Tuesday 21 June 2011

Pertinent Info About The Condition Of The Alberta Real Estate Industry At Present

By Mike Johnson


To say that the financial crisis of the first decade of the 21st century has left the Alberta real estate industry untouched, would not be strictly true. What is clear, however, is that the property industry in this province is doing comparatively well when one looks at other areas. There are quite a number of reasons for this.

To start off with, the economy of the area is comparatively strong. The province has prosperous cities such as Calgary and Edmonton. The oil and gas industry provide jobs to many people and the unemployment rate is lower than in many other provinces.

The area's infrastructure is well developed. There are many top class schools and universities. Public amenities such as roads and parks are well cared for. This has led to Alberta being on the top of many people's list when it comes to a place to work and live. The province has not surprisingly therefore enjoyed a substantial population growth over the past two decades.

This influx of people has ensured a steady growth in the demand for properties. The trend is likely to continue into the foreseeable future. The demand for high end properties has always been strong and the economic recession has created a growing demand for affordable family housing.

Prairie, Calgary, Edmonton, Strathcona County, Red Deer and Sturgeon County in particular enjoy a steady demand for housing. This makes sense, since these area are the main industrial and commercial centers of the province. Particularly Grande Prairie has enjoyed a strong growth in the demand for houses and apartments during the past number of years. The demand in Edmonton for affordable housing has always been strong due to the oil and gas industry which employ many people living there.

It's still possible for a savvy investor to purchase a house or apartment in Alberta and cover the monthly bond repayment from the rent. Such positive cash flow properties are getting increasingly rare, however. Probably the only place where you will still find a property like this is in Edmonton. In the majority of the other cities you'll have to part with a substantial deposit if you want the rent to cover the bond repayments.

For the streetwise investor the Alberta real estate market has never offered more opportunities than right now. An investor of today can really put to practice the old saying of 'buy low and sell high'. The current market offers investors the perfect opportunity to buy prime properties at affordable prices. Many of these investments will no doubt provide excellent returns in the years to come.




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