Even as the average selling price of a home in Kelowna skyrockets to $1 million, it's a good time to invest in real estate.

"Especially right now is the right time," said Johan Gouws, an investment specialist realtor with Royal LePage Kelowna and a former private and investment banking consultant in England for 18 years.

"It's a bull market and I don't think house prices have topped out yet."

The average selling price of a single-family home in April in the Central Okanagan was $974,471, a 31% jump over April 2020.

With people clamouring to buy in Kelowna, mortgage interest rates at rock bottom and lumber at record-high prices, Johan only sees Kelowna house prices climbing.

Johan stressed there is a difference between residential real estate, which is the home you live in, and investment real estate, a home you buy as part of a wealth management strategy to build equity.

"Really, it's so much easier to invest in real estate than it is to invest in stocks and bonds," he said.

"If you want to invest $1 million in stocks and bonds, you have to use the full $1 million, and the return might be 10% annually."

So, Johan suggested, if you want to make a real estate investment, buy a $1 million home and only put 30% or $300,000 down and finance the rest at a low-low interest rate.

The home could gain 30% a year in value and you still have $700,000 left to invest in other things or more real estate.

Even if the home doesn't gain 30% a year, the investment is sound, according to Johan.

"You've heard the term: Safe as houses?" he asks.

"Well, it's a saying because real estate is always a long-term investment."

Mortgage interest rates are expected to remain low, which means real estate is the right asset to be holding for the long-term, rather than low-return bonds.

Johan is seeing that with people cashing out their $1.8 million home in Vancouver and moving to Kelowna for the lifestyle while also making additional investments.

As an investment specialist realtor, Johan helps clients through the whole process from planning and buying to managing and selling.

Johan regularly sends out newsletters on investing in real estate to clients, potential clients and the general public.

The $1 million home investment was the focus of his May newsletter.

To obtain a copy email him at johan@royallepage.ca.