Is Investing in Rental Property in Calgary a Wise Move Amidst Market Volatility?

The rental market in Calgary has always been volatile, which can be both a challenge and an opportunity for potential landlords. As a Google SEO professional, here's how navigating the market during these times can benefit your investment strategy.

Timing is Everything: Buying During Volatile Times

When renting becomes a gamble, some landlords find it difficult to manage and opt to sell their properties. This phenomenon presents a strategic buying opportunity. In such instances, you can seize the chance to purchase properties that might be overvalued due to the uncertainty. For instance, during periods when the rental market is struggling, properties may be sold at attractive rates.

Start Gradually with a House with a Suite LEGAL

A tried and tested method for beginning your investment journey in Calgary is to buy a house with a suite that is legally permitted. This approach serves two purposes:

Safeguard Against Rental Risks: Operating with a single tenant can provide safer and more predictable income, allowing you to learn the ropes of being a landlord without significant financial strain. Monthly Cash Flow: The suite can generate additional cash flow while the house is paid off, reducing the financial burden.

Furthermore, familiarize yourself with the Residential Tenancies Act to ensure you navigate any legal and regulatory issues smoothly.

Strategic Considerations for Investment Property in Calgary

Investing in rental property in Calgary can be a bit tricky, depending on the return you anticipate. However, with careful planning and attention to detail, it can be a rewarding endeavor. To make an informed decision, consider the following:

Define Your Goals and Timeline

Before diving into the investment, ask yourself the following questions:

What Are Your Investment Goals? Are you seeking long-term appreciation, rental income, or a hybrid of both? What is Your Exit Strategy? How and when would you like to exit the investment? What Type of Real Estate Are You Considering? Residential or commercial property?

Taking the time to answer these questions will help you align your investment with your overall financial objectives.

Current Market Dynamics in Calgary

According to some economists, Calgary is beginning to emerge from a recessionary period, but growth is projected to be slow. GDP growth is recovering, but unemployment rates remain high, and vacancy rates are also increased. There is an oversupply of downtown condominiums, and more inventory is expected to come online in the next year or so. The current council is split on the legality of secondary suites and is generally not “landlord friendly.”

Provincial and Federal Economic Factors

Additionally, the province has experienced two years of net out-migration, and both provincial and federal government policies are not favorable for economic growth or development at the present time. However, there are signs of economic growth that are expected to support in-house migration, employment, and GDP growth over the next two to three years.

Given these factors, residential property in Calgary appears to be a more favorable investment than commercial property at this time. However, it would be unwise to consider downtown condominiums in the foreseeable future.

Personal Insight

Based on these insights, I believe that residential properties are a better investment in Calgary at this moment. For now, any property we would consider purchasing would need to have exceptional potential or align closely with our criteria. As the market continues to evolve, it's important to stay informed and make decisions based on the latest data and trends.

For more detailed guidance, contact realtor Santosh Rana.