Rumours abound that the City of Edmonton may curtail condo conversions. That would really hurt rental apartment building owners. Prices of all apartments have been pushed up by buyers paying condo conversion prices for standard apartment buildings. Cap rates are as low as 3%. Politicians take heed. Let the free market prevail. We don’t want any unnecessary Government intervention. We don’t want any rent controls. If you tamper with the free market place we will pack up our bags and move to greener pastures. sure times are tough but don’t let a few homeless street people or socialist activists screw up an excellent free market system! Tons of condos are being built and apartment buildings are being converted to condos and guess what…many of them are being bought by investors and are putting them back into the rental pool. The lower priced condo conversions also give the renter a chance to be a proud home owner instead of being priced out of the new condo market.
I’m seeing older 1960’s apartment buildings being converted to Condos by the boatload in Edmonton. Now this is fantastic for the apartment rental market. This will put major upward pressure on apartment rental prices. On the other hand house rental prices are still way too low. $1300 per month for a $350,000 house. This does not make for profitable investing. When will house landlords smarten up! There are are far too many old stock landlords keeping the rental prices depressed. I got a phone call today from a seller with a 4 plex he wants to sell in Old Strathcona and an email from an out of town landlord with a few investment properties he wants to sell in Edmonton. As well a commercial retail deal popped up yesterday. As they say … The deal of a lifetime comes around once a week. I am not a realtor. If I don’t buy any of these deals I will tell you about them at our next Edmonton meeting!!!
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I just got a phone call from a guy looking for a one bedroom suite. I said sorry but I don’t have any one bedrooms left, however I do have a two bedroom available for Jan 1 for $950 He said hey that sounds kinda cheap, I just got off the phone with Boardwalk at Sir William Place and they want $1000 a month for a bachelor suite! NO WONDER BOARDWALK’S STOCK HAS GONE UP FROM $33.95 TO $40.50 IN THE LAST TWO WEEKS!!
The pro’s say Edmontons market is about 18 months behind Calgary. Calgary seems to be taking a breather more-so than Edmonton. There are more white collar higher paying jobs in Calgary. Edmonton has a more blue collar workforce. Therefore there will probably always be more higher priced product in Calgary that will keep their average prices higher than Edmontons. The gap may start narrowing but meet…I dont think so. Prices on single family and my segment multifamily are exploding due to demand. Now that snow is on the ground this is the time to buy as your buying competition slacks off for the winter doldrums…but watch the market take off again next spring. New residents are continuing to flood in!!! Hey come to our next Edmonton meeting and we can open the discussion for more opinions. http://www.realestatepays.com/erpia
It’s been a very interesting month. It was nice to see all that attended the Edmonton Apartment Association annual Trade Show in October. I wish more of our members would attend!!! I had the pleasure of meeting and exchanging ideas with developer Greg Christianson, stock market annalist Angus Watt from National Bank Financial and realtor Terry Paranych. I also spoke with many many long time business trade people.
Well the winter doldrums have finally hit Edmonton. Even the hottest real estate market in Canada is taking a well deserved breather! Who likes moving or even going outside when its below zero!!! The Edmonton Real Estate Board is reporting fewer sales, listings and the average residential price dropped 0.75 percent to $276,641 in October from September. The average price for a single family dwelling on the Edmonton MLS® in October was $326,292, up 1.3% from last month. Condo prices were down 1.6% from September and sold on average for $208,962. Duplexes and rowhouses sold on average for $282,551 (up 1.26%). The all important average days-on-market was still just a paltry 23 days; the same as last month but down from 42 a year ago. Yup she’s still a sellers market as there are still few listings 2555 but the buyers are entering a winter mode slow down. If there was ever a good time to get out and buy something now is the time as your competition is at an all year low! I have purchased many a bargain in the dead of winter!!
On the rental side, using my phone as a benchmark, in August I was getting 100+ calls a day from potential renters from building signage and the internet. The number in November has fallen to about 10-15 or so from the internet, building signage and a classified ad in the Edmonton Journal . Most of the calls are from renters looking for dirt cheap places. Like 1 bdrms under $500 per month or rooms for rent and when I suggest that they require a security deposit equal to rent I get a lot of the “can I pay it over time” song and dance. I have a deluxe large 1 bdrm with a covered balcony in Old Strathcona for $750 and after marketing it for 5 days still no takers. Like I say the winter doldrums have finally hit. Thank heaven for 1 year leases!!! Come to our next meeting to find out if I ever got it rented and for how much!!!
As if I don’t have enough to deal with on a daily basis, ie: Idiots spraying graffiti on my buildings. Homeless bums digging through my garbage bins strewing garbage everywhere and then breaking in and sleeping in my buildings hallways. Drunk numb-nuts kicking down my fences. Crack and meth dealers and buyers doing deals and harassing my 80 year old mother. 2 days ago I got a call from my guy that shovels snow at one of my buildings. He is a U of A student from Lethbridge. He reported to me that someone broke the door off my storage shed and stole my ice pick and snow shovel. He couldn’t believe it and was very scared. He said Edmonton is way more crime prone than Lethbridge. He asked if he should call the police. I had a good laugh and told him he could but they are too busy to do much. He called them anyway and the police told him “what do you expect us to do”??? My cost 2 pinless hinges $40 case hardened latch $12 snow shovel $22 ice pick $35 and a half a days labour $100. Who says crime doesn’t cost. Who pays? Time for another rent increase!! I think I’m going to start a new reality TV show called Tenants and Toilets. Warning do not become a landlord YOU WON’T LIKE IT!!! Video soon to be released. Les
If you are looking to investment in Real Estate… the hottest place to invest now is Alberta Canada of course. The Canadian Dollar is now being called the Petro Dollar. The oil tar sands near Fort McMurray Alberta is one of the few areas of the world where oil reserves and production are exploding.
Province wide real estate is expected to grow by about 10% year over year. In fact, some new home builders have put a limit on sales as they can’t keep up to the demand. Labour shortages are now affecting housing and oil production. Jobless rates are at an all time low! Alberta will attact some 30,000 newcomers from other parts of Canada. How sweet it is!!
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Sure real estate has risen in price like a rocket taking off in some areas
of the continent. Other areas have had a slow methodical rise. Low interest
rates and easy affordability drove the market. Zero / low down and interest
only mortgages brought on another onslaught of buyers eager to push up
prices on low supply of product. Now the developers are catching up as too
many jumping in start to oversupply. Everyoun wants to be a developer! The
pumpers and dumpers are starting to appear. Prices in overheated overpriced
areas deserve to roll back. $600k for a 2 bedroom house or condo is TOO MUCH
for anyone making $25 an hour!! Interest rates have slowly crept up…but
not to 18% like last time. Be sure to watch the inventory numbers and days
on market in your area. Real Estate is a supply and demand commodity. Prices
in overheated areas are starting to self correct so be carefull or you will
get burned. Comments???
http://www.realestatepays.com/ Real Estate Information
http://www.rentexhomes.com/ Post Free Real Estate Rental & for Sale Photo Ads North America
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This evening I attended the Edmonton Raymond Aaron seminar. There were quite a few Edmonton Revenue Property Investor Association members in attendance. He was selling his real estatewiz course for $1997.00 and his Mentor program for $1997.00 plus $97.00 per month for 17 months. As usual he gave a hyped up powerful sales pitch. Aaron is always a dynamic seminar presenter. A fair number of courses were sold indicating his sales pitch worked well.
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