Investing in BC versus Alberta

[Carene]

Hi I live in West Vancouver and would prefer to buy my first property in BC. Comfort blankie? EYEBALL the tenants? But I KEEP hearing about Edmonton and Calgary as the best places to buy.

Has anyone compared eg Abbotsford or Squamish (is this viable at all?) to Alberta and have figures especially on cashflow?

I am a new member and Plowing my way through the Cd`s and going to sleep with Don- Imean with his voice- and REIN books and want to learn this as a new business properly - so am not THERE yet where I can compare areas- but I do want to start dreaming of a first purchase..

 

[RobMacdonald]

Hi Carene,

I think what you`ll find out, and probably hear from most investors, is that any area in the Top 10 of BC and Alberta will make sense, provided you can satisfy one major consideration. And that`s `property management`. Whether you buy locally or in Alberta, you`ve got to be able to find a source your trust to manage the property. Trust me, the wrong management strategy can send you running from real estate.

Of course, buying locally will allow you to visit the property and the tenant, and it may be some good experience on your first couple of purchases. Part of being able to "manage a manager", is understanding what they have to go through.

Best of luck!

 

[REINteam]

With BC you`ll find a few "extras"

1. Transfer tax - up front cost on any purchase you do in BC, not in AB
2. Rent rules - BC has rent control so you can only raise rents X%/Year (something like 2% right now) whereas AB does not, you can raise rents any amount once a year. So...if you buy a place in BC with tenants already it can be a pain to raise rents to market level (some hoops to jump through but it can be done).
3. In general BC is more `tenant friendly` compared to AB


Just a few off the top...and who knows what HST will do for BC next year (nothing good for investors).

With that said, we have many members that own in BC and do very well, just make sure you are aware of the issues.


Regards,

Ray Reuter
Real Estate Investment Network