Un-sophisticated investors follow the herd ... or do whatever one else is doing. They buy when everyone else is buying, and they sell the sky seems to be falling ... and everyone is selling.
Sophisticated investors study the market fundamentals and use the "Real Estate Cycle" to their advantage. Key indicators for the savy investor include:
- In-migration. Is the net population growing?
- New Construction. Are there new projects being built? Are there major projects on the horizon?
- Vacancy Rates. Are they low?
- Employment Rates. Are there lots of jobs?
- Cost of living - is there disposable income?
In Calgary, the media is reporting that "the sky is falling'. There are many listings - and many motivated sellers. Realtors are not busy!
What are the econmic fundamental indicators?
- Population is growing
- vacancy rates are well below 5%
- We are expected to have no less than 250,000 UNFILLED jobs by 2012
- Alberta is a pro business province with the lowest taxes in the country;
- Capital projects and investment into Northern Alberta is well over $80 Billion. This money funnels through Calgary
Do you think there is an opportunity to invest in Alberta Real Estate?
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