Will ctrain help condo price at all?

[Millions]

I have a condo in Killarney. 1915 26 st sw. It`s taken a hit obviously in rent and price. However the ctrain is being built 3 blocks away at 26 st and bow trail. Done in 2 years I think.

Will this cause a significant rise in price and rent. Or would that have happened already?

Matt

 

[dwoychuk]

QUOTE (Millions @ Apr 25 2010, 05:41 PM) I have a condo in Killarney. 1915 26 st sw. It`s taken a hit obviously in rent and price. However the ctrain is being built 3 blocks away at 26 st and bow trail. Done in 2 years I think.

Will this cause a significant rise in price and rent. Or would that have happened already?

Matt


I seem to recall Don saying that with this type of development, you usually wont see the rise in value/rent for about a year after the station is open (when everyone starts jumping on the band wagon). I think the real gains are the long term returns in higher rents and appreciation.

Regards,

 

[gwasser]

QUOTE (dwoychuk @ Apr 26 2010, 04:59 PM) I seem to recall Don saying that with this type of development, you usually wont see the rise in value/rent for about a year after the station is open (when everyone starts jumping on the band wagon). I think the real gains are the long term returns in higher rents and appreciation.

Regards,

I disagree. Prices in Killarney for two bedroom apartments are pretty steep right now considering the rent they are commanding. Every seller mentions the nearby future LRT in their listing and barely budge in price when a purchase offer is made. I also noticed that many apartments are in a neglected state of maintenance while, as said, the asking prices remains high. Also, ask yourself how much the 2 year construction will cost you in cash flow ?

 

[RedlineBrett]

Condos don`t make sense as income properties in Calgary. Some new investors like them as they are easy to manage and are less risk but the cash flow just isn`t there.

The C-train will certainly help, but like the above poster says the train will have to be up and running for you to see any real benefit. Condo buyers and tenants do business for the here and now - they aren`t looking too far down the road when they make their housing decisions.

There are also LOTS of huge condo buildings that are set to be releasing units in the next few years. Some this fall, others still have to build... so if you are holding condos you won`t see a dramatic improvement in the market over the next 3-4 yrs or so. This will be the flattest segment in the Calgary market over the short to medium term.

 

[DaveRhydderch]

I agree with Brett here. The condo market has been flooded and there`s still more coming. The drop some of my clients have experienced in rents has been significant.

With the C-Train, you`ll see a slightly higher return comparable to the market segment. For example, if condo values increase 3% per year, you`ll probably see yours increase maybe 4.5%. Your rents will go up a bit as well. Though the flood of condos onto the market will keep prices and rents surpressed for a while still.