Foreign buyers to Calgary next?

[flipstah]

Originally posted by killramos
Why buy houses when you can buy oil companies.

Encana looks mighty cheap right now lol.

I can see them buying The Bow. I heard it's a ghost town nowadays.

[killramos]

Not sure the bow even counts as an asset anymore. Then again neither do most oil companies...

[rage2]

Must hurt to pay the property tax on the bow right now. Gotta keep that money going though, it's funding the majority of East Village and Victoria Park developments haha. From the library to the new arena.

[Manhattan]

Let's not get ahead of ourselves. We're the 3rd most desirable country and global warming will have to hit pretty hard before foreign investors pony up cash to buy in a city where its practically winter 8 months out of the year. Most of us probably wouldn't be living here if it weren't for oil. We'll never be a desirable destination for investors or vacation homes. China's economic bubble is more likely to burst than Calgary homes seeing any kind of significant bump from foreign investment.

[Feruk]

Not sure why people would see foreign investment as a good thing. Look at Toronto and Vancouver. All it did was price us out of the market. I get that foreign investment can increase house values, but really, where you gonna live? Are you gonna time the market perfect to sell your house at the peek? Doubt it.

[rage2]

Originally posted by Feruk
Not sure why people would see foreign investment as a good thing. Look at Toronto and Vancouver. All it did was price us out of the market. I get that foreign investment can increase house values, but really, where you gonna live? Are you gonna time the market perfect to sell your house at the peek? Doubt it.

It's a good thing if you have multiple investment properties alongside a primary residence. Free money haha.

[ExtraSlow]

It's a good thing for the people already in the top 1%.

[Hallowed_point]

Originally posted by Feruk
Not sure why people would see foreign investment as a good thing. Look at Toronto and Vancouver. All it did was price us out of the market. I get that foreign investment can increase house values, but really, where you gonna live? Are you gonna time the market perfect to sell your house at the peek? Doubt it.

Very short sighted imo. Unless you're just getting out of the market entirely. What's with this whole "cash" buyer line I always hear. Are they carrying Hermes bags full of hundreds?

[rage2]

Originally posted by ExtraSlow
It's a good thing for the people already in the top 1%.

It's also a neutral/good thing for the people that already own/mortgage their primary residence. Free money (via HELOC). It's also a good thing for old people, reverse mortgage the home/cash out and enjoy life elsewhere.

It just sucks for people not buying, or renting and not planning on buying. There's enough signs anyways when this might happen here, so if you're paying attention, buy something instead of renting and ride the rollercoaster with other homeowners and reap the benefits. Pretty much anyone that DGAF about their personal finances and wealth gets owned.

Originally posted by Hallowed_point
Very short sighted imo. Unless you're just getting out of the market entirely. What's with this whole "cash" buyer line I always hear. Are they carrying Hermes bags full of hundreds?

It sounds better than certified cheque buyers.

[Manhattan]

Originally posted by rage2

It just sucks for people not buying, or renting and not planning on buying. There's enough signs anyways when this might happen here, so if you're paying attention, buy something instead of renting and ride the rollercoaster with other homeowners and reap the benefits.

- People shouldn't be buying homes because FOMO. It's not a sensible plan and it's what leads to bubbles.

- Interest rates have bottomed out on a 30 year cycle. We're likely to see interest slowly increase perhaps for the rest of our working lives which puts a cap on home prices.

- Calgary is never going to be a desirable place to buy for the majority of foreign investors.

[adam c]

Originally posted by Manhattan


- Calgary is never going to be a desirable place to buy for the majority of foreign investors.

Unless Oil has one last boom

[killramos]

Originally posted by Hallowed_point

Very short sighted imo. Unless you're just getting out of the market entirely. What's with this whole "cash" buyer line I always hear. Are they carrying Hermes bags full of hundreds?

Cash =/= paper bills

[Hallowed_point]

Originally posted by killramos
Cash =/= paper bills

Sure, but how does one even buy property with cash? Doesn't any amount over 10 K get put through some pretty serious investigation? Of course, I'm sure all of that mainland money is legit.

[Buster]

Originally posted by Manhattan


- People shouldn't be buying homes because FOMO. It's not a sensible plan and it's what leads to bubbles.

- Interest rates have bottomed out on a 30 year cycle. We're likely to see interest slowly increase perhaps for the rest of our working lives which puts a cap on home prices.

- Calgary is never going to be a desirable place to buy for the majority of foreign investors.

I don't see any material increase in interest rates for the foreseeable future. But then again, predicting interest rates is virtually impossible.

[Rocket1k78]

Originally posted by rage2

It's a good thing if you have multiple investment properties alongside a primary residence. Free money haha.

This! Im not greedy so i dont want the whole frenzy that Van an TO got so id be happy with 50% of that craze lol

The boom in Van and TO has pretty much fucked over the young generation or anyone else renting for that matter. I dont see how anyone can buy unless you have major financial help from parents

[rage2]

Originally posted by Hallowed_point
Sure, but how does one even buy property with cash? Doesn't any amount over 10 K get put through some pretty serious investigation? Of course, I'm sure all of that mainland money is legit.

You write a certified check.

Any deposits over $10k, especially actual cash deposits, does get red flagged to CRA though. Actual cash deposits require filling out forms, which is a bit of a PITA. Only really suspicious shit gets investigated, I'm sure CRA has a solid filtering process to handle it.

If you own a bar and routinely deposit >$10k in cash, or for those that get more than $10k per paycheck, nothing happens at all.

If you sell a house you own outright, and you deposit a $600k cheque, it'll get red flagged as well, but again, nothing will happen.

When you get audited however, all these red flags are in the history and believe me, they will go through each one haha.

[Xtrema]

Originally posted by Feruk
Not sure why people would see foreign investment as a good thing. Look at Toronto and Vancouver. All it did was price us out of the market. I get that foreign investment can increase house values, but really, where you gonna live? Are you gonna time the market perfect to sell your house at the peek? Doubt it.

If you own multiple, you can cash out.

If you own just primary, you can look into cashing out by downsizing.

Unfortunately for Calgary, real estate here isn't priced like international cities so the cashing out opportunity is limited. I have many relatives are now actively looking at cashing out Toronto or Vancouver and move into Calgary and be mortgage free and have a bunch of cash on hand. When you look average price of $1.3M in TO and Vancouver, it's not hard to buy something in Calgary for $500K and pocket the $800K difference.

[ercchry]

On the commercial side the foreign money is already shifting from van to here... it's only a matter of time

[revelations]

Smart money is here right now due to the bust - whether that's rich orientals or other folks looking to snap up decent homes - that's one reason why house prices haven't fallen very much. Mortgage defaults are also not super high either right now.

[sputnik]

Originally posted by flipstah


Encana looks mighty cheap right now lol.

I can see them buying The Bow. I heard it's a ghost town nowadays.

Encana doesn't own The Bow.

H&R REIT does.