All Forum Posts by: Santhosh Nathan

One thing to consider is there is no guarantee of building equity in pre-construction. The last few years have been great for investors/homebuyers who bought pre-con, but looking back to the few years after the 2014/15 boom, this wasn't the case, where many had actually committed to buying a property that wasn't quite worth what they signed up for closer to closing because the appraisal weren't matching the contract price, requiring a cash top-up. This is one of the main inherent risks with pre-construction, and the pre-construction market has cooled, and with impeding tariffs, there is some uncertainty around where prices will be in the coming months.

One thing to clarify, are you looking to buy an investment property or a primary residence (or perhaps abit of both where you live in one unit and rent out the other)? In most cases, to achieve cashflow, you would be looking at a property with at least 2 units (main floor + basement suite). Happy to discuss this further on what might make the most sense for your end goal.

Hi Rafael, I reviewed your listing as well. Primary issue I see is being priced too high for the current market by a few hundred dollars. I know you mentioned other units are listed comparably but asking price is not the same as rented price. I’d revisit the pricing, happy to go over it on a phone call if you would prefer. I’m in Calgary as well :)

Hi Lovepreet, what do you want to talk about flipping and renos in Calgary? Happy to connect.

Hi Jai, great choice considering Calgary. Realistically, to buy a detached property with a basement suite that is in somewhat decent condition, and not in an undesirable part of the city, you're looking at a price point starting in the low 500s (520K-ish and upwards of $650K for turnkey renovated older properties with legal suites). Typically with a detached property with a basement suite, and a garage, you might be able to break even, perhaps even cashflow a little with today's interest rates but it is unlikely for cashflow to be $500-1000 per month. New build detached with purpose built legal suites start close to $700K and up. 

Now what is more feasible with that budget is a semi-detached (not a strata) in an average suburban neighbourhood. Being a semi-detached, it comes with a lower price point especially on the 60s-80s built properties (which we have alot of in Calgary). They are typically anywhere from the mid 350s up to $550K-ish for premium locations. Despite having a smaller overall price point, the rents are usually similar to a detached property, which means the cashflow is better overall. There's pros and cons to each property type, and it also comes down to your holding period etc.

I'm an investor-focused realtor with Calgary Real Estate Investor Hub. Would be happy to discuss things with you!

 Sounds good! Cheers.

Hi Taimur, in the case of Calgary where me and @Anthony Therrien-Bernard work (Calgary Real Estate Investor Hub), alot of what is driving the market is a combination of new job growth, large in-migration into Calgary, the interest rate situation and the relative affordability compared to the YVR and Toronto markets. We used to be a cyclical market and were quite dependent on the oil and gas industry but that seems to be changing. Even today, capital expenditures in the oil and gas industry are well below 2014 boom levels pointing to the reduced reliance on oil and gas industry.

To answer your question of whether homes with suites or small multi family is better. The answer would really depend on your hold period and what you are trying to achieve. There's pro and cons of both of these properties types depending on where in the city you are buying. Perhaps we can setup a time to discuss this.

Hi Farai,

Congrats on taking that first step! Like Anthony mentioned, what are your biggest obstacles that you would like to overcome?