3 Reasons Why Now Is a Good Time to Invest In a Calgary Condo
Have you ever thought of owning real estate as part of your diversified long term investment portfolio?
Real estate investment is a great way to supplement your lifestyle as the years pass by, especially in older age where you may not want to work as hard as you did when you were young. Also see these 5 Tips for First-Time Calgary Real Estate Investors.
Current residential market conditions in Calgary have created a good atmosphere for real estate investments, especially for condos in and around the city.
If you can afford to, now may very well be a good time to make a real estate investment into a condo in Calgary. Here’s why:
#1 – Selection of properties
Inventory levels in all sectors, especially for the apartment type, are currently higher than long-term averages. Condominium inventory levels are hovering in at around 5 to 6 months, which means that as a real estate investor you have a lot more options to choose from.
When picking a condo as an investment property, you’ll want to look for some traits that make it an appealing place for people to rent. Those include:
- A multiple-bedroom floor plan to house more renters
- A multiple-bedroom floor plan with more than one bathroom
- A floor plan with bedrooms that don’t share a common wall
- A suite on a floor with views that won’t be obstructed by future developments
- A floor plan that has both bedrooms with their own deck
- A walkable location close to services, entertainment and other amenities
Want more investment-savvy tips? See How to Find a Profitable Investment Property in Calgary.
#2 – Selection of prices
Coming with a larger selection of condos are better prices. It usually goes this way with residential sectors; when inventory levels go up usually because of lower demand (consider Alberta’s economy in recent years), benchmark prices are driven down because people need to sell and are willing to lower the listing price to do so.
For example, in February of 2017 the apartment benchmark price dropped to $269,200, a 0.26 percent decrease month-to-month and over 5 percent lower year-over-year. Nearly a year ago, in May of 2016, the apartment benchmark was sitting at $278,500 which was a month-to-month decline of 0.7 percent and a year-over-year decline of 5.6 percent. See our complete list of Calgary Real Estate Market Updates for more statistics.
Over the past year benchmark declines have reduced from near a full point (0.7) to a much smaller fraction (0.26) every month. Hopefully with some positive economic indicators as of late this will turn around and start to increase instead.
No one knows exactly how long condo benchmark prices will decline. Regardless, current market conditions make it much more affordable for a real estate investor to buy a condominium today than it was just a year ago.
#3 – Economic indicators
Many economists predict that the end of 2017 and throughout 2018 Alberta’s economy will begin to make gains instead of losses. Even now it’s finally showing some signs of stability.
You don’t have to look any further than the Calgary Real Estate Board’s (CREB®) monthly housing report, or ATB Financials The Owl for news on certain economic indicators like housing starts, for example, that suggest an economic turn around could be imminent. Also see Growth Predicted for Alberta’s Economy in 2017.
Historically, real estate has been a good long term investment. Is it time for you to begin?
- Also see this article on Condo Investments in Canada
Questions about Calgary Real Estate Investments?
As a top-producing REMAX agent (2013, 2014, 2015h) and REALTOR® with over a decade of experience, I promise to help you find the best investment property for your goals and help you every step of the way.
Call me anytime at 403-370-4180 or message me below for a prompt response. I am looking forward to helping you accomplish your real estate plans!