Real estate in Calgary - another bubble?

[I_H8_Crawford]

Originally Posted by Jay's Beagle

What does it cost to infill a lot like that? So if you take the ridiculous asking price out and just the cost for demo and infilling?

We looked at building using concrete, and the estimate was in the $900K range for 2000 sq ft + basement - that is like 1.5 years ago.

[you&me]

Originally Posted by I_H8_Crawford

We looked at building using concrete, and the estimate was in the $900K range for 2000 sq ft + basement - that is like 1.5 years ago.

$450psf for concrete construction doesn't sound too crazy (though I'm sure it is today)... Was this ICF, or... ?

[Yoho]

https://twitter.com/user/status/1512166776213323776

[DoubleF]

Originally Posted by I_H8_Crawford

We looked at building using concrete, and the estimate was in the $900K range for 2000 sq ft + basement - that is like 1.5 years ago.

Sounds about right. I heard costs between $550K to $850K about 2-4 years ago with selling prices around $750-950K for 1800-2200 sq ft.

IIRC, the major difference in cost depended on the land ownership and whether the plot of land was large enough for 2 units rather than just 1.

[woob]

Originally Posted by GoinAllTheWay

This has to be a joke. I mean, parts look quite nice, but other parts are an absolute train wreck. 1.3 mil????

If it's not a joke, I bet their neighbours are over the moon about this person selling.

[Macman]

I've been seeing a few new buildings coming available as rentals the last little while. That could be a good thing for people looking for a short term lease or even on going for a good price.

[tvp2003]

Originally Posted by Macman

I've been seeing a few new buildings coming available as rentals the last little while. That could be a good thing for people looking for a short term lease or even on going for a good price.

Have rents remained steady in Calgary? I imagine rental homes may have dropped in supply due to landlords selling; meanwhile I would guess rental condos are still relatively plentiful?

[Yoho]

https://twitter.com/user/status/1512780462535630853

[Jason14h]

5 year bond prices which are the number one indicator for 5 year fixed rates hit a 11 year high yesterday.

[Hemi-Cuda]

If you're looking for a tenant with mild hoarding issues and not so mild racist issues, then good news! "Super quick possession if assuming the tenant."

https://www.realtor.ca/real-estate/2...algary-bowness

[Cowboy89]

Originally Posted by Hemi-Cuda

If you're looking for a tenant with mild hoarding issues and not so mild racist issues, then good news! "Super quick possession if assuming the tenant."

https://www.realtor.ca/real-estate/2...algary-bowness

I saw this on reddit earlier today. Since then the realtor has removed the photo with the confederate flag in window but has not removed the picture of the bedroom with the nazi stromtropper sketch over the bed.

[The Fisher Account]

Edit: Nm

[Yoho]

https://twitter.com/user/status/1515107984959053824

[GullFoss]

Condo prices - especially for older condos - still look quite affordable. I just picked up a condo in Mission for sub-$200,000. At a 3% borrowing rate, taxes of $100 per month and condo fees at $400 per month including all utilities, the monthly carrying cost is $1,000.

[Calgary14]

Originally Posted by GullFoss

Condo prices - especially for older condos - still look quite affordable. I just picked up a condo in Mission for sub-$200,000. At a 3% borrowing rate, taxes of $100 per month and condo fees at $400 per month including all utilities, the monthly carrying cost is $1,000.

So the mortgage payment must be $500 then, which means either a large down payment or long amortization

[GullFoss]

The interest repayment on a mortgage is $500 per month. The rest is forced savings

[opendoor]

I guess it depends how you look at it. If it's an investment property, then the principal payments are definitely part of the ongoing costs (i.e. you need to come up with that money one way or another even if it's vacant). And obviously if the price drops those forced savings can evaporate (at least temporarily). On a 25 year 3% mortgage, a 10% drop in property value can wipe out the first 3.5-4 years of principal payments. With a 20% drop, your principal payments wouldn't cover the loss until year 8.

[Jason14h]

What do all these calculations look like at 6% - because that’s where we are going ��

[CorsiHockeyLeague]

Here's a question: is there anything being proposed to actually deal with the cost of BUILDING, as opposed to just buying property? Because that seems like it would help... maybe exempt new structures from sales tax, for example?

[GGG]

Originally Posted by CorsiHockeyLeague

Here's a question: is there anything being proposed to actually deal with the cost of BUILDING, as opposed to just buying property? Because that seems like it would help... maybe exempt new structures from sales tax, for example?

Is cost of construction a problem?

In theory the price of bare land will just fluctuate to soak up any construction cost changes.