Investment Crop Circles in Real Estate

The movie Signs, starring Mel Gibson, is an interesting science-fiction/thriller set on an isolated farm in Doylestown, Pennsylvania. Gibson plays Graham Hess, an ex-priest that is disillusioned by life and faith after losing his wife in a tragic car accident. One morning, Graham awakens to discover a crop circle in his field. After further investigation, Graham concludes that he and his farm had been visited by extraterrestrial beings. Like every good Hollywood sci-fi, the aliens try to take over the world; however, after a good fight, the human race wins and the aliens scurry back to the great unknown. The movie ends with the Hess family being recovered from the incident, Graham returning to his priestly duties, and regaining his faith.

If crop circles were found in your town, would you believe it was a sure sign of extraterrestrials, or just somebody playing a prank on the farmer and his corn field? One thing I do know, it certainly means that somebody – or something – went to a great deal of work to get our attention. What if our city and municipal officials went to the same length of effort and creativity as the creator of the crop circles to attract business investment? What are the leaders of our cities and municipalities doing to create an investment environment that will flood the area with growth? With growth comes more business, more jobs, more real estate development, and ultimately, more real estate investment opportunities. This all sounds good. However, for this growth to be long term and sustainable, the environment must cultivate creativity, a productive workforce, and a leadership group ready for a journey of transformation.

A transformation may mean that the egg comes before the chicken—creating and making a successful livable community where young people want to live, raise their families, and stay & play. Most cities want to build the egg first. Build the business and job community first, and then they – the young workforce – will come; the traditional method of building a so called “vibrant city.” City officials need to ask themselves, “What does the 20 to 45-year-old want to experience?” The answer? They want a central core that is walkable, with meeting places, parks, and a casual relaxed atmosphere.

A city with this footprint and vibe will attract world class and international companies, who in turn are seeking young, well educated, and happy employees that love their community. These companies also tend to retain their employees two to three times longer because of the potential to move up the ladder and gain international opportunities.

Follow the smart money. Cities have many departments; building, planning services, and maintenance. What if every city had an innovation department? What if they were mandated to use technology and intelligent management systems to solve current and future needs? We need visionary leadership to push for smarter and better ways to manage, grow, and build a sustainable city through innovation and technology. When this happens, the smart money or world-class businesses will find the city and set up shop.

What is your city or region known for? In other words, what is your crop circle that everybody in the world wants to come and see? Identify and exploit your cachet. For instance, Squamish, BC’s cachet is endless world class outdoor recreational activities. Hiking, rock climbing, skiing, wind sports, backcountry adventure, and kayaking, just to name a few—a great cachet to attract the youthful, vibrant, and thrill seeking adventurer, but not necessarily a great cachet to attract world class business.

When I think of Abbotsford, BC’s cachet, I think about the Abbotsford International Airport. The airport is a rare gem that is growing and creating unique aerospace business opportunities; however, it could be exploited in many more ways. Currently, it is busy with WestJet and a few other small carriers, but what if the visionary and innovative leaders lobbied the heavy air freight companies to make Abbotsford International Airport their home? Make it the hub for all airfreight in the Greater Vancouver region. I understand that many incentives and concessions would need to be made to pull the big boys away from Vancouver, but think of the international companies and job creation. The needs would be endless: warehousing, ground transportation, technology innovations, real estate development, innovative new companies, and a growing tax base for the city; plus, it would be a place where the young, enthusiastic, creative, and future leaders would want to live, work, and play. A great cachet with a huge upside.

Investors, look for cities, municipalities, and leaders that are in the business of creating investment crop circles. What is their cachet and how are they exploiting it? Follow the smart money, what is being created, and where a world class business is setting up shop.

The Valley and Vancouver October market STR stats continue to echo the market conditions that we experienced in September. Single family homes west of Langley continue to be in a balanced to buyers’ market. Yes, a buyers’ market, which we haven’t seen since 2014.  However, townhomes and condos continue to remain strong with a balanced to sellers’ market throughout the region.  Affordability is the key, making Langley, Maple Ridge, Abbotsford, Mission, and Chilliwack the strongest market throughout all types of properties. Investor buyers need to be careful as we move through this changing market trend. Make sure you are getting good information to make good decisions. Call me for a full break down of each micro market and property type.

If you would like to receive a copy of the statistical market report contact us here.

Randy Dyck
Personal Real Estate Corporation
604-807-4366 or randy@eximus.com

STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales  ​