My wife and I are moving back to Calgary after enjoying a peaceful few years out here in Black Diamond. We are looking at our choices of renting out our current house or selling it at a loss, speculating that the market is going to take a long slow glide downward over the course of the next 5 - 10 years before coming back to current prices (at which point we can sell and get back what we have put into the Place).
Does anybody have any thoughts on what / where house prices are going to do in comparison/relation to the Calgary market and/or what the history of rents are of the Black Diamond area?
QUOTE (ianb @ Sep 7 2010, 02:28 PM) .. Does anybody have any thoughts on what / where house prices are going to do in comparison/relation to the Calgary market ..
sell if rent can`t over the debt obligations + upkeep + property taxes + management fees
rents are lower than in Calgary. I don;t know details but I`d venture to guess 30-40% lower for a similar asset. So if a 3BR house in Calgary rents for $1500 maybe you`d get $1000 in Black Diamond. But perhaps you can retn some strorage on your acreage or the triple garage to 2 people ?
Do some due diligence on rents in BD. Why not run an add and see who phones. You can always decide to not rent it and sell it even if 5 parties phone !
Prices go up and down somewhat related % wise as I would not expect Calgary to go up 12% and Black Diamond to go down -20% .. but the demand is lower in Black Diamond.
Remember, you are not buying/selling "the market" but a specific asset with its quirks, views or features that may be unique .. weird even to some .. and desirable to others !
QUOTE (ThomasBeyer @ Sep 7 2010, 06:54 PM) sell if rent can`t over the debt obligations + upkeep + property taxes + management fees
rents are lower than in Calgary. I don;t know details but I`d venture to guess 30-40% lower for a similar asset. So if a 3BR house in Calgary rents for $1500 maybe you`d get $1000 in Black Diamond. But perhaps you can retn some strorage on your acreage or the triple garage to 2 people ?
Do some due diligence on rents in BD. Why not run an add and see who phones. You can always decide to not rent it and sell it even if 5 parties phone !
Prices go up and down somewhat related % wise as I would not expect Calgary to go up 12% and Black Diamond to go down -20% .. but the demand is lower in Black Diamond.
Remember, you are not buying/selling "the market" but a specific asset with its quirks, views or features that may be unique .. weird even to some .. and desirable to others !
As everything sits, we are able to cover our costs (P.I.T + R&M). We currently have a 1000sq.ft house with 2 bedrooms on a nice corner lot in town. We anticipate 1100/mo. with the need to possibly make downward adjustments to rents in the near future.
There seems to be a strong renting culture here in BD as house prices have not made the shift yet making most real estate out of the question for many income earners in this town.
You make a good point highlighting that the real estate markets are going to be similar and not totally out of whack, so the question we are asking is are we going to be upside down in our house for the next 5 - 7 years. ie: will we be able to sell this time next year for what we paid for it in 2008?
I would sell
Too much risk
Only keep it if you would purchase it as an investment property today if you had the funds - from your posts it seems as if you wouldn`t
