Looking to invest in Alberta Property!!!

[Bowyer60]

I'm in a bit of a pickle and would appreciate any advice you can provide. What are the risks in investing in Alberta area? I want to invest in some good property there but I am not sure how to go about it. I have seen the ads of many real estate investment experts on that particular area but as I am new to the area I would like to have advices from you people to help me get a better choice.


Any suggestions would be appreciated!!!

[tjsailing]

Hi there - having just moved from Alberta and still trying to sell a house there, I would say to be cautious with the market right now. Sometime last May, the tap just shut off and the crazy high prices that Alberta had been experiencing just kind of dried up. If you are able to find something for a good bargain and sit on it for a year or so, you may do okay. However, the market is not supporting the quick purchases and flips that it was a year and a half ago.

I am noticing that prices are significantly lower than they were during the crazy boom - in Sherwood Park, where I am selling, there wasn't a house under $400,000 for awhile, now there are a lot under $400,000 - so if you bought now it is possible that it would appreciate back to where it was last year, but not in the immediate future.

Anyway - real estate investment can always be tricky - you need to research your market and be sure that you can absorb the risks.

Good luck!

[John Cooper]

I would mirror Tj's sentiments. Particulalry the advice about being financially able to absorb the risks. Theres nothing "quick and easy" about real estate investing despite the multitude of motivational tapes out there preaching otherwise.

You need to know what your doing and your ability to manage your own cash flow is SO critical. There are many success stories floating around right now, but most of these are becuase of hot markets, not investment gimmicks. There are also a lot of sad stories of old out there that arent as publicized as the success stories. Oddly enough books about 'Real Estate Financial Disasters" dont sell as well as 'Get Rich Fast with Real Estate'.

That said, Im sure your well aware of the risks.

[albertabluesky]

Oil & Gas investment has stagnated somewhat in Alberta. Share prices are flat, and that means companies can't go to the market & raise money. The spin off effect of that is that the companies do less drilling, etc, which is a huge stimulus for our economy. I believe this is due to the impending 'New Royalty Regime' which will see Provincial Royalties increase dramatically in 2009...and even more dramatically (the rate increases) when commodity prices increase. So despite record prices for oil and very decent prices for nat gas, it's not the good times we enjoyed in 2005 when prices went up...everyone is hunkering down, waiting to see the impact of the royalty increase...this could last well into Q2 of 2009....

[Shadow Wolf]

Luckily by 2009 I'll no longer be affected by what goes on in Alberta!

[albertabluesky]

Luckily by 2009 I'll no longer be affected by what goes on in Alberta!

You would think so....but Van Isle benefits from our 'prosperity'...