I’m excited to share the story of my recent sale of not one, but two properties to a Toronto-based investor. The properties, including #208 and #104, 4316 139th Ave NW, Edmonton, are part of this investor’s strategic decision to capitalize on the unique advantages of Alberta’s real estate market. Here’s why Edmonton, and Alberta more broadly, has become a magnet for out-of-province investors.
1. Affordability: More Value for Less
One of the biggest draws for the Toronto investor was Edmonton’s affordability. Here’s a quick comparison:
Edmonton’s Average Home Price (2023): Around $400,000
Toronto’s Average Home Price (2023): Over $1 million
By purchasing two properties in Edmonton for less than the cost of a single property in Toronto, this investor was able to maximize their capital and diversify their portfolio more effectively.
2. Market Stability: Less Risk, More Reward
Alberta’s real estate market, especially Edmonton, has demonstrated stable growth, avoiding the rapid fluctuations seen in markets like Toronto and Vancouver:
Average Price Growth (Edmonton): 2-4% annually over the past 5 years
Toronto/Vancouver: Subject to larger fluctuations and market volatility.
For my client, the consistent performance of Edmonton’s market was a major factor in the decision to buy here. Investing in two properties meant securing a foothold in a stable, reliable market for long-term growth.
3. Rental Demand: A Booming Market
Edmonton’s growing economy and population create a strong demand for rental properties, making it ideal for investors:
Population Growth: Forecast to increase by 25% over the next decade.
Vacancy Rate: Approximately 4.7%, indicating strong demand for rental housing.
Both properties are set to generate solid rental income, and my client was confident in their decision knowing that the rental market remains robust.
4. Landlord-Friendly Policies: A Huge Plus
Alberta’s landlord-friendly regulations also played a key role in the investor’s decision to purchase two properties. Here are a few advantages:
No Rent Control: Giving landlords flexibility to adjust rents according to market demand.
Simplified Eviction Process: Alberta’s Residential Tenancies Act ensures a fair and efficient process for evictions.
This is a significant benefit for out-of-province investors used to stricter regulations in places like Ontario, where rent control can limit profitability.
5. Lower Costs and Taxes
In addition to property affordability, Alberta offers lower taxes and transaction costs compared to Ontario:
Property Taxes (Edmonton): About 0.8-1% of property value (lower than Toronto’s 1.5-2%).
No Land Transfer Tax: Unlike Ontario and BC, Alberta does not charge a land transfer tax, reducing the cost of acquisition.
These cost savings made it easier for my client to purchase two properties, maximizing their return on investment from day one.
Conclusion: Doubling Down on Edmonton’s Potential
For this Toronto investor, purchasing two properties in Edmonton was a smart, calculated decision that offered significant advantages: affordability, market stability, strong rental demand, and lower taxes. Alberta’s real estate market continues to be an attractive option for investors looking to diversify without the risk and high costs of other Canadian markets.
If you’re an investor considering Alberta, now is the time to explore opportunities in cities like Edmonton and Calgary. I’d love to help you find the perfect investment that meets your goals.
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Interested in learning more about Alberta’s real estate market? Whether you’re looking for one property or multiple investments, reach out today, and let’s find the right opportunities for you.