[David A]

Wealth transfer already starting to drive Edmonton real estate sales

Zoocasa examines effect of wave of inheritances from boomers to their children.

edmontonjournal.com

Along the lines of this article here is a hypothetical but I feel fairly realistic example: say an older parent sells their home and then gives their two kids $200,000 each to buy real estate.

One lives in Edmonton and buys an older condo mortgage free, the other lives in a more expensive city (such as GVA or GTA) and buys a similar condo which of course costs much more, so they have mortgage payments of around $1,500/mo.

 

[Barnaby]

Most of the cheap lofts in DT that were selling for under replacement value are now off the market. I'm talking the Dub conversions mostly.

Still, getting a mortgage on a 1br in DT almost never works out better financially than renting and investing the difference in an S&P500 or global market fund.

I know everyone isn't rational, but I can't see the PBR market slowing significantly in Edmonton.

 

[Stevey_G]

Most of the cheap lofts in DT that were selling for under replacement value are now off the market. I'm talking the Dub conversions mostly.

Still, getting a mortgage on a 1br in DT almost never works out better financially than renting and investing the difference in an S&P500 or global market fund.

I know everyone isn't rational, but I can't see the PBR market slowing significantly in Edmonton.

It really depends on where people are in life and what their goals are. There's some merits beyond rate of return to owning a property or a second property that should be considered for people in different circumstances.

 

[David A]

It really depends on where people are in life and what their goals are. There's some merits beyond rate of return to owning a property or a second property that should be considered for people in different circumstances.

Yes, owing gives a person more freedom to modify or improve the place and more certainty budget wise (rent increases can be quite large and unexpected).

Also, I feel it is a mistake to assert something will work out financially by projecting past performance into the future. Good investment decisions for the future are to buy low and sell high. I would argue the S&P 500 is sure not low now.

 

[Stevey_G]

Yes, owing gives a person more freedom to modify or improve the place and more certainty budget wise (rent increases can be quite large and unexpected).

Also, I feel it is a mistake to assert something will work out financially by projecting past performance into the future. Good investment decisions for the future are to buy low and sell high. I would argue the S&P 500 is sure not low now.

Yup, we're in an everything bubble. I'm seeing great rates of returns on my other investments but I don't think 20% annually is sustainable when you see which companies dominate the S+P. Everything looks overvalued when you start looking at the fundamentals and that can bubble can quickly burst.

The nice thing about a condo as an investment is that it provides an income stream, has some tax benefits when operating at a loss (if you leverage your improvements and investments wisely), and at the end of the day will pay itself off and provide you affordable housing relative to a rental market that has historically shown volatile swings.

 

[kcantor]

Yes, owing gives a person more freedom to modify or improve the place and more certainty budget wise (rent increases can be quite large and unexpected).

Also, I feel it is a mistake to assert something will work out financially by projecting past performance into the future. Good investment decisions for the future are to buy low and sell high. I would argue the S&P 500 is sure not low now.

You’re actually better off buying investments on a regular (monthly or quarterly) basis than trying to “time the market”. If you look at long term trends, interim peaks have little impact and over time you will purchase just as much at low points as at high points.

 

[Gus Haynes]

^Time in the market > timing the market

 

[Stevey_G]

You’re actually better off buying investments on a regular (monthly or quarterly) basis than trying to “time the market”. If you look at long term trends, interim peaks have little impact and over time you will purchase just as much at low points as at high points.

When companies like Apple are growing their revenue by increasing the costs of their products beyond the reach of the target demographic it’s probably prudent to ask if the market can continue performing at the rate it has for the last 12 years. Especially when the S&P is dominated by a handful of companies that you can look at with the same skeptical lens.

I have a feeling that physical assets and capital are going to be important things to own in the next decade or two.

 

[Gronk!]

BoC delivers jumbo interest rate cut, signals slower pace of cuts moving forward

The Bank of Canada lowered its key interest rate by half a percentage point today but signalled a slower pace of rate cuts moving forward.

www.bnnbloomberg.ca

 

[Kosy123]

That should get some projects moving right? Interest rates have dropped significantly now.

 

[_urbanite]

Proposed class-action lawsuit accuses companies of price-fixing rents in Canada

Some big landlords named here (CAPREIT, RIOCAN, Dream) as well as an Edmonton company (Westcorp)

 

[David A]

When companies like Apple are growing their revenue by increasing the costs of their products beyond the reach of the target demographic it’s probably prudent to ask if the market can continue performing at the rate it has for the last 12 years. Especially when the S&P is dominated by a handful of companies that you can look at with the same skeptical lens.

I have a feeling that physical assets and capital are going to be important things to own in the next decade or two.

Obviously, it is very hard to predict the future and timing, but when things get out of whack, there tends to be some sort of reversion to the mean. This means assets that have under performed in the last decade or so may do better and those that have over performed may not do so well for a period of time.

 

[thommyjo]

Calgary has seen dozens of new high density projects and towers started in the last year. I really hope we can get a handful going asap. especially 103-108st. So much to fill in, we need 2+ projects a year at least.

 

[Munanyo]

Edmonton's real estate affordability expected to fuel growth in 2025

Overall, Edmonton's market is expected to favour sellers, a condition that is likely to be seen in many other markets across Canada.

edmontonjournal.com

It looks like 2025 is going to be a gangbusters year for Edmonton's real estate market. I'm really glad I bought earlier this year when I did as it was already a gong show when trying to find my first place to buy.

A ton of investors - both local and out of province - have been circling Edmonton for their next investment and it may look like it's already full steam ahead.

 

[Kosy123]

Yeah, there's a chance this could cool our rental market for 2025, especially if more people opt to buy homes and not get locked out of the housing market rather than rent.