CMHC - Calgary Report

[wgraham]

My take on the report:

[list type=decimal][*]Housing starts are rising! This means that there is market demand again and as predicted prices will follow![*]A lot of inventory in the Condo market but we are still not at the levels of 2004/2005. I still don`t think you want to be investing in this space.[*]Average home price is on the rise! If you are already in the market this is good news but if you are trying to get in I would say no time like the present. If values move up too much you will see us sell some of our assets and take some money off the table.After Vacancy rates sky rocketed in 2009 we are seeing that trend reverse. This is another good sign for investors. Rental increases will be on the horizon especially in the single family market where the majority of investors have been pushed out of.Job Growth and In-migration are back on positive trends upward. This is the foundation for all of the above remarks!Here is the link to the full report. Every savvy investor should be on top of these documents![/list type=decimal]

 

[Millions]

QUOTE (wgraham @ May 19 2010, 11:05 AM) My take on the report:

[list type=decimal][*]Housing starts are rising! This means that there is market demand again and as predicted prices will follow![*]A lot of inventory in the Condo market but we are still not at the levels of 2004/2005. I still don`t think you want to be investing in this space.[*]Average home price is on the rise! If you are already in the market this is good news but if you are trying to get in I would say no time like the present. If values move up too much you will see us sell some of our assets and take some money off the table.After Vacancy rates sky rocketed in 2009 we are seeing that trend reverse. This is another good sign for investors. Rental increases will be on the horizon especially in the single family market where the majority of investors have been pushed out of.Job Growth and In-migration are back on positive trends upward. This is the foundation for all of the above remarks!Here is the link to the full report. Every savvy investor should be on top of these documents![/list type=decimal]

question. For my condo in Killarney. Since I can`t seem to sell it I guess I have to hold and hope values go up once the train station is there in 2 years.

My rent in 2008 was 1475 and now is 1200 so I`m negative cash flow close to 400 mthly.

I have new tenants moving in June 1. Should I get them on a year lease or do it monthly so that in 6 mths time I can find new tenants at a higher rent?

Or maybe continu to look for a rto.

I`m essentially paying the principal paydown but with little salary. It`s not the best but is doable

any thougts?

 

[DaveRhydderch]

QUOTE (Millions @ May 19 2010, 03:42 PM) question. For my condo in Killarney. Since I can`t seem to sell it I guess I have to hold and hope values go up once the train station is there in 2 years.

My rent in 2008 was 1475 and now is 1200 so I`m negative cash flow close to 400 mthly.

I have new tenants moving in June 1. Should I get them on a year lease or do it monthly so that in 6 mths time I can find new tenants at a higher rent?

Or maybe continu to look for a rto.

I`m essentially paying the principal paydown but with little salary. It`s not the best but is doable

any thougts?

In the report it mentions rents won`t increase until 2011. Even then its go to be slow and steady. I don`t think its worth your time to try and find new tenants in the dead of winter. Wait till next June and maybe you can increase then.