Great Investing Opportunities Across Calgary

The REITE Club - Real Estate Investing for Canadians

Do you want to achieve:

1. Increased affordability
2. Increased flexibility
3. Increased opportunity?

Our podcast guest this week, Natasha Phipps, Realtor and Real Estate Investor, is sharing the solution.

In this episode, you will learn:

1. How COVID has changed people’s perspectives on where they want to live, and the potential for moving to a more affordable location
2. The real estate market in Calgary, and how it is different from other markets in Canada
3. The opportunities for investors in multifamily properties in Calgary

“COVID taught, I think, us a lot of different things. And people are, well, first of all, realizing they can potentially work from anywhere. So that immediately gets people’s kind of like thoughts going, right?

Natasha Phipps is a realtor and investor based in Calgary, Alberta. She has over 10 years of experience in the real estate industry and specializes in helping investors find turnkey properties that offer a good return on investment.

Reach out to Natasha:
Website: https://phippsgroup.ca/
Email: [e-mail]
Facebook: https://www.facebook.com/calgarybuyandsellrealestate/
Instagram: https://www.instagram.com/natashaphippsrealtor/
https://www.instagram.com/phippsrealestategroup/

Resources:
Please check out all our podcast episodes https://thereiteclub.com/podcast/
Loved this episode? Please leave us a review and rating.

This episode has been brought to you in part by:
Black Jack Contracting Inc – https://blackjackcontractinginc.ca/

BM Select/Butler Mortgage – https://bmselect.ca/

The REITE Club podcast – for sponsor slots contact Katherine at [e-mail]

Chapter Summaries:
[00:00:00] – This week’s, host shares some tips on how to customize your life for Calgary. People tend to be looking mostly for buy and hold opportunities. Many of the investors they work with are not here locally.

[00:02:54] – Natasha is back on the show. Last time Natasha was on, it was around a year ago. Natasha has been attending live conferences. In Calgary, where there’s a lot of newcomers and new industry and businesses popping up here. Natasha talks to people from Ontario almost every day.

[00:04:28] – In the last year. A lot of people were interested in moving. People are seeking affordability and a different lifestyle. In Calgary, the benchmark price had only come down a few thousand dollars. The number of sales is down over last year. But the prices are holding steady. By Christmas, the market will be more balanced.

[00:07:58] – In Calgary, investors are looking for buy-and-hold opportunities. The downtown and inner city sector is starting to recover. The city is pushing for more density in suburban markets. In the last year, the downtown condominium market has started to appreciate. In Calgary, preconstruction condos are not recommended.

[00:12:58] – Natasha bought a 21-unit apartment building in Mission, a trendy, vibrant, inner city community. She also bought a two-year-old two-story multifamily building in Talgreen that was under foreclosure this spring.

[00:14:41] – In Alberta, landlords can raise their rents once per year as much as the market will bear. In Ontario they need to give 90 days notice of rental increase. Unless you’re rent controlled, anything after November 15, 2018 is not subject to control. Alberta is more landlord friendly.

[00:18:11] – In multifamily and commercial, your property valuation is based off of how the business performs in a residential home. When you go to refinance or get an appraisal done, they’re just going to look at the comps in the area. In multifamily, you have the ability to change or even your loan to value.

[00:21:53] – There are a lot of costs and fees associated with investing in multifamily in Alberta and in Calgary. Investors should be aware of all the fees and be ready to go kind of upfront in terms of Calgary, in particular in the multi-family space and what you need to watch out for in terms of location. I dive into the community’s demographics and the ratio between homeowners and tenants. I want to stand out.

[00:23:26] – There is a lot of interest in short-term rental properties like Airbnb. Calgary does not have any legislation on Airbnb, so investors are pivoting to that right now. The main thing is to be careful with the buildings. There are probably only half a dozen condo buildings in downtown Calgary that are friendly with Airbnb.

[00:25:12] – Canmore is a good market for kids, but it’s expensive. BMB invested in a couple of purpose-built short-term rentals in Canmore this year. It’s important to work with someone like BMB that is local and understands the local market.

[00:28:43] – In and around Calgary. We have erdrey Cochrane. Okatokes. High river within 30 to 40 minutes of Calgary. I have a referral partner for Canmore, someone in our brokerage who lives in Canmore and is an investor himself. Edmonton is several hours away from Calgary, and I’m not an expert there.

[00:29:51] – As interest rates go up, buyers are going to have to look for more affordable options. Long-term buy and hold, short-term rentals, condos and townhouses are all going to fare well in the long-term. The appreciation recovery in the detached market is going to trickle down to higher density property types.

[00:32:19] – Calgary Legalized Secondary suites in March 2018. The deadline for cleaning up basement suites is ending in December 2023. Carriage houses fall into the same category as secondary suites. A builder is building a couple of these from scratch in Calgary. Now, garden suites and carriage houses are going to be the next thing investors are looking to do in Calgary.

[00:35:12] – The best advice from another investor is to only work with people that you genuinely like. Calgary economic development website is her most used resource for Calgary particular staff. she likes the data and the numbers, and she uses it most for Calgary real estate investing.

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