Calgary on world's 'radar'
City praised as economic powerhouse
May 15, 2010 Kathy McCormick, Calgary Herald
Calgary and Edmonton are the places to invest, says a leading real estate expert.
Despite the strong real estate markets in Toronto and Vancouver, those cities can't beat the hot spots in Alberta, says author Don Campbell.
He recently released his latest book, 81 Financial and Tax Tips for the Canadian Real Estate Investor.
"There are not the same fundamentals in downtown Vancouver and Toronto as there are in Edmonton and Calgary," says Campbell. "If you take the emotion out of it and stick to the bare bones facts of what is driving the market, Calgary and Edmonton over the next five years have one of the strongest economies -- in-migration and job creation -- in North America."
In-migration refers to the movement of people to a given place from elsewhere.
While the market cooled fairly dramatically here last year, it is understandable why, says Campbell.
"Alberta had a bigger boom by 20 to 25 per cent and the pendulum was so strong on the seller side that people over-reacted," he says.
"Now it's gone too far the other way on the buyers' side. But that's changing to a more consistent, strong, balanced market."
And that is the market that attracts the right kind of investors, he says.
Although Campbell doesn't sell real estate, he is a real estate researcher, personal investor, and president of the Real Estate Investment Network (REIN).
The group contains more than 3,000 Canadian investors whose holdings in Canadian real estate top $3.1 billion.
"Builders in Alberta stopped quickly when the market softened and they managed their expectations," says Campbell.
"They can position themselves now so they are ready when everything recovers."
Meanwhile, it's "raining" real estate deals and cash flows are better as rental rates dropped due to more supply, he says. "People can cover all their expenses and realize a profit. They couldn't do that two years ago. The market was too hot." So, it is a good time to buy, he says. "But it's not a get-rich-quick scheme. You don't do that in real estate. You're looking at a five year window." Of the places to invest right now, Calgary is number one -- pushing Edmonton down to second place on Campbell's list, which he updates regularly. "It's on the radar. Everyone knows about Calgary," he says, noting that includes overseas, where he was recently speaking to investors in London, England.
"This city is one of the economic world leaders."
Watch for tips from Campbell's new book in next week's New Homes section