Owning an investment property is one of the easiest ways to build equity – that is if you find the right property. If you purchase in a city that has poor job growth, more supply than demand, or high operating costs, chances are you’ll struggle to generate a steady cash-flow which can put a damper on your future nest egg. The key to buying a successful income property is to first pick the right area.
With a booming economy, thriving job growth, and an increasing influx of new residents, Edmonton is an ideal city to consider when it comes to investing. If you’ve been on the fence wondering, “Should I invest in an income property in Edmonton?” The answer is yes!
Here we break down a few of the top reasons why.
Edmonton has become a popular place to live over the past few years. In fact, since 2011, the city has welcomed over 120,000 new residents! In addition to that, just last year, Edmonton became Canada’s second fastest growing city, ahead of Vancouver and even Toronto. If that’s not enough to get you excited, the city has also estimated that by 2044, it will have roughly the same population as Vancouver – over 2 million people.
So naturally, as the population continues to grow in Edmonton, urban developments will have to keep pace in order to accommodate future supply. And, with estimates of about 150,000 new housing units required by 2041 to meet those numbers, purchasing an investment property now will ensure you stay ahead of this curve before prices increase to meet that demand.
Thriving Job Growth
The 2017 Growth Monitoring Report also predicts that by 2044, the labour market in Edmonton is projected to grow by a whopping 909,000 jobs! This growth is expected in all sectors — not just in petrochemical, oil, and gas. In fact, there are many new jobs emerging in tech, healthcare, and finance which will continue to attract young, educated Canadians to this city.
Vibrant & Affordable City
Aside from having a stable and growing economy, Edmonton is also a very vibrant and affordable city. It houses a broad range of unique communities, it offers a low price-to-income ratio, and it has an abundance of stunning natural landscapes to explore and enjoy. Also, unlike other metros, the YEG is where city life blends well with the warm and inviting character of small-town living. So for those who are looking for a city that offers a mixture of excitement, safety, charm, and comfort – this city has it all!
One of the Youngest Cities in Canada
Fortunately, for investment property owners, Edmonton is home to six post-secondary institutions, including the University of Alberta and MacEwan University. So it’s no surprise that young professionals and students make up a majority of condo renters in the YEG. It’s also one of Canada’s youngest cities, with an average age ranking in the 30s. These factors combined make it an ideal place for renting an income property since you’ll never have to search long for suitable tenants.
Great Property Managers
It can take a lot of time and effort to run an income property. But thankfully, you can easily hire a property management company to take care of the property for you. Edmonton has a number of professional property managers that will run your entire rental operation so you can sit back, relax and enjoy that extra income, hassle-free.
An investment property has one purpose – to make you money. But the real money is made when you find a quality property to purchase that will appreciate over time. Fortunately, Edmonton has a number of high-quality developments for sale that are ideal investments for owners. The type of materials, construction, and finishes that are incorporated into property designs are what make all the difference between having a short-term investment, and a worth-while investment that will benefit you now and well into the future.
As you can see, Edmonton is the perfect place to invest in right now. So if you’re considering purchasing an income property in Edmonton this year, come by and visit our CX pop-up shop to learn how you can get into the market before everyone else catches on.