PROS AND CONS OF INVESTING IN CONDOMINIUMS IN CALGARY
Investing in a condominium in Calgary as a rental property presents a range of advantages and challenges. Understanding the local market dynamics, regulatory environment, and property types is crucial for making an informed decision. Calgary Real Estate Wealth helps you make the right decision when buying a condominium
Pros of Investing in a Condominium in Calgary:
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Strong Rental Demand: Calgary has experienced significant population growth, leading to increased demand for rental properties. In 2024, the city saw a record population increase of 4.9%, intensifying the need for rental accommodations. CREW Property Leasing helps landlord in Calgary take advantage of this rental demand.
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Appreciation Potential: The city's housing market has shown robust performance. In January 2025, the average home price was $605,026, marking a 6.3% increase from the previous year.
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Affordability Compared to Other Major Cities: Calgary's housing remains more affordable than in cities like Toronto and Vancouver, making it an attractive option for investors seeking better value.
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Low Vacancy Rates: The rental market is tight, with vacancy rates decreasing from 2.7% in 2022 to 1.4% in 2023, and projected to further decline to 1.1% in 2024.
Cons of Investing in a Condominium in Calgary:
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Regulatory Requirements: Alberta's Condominium Property Act mandates that owners provide written notice to the condominium corporation before renting out their units. Additionally, corporations may require a rental deposit of up to $1,000 or one month's rent, whichever is greater.
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Market Volatility: While the market has been strong, economic factors such as fluctuations in the oil industry can impact housing demand and property values in Calgary.
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Condominium Fees: Owners are responsible for monthly condo fees, which cover maintenance and amenities. These fees can affect overall profitability and may increase over time.
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Tenant Compliance with Bylaws: Tenants must adhere to condominium bylaws, and any violations can lead to complications for the owner, including potential fines or legal issues.
Comparison: Apartment Condominiums vs. Townhouse Condominiums
When deciding between apartment-style and townhouse-style condominiums, consider the following:
Apartment Condominiums:
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Pros:
- Lower Purchase Price: Generally more affordable than townhouses, making them accessible entry points for investors.
- Amenities: Often come with shared facilities like gyms, pools, and security services, which can attract tenants.
- Maintenance: Exterior maintenance is typically handled by the condominium corporation.
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Cons:
- Space Constraints: May offer less living space, which could be a drawback for families.
- Privacy: Shared walls and common areas might lead to less privacy.
Townhouse Condominiums:
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Pros:
- More Living Space: Often provide multiple floors and private outdoor areas, appealing to families.
- Privacy: Fewer shared walls and private entrances enhance privacy.
- Higher Rental Income Potential: The additional space and features can justify higher rental rates.
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Cons:
- Higher Purchase Price: Typically more expensive than apartment units.
- Maintenance Responsibilities: While some exterior maintenance is covered, owners may be responsible for certain upkeep tasks.
Investing in a condominium in Calgary offers promising opportunities due to strong rental demand and market appreciation. However, it's essential to navigate regulatory requirements and assess the specific pros and cons of apartment versus townhouse condominiums to align with your investment goals.
If you have any questions about condo investing, Call us at 403-478-2923, email us at tim@calgaryrealestatewealth.com, or go to Calgary Real Estate Wealth.
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