We all know the media thrives on dramatic and usually negative news topics. Real estate is a favorite punching that fills columns for writers. The last few years have provided no shortage of adverse real estate based headlines. News stories that talk about a massive real estate bubble, soon to be followed by catastrophic collapse leading to bank defaults. If you look hard enough, there is always someone more than willing to predict the exact date of the next financial catastrophe. The reality is real estate has created more millionaires than any other asset class. Yes, it has down years, as we have witnessed in Alberta over the last couple, but over time it slowly and methodically appreciates.
Right now, conditions are quietly looking more favorable for Alberta revenue property in 2018. The province is exiting a prolonged slump, due in part to oil and gas prices that tanked in 2014. Overall investor sentiment still favors the negative, but that negativity appears to have bottomed. The best time to buy an asset class is not when the news turns positive, it is when the story is shifting from “bad” to “less bad.” Oil prices have been edging upward over the last year, rental prices have stabilized, even the commercial real estate market is showing some signs of life most recently. Home prices relative to median income (the affordability index) are near long-term averages. These findings are all excellent indicators the market is now showing improved resilience.
With the ACL program, it is not necessary that the market increase dramatically. In fact, the program performs very well in a completely flat real estate market. Any rise in asset prices merely decreases risk while boosting returns. Through our exclusive, fully managed and hassle-free real estate opportunities, you too can passively benefit from Alberta’s economic recovery while avoiding the tedious job of being a landlord.