If you have the money to invest in real estate, Alberta is a promising place. As Canada’s only province that is debt free (and indeed, one of a very few jurisdictions that are free of debt in the world), Alberta is one of the most economically vibrant areas in North America. With burgeoning enterprises in the areas of tourism, information, agriculture and the petrochemical industry, Alberta features an economy that is poised to stay strong through different cycles. Behind Saudi Arabia, Canada ranks second in proven reserves of oil, and the vast majority of those reserves are sitting below Alberta. (Source Link: http://www.albertaonfire.com/list_properties_office.php?listing=sold)
Investment Property Opportunities in Alberta
The provincial government in Alberta has a taxation and regulatory structure that is one of the most amenable to business throughout all of North America. The philosophy of the regulatory agenda is to simply let the markets drive matters. Some of the other provinces in Canada have rent controls that are designed to keep finding a home affordable but end up harming development opportunities for real estate investors. Having limits on rent sounds nice as a social policy but it ends up sending investors elsewhere. The market in Alberta is allowed to follow more natural cycles, which in their ebb and flow end up providing a more useful correction than artificial government controls.
Alberta has one of the youngest populations in all of North America. Young people moving into the area have brought the median age down. The fact that people make more money, on average, than in other parts of Canada while housing costs are staying lower means that housing in Alberta is more affordable than in many other parts of North America. The collapse of 2008 to 2010 was shorter lived in Alberta than in other parts of North America, in part because of the boom that the oil and gas industry was able to bring to the area.
Current estimates indicate that construction starts in Alberta in 2015 will be significantly higher than the 2008 level, which will continue the trend of increasing the gross domestic product in Alberta to new heights. Here are some of the properties in Alberta that have recently made it through the market. Many similar properties remain available for investors, whether you are looking for a second home for yourself or a rental property. If you are looking to invest as a private mortgage lender, Amansad Financial Services can connect you with borrowers who have already identified properties that they would like to purchase.
726 Saddleback Road (Edmonton) This two story townhouse was build in 1979 and only stayed on the market for 30 days before being sold for $229,900. The anticipated rent on the townhouse, based on comparable properties in the area, is $1,825 per month. It has three bedrooms and two and a half bathrooms in 1,163 square feet, and the floors are carpet and linoleum. The interior appliances are all standard, and there is stall parking. Given the age of the property and the fact that it is located in Blue Quill, this is a promising sign about the possibilities out there for investors.
68 Goldeye Street (Edmonton) This is a two story detached single family home that recently sold for $335,000 after only 27 days on the market. Only slightly larger than the condo listed above, at 1,245 square feet, this home has four bedrooms and one and a half bathrooms. Floors are ceramic tile, carpet and hardwood, and anticipated rent could top $2,000 per month. Located near public parks, a public swimming pool and golf courses, this is an attractive property for a young family to rent or to buy through a private lending source.
590 Tamarack Road (Edmonton) listed initially at $429,900 and sold at $425,000. This property has four bedrooms and three full baths, along with a fully finished basement. The floors feature a combination of linoleum, carpet and hardwoods. While the floor space is relatively small, at 1,142 square feet, the bi level layout and the large lot (3,607 square feet) make this a compelling property.
There are many other properties throughout Alberta that are still on the market that remain solid opportunities for investors, either as a landlord or as a mortgage lender. Contact one of the investment professionals at Amansad Financial Services in order to find the right property for your own portfolio needs.