Devon, Alberta Market
- Thread starter Mellon17
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Great little community. Scenic. Close to airport. It is in Alberta, however. House values and rents are falling. Wait until you see a bottom, unless you have ample cash reserves to cover vacancies, or if you truly understand price points and can buy well below it. Vacancies are climbing and 2016 & 2017 will be tough. I'd wait to late 2017/2018 to enter the Alberta market again. Or 2019 to see if the NDP bums are being kicked out. There is no rush. No rush at all to buy.
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and that is useful in today's low oil and NDP days why ?
AB is retracting to a normal province with a left-leaning overspending government, with lower oil prices for longer, thus with reduced investments, in a world where oil and gas is systemically assaulted with carbon taxes, pipeline opposition, electric car technology and global warming / climate change policies bordering on extremes, with an overpaid civil servants apparatus (25-30%), growing deficits and now ex-migration. Why is this a good place to invest in the next 2-3 years until the painful retraction to a "new normal" is over ?
House rental rates in AB are 10-25% lower than a year ago in many places, or if they are not, they will be once your current tenant leaves. As such, Devon is as good or as bad a place as any to own a house. I see no reason why it would be any worse or any better than say St. Albert or Sherwood Park or Edmonton. The nearby mall at the airport might help.
If you think you can cash-flow a place with realistic rents, then yes you should buy as you will make money even in a flat or slightly declining market. But as I said earlier, I'd wait as Edmonton and area has not yet seen the drop Calgary has experienced in 2015, and with layoffs to come in the biggest employment sector in AB, construction, Edmonton's drop so far has been very muted but will get worse this year and next. As such, wait to 2018.
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So are you saying it isn't useful at all Thomas?
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Area description is useful as is demographics, of course .. but the world in AB has changed in case you haven't noticed.
If you know the market well, and you can get a foreclosure for $250,000 that is worth $350,000 AND you are a decent marketeer and get a decent tenant or 2 then you should go for it.
If you know the market well, and you can get a foreclosure for $250,000 that is worth $350,000 AND you are a decent marketeer and get a decent tenant or 2 then you should go for it.
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So was the response meant to discourage the original poster from seeking out this useful information you've identified? If so, why? Wouldn't having more information be desirable over less information?
There may be one or two more pieces of information that could be useful, but you're list looks good.
And yes I've read about the sky falling down in the west. If I recall correctly, I've also read about a deal or two you've done since then, also in the west. Alberta specifically.
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I have unfortunately still bought 3 MF buildings in 2013 in AB.
We since bought two MHPs in AB and BC which are somewhat immune to any market as it is the lowest rental option available, plus placed $s in teh DFW, TX area.
Yes, of course, information is always useful, but two year old market data in AB is not. BC is booming.
A rising tide lifts all boats. And when the tide retreats we shall see who is swimming naked.
We since bought two MHPs in AB and BC which are somewhat immune to any market as it is the lowest rental option available, plus placed $s in teh DFW, TX area.
Yes, of course, information is always useful, but two year old market data in AB is not. BC is booming.
A rising tide lifts all boats. And when the tide retreats we shall see who is swimming naked.
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You're right Thomas.
... Though I suspect the original poster would find great value in making contact with someone who specializes in the exact market they inquired about. (In addition to the two areas you identified almost immediately)
But you're right.
... Though I suspect the original poster would find great value in making contact with someone who specializes in the exact market they inquired about. (In addition to the two areas you identified almost immediately)
But you're right.
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Thanks for the input guys! I strongly agree that right is not the best time to buy in the Edmonton market, they have some tough times ahead of them. It was more for informational purposes. I've seen a few properties pop up over the last year and I don't know a ton about the area. Good to do your homework and understand the area's you may or may not be looking to buy in down the road.
Thanks,
Thanks,