Calgary real estate prospects

[bjstare]

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buying a 4-plex as your own home and an investment is a questionable lifestyle choice.

ftfy.

[RX_EVOLV]

My very simplistic view is for a primary residence it doesn't really matter. If housing pricing go up in the future and you sell to move, the next house is going to be that much more expensive anyway. Same for the other way, you lose money on your current home but your next home will be that much cheaper too.

We are probably down ~$80K on our current home purchased in 2017, but the one we sold is probably down ~$110K (friend just brought a similar size/condition one a few blocks away for less), so we have no regret moving. We are also seeing some of the houses we originally liked back then but out of our price range to be significantly cheaper today. Back then you can't buy a single detached brand new infill in inner city (Mount Pleasant, etc..) for <$920K. Now we are seeing so many popping up at ~$750K.

[Neil4Speed]

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My very simplistic view is for a primary residence it doesn't really matter. If housing pricing go up in the future and you sell to move, the next house is going to be that much more expensive anyway. Same for the other way, you lose money on your current home but your next home will be that much cheaper too.

We are probably down ~$80K on our current home purchased in 2017, but the one we sold is probably down ~$110K (friend just brought a similar size/condition one a few blocks away for less), so we have no regret moving. We are also seeing some of the houses we originally liked back then but out of our price range to be significantly cheaper today. Back then you can't buy a single detached brand new infill in inner city (Mount Pleasant, etc..) for <$920K. Now we are seeing so many popping up at ~$750K.

Agreed generally, up or down, if you live through it then there is no difference. However, (obviously), having a lower mortgage value is always going to be better. I had to explain this to my wife yesterday LOL. Hence why we are looking to rent, wait as long as possible, or buy cheap first home/duplex in a good area to weather it out.

[ExtraSlow]

, if you really want to bet on real estate, what you want is the MOST expensive place you can get. Leverage to the max baby. That's how you get juice.

[The_Rural_Juror]

Buy in Victoria for the MAD appreciation.

[max_boost]

The great leader is gonna come for your primary home profits. Just a matter of time lol

[The_Rural_Juror]

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The great leader is gonna come for your primary home profits. Just a matter of time lol

Supreme Leader Kim?

[finboy]

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The great leader is gonna come for your primary home profits. Just a matter of time lol

Sadly not wrong, iirc cmhc is funding some research into this

https://www.google.ca/amp/s/www.thes...-reckless.html

[ercchry]

Coupled with the inheritance tax the libs just floated out there.... yaaaaayyy

[ExtraSlow]

Having and accumulating wealth is evil. Make less, spend more, save nothing.

[Disoblige]

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Having and accumulating wealth is evil. Make less, spend more, save nothing.

Did you get your lottery tickets, smokes, and $12 bread and milk from the convenience store yet?

[ExtraSlow]

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Did you get your lottery tickets, smokes, and $12 bread and milk from the convenience store yet?

daily brother.

[Neil4Speed]

I am a bit curious in terms of these "flips", about how much money is actually going into them. I get that its a very challenging question just looking a a photo, but even a ballpark is interesting to me.

An Example: https://www.realtor.ca/real-estate/2...ry-collingwood, asking $875k. Bought originally in November 2018 for $535. Assuming that it was all original, is it fair to say that ~300k worth of renos was done? They speak to new plumbing, electrical, windows, exterior detail, drive way, landscaping, fencing, drywall, light fixtures, doors, flooring, kitchen, appliances & new front veranda. I know that some of this stuff isn't cheap at all, i.e Landscaping/Driveway, but still seems like a steep ask.

Thoughts?

[ExtraSlow]

If it was me, I'd start with the idea that they spent $50k, and/or are making over $100k profit, and work towards some middle ground from there.

No smart flipper buys a place planning to spend $300k in upgrades.

[beyond_ban]

^ I know reno's can cost a lot, and quick, but like you i don't know what exactly 300k in reno's looks like. Spending $875k for 1,100 SF seems like crack money regardless of the how much they've thrown into it.

[you&me]

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I am a bit curious in terms of these "flips", about how much money is actually going into them. I get that its a very challenging question just looking a a photo, but even a ballpark is interesting to me.

An Example: https://www.realtor.ca/real-estate/2...ry-collingwood, asking $875k. Bought originally in November 2018 for $535. Assuming that it was all original, is it fair to say that ~300k worth of renos was done? They speak to new plumbing, electrical, windows, exterior detail, drive way, landscaping, fencing, drywall, light fixtures, doors, flooring, kitchen, appliances & new front veranda. I know that some of this stuff isn't cheap at all, i.e Landscaping/Driveway, but still seems like a steep ask.

Thoughts?

There's no way that's $300k worth of improvements. Besides, based on the ask, that would make for a really terrible ROI.

[ExtraSlow]

Not to mention anyone who bought a house just to flip cut every possible corner they could in terms of quality and labor. Expect some of that shit not to last well at all. If you are buying a house for an investment, the LAST thing you want is one with recent "upgrades" by a flipper.

[ercchry]

Damn near 2yrs in carrying costs would destroy any sort of ROI... I wouldn’t call that one a flip per say...

[you&me]

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Not to mention anyone who bought a house just to flip cut every possible corner they could in terms of quality and labor. Expect some of that shit not to last well at all. If you are buying a house for an investment, the LAST thing you want is one with recent "upgrades" by a flipper.

Exactly. Cheaper (but nice looking) flooring, cabinets, counter tops, fixtures... Lipstick on a pig.

Also bear in mind that $300 psf is a healthy amount for high end, new construction.

[Xtrema]

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^ I know reno's can cost a lot, and quick, but like you i don't know what exactly 300k in reno's looks like. Spending $875k for 1,100 SF seems like crack money regardless of the how much they've thrown into it.

The way they built a new front porch (looks very out of place BTW), I bet they are betting the view into Confed golf course is the selling point.

Unless something hugely structurally wrong with house, I can't see them spending more than $150K to get it into that state unless they are noobs and got royally ripped off.

May be risky but if they tear the whole thing down and built a 2000-3000sqft place on top, it may fetch a lot more given the view.

I love this one by Confed park:
https://www.honestdoor.com/property/...-nw-calgary-ab

I think they paid $1M basically for that lot to tear the old house down.

And back on topic, for primary, buy what you like and make sure you will be happy to stay there for a long time. Moving/changing is $. Don't bother timing it. Calgary's RE prices ain't going anywhere. There isn't any psychological/miss the boat rush like GTA.