Mainstreet Equity Corp. is on a buying rampage. The Alberta company has been continuing with a number of residential real estate transactions and has solidified itself as one of the nation's largest residential landlords. The company hasn't been paying any attention to the naysayers when it comes to Wild Rose Country's economic climate, and marching to its own drum has paid off.
In what otherwise has been a pretty bleak economic climate in Alberta, there have been some glimmers of hope. Real estate transactions in some sectors such as investments in the commercial and industrial areas, have provided the business-minded in Alberta with some light at the end of a dark tunnel. And the commercial sector just continues to gain momentum in urban areas like Edmonton and Calgary.
The real estate market will continue to have its challenges in the coming year. Real estate transactions in Canada have been affected not only by higher interest rates, but also be the additional mortgage stress test that potential purchasers have had to, and will continue to have to, pass moving into 2019. The Canadian Real Estate Association (CREA) says the tighter rules brought the market down to earth this year.
Real estate market developments in western Canada point to many likely positives in 2019. Condo buildings are going up in both Edmonton and Calgary and in other areas in the west and that points to increased real estate transactions despite a still relatively slow economy in Alberta. A Calgary builder is erecting a 19-storey condo building in the Beltline with an aim of enticing investors.
Home builders in Wild Rose Country say the industry is in a dire straits situation. Real estate transactions in Alberta are affected by a myriad of forces, including market fluctuations and supply and demand. Builders believe that the market is suffering from many uncertainties and the fact that more people are taken out of the market because the prices of homes are out of their reaches. With fewer builds come fewer construction jobs.
The Wild Rose Country has only received about 20 per cent of the cannabis it ordered because there seems to be a shortage of the herb. Since the legalization of marijuana on Oct. 17, many entrepreneurs have been wanting to get on the bandwagon to set up cannabis shops. But Alberta has put a stop to issuing store licences because there's nothing to sell, which is affecting commercial real estate transactions.
The future looks bright for the real estate market over the next few years. Analysts say Alberta has a sunny future where residential real estate transactions are concerned and things will really start to roll in the housing market come next year. A Canada Mortgage and Housing Corporation (CMHC) senior analyst said the market was left listless due to low investment levels and unemployment since 2015, but that is all changing.
Western Canada seems to be where it's at in terms of investment real estate. Two of the top five areas for investment real estate transactions are located in Alberta. Okotoks and Leduc round out the top five communities and are on the rise population-wise as well.
There are plenty of pros and cons to weigh for someone considering entering or re-entering the real estate market. For those who are looking at this as a purely financial decision, often this means comparing the overall cost of purchasing a property to how that same investment might perform if invested elsewhere. When doing this math, it is important that prospective buyers in Alberta consider the costs associated with real estate transactions outside of the sticker price of the home.
When transferring a large amount of money, it is important to be diligent. Many online criminals specialize in defrauding wire transfers, targeting real estate transactions due to the high amount of money exchanging hands. Here are a few things Alberta buyers can do to protect themselves from this growing threat.