Edmonton’s actual property market is more and more on the radar of traders

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Homes here offer significant value as they can generate cash flow on a monthly basis

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Joel Schlesinger for the Edmonton Journal Edmonton rental property offers an opportunity to earn cash flow while covering monthly expenses. Edmonton rental property offers an opportunity to earn cash flow while covering monthly expenses. Photo to file /Postal media

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The Edmonton real estate market has warmed since the lockdown ended last spring, and investors are starting to watch the market for its value compared to larger Canadian cities, according to two experts.

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Seasoned real estate investors Patrick Francey and JG Francoeur of the Real Estate Investment Network (REIN) recently spoke to the Edmonton Journal about investment opportunities in the city’s residential real estate.

Both agree that the capital is a significant value opportunity where shoppers can get more for their dollar than other markets.

“We were very optimistic about Edmonton … at least last year, and even before that, before the pandemic, we saw a recovery in Alberta’s economy, which in turn offered great investment opportunities in real estate,” said Francey, CEO of REIN.

He also notes that the Edmonton market is not as advanced as Calgary.

“But we’re looking at what’s going on in Calgary and we see the future of the Edmonton market.”

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Both cities experienced a multi-year decline in property prices due to the downturn in the oil and gas industries. Calgary, he adds, is more advanced in its price recovery and has attracted more attention from investors looking to buy single-family homes, townhouses, condos and maisonettes at significantly lower costs than most parts of British Columbia and Ontario.

Right now, Edmonton offers slightly better options, as the average price of a house in the city is around $ 401,000 versus about $ 441,000 in Calgary, according to the Canadian Real Estate Association figures.

“What you can find relatively easily in Edmonton compared to British Columbia and Ontario is real estate that generates cash flow,” he says.

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“So if your property is cash-flowing over the long term, you don’t have to rely so much on capital appreciation to make a profitable investment.”

He notes that investors can expect to generate positive cash flow of about $ 300 to $ 700 per month after the cost of monthly rent, based on the average home price in the city. At the same time, investors can expect to build equity with every mortgage payment, amid a market where house prices and rents are rising.

“In short, Edmonton is for sale compared to the other major cities in Canada,” said John Carter, real estate agent at Re / Max River City.

He adds that there has recently been an increase in the number of BC and Ontario buyers looking to invest in the city’s market “because the returns are significantly better, sometimes twice as high”.

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For example, in Edmonton, investors can buy a condo for $ 200,000 and rent it for about $ 1,200 a month. In Toronto, a similar condo would cost “at least $ 500,000” and rent for about $ 1,800 a month, he says.

Francoeur also notes that the Alberta market has more room for growth compared to BC and Ontario which are near or at their peak.

“The main thing is that the Alberta market has a lot more room for growth,” he says. “Second, the real estate’s cash flow is better than anywhere else in the country.”

Francoeur adds that rents have room for growth as well, as more demand is expected in the coming months with a return to normal, fueling employment growth and migration.

“The big centers are in an opposite location,” he says. “Rents and values ​​are at an all-time high, making it harder for investors to get it up and running.”

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