- Joined
- Oct 21, 2007
- Messages
- 181
Is anyone investing in Drumheller? Any information that you could give me on the market there would be helpful.
Thanks.
Thanks.
Investing in Drumheller?
- Thread starter DianneDachyshyn
- Start date
QUOTE (Rascal @ May 19 2008, 12:56 PM) Is anyone investing in Drumheller? Any information that you could give me on the market there would be helpful.
Thanks.
HI ,
We don`t have any advice specifics, but we do go out once a year, many more new hotels, and stores going up. Also, there are a few more franchises in there. Also, the highway, I believe is #9 was being widened (a portion). I don`t know what the rents are, but the property prices are just starting to increase. I think it is worth watching and doing more work on it, but it would be interesting to see other comments, I know I am speculating at this point. Also, there appeared to be more constuction in the area ie duplexes were being built on the east side of Drumheller. Definately worth keeping an eye on. A good website is Alberta first, it gives some pretty good information on towns and cities in Alberta.
Thanks.
HI ,
We don`t have any advice specifics, but we do go out once a year, many more new hotels, and stores going up. Also, there are a few more franchises in there. Also, the highway, I believe is #9 was being widened (a portion). I don`t know what the rents are, but the property prices are just starting to increase. I think it is worth watching and doing more work on it, but it would be interesting to see other comments, I know I am speculating at this point. Also, there appeared to be more constuction in the area ie duplexes were being built on the east side of Drumheller. Definately worth keeping an eye on. A good website is Alberta first, it gives some pretty good information on towns and cities in Alberta.
- Joined
- Sep 26, 2007
- Messages
- 38
I would contact Heather and Tom Shadlock on this topic. They have lived there for many years, own a business , several rental properties and are REIN members. Drumheller`s not my cup of tea but I know they have done well over the years there. Look her up on myreinspace or her # is 403-820-1348.
I know she does joint ventures as well if you are looking at that angle.
Bob Sheddy is also an agent in Drumheller (and a REIN member) if you`d like to talk to him as well. Both attend regular Calgary monthly meetings.
I know she does joint ventures as well if you are looking at that angle.
Bob Sheddy is also an agent in Drumheller (and a REIN member) if you`d like to talk to him as well. Both attend regular Calgary monthly meetings.
- Joined
- Aug 30, 2007
- Messages
- 13,881
QUOTE (Rascal @ May 19 2008, 12:56 PM) Is anyone investing in Drumheller? Any information that you could give me on the market there would be helpful.
Thanks.
we looked to buy a 20 suiter last year .. and decided to reduce price but then the deal collapsed .. at the right price: YES .. but not at any inflated price !
It is a small town in the middle of nowhere .. so allow for that ! It is NOT Calgary .. nor Edmonton nor Saskatoon ! It is a small town with some agricultural, oil&gas and seasonal tourism .. and it is VERY hot in the summer .. so think high A/C bills that hopefully your tenant pays !
Thanks.
we looked to buy a 20 suiter last year .. and decided to reduce price but then the deal collapsed .. at the right price: YES .. but not at any inflated price !
It is a small town in the middle of nowhere .. so allow for that ! It is NOT Calgary .. nor Edmonton nor Saskatoon ! It is a small town with some agricultural, oil&gas and seasonal tourism .. and it is VERY hot in the summer .. so think high A/C bills that hopefully your tenant pays !
- Joined
- Sep 19, 2007
- Messages
- 27
QUOTE (Rascal @ May 19 2008, 12:56 PM) Is anyone investing in Drumheller? Any information that you could give me on the market there would be helpful.
Thanks.
As Sonia had mentioned above, my husband and I have invested in Drumheller for sometime now. The "boom" has already happened here a couple of years ago. The market is a bit slower right now but definately a good time to buy....people that are in need of selling their properties are starting to panic and are lowering prices. Although there is much agricultural and some oilfield, another driver in this area is the penitentiary....and that is a constant. Much of the town is employed on top of the hill. If you are offering a good quality property it is not hard to rent. All of our tenants have been with us anywhere from 1 year to 5 years. Most are the same tenants from when we bought the houses. Most make good income and look after their own properties, but they just find that the houses that they REALLY want to buy are just slightly out of their reach. So they stay. I think they are lifers!
The duplexes that were mentioned on the East side...if I am thinking of the same ones, are 55+ housing (adult community). Over by the highschool, across from Wal-mart. But there are definately some new developments happening in the area, Bob can tell you more about that
The houses that we purchase do not have a/c units (as mentioned above) unless they put it in themselves, and all the utilities are paid by the tenants. Temperatures are really only a couple of degrees above Calgary. Our rents range anywhere from $775 to $900 but those will all be increased shortly. And these of course are on houses that are valued anywhere from $125 to $150k. These same houses 6 years ago were worth ~$40k to $55k. So I would say that the housing prices have already gone up and at starting to come back to normal. The town has just started doing reassessments on property taxes from what I can see, and one of mine is very inflated (based on the 2007 market) but all my others are still extremely under valued (according to the town), so I am not going to make mention for fear of drawing attention to the others. Water prices are set to increase shortly. So some costs are increasing but all in all, expenses are fairly low.
I think this to invest in this area completely depends on the type of investment that you are looking for. If you want a something that cash flows nicely and has a steady (but slower then the major city centres) increase in value, and the tenant pays your mortgage, then you can definately find that here. Because the prices are lower then Calgary or Edmonton, it can also be easier to get into the market. Not a bad choice if you don`t have a JV partner or lots of money to put down on a place to make it cash flow.
Thanks.
As Sonia had mentioned above, my husband and I have invested in Drumheller for sometime now. The "boom" has already happened here a couple of years ago. The market is a bit slower right now but definately a good time to buy....people that are in need of selling their properties are starting to panic and are lowering prices. Although there is much agricultural and some oilfield, another driver in this area is the penitentiary....and that is a constant. Much of the town is employed on top of the hill. If you are offering a good quality property it is not hard to rent. All of our tenants have been with us anywhere from 1 year to 5 years. Most are the same tenants from when we bought the houses. Most make good income and look after their own properties, but they just find that the houses that they REALLY want to buy are just slightly out of their reach. So they stay. I think they are lifers!
The duplexes that were mentioned on the East side...if I am thinking of the same ones, are 55+ housing (adult community). Over by the highschool, across from Wal-mart. But there are definately some new developments happening in the area, Bob can tell you more about that
The houses that we purchase do not have a/c units (as mentioned above) unless they put it in themselves, and all the utilities are paid by the tenants. Temperatures are really only a couple of degrees above Calgary. Our rents range anywhere from $775 to $900 but those will all be increased shortly. And these of course are on houses that are valued anywhere from $125 to $150k. These same houses 6 years ago were worth ~$40k to $55k. So I would say that the housing prices have already gone up and at starting to come back to normal. The town has just started doing reassessments on property taxes from what I can see, and one of mine is very inflated (based on the 2007 market) but all my others are still extremely under valued (according to the town), so I am not going to make mention for fear of drawing attention to the others. Water prices are set to increase shortly. So some costs are increasing but all in all, expenses are fairly low.
I think this to invest in this area completely depends on the type of investment that you are looking for. If you want a something that cash flows nicely and has a steady (but slower then the major city centres) increase in value, and the tenant pays your mortgage, then you can definately find that here. Because the prices are lower then Calgary or Edmonton, it can also be easier to get into the market. Not a bad choice if you don`t have a JV partner or lots of money to put down on a place to make it cash flow.
- Joined
- Aug 22, 2007
- Messages
- 2,005
The only way to determine whether a region, such as Drumheller, passes the Goldmine Scorecard test is by doing a LOT of homework, asking those tough questions (all of them), speaking with the regions economic development team/person, reviewing the stats from latest local census etc.
It is NOT difficult finding properties, once you find a region - that why speculators always end up hitting a financial brick wall. The hard work is in identifying whether the AREA it is located in has all of the elements that will make you a winner over the long haul (not short term "looks good" blip).
The time has come now for you to pick up the phone and get on the internet and get the answers to those key Goldmine Scorecard questions. And one addition, due to the small size of the town, dive into the strength of the industries that are currently supporting it. What is the long term trend, are they growing, shrinking or staying flat. Do they really create the jobs and incomes that are increasing and therefore helping to increase your revenue and equity position.
ALSO, you must speak to a bank right away to determine the level of financing they will place a. on this type of property and b. this geographic area.
I HIGHLY Recommend you do not step over any of these critical steps.
It is NOT difficult finding properties, once you find a region - that why speculators always end up hitting a financial brick wall. The hard work is in identifying whether the AREA it is located in has all of the elements that will make you a winner over the long haul (not short term "looks good" blip).
The time has come now for you to pick up the phone and get on the internet and get the answers to those key Goldmine Scorecard questions. And one addition, due to the small size of the town, dive into the strength of the industries that are currently supporting it. What is the long term trend, are they growing, shrinking or staying flat. Do they really create the jobs and incomes that are increasing and therefore helping to increase your revenue and equity position.
ALSO, you must speak to a bank right away to determine the level of financing they will place a. on this type of property and b. this geographic area.
I HIGHLY Recommend you do not step over any of these critical steps.