Phil Wazonek of Distinctive Realty Services, says: “The rising prices will result in general investors having to come up with larger down-payments, thus increasing the risk/exposure to their money and making it more difficult to buy.”
A study by the Real Estate Investment Network ranked Calgary and Edmonton as the top residential real estate markets
, based on economic risk, potential growth in yields, investors’ insights, political climate and accessibility.
Edmonton was also shown to be a confident market, with the number of $1 million homes selling reaching new heights
But Wazonek warns that the inevitable investor costs of repairs, maintenance and management are all going up.
He adds: “Even if an investor keeps his duplex full at the end of the day, he could be making less money because it is costing more to own it -- rising taxes and utilities all make the bottom line hurt. Personally, I am very cautious.”
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
Investment Hot Spots:
Innisfree, Sweets Corner, Saint-Valère, Rocky Rapids, Crescent Valley
While Calgary and Edmonton have been hyped as Canada’s hottest residential property markets in recent weeks, some are warning that this is a dangerous trend for investors.