Lacombe ranked sixth

Lacombe ranked sixth in province for investment

Town in top 10 for six straight years

Nov. 12, 2003

Globe Staff
Lacombe Globe

Lacombe is slowly climbing the ladder of residential real estate attraction.

The town has once again been ranked in the Real Estate Investment Network’s (REIN) top 10 places in Alberta in which to invest.

This year Lacombe tied with High River for sixth. Last year it was tied with Red Deer for seventh. There were 31 towns and cities included in the evaluation. Lacombe was seventh in 2001, eighth in 2000 and 1999 and seventh in 1998.

REIN research reports assess communities in terms of the rates of return available from residential real estate.

REIN’s latest report says Lacombe is ideally located along the booming Edmonton-Calgary corridor, only minutes from the industrial and commercial base of Red Deer, a short drive from some of the world’s largest petrochemical ‘value-added’ plants, and in a recreational playground that includes several small lakes and parklands.

It goes on to say that this combination of economic, employment and recreational amenities will continue to gain the attention of potential investors.

"The demand for real estate in Lacombe is rated as high, while the demand for rental properties is critical," REIN’s 37-page document says. "Currently there are only 273 official registered rental units in the town, with a 1.9 per cent vacancy rate. These vacancies show in mostly the older suites in the town, with the newer suites showing zero vacancy. The average rent for a two-bedroom suite is $561, but will continue to make dramatic steps upwards."

Eric Jerrard, Lacombe’s economic development officer, said in a prepared statement: "REIN’s research has identified several key reasons--including Lacombe’s growing employment base, its recreational opportunities and its friendly small-town atmosphere--for why Lacombe will be an increasingly attractive place to live, work and invest. We welcome this report because it helps to highlight what Lacombe has to offer."

Finishing ahead of Lacombe and High River in this year’s rankings were Edmonton in first place, followed by Devon, Sylvan Lake, Calgary, and Red Deer/Okotoks (tied for fifth place). Rounding out the rest of the top 10 were Cochrane, Grande Prairie, St. Albert and Fort McMurray.

But simply knowing the names of the top-ranking communities isn’t enough to guarantee success if you invest in real estate in one of those communities, the REIN report warns: "The key is to discover what types of real estate to invest in to achieve your specific goals, and what critical due diligence you must complete before you invest. It is imperative that you follow a proven investment system before you take action."

Using REIN’s investment system, its 760-plus members (mostly in Alberta, but also in British Columbia, Saskatchewan and Ontario) have acquired more than 6,600 residential real estate investment properties that are worth a cumulative $500 million, and growing.

"Since 1984, we have been studying the economic and demographic effects on the real estate in cities and towns across Canada," said REIN president Don Campbell in a prepared statement. "We have boiled all of the numbers down to three critical indicators called the ‘Booming Statistics.’ These three indicators, and their proper use, are described in detail in REIN’s Real Estate ACRE System Program. Over the years, we have used these indicators to discover the best towns to invest in for maximum return on investment."

To produce the "Top 10 Alberta Towns to Invest In" report each year, REIN researchers compile data from a variety of respected sources, including the Alberta government, Canada Mortgage and Housing Corporation, Statistics Canada, Conference Board of Canada, Alberta Real Estate Council, and representatives of specific municipalities.

Researchers also do extensive fieldwork. They travelled to 31 Alberta communities this year to interview local officials, assess local economies, inspect local housing inventory, and more.