Real Estate

Calgary - Investing In Condos

  • Last Updated:
  • Oct 1st, 2020 10:08 pm
Sr. Member
User avatar
Sep 19, 2008
875 posts
801 upvotes
Firebot wrote: Basically you have months to see a drop and a market consensus occurs. You won't see that until listings increase significantly
I agree price may actually go up slightly due to panic seller already dumped their listing. Time will tell, but with oil in the gutter, residential tax hikes expected, I think a lot of sellers will run for the exit this summer
Member
Nov 10, 2014
393 posts
540 upvotes
Ottawa, ON
Covid on grand scheme of things is a short term problem. Even if the disease cannot be controlled through social distancing, there will eventually be combination of sufficient testing, vaccinations, and effective treatment to stop the damage from the virus. With some time, pain, and stimulus, jobs and wealth lost from the pandemic will start to comeback.

What Alberta has is a long term revenue and jobs problem now that their oil industry is wrecked. Past couple of months has shown how fragile the Albertan oil industry is. Alberta's oil and the more cost effective US shale can be decimated anytime the Saudis and/or Russians decide to have a pissing contest. Even if the demand and price for oil goes to pre-pandemic levels soon (unlikely if), I don't think Alberta will get the same amount of jobs and investments as the past couple of months linger in every investors' minds. I don't see a path forward for Alberta's economy should they lose their oil jobs and all the jobs servicing the industry and its workers. There isn't sufficient diversity in industries, or the workforce with the right skill sets. Oil rig worker cannot become a tech worker overnight. I can see a net loss of population for the province as people flock towards other cities that still have jobs. I personally would stay away from Calgary and Alberta real estate until there is a clear path in which the Albertan economy and population will continue to grow.
Deal Expert
User avatar
Feb 11, 2009
18032 posts
5376 upvotes
Toronto
Its funny, I was in Calgary back in August on vacation (Banff, with a drive through calgary), and checked out some properties while I was there...

Everything so cheap compared to Toronto I almost want to throw some money at one to see how it does haha.

Did the math on cash flow numbers and it was just unreal...haven't done enough research to understand appreciation potential in calgary, but the cash flow numbers justify the investment...worse case scenario it pays itself off in 25 years...
Real Estate Agent, MAcc, CPA, CA

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