, the market is the market. We can香蕉视频直播檛 control it,香蕉视频直播� he said.

The province has introduced legislation that owners who buy and sell properties without living in them or paying capita gains tax. The speculation tax, which will tax foreign owners and satellite families two per cent unless properties are rented, will come into effect in January 2019.

carli.berry@kelownacapnews.com
Like us on and follow us on .