I agree Tony. My investment condo has dropped in value from $250,000 I paid in 2014 to $120,000 now (based on listings in my building). If someone was to buy it and rent it out, it would be cashflow positive by around $700 a month.
Though, I do see another big drop over the next two years with the UCP cutting government jobs in Edmonton, and all the major projects wrapping up (eg. SE LRT, Stantec Tower, Augusta, etc). I wouldn't be surprised if our unemployment rate goes from 8.3% now to 11% or 12% in a couple years. I'll thinking probably another 15% drop in property values or so. I'm expecting resale condos will go from the current $199k to maybe $165 on average.
The condo I rent would have to drop 65% from it’s present value before it would be worthwhile to own vs rent. Older building, high condo fee etc. While some cheap condo’s may cash-flow lots of 275K plus condo’s are far from it and there are still lots of condo’s been built.Posted by Still employed in Alberta on Friday, February 7th, 2020 at 12:42am
The corona virus is weighing heavily on Edmonton property values. Oil dropped 20 percent in the last month in most part due to the Chinese not using as much oil Natural gas also got slam-dunked. It still costs 2 or 3 times more to rent a resale apartment or resale townhouse in Edmonton. That should put a floor on property values.Posted by Tony on Friday, February 7th, 2020 at 5:55am
That's scary which condo is that.....Posted by leslie on Saturday, February 8th, 2020 at 3:41am
I'm going to keep it under wraps, as there was a special assessment levied, and another one coming.
Not here trying to dump on Edmonton. Used to own a condo in Calgary, and I got were special assessment one after another. It was used by my son so he was close to U of C. Sold it back in 2014, break even. That was $300K, it was down to $200K 3 years ago, now who knows.
It used to be seller market in Calgary and Edmonton back then; now rent in Toronto Condo is up to $2500 for a single bed.