Toronto Investors Flock to Calgary Real Estate Market

October 4th, 2023

A look into why Toronto Investors are investing in Calgary Real Estate Market

In the competitive landscape of real estate investments, Toronto investors are increasingly turning their attention to the Calgary real estate market, and the reasons are compelling. Costas Kivelos, Founder of First Access Condos, sheds light on the stark differences between the two cities’ real estate scenes and why Calgary is emerging as the preferred destination.

Here’s the Reality:

Toronto’s Real Estate Landscape:

  • High prices with a “20% deposit” requirement.
  • Various fees and taxes, including “25% of purchase price” in development charges, taxes, levies, and land transfer tax.
  • Complex contracts spanning “50 to 60 pages” in length.
  • Closing costs amounting to “$50,000 to $60,000.”
  • Occupancy periods can extend up to “6 months or longer.”

In stark contrast, Calgary offers an appealing alternative for Toronto investors:

Calgary’s Appealing Alternatives:

  • Unit prices in Calgary are “less than two times that of Toronto,” averaging “45% of unit prices.”
  • Initial deposit is a modest “10%,” and investors can “pull out equity” during construction to reach the required “20% for an investment mortgage.”
  • No “land transfer tax, provincial sales tax, and development charges,” resulting in substantial savings of approximately “$4 million.”

Beyond the financial advantages, Calgary’s real estate market stands out for its simplicity:

Investment in Calgary Real Estate Market:

  • Pre-construction contracts are “simple” without hidden fees.
  • Developers address housing shortages by offering “guaranteed rent.”
  • A quick and pain-free “occupancy period.”

Calgary’s investor-friendly environment becomes apparent with guaranteed rent and minimal closing costs:

Calgary’s Investor-Friendly Environment:

  • Guaranteed rent is provided due to “massive housing shortage.”
  • Minimal closing costs, limited to “legal fees.”

“Calgary has become the world’s number three and Canada’s first most livable City. Wrap your heads around that – it’s not Toronto, it’s not Vancouver – it’s Calgary. It is really a big destination point for quality of life.” – Costas Kivelos

To recap, Calgary’s real estate market offers an affordable and transparent investment environment for Toronto investors. With the potential for growth and profitability driven by the city’s housing demand and investor-friendly policies, Calgary proves to be a lucrative haven for those seeking a more favorable real estate landscape than their hometown.

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