Hope everyone is staying safe! I am a big fan of BP and glad to see a strong presence of Canadian investors here.
I am a rental property investor from Toronto. With price appreciation in GTA over the last few years, I am a bit hesitant to add another GTA property at this point in time. I started looking elsewhere and Calgary caught my attention for 1) prices appear less inflated, 2) relatively large population base, 3) more attractive Cap Rate, 4) I grew up in Calgary and still have family there;
I would be interested to hear from all the Calgary investors on your experience/view, and a few questions below. Thanks!
1. What's the typical Cap Rate that you look for in SFH & Multiplex in Calgary?
2. What type of vacancy rate and maintenance rate do you budget for when assessing a rental property in Calgary?
3. Price appreciation seems quite stagnant over the last few years, how do you balance this in your investment decision?
Calgary has seen a softening of their rental market with increased vacancy rates, especially in the downtown core. There are opportunities to be had in any market, though, especially if appreciation isn't you primary concern. Per your point #3, invest for cash flow and accept appreciation as a bonus.
Thanks for the info Chris, will definitely check out the CMHC report!