Why Invest in Calgary Real Estate?
Investments are all about the future. What, given current data, can you expect to happen to an asset in the next 6 months, 5 years, or 20 years?
That’s exactly what people are asking themselves when they think about investing in Calgary’s real estate market. Right now, the expectations are high.
While home prices continue to rise in Ontario and British Columbia, rental prices haven’t fully caught up. What’s happening now is the mortgage, property tax, and maintenance fees are exceeding the market rental prices in Canada’s biggest cities. The number one priority of investors is getting the greatest return possible, but if positive cash flow is impossible, is it really an investment?
Enter, Calgary.
Here is what makes Calgary a great investment opportunity for experienced or first-time real estate investors.
Better Prices
As of September 21, 2022, Calgary’s average sale price is less than half of Toronto’s and Vancouver’s, and still significantly lower than the sale prices in Ottawa and Montreal. This makes getting into the market much easier, especially if you want to make a 10-20% down payment.
Tax Savings
In terms of cost of living, residents of Alberta benefit from the sole federal sales tax of 5%, which is a big saving from the 13-15% HST in other provinces. Even better, there is no land transfer tax in Alberta which means selling a home is less expensive than in other areas in the country.
High Quality of Living
To know what the future of Calgary real estate looks like, we have to consider the living conditions that will draw in (or repel) consumers. Lots of investments have been made into residential developments, local amenities, entertainment and recreation facilities, and the overall attractiveness of the city in the last decade. Plus, the stunning nature surrounding the city is a great selling point for young families, active couples, and retirees alike.
Growing Metropolis
The higher quality of living paired with new work-from-home conditions have led to the perfect storm for Calgary to start competing with top Canadian cities. With a greater population comes more competition for rentals, leading to a better return on your investment.
Things to Consider
While all of these pros make Calgary an attractive place to pour your money into, there are some key factors to pay attention to:
- You’ll need a property manager or property management company to handle any maintenance issues. If you’re out of province, choosing the right one is crucial – this person has to be trusted and reliable without needing to be micromanaged. For those looking to save the headache, invest in a newer build that will require fewer repairs.
- Location, Location, Location! No matter how beautiful the home is, if it’s not in a growing neighborhood, the rental price will suffer. Find a good local real estate agent that can provide insight into the bustling pockets of Calgary.
- Condo or freehold? Both options have their advantages and disadvantages. Condos will require less maintenance but often garner a lower price point. On the other hand, freehold homes have more maintenance requirements but higher price points.
It’s hard to go wrong investing in the Calgary real estate market right now. If you’re a Canadian or foreign investor that is considering Calgary, check out our website to see what opportunities are available. Truman has an in-depth gallery of beautiful new condos, townhomes, and freehold homes at https://trumanhomes.com/find-your-home/.
