An aerial view of Kyuquot. (Photo courtesy, Walters Cove Resort)

An aerial view of Kyuquot. (Photo courtesy, Walters Cove Resort)

Coastal B.C. community’s real estate predicament might be turning it into a ghost town

In Kyuquot, off treaty land, more outsiders have ‘holiday-home’ properties than locals who can’t secure financing to buy homes

When schoolteacher Joshua Ogden decided to buy property in the remote B.C. town of Kyuquot, he faced an inconvenient dilemma.

Ogden learned banks were skeptical about providing mortgages to buy property in the tiny community on Vancouver Island’s northwest coast. Banks in Campbell River told him a regular mortgage was impossible. Private lenders, meanwhile, would require a 35 per cent down-payment with a minimum seven per cent interest rate.

Independent mortgage brokers pointed out that no bank or financial institution will lend to a place with limited accessibility. Kyuquot is accessible only by boat or float-plane.

Matt Bruining, manager of Royal Bank of Canada’s Campbell River branch confirmed Ogden’s story.

He said that while the lending policy for the bank is standard throughout the country, there are external factors to be considered if the property is not in a “service area.” Properties that lack easy access to fire-safety services, are examples of what the bank considers a “non-service” area. Insurance, and the cost of maintaining the property are also other criteria that weigh in on the lending decision.

So when a person with a good credit score can’t get a mortgage for a property in such areas, Bruining said the bank is “not declining people, but it is declining the property.”

Ed Handja, is a realtor with BC Oceanfront Properties. In his 25-year career, he has sold six properties in Kyuquot and considers it a “limited market,” meaning properties there can typically take anywhere from two months to two years to sell. Most banks consider that a financial risk not worth taking.

“Banks aren’t really comfortable because they do know enough that if they end up taking a property in foreclosure situation, it could take couple of months or years for them to sell it and they don’t want to get themselves into that situation,” said Handja.

Kyuquot is a vibrant community for four months of the year. However, at other times, outside of the Kyuquot Checleseht First Nation treaty land, it is almost a ghost town. On Walters Island where Ogden lives, most homes are owned by summer residents who use it as a holiday home.

Despite that, Ogden said renting was not easy either.

“Of the properties outside Kyuquot Checleseht First Nation treaty land, majority sit vacant for much of the year – unavailable to rent or purchase,” said Ogden.

Home owners are not comfortable giving out their properties for rent. Donna Holmes Vernon, a home owner on Walters Island who rented her place three times in the past said, landlords who don’t live in Kyuquot face “serious limitations” when it came to maintenance.

First of all, there was always damage done, said Vernon. Secondly, insurance prices and hydro rates on Kyuquot are exorbitantly high.

A lot of “outsiders” have bought property in Kyuquot because they had the money to pay up front said Eric Gorbman, who resides and runs a restaurant on Walters Island. Twenty years ago when Gorbman, an American, bought his property, locals were horrified, he said.

But the trend continued for a while when Kyuquot’s real estate was in demand by the “million-dollar club” of Americans, Vancouver-based tycoons, and out-of-province buyers who “gobbled” up property when it became available.

However, after the 2008 financial crisis in U.S., demand decreased. The owner of one of the last houses sold on Walters Island had to lower his price to the point where he literally had to give it away, said Gorbman.

The dilemma is always going to be a “circular issue,” said Gorbman and added that since locals cannot afford to buy houses, outsiders will continue to buy houses, most of which will be left vacant when they’re not around. He said this is something the provincial government needs to figure out.

“What Kyuquot needs to survive are young families, who can be assets to the community. But if they can’t find places to live, it’s a different thing altogether.”

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP Emergency Response Team members on Charles Street in Chilliwack on Jan. 15, 2021 after an undisclosed threat was made by a male. The matter was resolved peacefully. (Darcy Loewen photo)
Heavy Chilliwack RCMP presence on Charles Street Friday after ‘disturbing’ phone call

Man who made threats to harm self and others eventually taken into custody unharmed

Two people were in a vehicle that rolled over on Highway No. 1 near Lickman Road. They are now out of the vehicle. (Jenna Hauck/ Chilliwack Progress)
Vehicle rolls over on Highway 1 near Lickman Road in Chilliwack

Two people in SUV at time of collision in westbound lanes

Both eastbound lanes are completely west of exit 135 on Highway 1. (Google maps)
UPDATE: Traffic now getting through following car collision on Highway 1 in Chilliwack

Incident happened shortly just west of exit 135 for Agassiz/Harrison Hot Springs

Carin Bondar announced Nov. 26 that she will be running in the upcoming byelection to replace outgoing school trustee Dan Coulter. (Sarah Sovereign Photography)
Chilliwack school board candidate Carin Bondar calls for vote-by-mail option

As the COVID pandemic continues, Bondar fears voter turnout will be low for next month’s byelection

The route of the pink parade. The Record has blackened out the name of the teen. Facebook photo.
Pink-vehicle parade to be held Sunday in support of transgender teen assaulted in Mission

Teen and family to watch parade drive single file along waterfront at 3 p.m., Jan. 17

Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the press theatre at the B.C. legislature for an update on COVID-19, Jan. 7, 2021. (B.C. government)
B.C.’s COVID-19 spread steady with 509 new cases Friday

Hospitalized and critical care cases decline, nine deaths

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

Jobs Minister Ravi Kahlon shared a handwritten note his son received on Jan. 13, 2021. (Ravi Kahlon/Twitter)
Proud dad moment: B.C. minister’s son, 10, receives handwritten note for act of kindness

North Delta MLA took to Twitter to share a letter his son received from a new kid at school

Lilly and Poppy, two cats owned by Kalmar Cat Hotel ownder Donna Goodenough, both have cerebellAr hypoplasia, a genetic neurological condition that affects their ability to control their muscles and bones. Photo by Alistair Taylor – Campbell River Mirror
VIDEO: Wobbly Cats a riot of flailing legs and paws but bundles of love and joy to their owner

Woman urges others to not fear adopting cats with disabilities

Chief public health officer Dr. Theresa Tam provides an update on the COVID-19 pandemic in Ottawa on Friday, Jan. 8, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada’s top doctor says to avoid non-essential travel as B.C. explores legal options

Premier John Horgan says he is seeking legal advice on whether it can limit interprovincial travel

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The Delta Hospice Society operates the Harold & Veronica Savage Centre for Supportive Care (pictured) and the Irene Thomas Hospice in Ladner. (The Canadian Press photo)
Fraser Health to evict Delta Hospice Society, open new hospice beds next door

Health authority will serve DHS 30 days’ notice when service agreement expires Feb. 25

Martin Luther King Jr. addresses the crowd during the march on Washington, D.C., in August of 1963. Courtesy photo
Government reinforces importance of anti-racism act on Black Shirt Day

B.C. Ministers say education “a powerful tool” in the fight for equity and equality

Most Read