Why a whopping 6,500 condo units are being built in Calgary right now – May 14, 2018
If you want to read this article in full for yourself you’ll want to consider clicking the link below:
http://www.cbc.ca/news/canada/calgary/calgary-condo-boom-downtown-to-suburbs-1.4655325
Well, being that the Toronto and Vancouver housing prices appear to nearing their peak, being that no developer in their right mind wants to go to Quebec the next best largest city is Calgary, Alberta. It’s odd to me the Canada’s most Conservative province isn’t more entrepreneurial, it’s a very strange thing to me that I can honestly say I don’t understand. According to the article above and you really have to think about this.
Developers are not building for today, but for future demand.
The above statement is something I’m going to leave on this blog for as long as I can, that is such a crazy statement. This is basically the same way the Chinese view things. Now matter how hard the Chinese government tries to build new cities, the people of China simply refuse to move. If you’re wondering why? It’s because there’s no market demand to move, people move to a new city for a very specific reason.
People used to move to detroit because there were a lot of jobs and therefore a lot of opportunities there. Unfortunately for Detroit most of the people that moved their didn’t understand what made Detroit so great in the first place. What made Detroit great was that at the time there were economic opportunities that weren’t available anywhere else, taxes were low and Detroit’s growth happened organically supply and demand. Ofcourse now because of taxes and regulations Detroit dissolved into a hell hole, but it’s growth was built on demand.
The reason behind real estate speculators going to Calgary is because Ontario and British Columbia are becoming increasingly more difficult to do business. The problem with Calgary currently, is how their economy is structured. Their economy is very dependent on oil and also their housing markets are pretty open. It sounds great on surface, it’s until you get to the cost of living issues that exist in Calgary that you realise why this city, why Alberta as whole struggles economically.
Because Calgarians aren’t s entereprenial as one would assume, they often get stuck with limited options in a vast amount of areas, which creates monopolies and outside entities using Calgarians for not think far ahead enough into the future. There are different sets of rental controls in Alberta.
There are no controls on the amount of rent increases in Alberta. Rent can only be increased if there has not been a rent increase within the previous 365 days or since the start of the tenancy, whichever is later.
In case you didn’t know this is what the hype is all about, this is what’s going to be used as the justification of the Calgary Condo boom. Any moron can see that real estate industry is behind this propaganda. Developers are not building for today, but for future demand. The Canadian economy is in some serious trouble, I don’t think Canadians truly understand how bad it’s getting.
Interesting times ahead.
