Best Edmonton areas

[bateman99]

What areas in Edmonton are recommended to invest in? I was cautioned about the east side. My price range is $290,000-$350,000.

I am looking at Zones 1, 27 and 29 (Millswoods). Any other areas that are recommended would be greatly appreciated.

Thanks everyone.

 

[Thomas Beyer]

Any area within 1km of new transit extensions south, NE and West. NE has decent pockets but many shady ones - be very selective there. UofA area or close to river is usually a safe bet but pricey. As I stated at the REIN capital raising conference on June 16 in Toronto, err on the side of a decent area as opposed to cheap area as you will get a better tenant profile and have less hassles, lower vacancy/turnover/collection issues, less upgrade expenditures and a more enjoyable ownership experience.

 

[Sherilynn]

[quote user=ThomasBeyer]err on the SK of a decent area as opposed to cheap area





Hi, Thomas. Maybe I'm just sleepy...but what is "the SK?"

 

[Sherilynn]

There are good and bad areas in every district. I live in a beautiful and quiet area in the NE, and I would love to own the entire neighbourhood. I also agree with Thomas that you should consider what infrastructure and development are in the area (either ongoing or firmly scheduled).



I own several properties in nicer areas of the "black triangle" of the northeast and I have had no trouble with them in the many years that I have owned them. However, I would not want to move 5 blocks away from one of those properties or 10 blocks away from the others.



There are bad pockets in almost every area of every city. For instance, a year or two ago there was a news story about a fancy house in a fancy neighbourhood in Sherwood Park that turned out to be one of the biggest grow-ops in recent years.



Writing off an entire quadrant of a City like Edmonton seems a bit near-sighted. A better option could be to consult with a realtor that is experienced with Edmonton investment properties. Then drive around the neighbourhood at night and see what you think.

 

[bateman99]

Thanks Thomas and Sherilynn for your input. I live in Vancouver and plan on flying to Edmonton soon to meet with my realestate agent and tour the city. I was looking for some input before I head down there so I can narrow down my choices and be confident of the area I choose. I think I will stay out of the "cheap" areas. I will also be looking for a house within a km of the LRT,

I think I've narrowed it down to Zone 1 (kensington) and Zone 29 (Millswoods). I heard Forest Heights is a good area but I think its out of my price range.

Any other input from other veteran investors would help as well, since I am still a novice investor.

I love REIN.

Thanks,

Stanley Dim

 

[bizaro86]

[quote user=Sherilynn]Writing off an entire quadrant of a City like Edmonton seems a bit near-sighted. A better option could be to consult with a realtor that is experienced with Edmonton investment properties. Then drive around the neighbourhood at night and see what you think.


I lived in the black triangle of Edmonton for a few years, and we were in a lovely area on a nice street with the sweetest old neighbours who would bake us cookies. It was a great place to live, and we sold the house in 3 days for a huge gain after owning it for 2 years when we moved to Calgary. A gain that was greater than the (considerable) average increase in Edmonton house prices during those two years. I've often wished I would have kept it and suited it, as it would have been a great rental.



Anyway, that's my longwinded way of agreeing with Sherilynn that writing off whole quadrants doesn't make sense, you just have to get to know an area very well.



Regards,



Michael

 

[johnsu]

Best areas isa matter of opinon.

I think since you are from out of town, you should seek the advice of someone who's lived in Edmonton for at least 10 years. They've got enough time here to know where the nice and bad pokets are.

 

[bateman99]

Thank you all for you input, it was very helpful.



Sincerely,

Stanley Dim

 

[kevinb668]

You should check out the CMHC Edmonton rental report for 2011. It's very good report that shows all the vacancy rates in the different parts of the city as well as average rent for each area. I own a rental down near the university and it was a little on the higher end and has gone up since I bought it last year but I have students begging to move in and am converting the living room to a bedroom in the basement suite. I also strongly agree with the other posts, there are good and bad areas in all the areas of edmonton. The far north east area in my opinion is going to be a great area epsecially once the last of the Anthony Henday loop is complete. There is a new 27 hole championship golf course opening there and a large new shopping complex. Unless the oil bubble completely bursts in alberta, the Edmonton rental market is going to be pretty hot over the next few years. In my limited experienced opinion anyways.

Kevin

 

[bateman99]

Thanks Kevin. I will check out CMHC Edmonton rental report. I will be going to Edmonton in a week and looking at a property in the Newton area. I hope that is a good pocket area because I was told the surrounding areas are kind of shady but not sure about Newton.

Does anyone have properties in the Newton area that can brief me on it? And Canon Ridge?

Thanks

Have a great day!

 

[brentdavies]

I have owned in Newton for years and find it ok. Avoid anything south of 119 Avenue, as all the action occurs on 118 ave. 3 bedroom house rents for $1500-1600. I bought the property after the old owner cleaned up after their's third bad tenant, and wanted out.



On 118 ave, you get decent rent, but expect double the turn over and higher collection costs.



If you go north to 155 ave and 110 st, Lorelei, (castledowns district) you get 1700-1900 rent. Better properties, for about $50 to 75K more. Better tenant profile.



But your realtor should have the answers for you.

 

[R90S]

Near the Edmonton Arena District and the LRT!

 

[johninottawa]

Sherilynn,

Would you be willing to discuss some of those better pockets in the worse areas?I do have a knowledgeable Realtor and I have spent time driving through some areas at various times of the day. I still hit situations where I get a recommendation for a property that may be a better part of a harder area, but it goes against other more experienced persons generalizations, and finding my self with some paralysis.

 

[Sherilynn]

If I had an experienced JV partner with "feet on the ground" in Edmonton, I would feel more comfortable venturing into the twilight zone. If I lived far from Edmonton and had only a PM looking after my properties, I would go the safe route and pick an area with a solidly good reputation rather than the good part of an iffy area.



Since I have my own staff managing my properties under my guidance and following my system, I get high rents and have almost no vacancy (even through the recession). I think if I had a PM watching my properties in those areas, I would likely have had more vacancy and lower rents because a) PMs do not have a vested interest in the success of your property, b) PMs have their own systems that they must follow in order to make a profit, and c) some PMs are better than others.



If your investments rely on PMs, then make their job easier by staying out of the twilight zone.



And yes, feel free to email me anytime. [email protected]