Calgary downtown condos

[chitu]

I would like to buy a downtown condo for investment sake.Any suggestions for a good condo located downtown?

What is a best option? 1 bed or 2 bed.Which has a better resale value? what do people like to rent? a one bed or 2 bedroom.
All yr valauble suggestions and gudance is welcome.

[cam_wmh]

If only there were a sub-forum for something like this...

[burn_this_city]

Condos are a pretty crappy investment.

[chitu]

guys,thanks for yr valable time in replying to my post.Pls do give yr opinions and ideas.

[Ducay]

is that you....Chiang?!

[burn_this_city]

Offshore money coming to ruin our real-estate market, not on my watch!

[squiggs96]

I find the best investments are the penthouse condos. They give lots of rooms so the renters feel more at home. You don't want them to damage your property, so the more space they have to move around in, the less chance your walls will get damaged. Another obvious reason for a penthouse is people need a view in a condo. Because they don't have a yard, they need to be able to see further. Would you rent something on the third floor where you can only see another building? No. You would only rent the top unit so you can see the most.

You will also get better qualified renters if you have a penthouse. Some people who rent out the third floor won't be able to come up with rent. If you rent out a penthouse, you have to have a good job, and thus will always have rent money.

Sine condos always increase by the same percentage in one building, you will make a bigger return off the penthouse, since it originally cost more. Why would you only want 10% of a third floor unit, when you can have 10% of a penthouse unit. The money will roll in during the investment and especially after you sell it.

Try and get at least a three bedroom, so you can have more people in it. More people equals more rent.

[chitu]

Originally Posted by squiggs96

I find the best investments are the penthouse condos. They give lots of rooms so the renters feel more at home. You don't want them to damage your property, so the more space they have to move around in, the less chance your walls will get damaged. Another obvious reason for a penthouse is people need a view in a condo. Because they don't have a yard, they need to be able to see further. Would you rent something on the third floor where you can only see another building? No. You would only rent the top unit so you can see the most.

You will also get better qualified renters if you have a penthouse. Some people who rent out the third floor won't be able to come up with rent. If you rent out a penthouse, you have to have a good job, and thus will always have rent money.

Sine condos always increase by the same percentage in one building, you will make a bigger return off the penthouse, since it originally cost more. Why would you only want 10% of a third floor unit, when you can have 10% of a penthouse unit. The money will roll in during the investment and especially after you sell it.

Try and get at least a three bedroom, so you can have more people in it. More people equals more rent.

Thanks a lot for yr sugggestion.Pent house is too expensive.Also,I doubt if people want to rent a penthouse.Am thinking more of a 1 bed or 2 bed.The condo fees are also high,the more the room,more we pay for condo fees.Any good buildings u would like to suggest? thanks once again for your valuble input.Appreciate it.

[SHOGUN]

Ni hao

[Calgary14]

Condos aren't that great of an investment, especially new ones. If you are after higher returns I would stick with single detached houses

[ranchlandsselling]

Buy ones along the elbow river, mission, etc. Make sure they have a distinct musty smell to them, if it's not musty but more bleach like that will do too. The closer to the river the better, renters like to be able to leave their places for months at a time, to enjoy the river.

[cam_wmh]

Originally Posted by Calgary14

Condos aren't that great of an investment, especially new ones. If you are after higher returns I would stick with single detached houses

In Detroit.

[chitu]

Originally Posted by Calgary14

Condos aren't that great of an investment, especially new ones. If you are after higher returns I would stick with single detached houses

Single detached houses in downtown would cost a bomb.

[Bunk]

I don't think condos or any type of housing that is rentable is a bad investment at all. If you can cover the carrying cost with rent, it's a great return over time. Someone else paying the mortgage.

[Northendzone]

I think you should familiarize yourself with the space bar........it is the long oblong thing at the bottom of the keyboard.

Go for a two bedroom place in the belt line. If it doesn't work out come back here for further advice.

[4X4]

Well isn't this cute. Bertuzzied has another other other account. And just when I thought he was the Big Fat wallet. Oh wait, now there's Calgary14 with a wallet avatar. And another fake ###### that "can't spell" yet asks "intelligent" questions.

Dude, you have a personality disorder or something.

[ranchlandsselling]

Originally Posted by Bunk

I don't think condos or any type of housing that is rentable is a bad investment at all. If you can cover the carrying cost with rent, it's a great return over time. Someone else paying the mortgage.

It's all a cost benefit/opportunity cost equation.

20% down, taxes, R&M, condo fees, insurance, time invested, lost rent (tenants flake out) less monthly rent.

Let's say you're spending $350k
You need $70k down
Condo fees of $250
Taxes of $150
Insurance $60
R&M $200 (yes, you do spend at least this much over time)
Mortgage $1,382

Total $2,042

So, according to CMHC's average 1 and 2 bedroom rents of $1,130 and $1,357 for downtown.... I'm thinking it's a bit of a waste of money. But, lets say your place is nicer and you get $1,500 per month. Great, you're still paying $500 per month over your mortgage or $6,000 per year. Sounds like an awful start. But let's say your place is really nice so it's $1,900 per month. Still, total headache and you've tied up $70k over the next 5 years to some ###### who likely doesn't give a crap about your place.

But, let's say you buy some shares of boardwalk and earn 3.4% over the next 12 months and not have to worry about managing a stupid apartment condo.
On top of returning a nice dividend boardwalk could also have some capital gains. $2,600 a year, or a permanent headache. That you're trapped in for 5 years. But wait, you're going to have to pay $10,000 to sell the place. vs. $9.99 for the boardwalk shares.

Boardwalk has also more than doubled over the last 5 years. I don't think buying a condo 5-years ago would have yielded anything close to that type of return.

Plenty of other options. The boardwalk one is just easy because I'd bet they're more competent property managers than the average person who decides to buy a condo. Also you get to enjoy the benefits of diversification, economies of scale, and experience.

Bunk did mention covering the carrying costs - which buying now, isn't easy. Nor does it account for and lack of capital growth in a time when many think housing prices are frothy, Canadian economy is looking weak and regardless that we're in a low rate environment with little risk of rates jumping just yet, we're still tied somewhat to the US bond market and whatever else the Government does to impact housing. I'd be a little reluctant jumping in hoping to have positive cash flow and capital gains.

[Calgary14]

The only upside is that they are relatively hands-off compared to a house (no maintenance required, or very little).

But the condo fees and special assessments can be an investment killer

[JD]

Originally Posted by ranchlandsselling

So, according to CMHC's average 1 and 2 bedroom rents of $1,130 and $1,357 for downtown....

Great post, but just to nitpick a little, I think those rental rates are too low. My Inglewood condo is worth roughly $350k and I think I could get somewhere around $2500/month for it in today's market. Whether that is sustainable or not remains to be seen. The other factor you're leaving out is appreciation of the real estate. Obviously it's been higher over recent years than what one should normally expect, but in general, in Calgary, you can expect your property to appreciate.

It's all subject to the individual situation.

[lorenavedon]

Mod edit: not appropriate.