[gsunnyg]

If I could buy out a condo with 300k cash and pocket most of the rent I would collect, I would. The cash flow is so lucrative. Most of these investors have deep pockets or individual investors with a lots of equity built up. Rental will always be a great investment. However, I'm just slightly surprised at the relatively strong demand for such investments given the rising rates. Then again, rental prices are surging right now, so this may be incentivizing all this investor demand.

 

[Travisty]

I cant argue with Jonny's statement, and given the last decade or so, there's reason to be cautious on a condo purchase. But there are factors now thats diffrent from the last decade. A significant lack of new condos, Calgary has the highest per capita jobs available in the country. Its Calgary so its cyclical economy, but this seems more sustainable. Ive met about a dozen people this month I have met from Ontario and Ukraine who have recently settled here.

You obviously wont get anywhere close to a return like other metros, but there's reasons to be a bit bullish on the market.

 

[Calgcouver]

All your points are fair, but I am seeing Toronto investors still a little bullish on the Calgary market and rentals are poised for increases in rent and likely prolonged low vacancy. All the while banks are a little more jittery to finance rental construction, I can understand the push for investor focussed condos here.

 

[MichaelS]

Why are banks jittery about financing rental construction?

 

[Calgcouver]

Why are banks jittery about financing rental construction?

Perception of interest rates compressing cap rates, which is true if entering a recession. Low interest rates were the main driver behind rental construction that’s taken place here in recent years. Banks use conservative underwriting practices so they are being cautious

 

[zagox]

There are 39 Calgary projects on that website and only 2 from Edmonton. I don't know how they are selling to outside investors in volume. Aside from rent guarantees, what else is there. Yes owning a condo in Calgary is much cheaper than a comparable condo in Toronto and Vancouver. However, what are the prospects of price appreciation in Calgary? If recent history is any indication ... there are none. Anyone buying a condo in this market 10-15 years ago has not seen any price appreciation and if you really need to sell, be prepared to sell for less that what you paid for it.

That’s not a downside for many people, that is the investment thesis. Toronto and Vancouver have appreciated a lot and are considered overvalued. Calgary has not appreciated so there is more upside for capital gain, as incomes have increased relative to prices.

 

[Mountain Man]

The rental market in Calgary is completely nuts right now, as an investor that would be very enticing!

 

[DougB]

I would view the Calgary market has having less downside than Toronto or Vancouver. Housing everywhere is set to decline substantially due to higher interest rates.

 

[Surrealplaces]

I would view the Calgary market has having less downside than Toronto or Vancouver. Housing everywhere is set to decline substantially due to higher interest rates.

I've heard from people in Toronto and Vancouver that prices are starting to drop, and because the rocketed so high in the first place there's potential for some big drops. Especially in Toronto. Calgary has been an undervalued market for some time, and the economy appears to be turning around. Maybe gains won't be large, but the market here is less likely to take a big drop.

 

[DougB]

I've heard from people in Toronto and Vancouver that prices are starting to drop, and because the rocketed so high in the first place there's potential for some big drops. Especially in Toronto. Calgary has been an undervalued market for some time, and the economy appears to be turning around. Maybe gains won't be large, but the market here is less likely to take a big drop.

True, but even in Calgary, prices will have to fall and rents rise such that investment based on cash flow makes sense. The Toronto and Vancouver haven't made sense in a long time.

 

[MissingMiddle]

Toronto's market is already down. It's at a 25 year low in sales volume, and has dropped 20% year over year in sales values.

Basically brings prices back to Oct 2021 levels, so not exactly a correction yet, but it's getting there.

 

[JonnyCanuck]

Toronto's market is already down. It's at a 25 year low in sales volume, and has dropped 20% year over year in sales values.

Basically brings prices back to Oct 2021 levels, so not exactly a correction yet, but it's getting there.

Up until a few months ago, some buyers were offering 20-25% more than asking price, and that was not necessarily in a bidding war. I would imagine those buyers are feeling pretty stupid now.

 

[ByeByeBaby]

It's getting hard out there down east... From The Beaverton (note: satire website)

Only consolation for homeowners who lost thousands from housing market cooling is the millions they’ve already made​

OTTAWA – An Ottawa family is packing up their belongings and moving to what they hope will be their “forever home,” but they’ll be bringing a slightly smaller pile of cash with them from the sale of their old home.
“It’s tough. It’s really tough,” said Martin Sheed. “Two months ago we could have sold our home for 1.6 million. But today we only got 1.4 million dollars for a home we bought 15 years ago for 350k.”
“The fact that we won’t have to pay a single dollar in tax on our million dollar profit helps ease the pain a bit I guess.”

This is remarkably close to and I assume inspired by an actual, real CBC report (note: not a satire website) that profiled a struggling couple who only made $390,000 on their home sale when they had previously hoped to make $540,000.

 

[CalgaryTiger]

In reference to the conversation on the WestUrban 37th Thread about 37th St being a priority for a main street redo: https://calgary.skyrisecities.com/f...n-faas-architecture.32979/page-3#post-1800193

I looked up the city's priorities for Main Streets... Biggest takeaway for me was seeing Macleod Trail not being a priority. Isn't that the south's 'Main Street'? Not to mention that its a massive project, stretching 11 Kilometers from Willow Park Drive to the Bow River. You'd think you would want to get started on at least the portion from Glenmore to 17th Ave? A proper 'Main Street' could really draw some development to that corridor to really give it some life. The other parts, I agree with the city are not that important.

Build Phase:
17 Avenue S.W. (Segment 1 - 37 Street S.W. to Crowchild Trail)
37 Street S.W.
Montgomery (Segment 1 - Bowness Road N.W. )
Bridgeland (Phase 1 - Edmonton Trail)

Design:
33 and 34 Avenues S.W.

Plan:
Bowness Road N.W.
Inglewood (9 Avenue S.E.)
Montgomery (16 Avenue N.W.)
Centre Street N. (River to 16 Avenue - part of Green Line)

Strategize (Priority):
4 Street N.W.
Kensington Road N.W. (Segment 2 - Crowchild Trail to 14 Street)
Centre Street N.E. (Segment 2 & 3 - 16 Avenue to north of 32 Avenue)
Edmonton Trail N.E. (Segments 1 to 3 - River to north of 32 Avenue)
36 Street N.E.
10 Avenue S.W.
14 Street (Segment 1 - River to 17 Avenue)

Strategize (Non-Priority):
10 Street N.W.
14 Street N.W. (Segment 2 - River to 8 Avenue)
16 Avenue N.W (Segment 2 - 16 Avenue to Centre St.)
Edmonton Trail N.E.
36 Street N.E.
Macleod Trail
Richmond Road S.W.
4 Street S.W.
14 Street S.W. (Segment 2 - 17 to 33 Avenues)
17 Avenue S.W. (Segment 2 - 14 Street to Crowchild Trail)
17 Avenue S. (Segment 3 - 14 Street S.W. to Macleod Trail S.E.)

Flew under my radar, even living close to 34th, but the city has updated the 33rd ave mainstreet page with this:

'June 2022 the City will install seven low-cost, curb extensions along the 34 Avenue S.W. corridor between 15 and 19 Streets S.W.

The curb extensions will improve crosswalk safety by providing a protected space for pedestrians and greater visibility for drivers to see pedestrians as they prepare to cross the street. They complement the wheelchair ramps which were installed in late 2021 and support our project goal of prioritizing the pedestrian via a safe and accessible public realm.

From June 9-13, crews will begin prep work, and the curbs will be installed between June 13-16'

Anyone notice these curd extensions? Currently the Design phase breaks down like this:

2021 – early 2022 -ish...
Community engagement on 34 Avenue cycle amenities -Did I miss this happening?
Pedestrian safety: Temporary improvement measures -Curb extensions mentioned above
Detailed design of 33 Avenue -Be curious to see this.
Design of 34 Avenue cycle amenities options -Likely resulting from the community engagement I missed or hasn't happened yet.

 

[Surrealplaces]

I haven't seen any construction on the curbs yet...maybe they are still doing prep work? I'm so thankful that in the engagement process option 1 was the least favored. It would be a complete waste of time and money.

Option 1: For cyclists, it's even more unsafe than it is now IMO.

Option 2 Same setup as most of the existing cycle tracks

Option 3 From a cyclist point of view this would be my preference.

One of the most exciting parts of the 34th ave upgrade, from the FAQ:

34 Avenue has a lot of overhead power lines. Will these lines be buried as part of implementation of the cycle infrastructure?
We have engaged ENMAX to bury the overhead lines on the north side of 34th Avenue as part of the Main Street project. It's our plan to coordinate activities to ensure power lines and infrastructure upgrades are constructed concurrently to minimize disruptions.