My reason for not investing in Alberta real estate is the lack of affordability and the lack of sustainability. Alberta now has the second lowest housing affordability in the country it takes 45% of before tax income to buy a house. After tax is 77% leaving, the average consumer with only 23% left to buy transportation, clothing food and communication. Talk about being housepoor!
Also, a rental unit will not generate positive cash flow. Half of first time buyers require a 40 year mortgage to buy a house. Conventional oil and gas reserves will be well depleted before that point.
Inventory has been at record levels this year and I imagine there will be only higher inventory at this time next year due because it takes approximately 3 years to finance, design and build a lot of these projects. I imagine a lot of people that intended to flip condo's will be unable to sell and have to walk away from their deposit. There are 18000-20000 condo units approved or already under construction.
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