Hello Everyone,
I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.
The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k. The monthly mortgage payment would be $2500+ 150 (property tax)
2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.
Is anyone doing something similar?
Or is there any better idea than this? I am open to exploring more options.
Any advice would be helpful. Thanks.
Hi Jai, great choice considering Calgary. Realistically, to buy a detached property with a basement suite that is in somewhat decent condition, and not in an undesirable part of the city, you're looking at a price point starting in the low 500s (520K-ish and upwards of $650K for turnkey renovated older properties with legal suites). Typically with a detached property with a basement suite, and a garage, you might be able to break even, perhaps even cashflow a little with today's interest rates but it is unlikely for cashflow to be $500-1000 per month. New build detached with purpose built legal suites start close to $700K and up.
Now what is more feasible with that budget is a semi-detached (not a strata) in an average suburban neighbourhood. Being a semi-detached, it comes with a lower price point especially on the 60s-80s built properties (which we have alot of in Calgary). They are typically anywhere from the mid 350s up to $550K-ish for premium locations. Despite having a smaller overall price point, the rents are usually similar to a detached property, which means the cashflow is better overall. There's pros and cons to each property type, and it also comes down to your holding period etc.
I'm an investor-focused realtor with Calgary Real Estate Investor Hub. Would be happy to discuss things with you!
Hello Everyone,
I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.
The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k. The monthly mortgage payment would be $2500+ 150 (property tax)
2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.
Is anyone doing something similar?
Or is there any better idea than this? I am open to exploring more options.
Any advice would be helpful. Thanks.
I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is.
Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.
So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)
You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.
Hello Everyone,
I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.
The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k. The monthly mortgage payment would be $2500+ 150 (property tax)
2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.
Is anyone doing something similar?
Or is there any better idea than this? I am open to exploring more options.
Any advice would be helpful. Thanks.
I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is.
Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.
So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)
You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.
Absolutely @Stevo Sun!!! And you didn't even added the other expenses as vacancy, R&M, Capex... that expected cashflow for that price range of property seems, to me, very unrealistic for today's Calgary market, for long term rent strategy at least.
I have places in BC and AB and live in AB. Be aware of some of the differences between the provinces. BC closing costs are a lot higher with the property transfer tax and then there are rent caps. AB insurance and property taxes are higher. I'm surprised if on a place worth $450K, they'd only be $2800 a year. I'm south of Calgary and our property taxes are about 0.8% of the assessed value of the home-so they'd be closer to $4000 a year.
I have places in BC and AB and live in AB. Be aware of some of the differences between the provinces. BC closing costs are a lot higher with the property transfer tax and then there are rent caps. AB insurance and property taxes are higher. I'm surprised if on a place worth $450K, they'd only be $2800 a year. I'm south of Calgary and our property taxes are about 0.8% of the assessed value of the home-so they'd be closer to $4000 a year.
I'm in Calgary and we have a calculator haha. https://www.calgary.ca/property-owners/taxes/calculator.html
Calgary current rate is about 0.65%.
Hi Jai, great choice considering Calgary. Realistically, to buy a detached property with a basement suite that is in somewhat decent condition, and not in an undesirable part of the city, you're looking at a price point starting in the low 500s (520K-ish and upwards of $650K for turnkey renovated older properties with legal suites). Typically with a detached property with a basement suite, and a garage, you might be able to break even, perhaps even cashflow a little with today's interest rates but it is unlikely for cashflow to be $500-1000 per month. New build detached with purpose built legal suites start close to $700K and up.
Now what is more feasible with that budget is a semi-detached (not a strata) in an average suburban neighbourhood. Being a semi-detached, it comes with a lower price point especially on the 60s-80s built properties (which we have alot of in Calgary). They are typically anywhere from the mid 350s up to $550K-ish for premium locations. Despite having a smaller overall price point, the rents are usually similar to a detached property, which means the cashflow is better overall. There's pros and cons to each property type, and it also comes down to your holding period etc.
I'm an investor-focused realtor with Calgary Real Estate Investor Hub. Would be happy to discuss things with you!
Hello Everyone,
I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.
The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k. The monthly mortgage payment would be $2500+ 150 (property tax)
2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.
Is anyone doing something similar?
Or is there any better idea than this? I am open to exploring more options.
Any advice would be helpful. Thanks.
I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is.
Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.
So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)
You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.
A $500k semi-detached with a basement suite will generate much more than $2500 a month. Especially if it has a detached garage those rents will be in the $3000's depending on condition