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.”
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Investment Hot Spots:
South Algonquin, Scotch Creek, Sainte-Justine-de-Newton, Weymouth North, Dundurn
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.