Calgary\u2019s real estate market, like the city\u2019s economy, is reeling, but there are opportunities for investors provided they look in the right places.<\/p>\n
\u201cSince COVID, and even before here in Calgary, there was a real push out to the suburbs because people weren\u2019t as interested in living downtown,\u201d said Natasha Phipps, a sales agent and investment specialist with CIR Realty. \u201cEveryone\u2019s moving to the suburbs, and even the smaller communities around the city, so it\u2019s making the downtown vacancy issue worse.\u201d<\/p>\n
However, communities on the city\u2019s periphery\u2014like Walden and Seton in Calgary\u2019s southeast quadrant; Cornerstone, Redstone, and Savanna in the northeast quadrant; and even the master-planned Sirocco at Pine Creek community\u2014offer stable investment opportunities with healthy rental demand.<\/p>\n
\u201cCalgary\u2019s suburbs offer the best cash flow in suited properties, like duplexes and fourplexes,\u201d said Phipps. \u201cThere\u2019s not a lot of density in the suburbs, and historically speaking, those property types are the best for cash flow.\u201d<\/p>\n
In particular, added Phipps, multi-residential properties that are either renovated or newly built unsurprisingly appeal most to renters, although townhomes aren\u2019t optimal on their own if cash flow is the goal. Moreover, landlords with at least five doors can secure commercial financing.<\/p>\n
\u201cFor row houses, if we\u2019re talking about duplexes and fourplexes, that\u2019s where investors here in Calgary are looking. If you\u2019re looking at townhouses, the numbers aren\u2019t as great because there\u2019s no secondary source of income, like in a basement suite. Investors interested in multifamily likely want to use commercial financing, which means they need something with five or more doors, which is also possible in suburban Calgary.\u201d<\/p>\n
Investors can package their units into five-plus doors with suited properties that are attached, or even in a condominium building. For either of these strategies, Phipps advises looking to the suburbs, unless the intention is only to buy low.<\/p>\n
The city\u2019s core is oversupplied with condos that aren\u2019t carrying well. A major reason is that a few developers recently scrapped plans to develop condominiums in favour of purpose-built rental buildings.<\/p>\n
\u201cThe core\u2019s vacancy is rising because of oversupply, therefore, rents are dropping and developers are providing crazy incentives, as well, to attract people to the downtown,\u201d said Phipps. \u201cBut in the suburbs, rental pricing has been stable over the last couple of years, even seeing some increases, and the vacancy rate is 3-4%, which is healthy.\u201d<\/p>\n
According to Croft Axsen, owner of Dominion Lending Centres Jencor Mortgage Corporation, Calgary is receiving a lot of attention from out-of-province investors looking to capitalize on the city\u2019s comparatively affordable stock of housing.<\/p>\n
\u201cThey\u2019re trying to buy small multifamily properties, or duplexes, or five or six townhouses and turn them into rentals,\u201d he said. \u201cPeople who are still working have good incomes, so the rents are pretty good relative to purchase price.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Calgary\u2019s real estate market, like the city\u2019s economy, is reeling, but there are opportunities for investors provided they look in the right places. \u201cSince COVID, and even before here in Calgary, there was a real push out to the suburbs because people weren\u2019t as interested in living downtown,\u201d said Natasha Phipps, a sales agent and […]<\/p>\n","protected":false},"author":6,"featured_media":23172,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8969"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8969"}],"version-history":[{"count":1,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8969\/revisions"}],"predecessor-version":[{"id":23171,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8969\/revisions\/23171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/23172"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}