Questions about Property Goldmine Scorecard

Villamaria

New Forum Member
Registered
Dec 29, 2018
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#1
Hello,

i was wondering if anyone here used the scorecard and is comfortable explaining some subtleties. For example, increase in labor means increase in supply or demand? or what is meant by "area growing" faster than the provincial average. Also i'm looking for resources of where to find some of these stats.

Would really appreciate some guidance !
 

Matt Crowley

Senior Forum Member
Registered
Dec 14, 2013
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Calgary
#3
Increase in labour is tracked by increase in labour force...so an increase in demand-side. Supply-side can be proxied by unemployment rate, participation rate.

The story behind the numbers is just as important. For example, labour force is growing in Calgary but the quality of jobs is much lower and we haven't been able to replace the high-paying oil and gas jobs. AY reports <25% downtown vacancy but if you talk with downtown leasing brokers they say true number is closer to 40%. Looking at the headlines on any leasing broker report looks like office is improving in Calgary but it is still a bloodbath with negative NERs (meaning that after you pay leasing commissions and tenant improvements you end up with less cash when you consider the future contracted rent than when you start out).

Score card is a very good guiding tool. But the areas it falls short:
- price to rent ratios? Price vs income ratios? Benchmark this city vs province vs Canada
- cap rates here vs. other areas?
- what is the price you pay for risk here vs. somewhere else? ie. are you overpaying / underpaying / paying market rates for future cash?
 

Villamaria

New Forum Member
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Dec 29, 2018
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#4
Thanks for your thorough answer Matt. Can i ask how you became good at understanding & manipulating these stats and concepts?
Where would you advise me to start if i want to become an expert in understanding the economy and how it relates to real estate

Thanks again
Carl