Is the hyped Alberta market a dangerous trend for investors?

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.

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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COMMENTS

  • by Wilf 2014-11-17 3:54:55 PM

    Why is Phil Wazonek of Distinctive Realty Services, a realtor from Winnipeg, considered and expert in Alberta rental properties? Maybe he is just not happy that Winnipeg wasn't named the winner of best investment cities.

  • by Jennifer 2014-11-17 4:04:47 PM

    Phil is actually based in Calgary, not Winnipeg. But CREW is always happy to have more contacts across Canada, so please do let us know what part of the country you're based in and feel free to get in touch to comment on any real estate news, trends and challenges.

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