SEASONS CHANGING FOR INVESTORS
It happens every year! Yet somehow, those first few crisp mornings still take us by surprise. Here in Alberta the fall harvest is in full swing; it seems like the hay bales are everywhere! We’ve already seen snow on the mountains, creeping closer and closer to our yards and gardens. Ah, but the colours are magnificent this year!
The seasons are changing for real estate investors as well. Everything from interest rates, to government regulations, from inflationary prices to increased renter demands, are all changing the game. Wait, what?! Just when we thought we had it all figured out?
Even more disrupting, the game is changing differently in each area.
This is the key challenge for real estate investors. Especially when the banks have their head offices in Central Canada, and are likely biased towards what is happening in those provinces.
When the weather changes, we expect it at this time of year. As real estate investors, the Real Estate cycle has seasons too. Typically we think about Boom, Slump and Recovery (check out the book for more info: Secrets of the Canadian Real Estate Cycle, by Don Campbell, Kieran Trass, Greg Head and Christine Ruptash). Experienced investors expect the cycle to change. They simply adapt and work with the existing “weather.”
Yesterday, Statistics Canada released the recent GDP data from July: https://financialpost.com/news/economy/canada-gdp-economists-view. This article interviews several economists to see their opinions and predictions. Bottom line: Canada’s GDP grew 0.1% in July, technically growth. But most of the economists have a pessimistic view of the coming months – for Canada. There’s just one outlier that suggests Alberta (and probably Saskatchewan in our opinion) may buck the trend. Sorry, rodeo references are a casualty of living in Alberta!
We are adding socks, washing the mittens, and getting the shovels ready for the snow. But we are also excited about the real estate investing weather that is approaching for Calgary and Alberta. Jobs are already here, and more are coming. Businesses see value in cheaper land and lower taxes – they’re moving here too. “Alberta is calling” and that has resulted in both employers and employees moving into the region. We can’t take away the shivers that come with cold weather, or with higher interest rates! But we are preparing to thrive in the coming conditions. We are actually really excited about the opportunities that this winter will bring.
Curious? Connect with us any time to learn more @mtnedgedevelops.
