Quote:
Originally Posted by _Q_
The real estate market in this city is totally messed up right now.
I have a 2 bedroom condo in Marda Loop that has lost like 20% of its value since I bought it 9 years ago. I want to buy a larger place for my family now, but the fact that I have no equity in my condo and the blazing hot market in single family or attached homes means that I'll probably be here for the foreseeable future.
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I feel for you in your situation.
We speak regularly to a real estate fund manager. His golden rule for real estate investing is you need to look at your purchase price compared to new supply when speaking about apartments, units, townhouses, condos, storage, student housing, etc. If you buy below the cost of new builds then you're in a good position. If you're in above, well, that is trouble.
Same goes for single detached homes. There are actually two assets in this situation, the house which depreciates (needs repairs and maintenance) and the land. The land in a place like Calgary where you have net migration and rising incomes (outside of commodity crashes) will appreciate. No land with the condo is where you get stuck. You'll need rental yields to climb without new supply coming on.