As oil prices drop due to increased production and reduced global demand (I filled up for 98.9 at Costco this week), I’ve heard rumblings from people fearful of property values plummeting along with the price of crude. It’s not a foolish worry: Calgary’s market fluctuations have often risen and fallen along with our province’s energy economy, as one would logically expect. Not this time, however, at least, not yet.

The Globe and Mail ran an excellent breakdown in early October describing Calgary’s continually strong market growth, as the median house price rose to nearly $490,000 in September, up $10,000 from the month previous. According to PricewaterhouseCoopers and the Urban Land Institute, Calgary and Edmonton are the top markets in Canada for real estate investors. The survey quoted by the Herald notes the increasing numbers of young adults moving to Alberta for employment are helping drive condo sales as they enter the market looking for urban dwellings; as they age, their housing needs will progress, too, meaning we will likely see a very healthy market for a decade or more.

While increased prices aren’t necessarily music to the ears of those looking to buy their first property, they speak to the stability and robustness of the city’s market, making investment in Calgary real estate a sound decision in many cases (although your personal mileage may vary – I’m not offering personal financial advice here). Thinking of jumping in? Check out my Buyers Guide, then contact me to set the wheels in motion.

99 Bridlewood Common SW

What a great family home. Over 1800 developed square feet including the fully finished walk-out basement. Hardwood and tile on the main floor. Open kitchen with a breakfast bar, eating area and sliding patio doors to a 20’x10′ deck. South back yard. Jetted tub in one of three full baths. Large master bedroom with a full en suite. Its all here. Oh yeah, and don’t forget about the Garagemahal! It is rare to find such an impressive one; big, extra-sized double garage with a 10′ ceiling and a taller 8′ door; also insulated & drywalled, side-lit & top-lit, heated (radiant ceiling) and has a 40A pony panel.

To view more photos, floor plan, virtual tour and full listing details visit my web page.

# 13 722 4a St NE

2 storey apartment with in-suite laundry! Excellent location within walking distance to Downtown, restaurants, and shopping. This home features new carpet, tile, quality laminate flooring, updated kitchen and bathroom. Large living room/dining room combination with sliding doors to a balcony. Upper level feature two good sized bedrooms, laundry room, bath and an additional entrance to the home via the 3rd floor. Pride of ownership shows! Secure underground parking plus a security doors make for secure living. Great home, great value!

To view more photos, floor plan, virtual tour and full listing details visit my web page.

If you’re strapped for cash, is it more cost-effective to rent or to buy your home? This is the eternal question, amongst those who like to debate real estate strategy anyway, and I doubt I’ll solve it with a definitive answer here, but there are plenty of factors to consider when figuring out which method of putting a roof over your head is easier on the wallet.

Let’s start with renting. When you rent your place, your landlord is responsible for pretty much all the maintenance and upkeep; unless you decide to do something cosmetic on your own dime – paint the bathroom pink, for example – your rent covers anything and everything. Furnace conks out? Not your problem (other than being cold until it’s fixed). Roof is due for repair? The owner’s gotta pony up. Freak hailstorm rips off your siding? You get the idea. Add to this absolution from financial obligation the fact that you need only purchase tenant’s insurance covering the cost of your belongings – and not homeowner’s insurance that includes the property itself – and renting can appear to be a real bargain.

Of course, rental rates in Calgary are famously high, and rising. Mayor Nenshi actually used the ‘g’ word in describing some landlords’ policies in recent years. You’ll almost always pay significantly more in rent than you would on a mortgage each month.

So let’s look at homeownership. First off, you’ve got to pull together a down payment of at least 5 percent of the property’s value. So buying a $300,000 home would necessitate at least a $15,000 deposit – a fair stretch more than the first and last months’ rent needed to secure a rental property. Once you’ve bought, though, your monthly mortgage payments can look pretty sweet compared to rent. With a 4 percent fixed interest rate and a 25 year amortization, that $285,000 mortgage would require about $1500 per month in payments (maybe a little more when factoring in CMHC insurance – we aren’t being exact here); the average rental rate for a two-bedroom home in Calgary is about $1600. Consider that every payment you make on your home is building equity, as opposed to disappearing into a black hole, and the value of ownership becomes clearer.

Of course, as an owner you take on the financial responsibilities renters get to ignore: home maintenance is perpetual, homeowners’ insurance is more expensive (although its still pretty cheap), and property tax bills show up each year. There’s no getting around the fact that if you’re living paycheque to paycheque, you may be better off renting, at least until you can build up a nest egg.

If you can swing it at all, though, maybe by cutting expenses somewhere or picking up some extra hours, long-term home ownership definitely provides the greatest financial security. Each month you own more of your property, giving you equity that can be leaned upon in tough times or built up as part of a retirement strategy. Mortgage payments are not just checking off shelter on your list of necessities, they are also improving your financial future. Don’t like maintenance or yard work? Consider a condo, which can give you the financial leg up without the hassle of owning a lawn mower.

The decision to rent or to buy is deeply personal, revolving around your own individual circumstances and financial goals. If you’re interested in talking about your options with a professional, contact me today with no obligation.

One question I get asked from time to time is, “How do you get paid?”, and its a pretty good query. Some misinformed folks think a brokerage house provides a monthly salary, while others believe Realtors are paid from both the buyer and the seller of a property. Here’s how it all really goes down, in simplified terms:

Realtors work strictly on commission, payable at the close of a deal. That means the real estate agent who works to sell a home for three months, spending time and incurring costs, gets no money in return if the property doesn’t end up selling. That’s just a cost of doing business. The commission amount is negotiable, both in the total percentage and in the split between the listing and the selling agent. Traditionally in Calgary, for an average house, the commission works out to about 4 percent (7% of the first $100,000 + 3% of the balance) with half going to the seller’s agent and half to the buyer’s agent.

Some agents must also share their commission with their broker, meaning that an individual Realtor could end up with as little as a quarter of the commission on the sale as gross pay, depending on their broker agreement.

As Realtors, we are running a small business and as such have a laundry list of expenses that must be paid from the commissions: office space, technology updates, photography, home staging, advertising, MLS fees, and so on.  To be successful, then, an agent must maintain a good number of listings and clients at all times, offer the absolute best possible customer service, give back to the community, and maintain a rainy day fund.

Hopefully this is illuminating to those thinking of buying or selling with a Realtor: know that the agent won’t get paid until they deliver a result, and a lot of that money is spoken for well in advance of the cheque being cashed. Not that one can’t make a very good living as an excellent Realtor, but you certainly earn your pay.

123 Silvercreek Gr Nw

**OPEN HOUSE Sun Oct 05 1-4pm** Brand new listing. What a fantastic family home! This one has been in the family since new, and this is the first time it’s been offered for sale. Prime location on a quiet circle facing a central green space and steps away from walking paths in Silvercreek Park with trails to the Bowmount Natural Area. Houses seldom come up for sale here. South back yard with lots of mature trees. Pristine condition, well maintained throughout the years with upgrades along the way, including a sun room and upper balcony off the master bedroom, a cantilever in the dining room, basement development including another bathroom and a wet bar, newer windows and roof, and on, and on. This home has “good bones” with a wonderful floor plan. Recently painted inside and out; it is completely livable as-is, or a candidate for renovations.

To view more photos, floor plan and virtual tour visit my web page.

4203 Vauxhall Cr NW

Same owner last 30 years! Lovingly cared for and maintained. Renovated kitchen with maple cabinets and cork flooring. Refinished original oak hardwood. Upgraded electrical panel. Replaced windows and doors. Updated furnace. Basement was developed some time ago, and would function just fine until you’re ready to add your own personal touch. Bitumen torched roof. Extra large double detached garage with tall ceilings, overhead radiant heat and 220V circuits. Great location across the street from Varsity Acres School and close to public transportation and shopping.

To view more photos, floor plan and virtual tour visit my web page.

35 Royal Birch Pt NW

Welcome home! Enjoy sweeping valley and mountain views from this sought after and rarely available ridge location. Situated in a quiet location on a no-through-road, backing south onto the ravine, and just half a block from a pond and two blocks from the elementary school. Open-concept great room plan boasts a cook’s kitchen with granite counters, stainless steel appliances, a gas range, and a walk-in pantry. The basement is fully developed with lots of windows and a high ceiling. Knock-down stipple throughout. Large master bedroom and deluxe ensuite with a full sized shower with a rain head and body jets. The bonus room is massive, and the 10′ raised ceilings add to it’s grandeur. Out back, enjoy the views and landscaping from the the lush lawn, the deck, or one of two brick patios. There’s plenty of storage space available in the garage on the custom shelving. The new LRT station is a 15 minute walk or a 3 minute drive. Newer water heater & fridge. Brand new Samsung front-loading washer and dryer.

To view full listing details, more photos, floor plan and virtual tour visit my web page.

A short article in the latest edition of CREBNow points out that, with house prices continuing to increase each month (Calgary’s growing faster than anyone), it’s becoming more difficult for young families to follow the traditional middle-class progression of graduation-marriage-first home-family-bigger home. Starter homes are selling for far beyond what a dream home might have cost in our parents’ day and, especially when interest rates inevitably increase, it can be difficult to ‘move up’ without a big boost in salary.

So what to do about this? How about picking the right starter home so that it can grow with your family over several years rather than seeming poorly suited for your family situation after just a year or two. With the right planning and a little vision, you can find that ideal property and plan to develop it as your family grows.

When shopping for that first home, look for a solid, well built and well-kept property with potential. Can an unfinished basement be finished to add a third bedroom and play area? Is there space to build a garage with a loft for storage? How about knocking out a wall to increase the size of the kitchen, or adding a sunroom-style mudroom to the back entrance to hold winter coats and boots. These types of upgrades, while far from free, can be a lot more cost-effective than shopping for a new home with comparable amenities. And by smartly investing in your current property, you’re boosting the resale value and socking away equity for when you really are in a position to move.

Beyond the property itself, carefully consider your neighbourhood – and consult with a professional familiar with the demographics of the area. If you are starting a family, is the home you’re considering located in a family-friendly area, with respected day homes and preschools nearby, plenty of park space, and kids riding their bikes in the evenings? How about grocery stores and restaurants? Is the commute to work reasonable, with transit options? Is this a place you could see yourself calling home ten years from now?

The days of buying a home with the intention of moving up in a couple of years are, for many people, coming to a close. But with the right advice and some careful thought, stretching that first home’s usefulness can really put you ahead in the long run.

This coming weekend is the Calgary Home + Design show; if you plan on attending and would like 50 percent off your ticket price (who wouldn’t?), use this link and enter promo code SHOWWEEK on checkout. Enjoy the show!

28300 Highway #1

Property is a vacant piece within the Town of Chestermere limits consisting of 17.05 acres M/L at the south east corner of Rainbow Road and Trans Canada Highway #1. Ideally located for future commercial development with 1,308 feet of Trans Canada east bound highway exposure plus 568 feet on Rainbow Road with a view of the city and mountains to the west. This is a great property!

This is a Civil Enforcement sale under Part 7 of the Civil Enforcement Act in Alberta.

To view full listing details visit my web page.