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4 things to know about Alberta Investment Properties!

Calgary Alberta Investment properties

For many folks looking from out of province, as well as lots of Albertans, Alberta investment properties can have a strong draw.

Why not? Alberta typically dominates national headlines with its massive influx of new residents, roaring economic strength, fair prices and constant expansion.

When it comes to investment properties in Alberta, there are a myriad of options available. From vacation rentals and affordable single-family homes, to productive farmland and serious commercial opportunities.

Today, let’s break down four key questions for Alberta investment properties:

  1. Is Alberta a good place to invest in real estate?
  2. How much down payment do you need for an investment property in Alberta?
  3. Are real estate prices dropping in Alberta?
  4. How can I invest in Alberta real estate?

If you’re considering an investment property in Alberta, feel free to reach out to me with any questions you may have. I’m always happy to help, am licensed as an Associate Broker, and have worked with buyers in several areas of Southern Alberta on all different types of properties!

1. Is Alberta a good place to invest in real estate?

Is Alberta a good place to invest in real estate? In my opinion, absolutely. Alberta has the highest per-capita GDP of all Canadian Provinces. Part of this is due to Alberta’s natural resource wealth and the high output of the mining, quarrying, and oil and gas extraction sector. In 2021, Alberta’s per capita GDP was $72,292. This is much higher compared to Ontario ($51.05K), BC ($50.67K) and Quebec ($45.70K).

Something I see coming up time and time again with clients and friends is that young people and families gravitate towards our strong province. Alberta fights to have a high standard of living, and the ability for its residents to have great homes at fair prices. Salaries are high and there are amazing job opportunities that are rare in other provinces. Alberta gained 60,000 residents in July-Sept 2022 alone!

With booming oil prices and a diversified, robust economy, Alberta is a major talent destination. And with fair prices and room to grow, real estate investors would be well-poised to capitalized on this continued growth.

Alberta population growth chart

2. How much down payment do you need for an investment property in Alberta?

How much down payment do you need for an investment property in Alberta? In most cases, 20% down payment is required. But, it could be as little as 5-10% down if you live there, and it has a legal suite.

When it comes to this question, the best thing you can do is speak with a local mortgage broker, advisor, or professional. Your lender will be lending you the money (I would if I could!), and ultimately, it is up to them to determine what is required and why. Lending rules are different between lenders, on properties above $1M, and regions like Canmore can be restrictive even further still.

Many nightly rental / Airbnb properties in Canmore, Dead Man’s Flats and Harvie Heights require a minimum of 35% downpayment as zoning restricts full-time living in most cases. In other locales, such as Cochrane, Calgary and area – this may not be the case. Commercial real estate can have different financial implications as well and would likely depend on the potential for the business or tenants in place.

3. Are real estate prices dropping in Alberta?

Are real estate prices dropping in Alberta? Overall – no. Calgary just set another new all-time high for benchmark prices due to steady gains and strong demand.

Now, Alberta is a BIG place – its actually bigger than the nation of France! With that amount of geography comes major swings in what happens in different areas. Many of the same rules that apply to other jurisdictions ring true here. Communities along major transportation corridors, growing suburbs of major cities, and desirable vacation markets consistently outperform.

Working with the right agent can give you insight into how a market has performed over time. Yes, prices may have grown – but will they continue to? Or is ground being broken on a project nearby that could supercharge the return of a certain area? These are all very important questions to ask prior to making any investment decision.

4. How can I invest in Alberta real estate?

How can You invest in Alberta real estate? Alberta has so many diverse options including residential, rentals, new builds, office, commercial, agri-business, oil-lease rental and so much more.

Looking at the backend of my MLS Broker system now, we even have 2 properties under $10,000. Yes – that’s correct (even if they are bare lots). For commercial, there are dozens of shops, restaurants and hotels in very reasonable price ranges. Looking at the rural side of things: I’ve seen massive agri-business listings that feature dozens of titles, water rights, oil and grazing rents, and annual incomes in the mid-six figures (though if I recall, that property was not cheap – around $15M).

When it comes to multifamily rentals, Calgary still has so many strong options! At the moment of this writing, I’m checking out a 4-plex near SAIT and the LRT for <$1M. With rental demand strong and growing in the coming years with increased immigration to Canada, long-term rentals are going to be an excellent place to be.

Alberta Investment Properties

If you’re looking for an investment property in Canada, you’d be hard pressed to find better value for money than in the province of Alberta. With the strongest economy and major projections for growth into the future, it would seem that the only way to go is up. People will need homes, tenants will need rentals, and businesses will need spaces.

How can you position yourself to serve these needs?

Connecting with the right real estate agent to guide you through the process is the best way to have boots on the ground service to ensure you’re protected through the buying process. I personally handle all of my clients, and am always available to provide cost-free, unbiased advice on any listings or properties you may be interested in.