It would be misleading to say that the current downturn in the property market has left Alberta real estate totally unscathed. It is true, however, that the local real estate market is doing surprisingly well under the current circumstances. There are various reasons for this.
To begin with, the economy of the province is based on products with a healthy demand. Edmonton with its oil and gas industry is a good example of this fact. This leads to a strong demand for a trained workforce and a steady growth in the number of job seekers.
The infrastructure in the province is highly developed. There are numerous top end schools and universities. Public amenities such as parks and roads are well maintained. All these facts have led to the province being on the list for many people when they have to choose an area to live and work. As a result the province has seen a strong growth in population over the past twenty years.
This influx of people has ensured a steady growth in the demand for properties. The trend is likely to continue into the foreseeable future. The demand for high end properties has always been strong and the economic recession has created a growing demand for affordable family housing.
Areas such as Edmonton, Calgary, Prairy, Red Deer, Strathcona County and Sturgeon County enjoy a particularly strong demand for housing. This is logical, since these are the main commercial and industrial centres of the area. Grande Prairie in particular has seen a very strong growth in the demand for housing during the past couple of years. In Edmonton there is always a strong demand for affordable homes due to the gas and oil industry in the area.
It is still possible for an investor to buy a property in this province and rent it out for an amount that covers the bond repayment. This is getting increasingly more difficult, however. Your best chance at buying a property offering positive cash flows at this stage is in Edmonton. In most of the other cities you will have to put down a substantial deposit to be able to cover the bond instalments from the monthly rent.
For the streetwise investor the Alberta real estate market has never offered more opportunities than right now. An investor of today can really put to practice the old saying of 'buy low and sell high'. The current market offers investors the perfect opportunity to buy prime properties at affordable prices. Many of these investments will no doubt provide excellent returns in the years to come.
To begin with, the economy of the province is based on products with a healthy demand. Edmonton with its oil and gas industry is a good example of this fact. This leads to a strong demand for a trained workforce and a steady growth in the number of job seekers.
The infrastructure in the province is highly developed. There are numerous top end schools and universities. Public amenities such as parks and roads are well maintained. All these facts have led to the province being on the list for many people when they have to choose an area to live and work. As a result the province has seen a strong growth in population over the past twenty years.
This influx of people has ensured a steady growth in the demand for properties. The trend is likely to continue into the foreseeable future. The demand for high end properties has always been strong and the economic recession has created a growing demand for affordable family housing.
Areas such as Edmonton, Calgary, Prairy, Red Deer, Strathcona County and Sturgeon County enjoy a particularly strong demand for housing. This is logical, since these are the main commercial and industrial centres of the area. Grande Prairie in particular has seen a very strong growth in the demand for housing during the past couple of years. In Edmonton there is always a strong demand for affordable homes due to the gas and oil industry in the area.
It is still possible for an investor to buy a property in this province and rent it out for an amount that covers the bond repayment. This is getting increasingly more difficult, however. Your best chance at buying a property offering positive cash flows at this stage is in Edmonton. In most of the other cities you will have to put down a substantial deposit to be able to cover the bond instalments from the monthly rent.
For the streetwise investor the Alberta real estate market has never offered more opportunities than right now. An investor of today can really put to practice the old saying of 'buy low and sell high'. The current market offers investors the perfect opportunity to buy prime properties at affordable prices. Many of these investments will no doubt provide excellent returns in the years to come.
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