Alberta Is Still The Best For Real Estate

According to a new report, Alberta continues to top the rankings in real estate markets across Canada.

A new study, ‘Emerging Trends in Real Estate 2015’, from the Urban Land Institute and PwC pegs Edmonton and Calgary as the top two cities in Canada for real estate.

Strong job creation, continued urbanization, downtown development and population growth are among the reasons why Calgary and Edmonton took the top spots.

Data also shows 27 per cent of the Canadian population as Millennials and 27 per cent as Baby Boomers. This suggests the real estate market will be heavily active in the near future.

Boomers’ housing needs are changing, and not only are Generation Y migrating and buying homes, Generation Z is also on the verge of becoming a massive home buying and real estate investment force as well. According to a recent Wakefield Research study, Generation Z is incredibly bullish on real estate ownership, with over 80 per cent saying it is critical to them.

These factors, as well as the side effects of more global economic and real estate trends are colliding to provide for more fuel to the growth of Alberta’s top cities. When compounded, many may find their investment property performances in Alberta exceptional.

Developments Boosting Canadian Housing Market

The latest data and commentary from the Canada Mortgage and Housing Corp. (CMHC) reveals an optimistic forecast for construction growth through 2015 and beyond. Canada’s housing agency anticipates 189,000 new housing starts in 2015.

Obviously much of this investment and construction will go to Alberta’s leading cities Calgary and Edmonton. The Urban Land Institute states these two destinations hold the best growth for real estate in Canada through 2015.

While Calgary and Edmonton continue fighting to be the most attractive and top performing real estate market in Canada, Edmonton seems to be coming out ahead. With the city’s current value proposition and velocity of growth, it looks to be leaving Calgary behind.

Edmonton has been attracting residents and businesses alike. Where the residential properties and small businesses go, demand for retail space follows. So does better performance of retail properties.

However, recent reports of Calgary’s steaming real estate market, in both new developments and resale tells us, this fight for Canada’s leading real estate market is far from over.

Opening Up Canada to Real Estate Global Investments

Global investment in real estate is rising rapidly and with continued growth in the construction sector, property investors can expect increased returns.

Global real estate investment has risen by almost 20 per cent. Analysts not only expect new money to be invested, but they also believe large portfolios will be shifting as well.

According to The Globe and Mail, Alberta’s new leadership is pressing the federal government for new clarity and rule reform to aid the province in attracting more international investments.

In particular, those pushing for the changes want to open the doors wider for wealthy Chinese investors and firms. By doing so, Canada would draw attention from the likes of the largest sovereign fund in the world.

Until then, the Alberta market is open for smaller private and individual investors to capitalize on value opportunities in prime property.

Investment Strategies

The world’s wealthiest investment gurus and billionaires are becoming increasingly transparent about their investment strategies. Wealthy global billionaires such as Warren Buffett, Carl Icahn and Tony Robbins are increasingly opening up about their investment secrets in new books, blogs and podcasts as they seek to share their success and help others achieve similar results in their portfolios.

Here are some areas they focus on:

Wealth Preservation

There’s a saying “big risk, big reward”, however, these risks should always be calculated. Wealth preservation and the return of investment capital is a priority, above return on investment.

This can explain why strongholds like London, Hong Kong, New York City and San Francisco continue to draw global investments even though yields have been poor lately.

Taxes

Paying close attention to taxes is important, especially minimizing tax liabilities. For example Amazon founder, Jeff Bezos has a map prohibiting staff from entering certain regions to prevent triggering new tax liabilities.

While Mr. Bezos and Amazon’s route might be a bit extreme for the average private investor, for most it can still mean 25 to 50 per cent difference in net returns, income and wealth. The difference becomes more significant overtime, as gains or losses are compounded.

Passive Income

Time is limited. No one wants to be tied to their investments, while their friends and family are having fun. Hence choosing investments with passive income can be beneficial.

Diversification

Diversification brings together the best of the above. It helps protect wealth further and ensures the consistency of investment returns and ongoing income.