Boom-bust musts

Alberta is finally on its way out of the worst recession it has seen in three decades. The economic buds are starting to show, and though we aren’t in full swing yet, the change in the air is unmistakable. The province is poised to lead the country in growth for 2017 – GDP is expected to grow by more than 2%. On the back of this optimism, we are seeing quickly filled vacancies, multiple offers and the avoidance by locals of the trucking routes between Fort Mac and Nisku – all good signs for investors considering venturing into Wild Rose Country.

But should everyone be stampeding in to catch the next boom? No – Alberta is not for the faint of heart. Our real estate cycle goes up and down faster than most areas, resulting in exhilarating booms and nauseating busts. It is a market for dispassionate investors – a commitment to numbers rather than headlines is a must – who have a long-term view of the wealth they hope to generate.

Assuming you belong to the breed of iron-stomached warriors who have been able to succeed in the Alberta market, welcome to the land of opportunity. In 2017, buyers still have a great choice of product, as well as the option to negotiate prices and terms. A situation like this doesn’t happen often and is a great opportunity.

Preparing for battle
Being a resource-based economy, Alberta is at the mercy of international markets. As we have seen, a drop in oil prices can have a devastating effect on the province’s real estate market. But investors don’t need to sit back and watch their returns evaporate. Here are three simple principles that can help mitigate the effects of unforeseen economic downturns.

1. Buy one notch above the ‘typical’ investment property in the area. Yes, Alberta has been hurting in recent years, but the overall prosperity of the last three decades has created a demographic of highly paid people who, despite the temporary hardships of late, are still very used to a high standard of living. Renters or owners are not suddenly going to settle for less. In our portfolio, the properties that are one step above the rest are the ones that stay rented and re-rent quickly – and they don’t cost much more than what everyone else is buying.

2. Look for low maintenance. This is especially key for out-of-town investors, but even for locals, this can make or break an investment. The number-one reason why a tenant will leave isn’t lower rent – it’s because maintenance is not being done. In a downturn, when options are abundant, tenants will leave if they don’t feel their needs are a priority. Properties don’t need to be brand-new, but a newer place helps keep tenants happy and insulates an investor from having to dole out cash in tough times. Keeping properties well maintained is integral to long-term investing.

3. Keep on top of your property manager. Keeping your tenants when the market is down and vacancy is rising means keeping them happy. Choosing the right property manager is critical; keeping them on their game is even more so.

We believe in hiring people who are better than you to do the things you are not good at and deferring to their expertise in many instances. But no matter how much responsibility you hand over to your property manager, this is still your business, and you must manage it. This means you call the shots on when and how you get paid and what happens in the event of a vacancy. (Did you know some management companies will actually charge you more for a vacant unit than for a full one?) When and where your property manager advertises, when and how tenants contact them, and how they deal with maintenance issues are ultimately your decision.

(Another little-known fact: Some property management companies actually do ‘inspections’ of clients’ properties when facing tight cash flow. They then generate a list of maintenance requirements that you pay for, along with their surcharge for ‘arranging’ the maintenance. It’s an excellent stream of income for them.)

Get regular reports, and ask your property managers for an explanation on any issue that doesn’t make sense. Test them as if you are a tenant – see if your unit is listed on websites, call and find out if your property manager is answering his phone, etc. Stay on top of your managers. They may be the ‘experts,’ but you are the client, and if they drop the ball, they will cost you your tenants. In a slow market, this is unacceptable.

A volatile market like Alberta requires investors to be a bit braver, a little savvier and a lot more patient in order to take advantage of the vast number of opportunities on offer. But it takes a proactive, aggressive approach as well. Investors here must be willing to take a few extra steps to insulate themselves from the downturns we’re so often exposed to. A well equipped and well managed property will weather a bust. Just imagine what it will do during a boom.


Corey and Tiffany Young are the founders of InvestorOnFire. To find out more about their strategies and view pre-analyzed properties across Canada, visit investoronfire.com.
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

  • by george003 2017-10-25 5:48:31 PM

    Buy IELTS, IDP TOEFL, GMAT, ESOL, DEGREE, DIPLOMAT (george003documentsltd@gmail.com)
    Buy Registered Passports,Drivers license,IELTS & TOEFL, ESOL Certificates Without Attending The Exam
    BUY PASSPORTS,DRIVERS LICENSES,ID CARDS,BIRTH CERTIFICATES,VISAS,SSN,MARRIAGE CERTIFICATES,DIVORCE PAPERS,US GREEN CARD
    BUY PASSPORTS,DRIVERS LICENSES,ID CARDS,BIRTH CERTIFICATES,VISAS,SSN,MARRIAGE CERTIFICATES,DIVORCE PAPERS,US GREEN CARD

    Buy IELTS, IDP TOEFL, GMAT, ESOL, DEGREE, DIPLOMAS
    We deal and specialize in helping you to get registered TOEFL, IELTS, IDP, ESOL, GMAT CELTA/DELTA, DEGREE, DIPLOMAS & other English Language Certificates. We produce TOEFL & IELTS, ESOL, and CELTA/DELTA, DEGREE, DIPLOMAS English Language for you with ease.


    email.....george003documentsltd@gmail.com
    whatsapp......+447418330085

    BUY FAKE REAL PASSPORT DRIVING LICENSE ID CARD VISA SSN ...george003documentsltd@gmail.com

    We have years of experience producing original quality real/false passports, ID's, drivers licenses and many other identity documents, really cheap for countries such as ; Switzerland, United Kingdom, United States, Spain, Sweden, Australia, Austria, Canada, Chile, Denmark, Ecuador, Finland, France, Germany, Israel, New Zealand, South Africa, e.t.c.
    Passports with chip for the following countries are also available for : Australia, Austria, Finland, Germany, Malaysia, Netherlands, Sweden, Switzerland, Thailand, United Kingdom, United States, e.t.c.
    We can also produce documents such as work permit, for UK, USA, Italy just to name a few.
    You can contact us directly to get the additional information and place the order through the bellow address..

    email.....george003documentsltd@gmail.com
    whatsapp......+447418330085

    Registered and unregistered passport of all countries.visas,biometric passport, degrees,drivers license,I.D cards.Training certificates M GCSE, A-levels, High School Diploma Certificates ,GMAT, MCAT, and LSAT Examination Certificates , Novelty Birth, Marriage, and Death Certificates , Novelty Passports and New Identity Packages , Replicated, False Degrees/Diplomas from most post-secondary institutions from around the world (we have over 3000 templates on file) all designed to look 100% identical to the original.Custom Printing (if we do not already have the template on file - simply email us a copy and we can make any alterations/modifications as per your directions).second, citizenship, identity, identification, documents, diplomatic,nationality, how to, where to, get, obtain, buy, purchase, make,build, a, passport, i.d,British, Honduras, UK, USA, us, u.s.,Canada, Canadian, foreign, visa, Swiss, card, ids, document, getting,visas, cards, foreign.



    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Australia

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Austria

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of USA

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of UK

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Canada

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Germany

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Italy

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of France

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Finland

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Norway

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Denmark

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Sweden

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Ireland

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of China

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Romania

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Hungary

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Bulgaria

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Belgium

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Switzerland

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Spain

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Brazil

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Russian Federation

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Mexico

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Greece

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Portugal

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Estonia

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Latvia

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Malta

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Iceland

    Purchase High Quality Original and Fake Passports, Driver's License and Ids of Greenland
    for more info
    email.....george003documentsltd@gmail.com
    whatsapp......+447418330085

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?