Very few places left in Canada where real estate prices have not gone CRAZY, it is getting impossible to buy homes in cities like Toronto and Vancouver or anywhere even around these cities. It has become extremely expensive.
So, is there any place left in Canada to buy homes at low prices either to live or invest? Calgary name keep showing everywhere.
All of sudden, I hear a lot of buzz about the Calgary real estate market, Every time I open my Instagram I see this realtor reels about CALGARY real estate. Just remember, you should be very careful before taking advice from Realtors because they have direct conflict of interest, they will make commission from the sale, their interest is to sell real estate. I am not saying they always give bad advice, I am just saying don’t take their word for it, do your own analysis as well.
If you want to move to Calgary and buy cheaper house to live
In this case, you shouldn’t worry about anything, just move there and buy and live your life without worrying too much.
INVEST IN CALGARY WHILE LIVING IN OTHER CITIES
Family Friend who left Calgary
First thing I want to tell you is that one of my family friends left Calgary because it’s real estate is not growing at all. He was there for over 5 years and he sold the house for almost the same price making no appreciation.
Then he moved to SURREY, BC and bought a house which appreciated by 50% just within the last 2 years making him close to $1 Million.
I am not sharing this to demotivate you, I am sharing this as a fact of what I know for sure, so you don’t invest there thinking that you will double your money all of sudden.
There is one core difference between Toronto\Vancouver and Calgary. Toronto\Vancouver are mainly LIBERAL provinces and CALGARY, AB is mainly CONSERVATIVE.
Liberals are very immigration friendly but things are totally different with Conservative party, so that may be the reason prices are still low compared to other parts of Canada.
Same thing in US, Real estate in all the REPUBLIC states is much cheaper.
It’s for long time, Alberta is CONSERVATIVE with 60% people voting for them and it will not change anytime soon. So, I don’t see lot of immigration movement anytime soon and prices won’t rise the same way as Toronto.
ALBERTA WAS KNOWN FOR IT’S OIL
Alberta was one of the richest provinces because of its OIL. Since 2014, Oil mining in Alberta has been in a downturn. People are losing jobs in oil mining and not new people moving there either. I believe Alberta is trying to revive itself through Real Estate but I am not sure there are enough people moving there to create such demand yet.
MANAGING PROPERTY FROM LONG DISTANCE
They may lure you with small management fee for now, but don’t forget these things –
· They will charge you one month rent every time it’s rented
· They may charge you every time they have to visit the property
· Who is going to fix things, that will be extra
· Who is going to clean and paint the house once it goes empty, ready to expect thousands $$ bills for that.
I am sure no one is investing there for rental income, mostly people are investing to see similar growth like Toronto and Vancouver which is very unlikely. So, what will happen if real estate is not growing as much?
First, your money is stuck in real estate which is not growing at all.
Second, it may be costing you extra from your pocket with negative cash flow
Third, it will cost you to sell the place, Realtors want their commission, no matter what..
So, what is your backup plan?
WOULD I INVEST IN CALGARY WHILE LIVING IN MONTREAL?
I don’t invest for Appreciation, I like Positive cash flow and average appreciation over time. So, personally I like Calgary in that sense. But why would I invest there which will cost me to manage and I can’t travel there to do anything.
Instead, I will find anything within driving distance of Montreal, Maybe it’s 2-3 hrs drive, or even 5 hrs drive, at least I can go there whenever necessary to control my investment. I would never run after other people and invest in Calgary.
Don’t follow the crowd, find your own investment location.