Small, investor-targeted condo units, the studios and junior one-bedrooms built mainly for investors downtown, in Rutland, and near UBCO, are facing years of inventory in some buildings because end users generally aren't looking for units that small. Aging strata buildings from the '90s and early 2000s are another category to watch, as deferred maintenance can lead to special levies that sometimes run into the tens of thousands of dollars per owner.
Strata insurance is also worth scrutinizing. Some buildings carry water damage deductibles of $500,000 or more, meaning an owner could be personally responsible for a significant cost before insurance kicks in. Properties on the urban-wildland interface, think areas backing onto dry hillsides in West Kelowna or Glenrosa, are seeing rising insurance premiums and, in some cases, more difficulty getting coverage at all given our region's wildfire history.
Homes directly on busy roads like Highway 97, Glenmore Road, or Gordon Drive typically sell for less than comparable homes a block or two over, and that gap can widen in a softer market. Former marijuana grow-ops, and the Okanagan had a significant number before legalization, carry a stigma that follows the property for life, even after remediation, and sellers are legally required to disclose this as a known defect. Leasehold properties, more common in West Kelowna, can also be harder to finance as the lease term shortens.
None of this means these properties are unsellable, but it does mean longer days on market, more price adjustments, and a smaller pool of buyers with more negotiating power. If you're considering one of these property types, whether buying or selling, I'd be glad to walk through what to expect.
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