Questions on Glodmine Scorecard and Calgary Market

[rymac]

Hello Everyone.

Just a quick intro, I`ve been thinking about investing in real estate for a couple of years and now that I`m finally out of school and have some income I would like to put that plan into action.

Anyways, onto my questions. I`m looking for some help with the Goldmine score card. All the questions pretaining to area. When looking at investing in a city, what area am I considering? The city as a whole, just the neighborhood or that quadrant of the city?

On that note does anyone have a link to somewhere where I can find neighborhood specific information? Also, does anyone have link to a website showing wage growth for the whole province of AB? I found calgary`s to be 4% but I`m looking for a number to compare that to.

Regarding the Calgary market, is it in spring or summer? From what I`ve found RBC economics showed affordability taking a big hit recently and homes are selling under list but sign`s like population projections are pointing to demand increasing and there is still strong job growth so I`m a little confused as to where we`re at.

To anyone who has been investing in calgary what kind of yeilds have you been finding? I`m looking for a practical yeild I can use when shopping for property in calgary since nothing fits the 9% rule of thumb. Or should i take this as a sign that this isn`t the right time to buy.

Also, has anyone found a positive cash flow bungalow in Calgary recently? A simple Y/N would work since I`m asking this to give me hope that they`re out there or to help me redirect my efforts in a more productive direction.

Thanks,
Ryan

 

[DonCampbell]

Hi RyanCONGRATS on doing the work rather than just jumping in.There are a number of sources etc that you will find helpful. I have answered them in BOLD in your questions below. I`m sure you are finding that some of the info is more difficult to find than others, that`s why we review the fundamentals at each and every REIN Members` Workshop.
Trust this helps out

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I`m looking for some help with the Goldmine score card. All the questions pertaining to area. When looking at investing in a city, what area am I considering?
Take a look at the areas covered by the Calgary Transportation Report, this will provide you with some very strong research. Calgary Transportation Report Link.

On that note does anyone have a link to somewhere where I can find neighborhood specific information? More difficult to find socio-economic numbers for specific neighbourhoods. Stats Canada releases major reports on neighbourhood incomes, migration etc. The city of Calgary also has that type of info (sometimes on-line, sometimes at City Hall.

Also, does anyone have link to a website showing wage growth for the whole province of AB?
One of the best (and easiest sources) is the Alberta Government Finance web-site. Look into their `Budget Information` as they have a lot of detailed economics in that area, often times in a powerpoint type presentation.

From what I`ve found RBC economics showed affordability taking a big hit recently and homes are selling under list but sign`s like population projections are pointing to demand increasing and there is still strong job growth so I`m a little confused as to where we`re at. We are discussing this in great detail at the February REIN Workshop, the Affordability has taken a hit in some regions and types of properties. Following the system would force you to change your target property and region. Don`t get too caught up in OVERALL averages, look a little deeper and you will find the opportunities. It would have been impossible for average incomes in the city to keep pup with the rapid pace of the real estate market demand, over the last few year. That is why you are seeing an increased demand for condos and townhomes.

Also, has anyone found a positive cash flow bungalow in Calgary recently? Y, absolutely. But more in townhomes and condos at the moment

For much more detailed research on the Calgary Market, you will find the REIN Top 10 Towns Reports to be very helpful as it also provides the citations on where we have uncovered the research as well as the Goldmine ScoreCard rating for each city/town. Here`s the Link: Top 10 Alberta Towns Report

 

[Thomas Beyer]

A rising tide lifts all boats .. stick with an area in a growth market like Calgary that is IMPROVING more than the average .. could be dumpy going to less dumpy .. or average to slightly above average or nice going to very nice .. depending on what type of property you envision !

aim for: class C house in class B area (as opposed to class A house in class B or C neighborhood) ! usually you get the most lift !!

Calgary is late summer I`d say .. fall`ish temperatures .. but a long summer with lots of legs ..