Calgary real estate market - what would you do?
- Thread starter TerryF
- Start date
I`m no expert here, but IMHO, the decision on the Royatly review will make it or break it for consumer confidence on large purchases in Alberta specifically houses and cars. I have close relatives who work for oil and engineering companies in Calgary and many have received internal emails asking the employees to talk to their MLA. The internal corporate communications also informed employees and contractors that business would be tough should the Royalty report recommendations be followed by the Alberta government. Believe me, if you read one of these emails and you wanted to buy a house then you would change your mind right away. I personally had plans to buy an RV and I changed my mind as I`m not sure if I would have a job tomorrow or not. I do not want to turn this into political debate, but there will be massive project cancellations or "reconsideration" should the Royalty be raised. Believe me, the energy companies are not bluffing, they mean it and if this happens, this would be a real disaster comparable to the eighties. I hope that the government would be wise enough to avert such a damage to the province. You could notice that the slump in the real estate in Alberta started to happen once the Royalty Review panel started to tour the province and the passion around the "our fair share" slogan started to build. I think that we almost killed the goose that used to lay golden eggs for me. I miss Kein, I love that guy. A true leader who cared.
Mike
Mike
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Katzma2,
In my opinion you should rent your house out. You don`t sell in a buyers market.
Mike,
In my reply to your comments; Where exactly do you think the oil companies are going to go to get their oil? The royalty review won`t make a difference. Look at it like an increase in rent. I had a tenant tell me she was going to leave when I raised her rent from $700 to $900, but she`s still there! She discovered it was still a good deal and she didn`t have anywhere else to go. That`s my analogy.
Rebecca Bryan
In my opinion you should rent your house out. You don`t sell in a buyers market.
Mike,
In my reply to your comments; Where exactly do you think the oil companies are going to go to get their oil? The royalty review won`t make a difference. Look at it like an increase in rent. I had a tenant tell me she was going to leave when I raised her rent from $700 to $900, but she`s still there! She discovered it was still a good deal and she didn`t have anywhere else to go. That`s my analogy.
Rebecca Bryan
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- Aug 30, 2007
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Hello,
Yes ... you would feel much more comfortable about making this kind of decision after attending quick start.
Real Esate Investors who study the economic fundamentals predict that the market in Calgary will appreciate at least 10% from Oct 2007 to Oct 2008.
I would suggest finding a way to manage both properties. Consider putting your 2nd property on the market again sometime between Feb and the end of April.
The Royalty Review does have people nervous. If the reveiw goes through ... the oil companies have all given threats of pulling out investment. They will feel compelled to act ... to save face. (Definately a speed bump in our incredible growth.)
Alberta has huge supplies of oil ... the world requires it.
Visit www.getitrightalberta.ca to be heard on your opinion of the Royalty Review.
Yes ... you would feel much more comfortable about making this kind of decision after attending quick start.
Real Esate Investors who study the economic fundamentals predict that the market in Calgary will appreciate at least 10% from Oct 2007 to Oct 2008.
I would suggest finding a way to manage both properties. Consider putting your 2nd property on the market again sometime between Feb and the end of April.
The Royalty Review does have people nervous. If the reveiw goes through ... the oil companies have all given threats of pulling out investment. They will feel compelled to act ... to save face. (Definately a speed bump in our incredible growth.)
Alberta has huge supplies of oil ... the world requires it.
Visit www.getitrightalberta.ca to be heard on your opinion of the Royalty Review.
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- Sep 23, 2007
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- 191
http://www.canada.com/edmontonjournal/news...45-b9949c21504e
An interesting story from the Edmonton Journal about the last time the Tories tinkered with oil and gas royalties.
Alberta`s current economic boom is the greatest thing to happen to either the province of Alberta or the oil companies in recent history. Neither side is likely to destroy it simply for the sake of being stubborn.
In response to the original question, I too would hold off on selling until at least early spring.
An interesting story from the Edmonton Journal about the last time the Tories tinkered with oil and gas royalties.
Alberta`s current economic boom is the greatest thing to happen to either the province of Alberta or the oil companies in recent history. Neither side is likely to destroy it simply for the sake of being stubborn.
In response to the original question, I too would hold off on selling until at least early spring.
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Hi Katzma2,
The other posters have some good points, and Quickstart would definitely provide you with a better perspective.
The question you may need to ask is what your goal is. If you definitely need the money to make your other property work then you have to sell your current home. If your goal is to purchase some rental property you are on your first step by considering renting out your current home when you move to the next property.
If you are planning on purchasing rental property you may want to consider whether your current property is even worth considering as a rental property. Perhaps you would be better off reducing the price $20-30k, getting out of that property, taking some of the equity from there to increase your down payment on your pending property and taking the remainder to purchase a rental property that fits true rental mold (which you could learn about at Quickstart!). This may even end up with soem positive cash flow if you do your homework.
You will sacrifice some money now by selling, but it is also a great time to buy, so you could recoup it on the next property. People are still buying, they are just taking longer to decide and there is less competition so they are able to offer lower prices.
Regarding the Royalty Review, the slump actually occurred well before the Royalty Review, although the Review is one of the factors to help propel the slump onward. The oil companies have to bluster and threaten to pull out as they have billions of profits to protect, but where else will they go to get oil? The government realizes they make billions from the Royalties, but they now have to save face by being "tough" on the oil companies after all the noise in the Newspapers.
So realistically they will all meet in the middle with Royalties being increased only partially, the government getting to say they helped the taxpayers and are bringing in more revenue, while the Oil Companies can huff and puff and say they won the battle and weren`t hit by huge increases while still earning billion dollar profits. At least in my happy little world!!
The other posters have some good points, and Quickstart would definitely provide you with a better perspective.
The question you may need to ask is what your goal is. If you definitely need the money to make your other property work then you have to sell your current home. If your goal is to purchase some rental property you are on your first step by considering renting out your current home when you move to the next property.
If you are planning on purchasing rental property you may want to consider whether your current property is even worth considering as a rental property. Perhaps you would be better off reducing the price $20-30k, getting out of that property, taking some of the equity from there to increase your down payment on your pending property and taking the remainder to purchase a rental property that fits true rental mold (which you could learn about at Quickstart!). This may even end up with soem positive cash flow if you do your homework.
You will sacrifice some money now by selling, but it is also a great time to buy, so you could recoup it on the next property. People are still buying, they are just taking longer to decide and there is less competition so they are able to offer lower prices.
Regarding the Royalty Review, the slump actually occurred well before the Royalty Review, although the Review is one of the factors to help propel the slump onward. The oil companies have to bluster and threaten to pull out as they have billions of profits to protect, but where else will they go to get oil? The government realizes they make billions from the Royalties, but they now have to save face by being "tough" on the oil companies after all the noise in the Newspapers.
So realistically they will all meet in the middle with Royalties being increased only partially, the government getting to say they helped the taxpayers and are bringing in more revenue, while the Oil Companies can huff and puff and say they won the battle and weren`t hit by huge increases while still earning billion dollar profits. At least in my happy little world!!
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- Sep 17, 2007
- Messages
- 783
Well Said.
QUOTE (Bill @ Oct 15 2007, 12:57 PM) Hi Katzma2,
The other posters have some good points, and Quickstart would definitely provide you with a better perspective.
The question you may need to ask is what your goal is. If you definitely need the money to make your other property work then you have to sell your current home. If your goal is to purchase some rental property you are on your first step by considering renting out your current home when you move to the next property.
If you are planning on purchasing rental property you may want to consider whether your current property is even worth considering as a rental property. Perhaps you would be better off reducing the price $20-30k, getting out of that property, taking some of the equity from there to increase your down payment on your pending property and taking the remainder to purchase a rental property that fits true rental mold (which you could learn about at Quickstart!). This may even end up with soem positive cash flow if you do your homework.
You will sacrifice some money now by selling, but it is also a great time to buy, so you could recoup it on the next property. People are still buying, they are just taking longer to decide and there is less competition so they are able to offer lower prices.
Regarding the Royalty Review, the slump actually occurred well before the Royalty Review, although the Review is one of the factors to help propel the slump onward. The oil companies have to bluster and threaten to pull out as they have billions of profits to protect, but where else will they go to get oil? The government realizes they make billions from the Royalties, but they now have to save face by being "tough" on the oil companies after all the noise in the Newspapers.
So realistically they will all meet in the middle with Royalties being increased only partially, the government getting to say they helped the taxpayers and are bringing in more revenue, while the Oil Companies can huff and puff and say they won the battle and weren`t hit by huge increases while still earning billion dollar profits. At least in my happy little world!!
QUOTE (Bill @ Oct 15 2007, 12:57 PM) Hi Katzma2,
The other posters have some good points, and Quickstart would definitely provide you with a better perspective.
The question you may need to ask is what your goal is. If you definitely need the money to make your other property work then you have to sell your current home. If your goal is to purchase some rental property you are on your first step by considering renting out your current home when you move to the next property.
If you are planning on purchasing rental property you may want to consider whether your current property is even worth considering as a rental property. Perhaps you would be better off reducing the price $20-30k, getting out of that property, taking some of the equity from there to increase your down payment on your pending property and taking the remainder to purchase a rental property that fits true rental mold (which you could learn about at Quickstart!). This may even end up with soem positive cash flow if you do your homework.
You will sacrifice some money now by selling, but it is also a great time to buy, so you could recoup it on the next property. People are still buying, they are just taking longer to decide and there is less competition so they are able to offer lower prices.
Regarding the Royalty Review, the slump actually occurred well before the Royalty Review, although the Review is one of the factors to help propel the slump onward. The oil companies have to bluster and threaten to pull out as they have billions of profits to protect, but where else will they go to get oil? The government realizes they make billions from the Royalties, but they now have to save face by being "tough" on the oil companies after all the noise in the Newspapers.
So realistically they will all meet in the middle with Royalties being increased only partially, the government getting to say they helped the taxpayers and are bringing in more revenue, while the Oil Companies can huff and puff and say they won the battle and weren`t hit by huge increases while still earning billion dollar profits. At least in my happy little world!!
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- Sep 18, 2007
- Messages
- 127
Unfortunately you have got caught up in a buyers market like many others. I know many short term investors that are trying to sell their properties. Your not alone.
It sounds from your post that you are not an investor . You just want to move into your new home.
Manageing tenants can be a 24 hour business if you are manageing yourself. You should think very carefully before you rent your property. If you do decide to rent then get professional help if you do not understand the business.
I myself am a long term investor for over 15 years. I have had my ups and downs. But over the long haul it has been very good and like many I believe Clagary has a few more years left. The economics for Alberta is just to good.
If you would like to enter the realestate investment world then take a course like REIN. If you just want to move iinto your new home then take the advise of the previous posting and sell your home for less and move on.
All the best
It sounds from your post that you are not an investor . You just want to move into your new home.
Manageing tenants can be a 24 hour business if you are manageing yourself. You should think very carefully before you rent your property. If you do decide to rent then get professional help if you do not understand the business.
I myself am a long term investor for over 15 years. I have had my ups and downs. But over the long haul it has been very good and like many I believe Clagary has a few more years left. The economics for Alberta is just to good.
If you would like to enter the realestate investment world then take a course like REIN. If you just want to move iinto your new home then take the advise of the previous posting and sell your home for less and move on.
All the best
- Joined
- Sep 6, 2007
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Hi Katzma2,
There is alot of great advice that you have had from differnet people in this forum, some REIN Members and some not. I am a REIN Member and I am currently selling my property. It is NOT a good time to sell, but in my case I have to. I am going through a separation and it must go. I am using different marketing techniques though that a realtor might not use and I am finding it to be a great success. I would suggest that you buy a copy of "Solid Oak Marketing" (its through REIN) and read over the information. Just because there is no one buying doesn`t mean that they`re aren`t buyers out there, you just have to market to the right one !!!!! That`s my take on your problem. Let us know what you end up doing.
Debbie
There is alot of great advice that you have had from differnet people in this forum, some REIN Members and some not. I am a REIN Member and I am currently selling my property. It is NOT a good time to sell, but in my case I have to. I am going through a separation and it must go. I am using different marketing techniques though that a realtor might not use and I am finding it to be a great success. I would suggest that you buy a copy of "Solid Oak Marketing" (its through REIN) and read over the information. Just because there is no one buying doesn`t mean that they`re aren`t buyers out there, you just have to market to the right one !!!!! That`s my take on your problem. Let us know what you end up doing.
Debbie
Hi to everyone who posted a reply to my question! Your comments are much appreciated and I have had some things to consider, thanks to you.
As far as selling the house or keeping it, we can keep it for awhile and it will cost us a few thousand to do that. If the market continues to drop, even through next spring, then it wouldn`t be a good idea. But, if the market improves as it typically does in the spring, and we can sell for 10 - 20k or more than now, then we will be better off to hang on. It`s just that I don`t know much about predicting the market and what it will do in the spring.
I am on the waiting list for the Edmonton Quickstart program, but it doesn`t look good. By the time I get into the next Quickstart program, it will be too late to make the right decision about selling the house - whether now or later.
I am leaning toward keeping it short-term and selling in the spring. I am assuming that the situation will greatly improve by then, even with a Royalty Review disaster. I am not an investor - not yet anyway, but I know keeping the house will cost money, but I expect to recover it and more, when I sell in the spring.
In any case, I feel a bit more confident in making a decision than before I posted, so thank you!
As far as selling the house or keeping it, we can keep it for awhile and it will cost us a few thousand to do that. If the market continues to drop, even through next spring, then it wouldn`t be a good idea. But, if the market improves as it typically does in the spring, and we can sell for 10 - 20k or more than now, then we will be better off to hang on. It`s just that I don`t know much about predicting the market and what it will do in the spring.
I am on the waiting list for the Edmonton Quickstart program, but it doesn`t look good. By the time I get into the next Quickstart program, it will be too late to make the right decision about selling the house - whether now or later.
I am leaning toward keeping it short-term and selling in the spring. I am assuming that the situation will greatly improve by then, even with a Royalty Review disaster. I am not an investor - not yet anyway, but I know keeping the house will cost money, but I expect to recover it and more, when I sell in the spring.
In any case, I feel a bit more confident in making a decision than before I posted, so thank you!
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Here`s my two cents. The recent increase in house prices is not a good thing for the economy over all and certainly not over the long haul. If the government was to do something to slow the economy here it would be a good, not bad thing. So what better time to do a royalty review? Does any one think that will stop what is going on? It my slow things a bit however long term stability is a great goal in my mind. If a few oil companies slow down development it will certainly hurt a few industries, but Alberta is so much more then oil and gas. I am all for some stabilization, so unfortunatley if it means raiseing costs to the oil industry I think on the long term it is a good trade off. Remember the oil will still be in the ground and we have the bets place in the world as far as a working environment for industry. If prices slowed to 10 or 12 percent a year would that hurt us as long term investors?
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I would like the economy to slow down for awhile...so I can buy a lot more properties. I think that the global economy and demand for oil is bigger than our goverments greed will be able to stifle...certainly for the long term. (and that works for me)
...as for not getting into quickstart, if you join REIN, dont they give you the quickstart stuff anyways? Just join and get the stuff. There is a lot of info there to absorb...so going over it at your convienece until the next quickstart might be a good thing. (you will still learn a lot at the quickstart when you get there)
as always, my advice is worth exactly what you paid for it. (smile) good luck with your decision!
...as for not getting into quickstart, if you join REIN, dont they give you the quickstart stuff anyways? Just join and get the stuff. There is a lot of info there to absorb...so going over it at your convienece until the next quickstart might be a good thing. (you will still learn a lot at the quickstart when you get there)
as always, my advice is worth exactly what you paid for it. (smile) good luck with your decision!