New to Real Estate · Toronto · Member since 2018 · 11 posts · 8 votes
I am curious to hear from other Canadian investors where they see the Alberta market going in the future. Do you see it being prosperous despite the move away from oil and economic conditions? Edmonton and Calgary seem very enticing to invest in due to the combined effects of covid + oil, but I am also cautious in regards to their future economy.
Do any members have thoughts/opinions on if the Alberta market will be strong in the future?
I live, work and invest in Calgary and the Alberta market. Certainly there will be struggles over the next 12-18 months and possibly beyond as global oil and gas prices recover, however compared to some of Canada's bigger cities there are still a lot of properties here a a decent price and that generate positive cash flow. I hope to pick up a few more doors this year.
Investor · Ottawa, Ontario · Member since 2017 · 145 posts · 52 votes
6y
My crystal ball tells me that there will be continued struggles there for a while, but oil ain't dead and we can hope that the province actually diversifies next time.
I live, work and invest in Calgary and the Alberta market. Certainly there will be struggles over the next 12-18 months and possibly beyond as global oil and gas prices recover, however compared to some of Canada's bigger cities there are still a lot of properties here a a decent price and that generate positive cash flow. I hope to pick up a few more doors this year.
Specialist · Vancouver, BC · Member since 2016 · 315 posts · 145 votes
6y
@Dylan Bergum Great question and I get this all the time from friends and coaching clients who live in Alberta. If you live in Alberta and restricted to investing in Alberta than there are pockets and deals to be found with potential to make positive cash flow. There is also a higher chance of buying with no money down. Here is why I don't think Alberta is a great place to invest in the next 6-12 months and longer term. You won't get appreciation, and there is higher chance you won't positive cash flow. You usually don't see positive cashflow until the P&I is below a certain amount.
You can take the same amount of investment down payment money and buy a property else where that will give you positive cash flow and appreciation. Appreciation is not guaranteed but it can be from 2%+ depending on the area year over year. This adds up as it is compounding. Also mortgage pay down will exist regardless of where you invest, but you want the mortgage pay down to be from your tenants. Not from you. If you are in a higher vacancy area, then you are doing the mortgage pay down and not your tenants, as you are making the monthly payments.
Edmonton Alberta · Member since 2019 · 55 posts · 9 votes
6y
@Huong Luu
Have you done no money down deals in Alberta? I’m very interested in doing some. I’m currently doing an at home study course that teaches agreements for sale.
Specialist · Vancouver, BC · Member since 2016 · 315 posts · 145 votes
6y
@Scott Galloway If the market is depreciating, and the rental income can be lost if there is a major repair, then it doesn't make sense. Why be in a market when there isn't cashflow, APPRECIATIONand mortgage paydown. It doesn't matter if it is NO money down. Money can be made. Time is something you can't buy more of. Spend your time investing in areas that have all 3 so you can have more time. AFS is a great strategy. And there are reasons why many sellers are willing to do AFS. Just because it is there, doesn't mean you have to do it. Please me separate and I can share more about this. Good luck with your course. Your education will serve you well.
@Huong Luu Where is Canada do you invest to get these 3? I am only investing in southern alberta, and while the appreciation is slow compared to some boom bust cities, i do get very good cash flow and with that mortgage paydown
A change of government won’t bring streets of gold in Alberta or any part of the west. Think slooooooooooow growth. Essentially flat. 1% isn’t real appreciation, it’s the difference between what you saw and what I saw when we walked the house and ran numbers. We won’t be topside of 1% for a few years I’d say.