|
Only No. 10? Real Estate Investors Rank Alberta Cities Nov. 7, 2003 Alexandria Collins Fort McMurray is only the 10th-best Alberta community in which to buy real estate, according to the Alberta Real Estate Investment Network (REIN). And that comes as a big surprise to Greg Walsh, president of the Fort McMurray real estate board. "We're in a really strong market (in Fort McMurray)," Walsh said. "There is a continually strong flow of renters. The vacancy rate here is very low." The survey, conducted by researchers sent into 31 communities, rates the communities based on capital gain and after-inflation value of real estate, Jeff Adams, spokesperson for REIN told Today. In previous years, the oilsands city has ranked as high as second place. Adams said Fort McMurray didn't rank as high this year because the value of purchasing real estate is continuing to rise, but the price investors can charge to rent the property is standing still. Ranking 10th out of 31 still tells investors "there's money to be made in Fort McMurray," Adams said. Walsh agreed. "(Fort McMurray) is still a good place to invest," Walsh said. At the beginning of the year, the average single family home cost $248,000. Now the average price is $276,500 – and the year isn't even over yet, he said. "Vacancy is so low here – that's really why I can't understand how (REIN) came up with these numbers," Walsh added. The investment market is good in Fort McMurray right now, Walsh said, "and it's only going to get better if the market stays on the same course." If Canadian Natural Resources Limited approves its Horizon Project next year and if Shell's Jackpine mine goes ahead, the market for investors will only get better, Walsh explained. "If (the projects) get the approval to go ahead – it's going to be a huge incentive for investors," he said. Walsh speculated the price of average single-family home could skyrocket to around $300,000. "Many people can't afford that," he said. "People would have to rent – creating a very good situation for investors." Walsh compared the future of real estate investment in Fort McMurray to the popular 80s hit song by Timbuk2. "The future's so bright I've gotta wear shades," he said. In the seven years REIN has been producing similar surveys, Fort McMurray has ranked second, sixth and 10th. Other top-10 finishers include (in descending order) Edmonton, Devon, Sylvan Lake, Calgary, Red Deer/Okotoks (tied for fifth), Lacombe/High River (tied for sixth), Cochrane and St. Albert. REIN has been operating for more than 10 years and has approximately 500 of its more than 760 members are Albertan, said Adams. |
