Agreed. Perhaps prices will climb a bit within the next 2 years, but I wouldn't count on it. Hope for the best, but prepare for the worst.

Greetings. If the buyer has 20% down (so a conventional mortgage) buying higher than appraised value is still a problem because banks will only finance up to 80% of the appraised value. So the difference would then need to come out of the buyer's pocket. For example, if the property...

I would not be doing a tenant-first RTO in Alberta at this time, especially in certain markets that are likely to stay flat or decrease in value. There are a couple of markets with low inventory that could do well, but there is also additional risk with smaller centers. Tenant-first only works...

The sales tax is likely provincial or harmonized sales tax (not sure where you are). Service charges are normally clearly stated, but if they are included in the premium, and the premium is acceptable, then that shouldn't be an issue. Your broker should be able to clarify for you.

You can sell on Agreement for Sale with no money down. Barry McGuire (and company) are teaching an all-day workshop on AFS in Calgary on June 18th. You may want to consider attending. While I have bought several properties on AFS with zero down, I would NEVER sell to a tenant with less than...

First and foremost, are you interested in selling? Don't sell a quality cashflowing asset simply because a tenant wants to buy it. Only sell if you think your capital could be put to better use elsewhere. If you proceed with the RTO: If you aren't sure how to analyze their financial/credit...

I have never had interest charged, but there is normally a service charge, the size of which is decided by the company. With my previous broker & insurer, the fee was 5% of the total premium. With my current companies, the fee is so small it makes more sense to go with monthly payments.

Alberta law states neither the landlord nor the tenant must give notice to end a fixed term tenancy. Notice is a courtesy only. So if your lease ended June 1st, they were perfectly within their rights to move. While your lease stipulates notice is required, the Act states it is not required...

I have a 1485 sf house built in 1978 under AFS contract in Sherwood Park, and I'm debating whether to assign it. $5k down (plus assignment fee) and taking over payments on a 4 year term. Would cashflow as an RTO, but tricky as a rental. Closing July 7th. Can begin marketing and showing now...

Depends on the type of property, but even then it's difficult to calculate and average. Tenants in single family homes or side by side duplexes tend to stay longer. Tenants in suited houses tend to stay for shorter periods. I'd say 2 years is the average for up/downs. Some stay for only...

Well done! It pays to be creative.

I wouldn't waste my time or money on chemical treatments. Bedbugs spread. Using a substandard or ineffective treatment gives them time to spread further. Plus chemical treatment can compound this issue by chasing them into other suites. Get a sniffer dog to locate the issues. Hire...

Agreed. Be careful not to over-leverage. If a HELOC was established at a high property value, and the value has now decreased, it is possible to over-leverage using a HELOC.

A garment steamer will not reach the required temperature, nor will it work in areas where the steam cannot touch. Professional heat treatment reaches a much higher temperature and can even kill bugs in walls and behind objects (to some extent). Steam cannot possibly do that.

When it comes to deductible interest expenses, the CRA cares what the money is for rather than where the money comes from. If you borrow against your personal residence for investment purposes, the interest is deductible because it is for an investment. Therefore, it would be deductible...

When we started investing in 2006, Edmonton's boom was in full swing. Cashflowing single family houses in decent areas would be hard to come by, but I would rather purchase nothing than have no cashflow, so we tailored our strategy to the market. We purchased older, suited houses where one...

I can't think of a market in Alberta that would tolerate rent of 1% of the purchase price, at any point in the real estate cycle. I think all of the other advice given previously is more realistic. If your figure of 1% includes a large option payment, then that could be potentially feasible...

Good post by Alex. But to clarify: in Alberta it is possible to remove tenants if they are in a fixed term lease and the lease is expiring (which it should be if the option is expiring). Here the landlord has no obligation to renew a fixed term lease, and can choose to not renew for any reason...

As for insurance, it often doesn't matter if the suite is registered or not. What matters to most insurers is the suite is safe and all codes are met. Talk to your insurance broker to confirm (in writing, preferably) the suite will be covered with your current insurance company. If it won't...

I wouldn't buy any suited property where it was impossible to legalize the suite. If the suite was inspected and you were forced to shut it down, would the property still cashflow? If not, you'd have no upside. $150 net cashflow on a suited property is very low. Not worth the risk, IMO.