And with promises of positive cash-flowing properties and appreciation, it is easy to understand why many want to tap into a market that is flooded with high-paying workers seeking short-term rental solutions. For example, in Weyburn, an investor can buy a two-bedroom condo for $287,175, earn a cap rate of 5.43 per cent based on an average rent of $1,300.
While lucrative, investors should not simply equate the province with its natural resources, says Bill Madder from the Association of Saskatchewan Realtors.
“The jobs market is very positive here with the natural resource market also attracting a huge number of high-tech jobs, such as engineers,” he says. ‘However, when looking at long-term stability, we must also look at the performance of our agricultural sector with our crops enjoying one of its best years during 2013.”
While RBC, in its Provincial Outlook report, believes that the agricultural sector will “drop back down to more sustainable levels in 2014, it will still account for about 2.7 per cent of provincial real GDP.
“More investors are looking at buy-and-hold properties and so looking at more long-term economic factors,” adds Madder. “It is for this reason why Saskatchewan is a good choice for many investors are there is no dependence on one industry.”
This appeared in the July 2014 issue of Canadian Real Estate Wealth
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