Calgary: It’s Not All About the Numbers

CALGARY:  IT’S NOT ALL ABOUT THE NUMBERS

This headline should freak out a few hard-core real estate investors!  Allow me to explain.

Computers have hardware products and software programs.  Jobs have hard or technical skills; but many employers also hire for soft skills like work ethic, emotional intelligence, ability to work with a team, etc….  Real estate investing is no different.

Real estate has hard numbers.  Each property has cashflow, or it doesn’t.  Each home makes a profit of 5%, 10% or 25% in a year – or it doesn’t.  But here’s the thing:  each property is a small business, and each business has clients.  For real estate investors, our clients are tenants, or homebuyers (for our exit strategies).

Savvy real estate investors use their numbers first.  But just like any other entrepreneur, we’re always thinking about our customers.  For example, not many investors will buy property beside a graveyard.  Why?  It doesn’t matter how rational those investment numbers are.  Tenants, homebuyers and even investors make irrational decisions, based on emotion, or even superstition.

Some Canadians will NEVER move to Calgary or Alberta in general because they believe we’re all a bunch of redneck, oil-loving, environment-hating anarchists.  They won’t even look at the investment numbers, rent prices, or house prices.

On the other hand, some Canadians will move to Calgary or Alberta purely based on the numbers.  These are our logical clients.  The numbers simply make sense for an investment, or for a family budget.

And some Canadians will move somewhere based on emotional factors and the “soft skills” that a place has to offer.  So what does Calgary have to offer?

1. No PST (provincial sales tax). It’s like groceries and everything else are on sale by 7%, 8%, even 10%, depending on where we live in other provinces.  In these inflationary times, that really matters.
2. 333 days of sunshine/year on average https://www.worldatlas.com/articles/the-sunniest-cities-in-canada.html.
3. Average age of 37. That’s a lot of young families and a great community for Gen Z and Millennials!
4. Consistently, Alberta has some of the highest weekly wages of the Canadian provinces (all 3 northern territories are higher). https://immigrationnewscanada.ca/average-weekly-earnings-in-all-canadian-provinces-new-data/
5. Rents and property prices can be as much as HALF of the prices seen in other cities and provinces.
6. 1-2 hour drive or bus to the Rocky Mountains for endless easy vacations.
7. Lowest corporate income tax rate in Canada (for small business owners this makes a significant difference to today’s bottom line)
8. Calgary is now the third most diverse city in Canada. https://www.lifeincalgary.ca/about-calgary/population
9. Currently ranked the 3^rd most liveable city in the world?!! https://www.cbc.ca/news/canada/calgary/calgary-third-most-liveable-city-world-economist-1.6499827
10. Quickly but quietly growing a significant tech hub in our country: https://www.livetechlovelife.com/

Real estate investors and our clients might be looking at Calgary and Alberta for the numbers, but they’re staying for a better quality of life.  Follow us @mtnedgedevelops to learn more about investing in and around the Calgary area.