Real Estate

Calgary - Investing In Condos

  • Last Updated:
  • Oct 1st, 2020 10:08 pm
Member
Oct 22, 2019
312 posts
286 upvotes
divx wrote: What prompted the growth? Is there jobs to be had in Alberta still?
Hopefully economy will pick up...but its not really that, I think immigrants are still looking for the city feel without being in the big areas like GTA, GVA and Montreal. Outside of these areas in Canada, Calgary would be the next closest thing.
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Jan 13, 2014
1657 posts
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Calgary
divx wrote: What prompted the growth? Is there jobs to be had in Alberta still?
No. Ontario has decided to give all of alberta a handout check each month.
Banned
Feb 19, 2020
17 posts
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divx wrote: What prompted the growth? Is there jobs to be had in Alberta still?
There's welfare cheques to be had still.
Banned
Sep 19, 2012
1253 posts
1865 upvotes
Calgary
masarwar wrote: No. Ontario has decided to give all of alberta a handout check each month.
You’re kidding right? Google “equalization payments Alberta” and see who’s getting the handouts.

FWIW- I wouldn’t buy an investment property in Calgary. I happen to own a house in Kensington: after 10 years appraised value is down 10% from my purchase price. Bought it new in 2011 (not at the height of some bubble).

I’m one of those negative Albertans that realtors mention tho - take my opinion with a grain of salt!
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
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Jan 13, 2014
1657 posts
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Calgary
ahlaker wrote: You’re kidding right? Google “equalization payments Alberta” and see who’s getting the handouts.

FWIW- I wouldn’t buy an investment property in Calgary. I happen to own a house in Kensington: after 10 years appraised value is down 10% from my purchase price. Bought it new in 2011 (not at the height of some bubble).

I’m one of those negative Albertans that realtors mention tho - take my opinion with a grain of salt!
Dude, i was joking.
Banned
Sep 19, 2012
1253 posts
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Calgary
masarwar wrote: Dude, i was joking.
That’s why I asked. Should’ve realized when your location is Calgary - doh! I’m a sensitive Albertan. My point stands though - I wouldn’t touch an investment property here unless it was highly cash flow positive (and with rental interest rates like 2.39% for 5-years with Tangerine it may be doable!).
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Deal Addict
Jan 13, 2014
1657 posts
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ahlaker wrote: That’s why I asked. Should’ve realized when your location is Calgary - doh! I’m a sensitive Albertan. My point stands though - I wouldn’t touch an investment property here unless it was highly cash flow positive (and with rental interest rates like 2.39% for 5-years with Tangerine it may be doable!).
I would buy more in a heart beat. You just need the right opportunity and regardless of the market you can build equity into it.
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Jun 7, 2005
1417 posts
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Toronto
How are people feeling about this now as the pandemic is progressing? Lots of apartments under 200k have been on the market for weeks and months but still have potential to fetch $1100-1400 a month. Prices feel like they have hit the bottom too (or close to it).
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Aug 12, 2004
4469 posts
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Calgary
blahraptors wrote: How are people feeling about this now as the pandemic is progressing? Lots of apartments under 200k have been on the market for weeks and months but still have potential to fetch $1100-1400 a month. Prices feel like they have hit the bottom too (or close to it).
Personal opinion, I think this is a really poor time to be buying. Inventory is actually extremely low (no one wants to sell right now because they can't get a proper showing and I am not seeing panic selling), and the prices are not adjusted at all, heck I actually see some higher than I would expect knowing the buildings, which seem to be taking advantage of the lack of inventory. Talking 50K more

This is the first time I have not seen a single unit in my building for sale ever since it got built. During the oil crash in 2015-16 there was always 10+ units for sale. The beltline is totally bare of units (units that actually have value).

Units under 200K are generally poor and many currently there at that price would not be purchased even in an upturn.

Anyone looking for a bargain needs to relook at this 6 months from now.

On the other side, we managed to get a new tenant for May at the same rent price as our previous tenant.
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Dec 13, 2016
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blahraptors wrote: How are people feeling about this now as the pandemic is progressing? Lots of apartments under 200k have been on the market for weeks and months but still have potential to fetch $1100-1400 a month. Prices feel like they have hit the bottom too (or close to it).
Can you give us some examples?
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Jun 7, 2005
1417 posts
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Toronto
Firebot wrote: Personal opinion, I think this is a really poor time to be buying. Inventory is actually extremely low (no one wants to sell right now because they can't get a proper showing and I am not seeing panic selling), and the prices are not adjusted at all, heck I actually see some higher than I would expect knowing the buildings, which seem to be taking advantage of the lack of inventory. Talking 50K more

This is the first time I have not seen a single unit in my building for sale ever since it got built. During the oil crash in 2015-16 there was always 10+ units for sale. The beltline is totally bare of units (units that actually have value).

Units under 200K are generally poor and many currently there at that price would not be purchased even in an upturn.

Anyone looking for a bargain needs to relook at this 6 months from now.

On the other side, we managed to get a new tenant for May at the same rent price as our previous tenant.
I haven't been following the market very long - can you provide some examples of overpriced units?
Jr. Member
Oct 26, 2015
158 posts
37 upvotes
Calgary, AB
If you wait a little longer, you can probably get a good deal. The real estate market is actually higher than when we bought back in Jan but only because it's spring time and owners are still hoping to sell for what is now considered a "good price" = losing less than 10% of your original investment if you bought between 2010-2014. I can't even imagine having to sell right now... So glad we did back in Feb and we already lost about 7% of our initial investment from 2015. Someone was saying that the prices are back to where they were in 2014. Well, definitely not. I would probably say 2012-2013. 2014 was like the most expensive time ever to buy in YYC. Prices started to fall a bit in 2015 and went a little back up in 2019/early 2020 but not by much. Anyone who bought back in 2014-2015 was still losing money in early 2020. Buyers are looking for crazy deals right now so unless sellers are absolutely desperate to sell, they are probably going to hold off for a couple of years.

Also because our economy is all about oil (rolling my eyes) and Kenney was PRETTY clear about that (rolling my eyes again), we are probably going to have an absolutely shitty economy for another 2-4 years. (Probably even longer) Hopefully by then, we'll have a new PM that won't be all about O&G and will look at tech + other things. They are doing pretty good things in Edmonton and their mayor is clearly trying to attract tech talents. Nenshi tried to do that as well but we can't really compete with TO or Van... We get some good things here including cost of living but boy... our weather... That alone is definitely not going to help unless we start to have a ton of jobs available and I don't see how! Seriously folks, if you find the weather unbearable in TO in the winter (I used to live in TO), wait until you have come to Calgary. Our weather is SHIT all year round. Even summers can be shitty as hell like 15 degrees and rain or worse, SNOW. YES.
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Sep 19, 2008
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Badiha wrote: Seriously folks, if you find the weather unbearable in TO in the winter (I used to live in TO), wait until you have come to Calgary. Our weather is SHIT all year round. Even summers can be shitty as hell like 15 degrees and rain or worse, SNOW. YES.
I've lived in both cities for more than 8 years each and I disagree. The Calgary weather temperature wise is a bit lower than Toronto but the dry cold is definitely more bearable than damp cold. Also summer temps are 20 to low 30s and without humidity is very nice. You can go hiking or mountain biking without being drenched in sweat like I was in toronto.
Again neither one is a clear winner but to say weather is shit all year round is greatly exaggerated
Jr. Member
Oct 26, 2015
158 posts
37 upvotes
Calgary, AB
I think you haven’t been in YYC for at least the last 3 years. We got bad summers with rain... and never ending winters. Or maybe you just forgot but seriously it’s been bad for a good 3 years. I agree that winters are more bearable though but they never end. When we are lucky, we also get a good weather in April but it happened maybe twice in 6 years I have been here. Snow on the other hand is happening today for starters and most of April this year had snow. I hated TO’s winters don’t get me wrong but their summers/falls are absolutely amazing. If you don’t mind the heat of course!
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Aug 12, 2004
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blahraptors wrote: I haven't been following the market very long - can you provide some examples of overpriced units?
https://www.realtor.ca/real-estate/2180 ... y-beltline

This unit is very similar to my own in year built, design and size. Upon looking at it again it is a corner unit which will give some extra value, but looking at this one and a few others in the same building (a nice building mind you), everything seems a little higher (30k ish) than it should be. Units on the market are not necessarily selling a the asking price.

Looking at a few others, there really isn't much I would call a deal for any desirable unit. There sure as heck isn't any fire sale, which is what some may be thinking.

Markets aren't showing any impact of the economic fallout, if prices drops are to happen which is highly likely it will lag for a few months.
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Dec 13, 2016
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Firebot wrote: https://www.realtor.ca/real-estate/2180 ... y-beltline

This unit is very similar to my own in year built, design and size. Upon looking at it again it is a corner unit which will give some extra value, but looking at this one and a few others in the same building (a nice building mind you), everything seems a little higher (30k ish) than it should be. Units on the market are not necessarily selling a the asking price.

Looking at a few others, there really isn't much I would call a deal for any desirable unit. There sure as heck isn't any fire sale, which is what some may be thinking.

Markets aren't showing any impact of the economic fallout, if prices drops are to happen which is highly likely it will lag for a few months.
You can buy a 2 bedroom at the guardian at that price.
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Sep 19, 2008
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Firebot wrote:
Looking at a few others, there really isn't much I would call a deal for any desirable unit. There sure as heck isn't any fire sale, which is what some may be thinking.

Markets aren't showing any impact of the economic fallout, if prices drops are to happen which is highly likely it will lag for a few months.
Not alot of units are selling, but the ones that sold are dropping their prices dramatically

Source: https://www.creb.com/Housing_Statistics ... ary/?tab=4

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Aug 12, 2004
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cbr600 wrote: Not alot of units are selling, but the ones that sold are dropping their prices dramatically

Source: https://www.creb.com/Housing_Statistics ... ary/?tab=4

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One thing about average prices is that it includes everything. Going from 95 sales to 31 will drastically skew the numbers, and with new listings dropping so significantly it confirms my assumption there is just no units out there for sale. There is no exodus to sell.

You can certainly attempt to make an offer on a condo and see if people budge. Every seller situation is different and you won't be able to tell without making offers. Those places who may have been panic sellers to get out have also sold and are no longer part of the current mix of condos, the ones left don't seem like panic sellers.

Basically you have months to see a drop and a market consensus occurs. You won't see that until listings increase significantly

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