Place 10 | ?m | 47s | Centron | Gibbs Gage

Sky of Blue

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I have been crunching numbers for rent vs buying and I would say the rents are not covering the costs. Not when factoring in carrying costs, condo fees/maintenance/insurance, property tax, and property value is likely to decline instead of appreciate going forwards for likely many years. I’d say the average rental owner is having to subsidize on top of the rent. Even if I buy cash to remove carrying costs, I still lose the interest/dividends the money makes invested, so I have to factor that is as a cost. A purpose built rental building would stand a better chance of being profitable.
 
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Cowtown

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I have been crunching numbers for rent vs buying and I would say the rents are not covering the costs. Not when factoring in carrying costs, condo fees/maintenance/insurance, property tax, and property value is likely to decline instead of appreciate going forwards for likely many years. I’d say the average rental owner is having to subsidize on top of the rent. Even if I buy cash to remove carrying costs, I still lose the interest/dividends the money makes invested, so I have to factor that is as a cost. A purpose built rental building would stand a better chance of being profitable.
I don't think the property value is likely to decline on a condo building over a long period. My prediction is they'll stay stagnant for a while, but will go back up again. Will it go up like it did in the early 2000's? Probably not, but they'll go up again.

I agree that a purpose built rental building will be more likely to be profitable. They wouldn't be building them by the dozens if there wasn't some kind of pay back. Purchasing a condo and renting it out is a tough investment right now, no question.
 

Tarsus

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I guess that explains why rental towers are going gangbusters. I'm glad to see more rental units go up, Calgary is way most cities when it comes to rental stock, time for a bit of catch up.
fwiw newer purpose rentals are doing well actually. we have seen average go over $2 a foot. Incentives have started to be removed by landlords, so that is a positive.
 

Surrealplaces

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There's no recent DP, but @Bertie Wooster mentioned that they were looking to start soon. They have already submitted a DP and it isn't on the DP map yet. Either way, it's good to see some activity on site.
 

Rollerstud98

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Right around this time last year when we had activity on this site as well. Could just be some winter maintenance again, tis the season!
 

MichaelS

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How is that possible with no DP submitted? It would be a miracle to get it approved in anything less than 3 months. Can they build on the old office DP, and switch halfway through?
 

Surrealplaces

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I was wondering the same thing. It's a ways back, but I kind of remember them submitting a permit to change to residential about 5 years ago.....then again do the permits have a time limit? I thought it was 3 years.
 

Patrick.1980

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I would be happy even to see the podium done, but getting a couple of towers on top will be a bonus. It's nice thinking about all the retail and residential that has gone into an area that was devoid of life.
 

Atticus

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Adding 6th and Tenth, and the two Marriott towers, and the 5th street cycle tracks has made a big difference to the feel of the area, especially the intersection at 10th ave and 5th street. It used to be homeless central, now it's plain busy. This will make things even better.
 

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