Thoughts on investing in an oil town?

Question

Hi, everyone! I'm not sure if there is anyone who invests in canada here, but what are your views of investing in an oil town?  I work in grande prairie alberta, canada and I'm looking to start investing in rental properties here. I know oils taken a big hit lately but it's always come back according to history and statistics,  I know that greener energy is the future, but that will take multiple years, has anyone in an oil town felt the hit on their rental properties?

Akeem Young · Answer

Hi Stevie,

I live in Grande Prairie, and work in the oilfield. So I’m very familiar with the cycles here. Keep in mind that GP also has strong forestry and agricultural industries. And if you look at other metrics, the city continues to grow both in population and infrastructure. Roads continue to be widened, schools are being built, and neighbourhoods expanded. When I first moved here, there was 3 Starbucks...we now have 8. The new hospital, the largest Canadian Tire store in Canada, and continued improvements to major highways are all good signs. When they break ground on the new Methanol plant outside of town, I anticipate another influx of people coming to town. Grande Prairie is also a hub for the rural communities surrounding it.

I invest locally and would say there is a balance to find in the rental market. It depends on what your strategy is. I know a lot of people succeeding with crew houses. Personally, I’m seeing success with long term rentals as well as a short term rentals.No matter what strategy you choose to work with, I’d say there’s plenty of opportunity as long as you do your research and the numbers work!

Happy investing Stevie, hope you have a prosperous 2020. Feel free to connect any time!

Stevie Mayer · Answer

@Akeem Young, What a small world! Very excited to hear from a fellow investor here in grande prairie!

You're absolutely right, Thank you for your reply!