WOW 2021 is off to a roaring start with investor inquiries! We have a list of over 12 buyers most of them cash buyers in the Calgary Market looking for houses to buy, fix and sell. Flipping houses is not generally the go-to strategy for investors in a buyers market – everyone can flip a house when you have prices going in the up trend which is certainly not the case in Calgary.
There are pockets of the city that are just flying off the shelf that need work, how I feel there are a few reasons for this: first being the low interest rates and people that just want a larger place than a rental and they can now get into home ownership due to the lower interest rates.
Secondly, I think there are a lot of investors that are looking for deals due to the economic downturn in Alberta that has gripped the larger centers for a number of years now. Lastly, investors are looking to diversify out of an over heated stock market (and some have made a killing here in 2020 but savvy investors know what goes up must come down).
The top 3 reasons to invest in a flip project in Calgary right now are:
- Low interest rates – helps the buyers buy as well as the investors, also you can pull equity out of existing properties at a low cost of borrowing in this lending environment which increases your margins.
- Deferred maintenance properties will have a hard time getting a good price on the current market, we are advising all of our listing owners to do basic repairs/updates to get a quick sale for more money – however not all owners have the budget for that work these days and will be forced to sell for less.
- Buyer pool has been expanded by the lowered rate of the stress test, and work from home shifts have caused many buyers to want to have a proper space for the home office, and have a larger space for their family in general than a rental closer to the core due to remote work options.
There are many analysts that predict that over 30% of workers will remain working from home after the pandemic is over, now I know the co-working space owners will not want to hear/believe that but I would tend to agree with them. Also, live work animations to properties will be a large value add for properties to create real differentiated value.
Contact us for a discovery call to learn more about animation options for animation to property to drastically increase its value as a rental/owner user buyers alike.
To your success,