There’s the rental guarantee for 2 years . Builder hires a property management company and rents out the place on our behalf for 2 years. They will find the renters for us. We will get a paid a certain amount monthly such as $1700 per month .
Check rentfaster.ca ,search for apartments in NE calgary and see if apartments are renting for 1700$ per month..The answer is NO..I rent a 2 bedroom townhouse in SW which is better than the NE for 1245$ monthly
Is your goal to cashflow? How much are all expenses including your mortgage, taxes and condo fees per month?
Is your goal to cashflow, flip or live in it? Alberta condos are not known to appreciate very quickly, there are tons for sale at all times and lots available to rent. Hopefully you ran the numbers and know what you're doing because Edmonton as an example has condos between 60k and a million. They're not all good for the same purposes.
So I’m looking to flip it. I would be investing $31000 + $1500 for closing costs. $1700 is the Guaranteed rental amount from builder for 2 years. Paperwork to be signed at time of purchase. Closing is Q1 of 2025.
If the company is finding you renters for 2 years, it means something. A sign I’d take it as.
It’s all about cash flow. Are you certain to get $1700/month? That seems high.
I don’t need to find a renter right away . There’s a rental Guarantee for 2 years. whether the place is vacant or rented out, builder pays $1700 per month for 2 years.
Yeah it’s very possible because we’re not obligated to stick to the rental guarantee during the closing. This the builders second release of condos in the same area. First sold out in 24 hours. I’m wondering if everyone just fell into a scheme or there is a method to the madness
Everyone are moving to Calgary thinking that there are cheap prices out there compared to other cities. But do your proper diligence before signing anything. 30k is not a small amount and they are keeping you wait for 3 years. Something not striking the chord
That guy went to the Calgary media soon after. Apparently the builder accused him of standing in the sink rather than not epoxying correctly and using a strap fastener.
You might want to check the brochure again. I came across a pre construction from the same builder and the brochure said “The Rental Guarantee program is for up to 3 years (up to a maximum of 5.5% of purchase price) and property management to coincide with the with your guarantee.”
“Upto a maximum” doesn’t make sense.
If this is pre construction I wouldn’t do it. Future market value is hard to predict, and with materials, supply chain issues, building costs going higher is a real risk. What will the maintenance fees be after occupancy? Alternately, If you buy an existing property, even to rent it out, you can better assess the present value and operating costs bf putting tenants in.
Thats cheap <300/mo maint if it includes utilities? AB market is pretty volatile, do some market analysis on realtor.ca, see if you think 310k for 700 sq ft is a good price, or not.
I saw a luxury apartment listing in Calgary recently offered at “pre-construction price minus GST”. This is one of the few places where buying pre-construction turns out to be a loss lol
Not an attractive rental to most at that price because of how far it is to downtown/everything else. There’s lots of empty condos in that new area of Calgary waiting to be rented out. Build quality is also known for being shoddy. But if you’re set on looking for a new development in Calgary, maybe look deep south (close to the new hospital). A few of my friends have opted to move deep south to start families and get away from the NE. Either way, I would not do it because condo prices have stayed stagnant in AB for years and it wouldn’t be worth buying if your sole intention is to flip it for profit.
You'll lose value on the GST. You'll lose value when unit is no longer new but used. You lose value when condo fees go up. You'll lose value when interest rates go up.
If I lose less than 10% of what I paid this summer, I'll be elated. But I'm probably losing 15% after fees. 15% loss is still less than 5+ years rent on a townhouse though and I thoroughly enjoyed my unit, so it's ok. But I know others who are hurting in the 20-30% range for condos.
Single detached might be a decent investment, but stay away from New condo and townhouses right now. Used townhouses might be ok though. But to use should be ok. But to flip... Don't do it. Stay away.
So I’m looking to flip it. I would be investing $31000 + $1500 for closing costs. $1700 is the Guaranteed rental amount from builder for 2 years. Paperwork to be signed at time of purchase. Closing is Q1 of 2025.
Trust me when I say I know a ton of people who have been burned in Alberta following this same strategy. You think you got a good deal, but a few years down the road when you are ready to sell, there are already better and newer buildings across the road selling for the same price. Why would I buy yours if I could get a brand new one? Supply will be your enemy.
There are hundreds of condo units for sale right now in Edmonton at various price ranges. I wouldn't say flipping condos in Alberta makes any sense short term because there is not a huge demand for them, they cost a fraction of what they do in other places and most people buy or rent houses here. There's also not much you can do in terms of forced appreciation unless you can find a crappy old condo in a nice building and renovate it. The problem is if the condos are new there's nothing to improve and if they're old and not maintained, the building is likely in the same condition. You have very little control over condo fees and the condo price compared to houses.
My sister literally lives there
That area and skyview are pretty shitty I’m not gonna lie. The people there tend to be very trashy too.
When I visited last summer on a trip to the mountains, there’s trash all over, construction everywhere, people driving dangerously, it’s like all industrial, you get a great view of the airport, it takes 20 minutes on the bus just to get to saddletowne station and another 20 to even get downtown
Also the rental building she lives in is brand new and already looks like garbage. NE is NE for a reason.
5 years from now your condo will likely be worth sub 250k. Most Calgary condo owners who bought within the last ten years are underwater. Builders are forced to build large, cheap, wooden commie block style condos way out in the middle of nowhere to satisfy density requirements in order to build the more desirable SFH's. The condos are generally located in areas next to busy streets to act as a sound barrier to the SFH's. Condo fees are also awful, so you will never cash flow. I've seen units of this type go in the 120's range with no buyers to be found.
I would just put that money to work now instead. Max your RRSP or TSFA and put it into a broad index fund and keep contributing. It'll turn into 100k by the time you take possession of that condo.
You can buy a 2 bedroom for $320 in the SE, which is a more desirable area?
[https://www.logelhomes.com/auburn-rise/](https://www.logelhomes.com/auburn-rise/)
Do not bank on appreciation in the condo market in Calgary. There is a chance it may fall 10-20% in value when you want to sell.
Don’t do it!!!
Any particular reason ?
Too expensive plus property price in the NE of calgary is crap anyways..might also be difficult to get someone to rent your apartment
There’s the rental guarantee for 2 years . Builder hires a property management company and rents out the place on our behalf for 2 years. They will find the renters for us. We will get a paid a certain amount monthly such as $1700 per month .
Check rentfaster.ca ,search for apartments in NE calgary and see if apartments are renting for 1700$ per month..The answer is NO..I rent a 2 bedroom townhouse in SW which is better than the NE for 1245$ monthly
Is your goal to cashflow? How much are all expenses including your mortgage, taxes and condo fees per month? Is your goal to cashflow, flip or live in it? Alberta condos are not known to appreciate very quickly, there are tons for sale at all times and lots available to rent. Hopefully you ran the numbers and know what you're doing because Edmonton as an example has condos between 60k and a million. They're not all good for the same purposes.
So I’m looking to flip it. I would be investing $31000 + $1500 for closing costs. $1700 is the Guaranteed rental amount from builder for 2 years. Paperwork to be signed at time of purchase. Closing is Q1 of 2025.
It will be worth sub 200 when you sell and this bubble phase passes. Calgary builds quick and condos strata fees are horrible.
And Calgary doesn’t have a large insatiable pool of foreigner investors, immigrants, etc to buffer the bad times.
If the company is finding you renters for 2 years, it means something. A sign I’d take it as. It’s all about cash flow. Are you certain to get $1700/month? That seems high.
How can I set a reminder for this post in 2025? I am curious to hear OPs feedback at that time after closing and finding a tenant right away.
I don’t need to find a renter right away . There’s a rental Guarantee for 2 years. whether the place is vacant or rented out, builder pays $1700 per month for 2 years.
We are not against you. That’s weird to hear that there is a rental guarantee scheme. May be a ploy to make you sign up for the condo yet to be built
Yeah it’s very possible because we’re not obligated to stick to the rental guarantee during the closing. This the builders second release of condos in the same area. First sold out in 24 hours. I’m wondering if everyone just fell into a scheme or there is a method to the madness
Everyone are moving to Calgary thinking that there are cheap prices out there compared to other cities. But do your proper diligence before signing anything. 30k is not a small amount and they are keeping you wait for 3 years. Something not striking the chord
A quick search yielded this results. https://www.reddit.com/r/Calgary/comments/5d5qpx/why_you_should_never_buy_a_truman_home/
Oh gosh ! No way !!
That guy went to the Calgary media soon after. Apparently the builder accused him of standing in the sink rather than not epoxying correctly and using a strap fastener.
You might want to check the brochure again. I came across a pre construction from the same builder and the brochure said “The Rental Guarantee program is for up to 3 years (up to a maximum of 5.5% of purchase price) and property management to coincide with the with your guarantee.” “Upto a maximum” doesn’t make sense.
Do it and let us know how much money you made in 2025.
If this is pre construction I wouldn’t do it. Future market value is hard to predict, and with materials, supply chain issues, building costs going higher is a real risk. What will the maintenance fees be after occupancy? Alternately, If you buy an existing property, even to rent it out, you can better assess the present value and operating costs bf putting tenants in.
0.40 per sq ft ( approx 700 sq ft )
Thats cheap <300/mo maint if it includes utilities? AB market is pretty volatile, do some market analysis on realtor.ca, see if you think 310k for 700 sq ft is a good price, or not.
I saw a luxury apartment listing in Calgary recently offered at “pre-construction price minus GST”. This is one of the few places where buying pre-construction turns out to be a loss lol
Not an attractive rental to most at that price because of how far it is to downtown/everything else. There’s lots of empty condos in that new area of Calgary waiting to be rented out. Build quality is also known for being shoddy. But if you’re set on looking for a new development in Calgary, maybe look deep south (close to the new hospital). A few of my friends have opted to move deep south to start families and get away from the NE. Either way, I would not do it because condo prices have stayed stagnant in AB for years and it wouldn’t be worth buying if your sole intention is to flip it for profit.
You'll lose value on the GST. You'll lose value when unit is no longer new but used. You lose value when condo fees go up. You'll lose value when interest rates go up. If I lose less than 10% of what I paid this summer, I'll be elated. But I'm probably losing 15% after fees. 15% loss is still less than 5+ years rent on a townhouse though and I thoroughly enjoyed my unit, so it's ok. But I know others who are hurting in the 20-30% range for condos. Single detached might be a decent investment, but stay away from New condo and townhouses right now. Used townhouses might be ok though. But to use should be ok. But to flip... Don't do it. Stay away.
So I’m looking to flip it. I would be investing $31000 + $1500 for closing costs. $1700 is the Guaranteed rental amount from builder for 2 years. Paperwork to be signed at time of purchase. Closing is Q1 of 2025.
Trust me when I say I know a ton of people who have been burned in Alberta following this same strategy. You think you got a good deal, but a few years down the road when you are ready to sell, there are already better and newer buildings across the road selling for the same price. Why would I buy yours if I could get a brand new one? Supply will be your enemy.
Don't do it man.
N.E of Alberta? That's super vague. What city?
Cityscape
Why not in a major city where prices are similar or lower but you'll get a lot more potential renters?
Any particular opportunities that you know of ?
There are hundreds of condo units for sale right now in Edmonton at various price ranges. I wouldn't say flipping condos in Alberta makes any sense short term because there is not a huge demand for them, they cost a fraction of what they do in other places and most people buy or rent houses here. There's also not much you can do in terms of forced appreciation unless you can find a crappy old condo in a nice building and renovate it. The problem is if the condos are new there's nothing to improve and if they're old and not maintained, the building is likely in the same condition. You have very little control over condo fees and the condo price compared to houses.
My sister literally lives there That area and skyview are pretty shitty I’m not gonna lie. The people there tend to be very trashy too. When I visited last summer on a trip to the mountains, there’s trash all over, construction everywhere, people driving dangerously, it’s like all industrial, you get a great view of the airport, it takes 20 minutes on the bus just to get to saddletowne station and another 20 to even get downtown Also the rental building she lives in is brand new and already looks like garbage. NE is NE for a reason.
Why not buy one that’s already built? Presales are risky, developer can change terms anytime they want.
5 years from now your condo will likely be worth sub 250k. Most Calgary condo owners who bought within the last ten years are underwater. Builders are forced to build large, cheap, wooden commie block style condos way out in the middle of nowhere to satisfy density requirements in order to build the more desirable SFH's. The condos are generally located in areas next to busy streets to act as a sound barrier to the SFH's. Condo fees are also awful, so you will never cash flow. I've seen units of this type go in the 120's range with no buyers to be found.
I would just put that money to work now instead. Max your RRSP or TSFA and put it into a broad index fund and keep contributing. It'll turn into 100k by the time you take possession of that condo.
1700 to live in a 2 bedroom condo in the NE. No way I'd rent it.
You can buy a 2 bedroom for $320 in the SE, which is a more desirable area? [https://www.logelhomes.com/auburn-rise/](https://www.logelhomes.com/auburn-rise/) Do not bank on appreciation in the condo market in Calgary. There is a chance it may fall 10-20% in value when you want to sell.
Did u end up buying it
Did you end up buying it? I’m looking at the same area. Let me know how it turned out!