Calgary Community Reviews

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Calgary has done much in recent years to counter the perception that it is dependent on the oil and gas industry. The city is becoming a more attractive option for investors and families due to its recent efforts toward diversification. Calgary is well-positioned for the next era of prosperity, thanks to recent gains made in Information Technology. Amazon recently announced it would open a cloud computing center near Calgary, which will attract billions in investment. It follows Mphasis, Infosys and other large tech companies that have established themselves within the city. Additionally, the city plans to expand in areas such as agribusiness, creative industry, and financial services. Natasha Phipps is a prominent local realtor who founded the Phipps Real Estate Group. We talked to her about diversification and what it might mean for Calgary residents and investors. “The diversification of Calgary is something that has been needed for a very long time,”Phipps said. “The benefit of diversifying is firstly, more stability. Real estate has seen the Calgary and Alberta markets as very volatile. The hope is that diversification can bring more consistency to the market.“ Although Calgary is crucial for attracting new industries, there are many benefits that could make Calgary a more attractive choice. Phipps points out the large amount of space available for office and industrial property that Vancouver has struggled to provide. Phipps also highlights the “very attractive workforce”In the city that is ready for the challenge of a shifting economic system “We’re a very young and well-educated city, with an entrepreneurial spirit. That combined with Alberta’s tax advantages makes Calgary a great home for many blooming businesses.” For Canadian’s attracted to Calgary by one of its emerging sectors, there is even better news in the area of affordability. Calgary has some of the lowest home prices of any major city. However, the province also boasts some of the highest household incomes. With all the modern amenities you would expect from major cities, but at much lower prices, Calgary has it all. “Particularly for people buying their first home, they’ve been priced out of other markets. Even if you’re a retiree, you want your money to go further. So Alberta is a very attractive market for that fact alone. You can get into a single-family house here for the price of a two-bedroom condo in other major cities.” In November 2021 the benchmark price of a condo in Vancouver was $752,800. This is significantly more than the price for a Calgary detached house, which was $542,600. Home buyers are not unaware of this disparity: Stats Canada reports that over 33,000 people moved to Alberta from Ontario and BC last year. Speaking on Calgary’s appeal to real estate investors, Phipps said that when it comes to the major economic indicators that investors look for, such as GDP and population growth, employment opportunities and infrastructure improvements, Calgary is checking all the boxes. “And you get a great renter profile here because you’re getting people who have good well-paying jobs and who are looking to get settled in Calgary but are not necessarily in a position to be able to buy. Plus, you can actually obtain positive cash flow here, which is becoming harder and harder to do in the Canadian real estate market.” Phipps claims that Calgary’s suburbs include the following: “sweet spot”Cash flow can be achieved in multiple property types, including detached houses, duplexes and multiplexes. “Another sector that has started to become interesting here again, in my opinion, is pre-sale condos. While pre-sale condos work well in an appreciation market, the Calgary condo market has been flat to negative for the past five to ten year. The tide is turning now. “So we’re starting to see presale condo construction projects make sense again. In these new developments, you can get that passive appreciation over the next four to five years while it’s being built and then have a really nice investment property at the end of that time as well.” Phipps is optimistic about Calgary’s future and expects continued market performance. Get in touch Natasha Phipps at the Phipps Real Estate Group site or join the discussion on Calgary Real Estate Investing’s Facebook page. Source: Canadian Real Estate Magazine