This message comes from the hotel lobby of The Chateau Lacombe in Downtown Edmonton. Some like to go away and lie on a beach. Others go and have an adventure in Vegas. For my mini vacation this summer, I went to Edmonton to learn more about how to buy and run multi-unit residential buildings, which is a fancy name for apartment buildings. I find personally that seminars and conventions energize me and this was certainly no exception. I always gain a few more gems of information out of the process…and reaffirm certain actions one knows one is supposed to do and somehow always forget, or put off.
While in Edmonton and learning about buying multi-family buildings, I thought I would look at few… When I was talking to someone about this idea, they asked, “Why Edmonton? Why not look at places around where you live?” There are a few reasons for this:
1) They don’t have the Property Purchase Tax (PPT) in Alberta which we have in B.C. PPT is a cost element added to the investment. On a $500,000 property that would be PPT of $6,000 that the Provincial Government takes.
2) Edmonton is the provincial capital and that helps stabilize jobs when the economy is struggling.
3) Edmonton is close to the oil fields and while oil is not in huge demand at the moment, when it is, a savvy investor will be in a prime situation to profit from it.
4) Edmonton is currently experiencing a “Buyers Market” which means that they have more listings than buyers, so buyers can pick and choose what they would like to buy and typically buy at a lower price. (Who doesn’t like buying things on sale?)
5) The province of Alberta does not have the same rent control as BC. Landlords may raise the rents any amount, once a year…unlike BC with rent controls. This means that with the boom and bust of the rental market in Alberta, there may be a bit more volatility (as opposed to the overall, long-term, slow and steady climb typical in BC) but you can capitalize on demand when it is there.
6) Finally, compared to Vancouver prices, Edmonton is cheap. Your investment dollars go farther!
So if you are interested in an adventure such as mine and would like to learn about doing something like this let me know and I would be more than happy to share my experience.