First & Park | 75m | 18s | Graywood

A google serves three ads:
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The pitch:
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I can see how people with little history in the Calgary market would be taken in by the pitch. Heck, for a 10 year play, I could see it working out. As a diversification play, I can see the mindset too: values have far less distance to fall than in Toronto and Vancouver, and it is a hedge.
 
darwink said:
A google serves three ads:
View attachment 358624
The pitch:
View attachment 358625
View attachment 358627
View attachment 358629

I can see how people with little history in the Calgary market would be taken in by the pitch. Heck, for a 10 year play, I could see it working out. As a diversification play, I can see the mindset too: values have far less distance to fall than in Toronto and Vancouver, and it is a hedge.
Click to expand...

My point would be that history is only one thing to consider. There was zero price appreciation in Vancouver from 1993 to 2003. There was zero price appreciation in Toronto from 1989 to 2002. This investor pitch is rose-colored for sure, but 90% of their statements above are verifiable facts.

To me, the credible counterarguments to be skeptical about this as an investment property have nothing to do with how high condo prices in Calgary were in 2013, they are about the current market and the future outlook.

I would be concerned that there are a lot of purpose built rentals under construction, as has been pointed out, and that existing for-sale condo inventory is still pretty high. I would be concerned that the downtown office market is horrible, and that may affect the livability and desirability of downtown and near-downtown residential, unless the city pulls off a very uncertain transition to a more mixed-use downtown.
 
darwink said:
A google serves three ads:
View attachment 358624
The pitch:
View attachment 358625
View attachment 358627
View attachment 358629

I can see how people with little history in the Calgary market would be taken in by the pitch. Heck, for a 10 year play, I could see it working out. As a diversification play, I can see the mindset too: values have far less distance to fall than in Toronto and Vancouver, and it is a hedge.
Click to expand...


Laminate flooring is a feature? in Eau Claire?
 
Yeah someone mentioned a little while ago they had heard it was sold out. This seems to be confirmation. Another investor-driven condo start soon. That will make this the fifth major inner city condo to get underway since the oil crash. First was Annex, then Era and Theodore, then Nude, now this puppy. 🥳
 
zagox said:
My point would be that history is only one thing to consider. There was zero price appreciation in Vancouver from 1993 to 2003. There was zero price appreciation in Toronto from 1989 to 2002. This investor pitch is rose-colored for sure, but 90% of their statements above are verifiable facts.

To me, the credible counterarguments to be skeptical about this as an investment property have nothing to do with how high condo prices in Calgary were in 2013, they are about the current market and the future outlook.

I would be concerned that there are a lot of purpose built rentals under construction, as has been pointed out, and that existing for-sale condo inventory is still pretty high. I would be concerned that the downtown office market is horrible, and that may affect the livability and desirability of downtown and near-downtown residential, unless the city pulls off a very uncertain transition to a more mixed-use downtown.
Click to expand...
There was no price appreciation in Calgary from around 1981 to about 1997. Edmonton was even worse. 22 year old me bought an all concrete condo overlooking the river valley in Old Strathcona for under $50/sq ft in 1993. That condo had never been occupied and had been for sale since 1982. The original investor paid closer to $70/sq ft. Real estate prices do not always go up. What makes this cycle so frightening is that rates are so low that even small nominal changes will make huge differences in payments. Someone with a small down payment and mortgage at 3% will suffer immensely if the rate goes to 4.5%.
 
DougB said:
There was no price appreciation in Calgary from around 1981 to about 1997. Edmonton was even worse. 22 year old me bought an all concrete condo overlooking the river valley in Old Strathcona for under $50/sq ft in 1993. That condo had never been occupied and had been for sale since 1982. The original investor paid closer to $70/sq ft. Real estate prices do not always go up. What makes this cycle so frightening is that rates are so low that even small nominal changes will make huge differences in payments. Someone with a small down payment and mortgage at 3% will suffer immensely if the rate goes to 4.5%.
Click to expand...
The BoC enforcing artificially low interest rates while inflation pushes 5% is not reassuring, but raising them wouldn't fix the problem either. There's an extremely significant shortage of affordable housing supply.

The problem with the current condo supply is that they're still asking $400k, plus condo fees, property tax, and utilities. For that price, just get a mortgage and don't sink money into condo fees. If there were spacious urban condos for $250k with fees under $400, they'd be snatched up in a heartbeat
 
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