Oil and real estate markets rising together
Toronto, Vancouver and Montreal have traditionally been the top 3 cities for immigrants coming to Canada. Despite its extreme cold weather, Calgary is also becoming increasingly attractive for investors and new immigrants.
Calgary has also just jumped to third place, out of 172, in the Economist Intelligence Unit’s (EIU) annual ranking of the world’s most liveable cities.
Why are more investors and immigrants going to Calgary, Alberta? Here are 7 top reasons:
- Lowest tax rates and zero sales tax
Alberta is home to LOWEST tax rates in the Canada. There is NO HST as there is no provincial sales tax.
Niesh Dissan, a platinum agent at REMAX Wealth Builders Real Estate Brokerage, added that on the real estate side, there are NO Land Transfer Taxes, NO Development Charges, and NO Rent Control. “This makes Calgary one of the most attractive real estate investment destinations in the country.”
- Alberta immigration policy
Attracting immigrants to Alberta is a consistent Government policy that has increased the number of immigrants accepted to Canada and chosen to live in Alberta.
- Cheaper houses in Calgary
While Toronto and Vancouver have average house prices nearly $1 million, you can easily buy an apartment in Calgary for less than $250,000. This is an important consideration for immigrants.
- Government programs
The Alberta Government is expanding the programs and services that integrate immigrants and their families into daily life, so they can successfully live, work and learn in Alberta.
- Oil power and prospects
Alberta is one of the world’s largest oil producers with most of all produced oil currently being sold to JUST the United States and at relatively market low prices.
When the Trans Mountain Pipeline is eventually completed, oil can be exported to markets across the world and at much higher pricing. Growth and real estate boom tend to follow oil.
- Population growth
Alberta’s population is projected to grow by approximately 43% to 6.4 million people by the year 2046. Moreso, 4 out of 5 people will be living in the Calgary – Eglinton corridor which is poised for extremely high growth.
According to Rishabh Gandhi (@preconstructionguide), “economic and population growth are critical factors to take into consideration when investing in real estate. Strategic long term thinking translates to big profitability.”
- World’s 3rd best city to live in
Calgary has been in the top 10 before, but third spot is the highest ranking the city has reached, outshining Vancouver in fifth place and Toronto in eighth place.
With an overall score of 96.3, here is how the city fared in each category:
- Stability: 95
- Healthcare: 100
- Culture and Environment: 90
- Education: 100
- Infrastructure: 100
Mayor Jyoti Gondek in a recent statement said, “more Calgarians are telling the story of their city, and people are taking notice. Our climb in the rankings for Most Liveable City reflects the welcoming nature of our city, its affordability and the opportunity offered to entrepreneurs. We are exuding optimism and inviting people to join us in shaping our future.”
Will Calgarry house prices soon go up?
The next question by investors and immigrants is that will Calgarry house prices soon start climbing, and follow the Toronto and Vancouver examples?
Preconstruction condo prices in Toronto’s more desirable locations in Bayview, North York and Downtown are starting in the upper $600,000s for a 1 bedroom condo.
In Calgary, 2 and 3- bedroom preconstruction condos close to the lake or downtown can be scooped for $300-$400,000.
With the high interest rate, rising inflation and rattled investors, house prices in most Canadian cities have cooled down for now. How long it will last, is another question completely. And will Calgarry join the new hot housing market? That also remains to be seen.