Need expert advise

[JOHNHANDANI]

My name is john, and this is my first time posting anything on the forum.

I am an owner of couple of rental properties, and a house that my family and i live in.
recently a couple of friends asked me to consider selling all 3 of my properties in calgary, and relocate the family to saskatoon.
They are very optimistic about the real estate market over there.

And seeing calgary`s real estate market getting balanced out and slowing moving downward. I am very intrigued by this idea.

House price are much lower there and with the possibility of generating high returns compared with calgary.

Can I please get some expert advise on this matter?

Thanks.

 

[PaulPoulsen]

QUOTE (JOHNHANDANI @ Apr 14 2008, 01:17 PM) My name is john, and this is my first time posting anything on the forum.

I am an owner of couple of rental properties, and a house that my family and i live in.
recently a couple of friends asked me to consider selling all 3 of my properties in calgary, and relocate the family to saskatoon.
They are very optimistic about the real estate market over there.

And seeing calgary`s real estate market getting balanced out and slowing moving downward. I am very intrigued by this idea.

House price are much lower there and with the possibility of generating high returns compared with calgary.

Can I please get some expert advise on this matter?

Thanks.

Hi John;

I`d ask your friends why they`re so optimistic about Saskatoon. I`m not suggesting that that there`s not opportunity in Saskatchewan but I would advise that you`re very clear on why you`re leaving one market and entering another. I`m a big believer in Edmonton and I`m able to talk `til I`m blue in the face about the fundamentals of the area and why I believe that there`s still lots of room for the market to increase. I think it`s important that you`re able to make a compelling argument for moving and that argument should be based on facts and numbers instead of emotion and third party advice that may or may not be accurate. Become an expert on the fundamentals in Saskatoon as well an expert on the fundamentals in Calgary then compare the two markets and make your own conclusion as to whether or not a move is warranted.

 

[JOHNHANDANI]

THANKS FOR THE ADVISE PAUL.

I WILL DO THE HOMEWORK AND THEN DECIDE.

 

[writeabooknow]

Ah friends!
Geniuses all...

Tell you what. If you like Saskatoon better than Edmonton, then, of course, you should move. That`s pretty obvious.

But why sell your investment properties in Edmonton? Get a good property management team to take on the management task for you (if you have three properties you`re pretty close to doing that anyway).

And if your friends are REALLY hot on Saskatoon, have them put up joint-venture money and you can start increasing your portfolio in Saskatoon... If things don`t go well in Saskatoon, hey, THEY were the ones twisting YOUR arm.

Just a thought.

Cheers,

Steve Manning

 

[writeabooknow]

Oops! Sorry. Calgary, not Edmonton.
Cheers,
Steve Manning

 

[MonteDobson]

One other note is that Saskatoon prices are no longer much, if any, cheaper than Calgary/Edmonton right now...and what`s driving the demand???

Yes there are some positive things happening here in SK, but prices have skyrocketed and the fundamentals (ie. employment, WAGES, and population) don`t line up as compared to an Alberta top 10 town such as Edmonton, Grande Prairie or Calgary.

We are currently buying in Alberta as this has been one of the best buying opportunities in the past few years and there are many deals to be had. Many un-sophisticated investors and homeowners are experiencing the "fear" portion of the continuous "fear-greed" real estate cycle.

As many a wealthy investor has said "Don`t follow the herd, create your own path"

My 2 cents...have fun!!